www.ramakrishnavadlamudi.blogspot.in 31 December 2013
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Real estate and public sector companies continue to be among the worst-performing sectors in 2013. The BSE Realty and PSU indices showed a negative growth of 32 and 19 percent respectively.
Returns and Volatility:
The Sensex return of 9 percent in 2013 does not reflect the volatility of stock markets in 2013. The benchmark index started the year with 19,510 and reached a peak of 20,328 (intra-day) on 17May2013. But due to fears of Fed tapering, steep fall of rupee against dollar, high current account deficit and policy-related paralysis in India; the index fell to an intra-day low of 17,922 on 27Aug2013. After the US Federal Reserve deferring the proposed tapering, Raghuram Rajan taking over the reins of Reserve Bank of India and return of FII portfolio inflows; the Indian stock markets recovered sharply with the Sensex reaching an intra-day high of 21,484 on 09Dec2013. By the end of December 2013, the index closed at 21,171. Between May and August 2013, the Sensex fell by 12 percent. But between September and December 2013, the benchmark index rose by 18 percent, giving some cheer to scary and wary investors. During 2013, the FIIs have brought in USD 20 billion to Indian equity markets.
Why the Difference between Sensex and Nifty Returns?
While Sensex recorded a gain of 9 percent, the Nifty rose by 6.8 percent only. The difference is due to the fact that Sensex consists of 30 companies, while the Nifty reflects prices of 50 blue chip companies. Moreover, at the start of 2013, Nifty was concentrated toward banks and financial companies. During July and August 2013, banking sector lost heavily—though banking stocks recovered in the last four months. For 2013, the BSE Bankex lost 9.4 percent—causing the difference between Sensex and Nifty returns.
BSE Market Capitalization:
Total Market Capitalisation of All BSE companies:
Rs Crore USD Billion USD-INR Dec.2007 71 69 985 1 818 39.41 Dec.2010 72 96 726 1 616 44.44 Dec.2013 70 44 258 1 125 61.80
Note: Figures are end of the month; USD-INR is US dollar-Indian rupee exchange rate
Some interesting facts come out when you look at the above table. The market cap of all BSE companies at the end of December 2007 was Rs 71.70 lakh crore, converted to USD 1,818 billlion. But the market cap slumped to USD 1,125 billion