With raise of almost 35% over the 12 months period from January 2014
to December 2014 in the S&P, BSE Sensex; the year has been
undoubtedly one of the good years for the Indian equity markets and in
2015 it is expected the growth spurt in coming year with more stability,
says ASSOCHAM paper on ‘Indian Capital Market outlook for 2015'.
There are various factors, domestic and international which are
extremely important and will determine the market trends for the coming
year like Global market movements; strengthening of US dollar (USD) as
well as Reserve Bank of India's (RBI's) action on interest rates and
visible improvement in corporate earnings at the domestic level. Also
overall positive shift in terms of Global markets will surely benefit
the Indian equities market too.
The primary market segment more specifically the IPO (Initial Public
Offering) is expected to have good movement in the year 2015 following
the good secondary market growth as well positive investor's sentiments.
The role of market regulator is also very important for the growth of a
nation's capital market. SEBI, lately as a proactive regulator, has
cracked down heavily on errants without any fear. Lots of actions have
been taken against large entities mobilizing illegal money as well as
and further serious investigations as well as stringent actions are
being taken cracking down entities involving into market manipulations
as well as black money mobilization into the capital markets. The
quantum of penalties too have been increased many folds.
The stricter regulated regime ensures investor confidence and will
improve in building the domestic capital market wherein the retail
investor had almost vanished in the past few years. Though a very
balanced approach is needed from the regulator so as not to shun away
the corporates and market intermediaries with unwarranted controls and
stringent provisions.
In addition to stricter regulatory regime, the new regulations like
SEBI (Foreign Portfolio Investors) Regulations 2014 (FPIs), SEBI (Real
Estate Investment Trusts) Regulations 2014 (REITs), and SEBI
(Infrastructure Investment Trusts) Regulations 2014 (InvIT) are few
more welcome steps. Though FPIs regulations were introduced in January
2014 itself and have resulted positive movement in the market, more
benefit may be expected in the year 2015.
Likewise the REITs and InvIT only got sanctioned in the later end of
the year 2014 and is expected to see more movement in the year 2015. In
addition to these, the SEBI regulations of Alternate Investment Funds
(AIFs) introduced in the year 2012 have also gained much momentum over
the past years with already almost 120 AIFs registered. The easy fund
raising tool from uncaptured HNIs will surely continue to attract
attention from the industry as well as investors (both foreign and
domestic) and have positive impact on the market.
On the whole, lots can be expected in the New Year from the Capital
market not only in terms of index movements and tradings but also in
terms of primary fund raising as well as new fund raising vehicles like
AIFs; REITs and InvITs. With stable polices, positive sentiments and
overall growth in the economy Capital Markets are also expected to
continue with their growth spurge.
In 2014 the mid-and small-cap indices have been even better performers
with the S&P BSE Mid-cap index gaining almost more than 50% and the
S&P BSE Small-cap index rising as high as around 70%.
The Securities & Exchange Board of India (the Capital Market
Regulator) in January 2014, came out with new Regulations i.e. SEBI
(Foreign Portfolio Investors) Regulations 2014, thereby clubbing
together the Foreign Institutional Investors (FIIs), Sub-Accounts and
Qualified Foreign Investors.
As per the statics available, foreign investors (FPIs) have invested
around $42 billion* in the Indian capital markets from January 2014 to
December 2014.
So as to the debt equity ratio; $26.4 billion have been invested into
the debt market and $16.40 billion were invested into the equities
markets.
The stable Government and investor friendly reforms and strong positive
sentiments can be attributed to the steep increase in the foreign
investments in the Capital Market.
During the Calendar year 2014 around RS.39, 127 Crore were raised in
the Public Equity market. In the funds so raised, the substantial
raising had been through QIPs with almost Rs.31,684 Crore being raised
from institutional investors(almost 81% of the total fund raised in the
Capital Market).
Offers for Sale through Stock Exchanges (OFS) dropped to merely Rs.
5,000 Crore in the calendar year as compared to the past year.
