MARKET UPDATE

India has done pretty well overall the first 3 months of 2014. But the year did not start all that
well. For the first one and a half months or so, the Stock market indices had a fall overall and
also the the rupee kept depreciating more often than not. The RBI policy review came on Jan 28
which increased the Repo and the Reverse Repo rate by 25 bps, while the CRR left unchanged.
Subsequently, the Interim budget was declared on February 17, which came up with a host of
changes. After this phase, the market began to do well with the influx of FIIs and also the CAD
coming down to only 2% of GDP as a result of a considerable dip in imports of Gold, silver as
well as oil. The FIIs pumped in a total 6 Billion during this phase in a space of one week. On
March 10 the Sensex hit an all-time high crossing the 22,000 mark and on the same day the
Rupee also reached a year high of 60.85. The Nifty followed the Sensex and itself reached an all
time high thenext day. The Inflation rate in mid-march reached a nine month low of 4.68

Various Market Statistics:

BSE Sensex (Dec 16 to Mar 14)

CPI Inflation rate (2014)

Movement of the Rupee (Jan-Mar 2014)

RBI Current Interest Rates (As on 16th March 2014) [Last RBI Policy Review: 28th
January 2014]

Rate

Value

Repo rate

8%

Reverse Repo rate:

7%

MSF

9%

CRR

4%

SLR

23 %

Bank rate

9%

BSE based Indices (16 Dec 14 Mar)

INDEX

16th December

14th March

Return (%)

S&P BSE Sensex

20659.52

21809.80

5.51

S&P BSE Midcap

6321.14

6656.18

5.32

S&P BSE Smallcap

6152.91

6627.68

7.71

S&P BSE 500

7572.01

7960.57

5.13

S&P BSE Auto

11949.54

12808.16

7.18

S&P BSE Bankex

12962.94

13756.15

6.11

S&P BSE FMCG

6369.51

6697.45

5.14

S&P BSE IT

8690.49

8940.05

2.87

Global Indices (Dec 16 Mar 14)

Country

Index

Dec 16, 2013

March 14, 2014

Return (%)

UK

FTSE

6522.20

6527.89

Japan

Nikkei

15152.91

14327.66

- 5.44

Germany

DAX

9163.56

9056.41

- 1.16

China

SSE Composite

2160.86

2004.34

- 7.24

USA

S&P 500

1786.54

1841.13

3.05

0.087

Some High & Lows and 2014:

Jan 02: IPO Fund raising via IPOs hit lowest level in 12 yrs during 2013
Indian companies mopped-up Rs 1,619 cr in 2013 through IPO, the lowest level in 12 yrs.
Jan 04: Sluggish start to 2014, BSE Sensex slumps to 2-week low
Sensex is expected to remain cautious over political developments leading up to general elections.
Jan 13: Indian rupee hits over 1-month high, gains in shares aid
The Indian rupee rose to its highest level in over a month on Monday, boosted by hefty gains in
domestic shares and after weaker-than-expected U.S. jobs data eased worries about an aggressive
reduction in the Federal Reserve's stimulus.
Jan 15: Inflation declines to 5-month low at 6.16 pc, RBI may ease interest rates to prop up growth
Wholesale inflation declined to a five-month low of 6.16 per cent in December, providing space to
the Reserve Bank to ease interest rates and prop up growth.
Jan 15: NSE Nifty ends one-month high, closes above 6,300
The 50-share Nifty hovered between a high of 6,325.20 and a low of 6,265.30 before settling at
6,320.90.
Jan 17: RBI to infuse Rs 10k cr liquidity into market on Wed via OMO
The Reserve Bank of India (RBI) will pump Rs 10,000 crore in the market on Wednesday by buying
government securities to ease the liquidity situation. RBI said the liquidity conditions are undergoing
some stress in the recent period, primarily due to build-up of cash balances on the government.

Jan 19: FIIs invest over Rs 16,000 cr in debt market

Overseas investors have pumped in over Rs 16,000 crore (USD 2.6 billion) in the Indian debt market in
the new year so far, after being net sellers of bonds in 2013.
Jan 20: MCX-SX exchange kicks off interest rate futures
The IRF contract traded is the 7.16 per cent 2023 bonds on Monday. Cash-settled interest rate
futures started trading in India's MCX Stock Exchange Ltd (MCX-SX).
Jan 22: GDP growth in India to slip to 4.8 pct in FY'14; to improve next year: Crisil
India's GDP growth rate in the current fiscal is expected to slide to 4.8 per cent and the prospects for
2014-15, which currently appear to be bright, hinge on the stability of the new government.
Jan 28: RBI policy review: 'Worried' Raghuram Rajan pulls surprise, raises repo rate 25 bps, CRR left
unchanged
The Reserve Bank of India in its policy review unexpectedly raised its policy interest rate on Tuesday by
25 basis points but said that if consumer price inflation eases as projected it does not foresee further
near-term tightening - Governor Raghuram Rajan leaves cash reserve ratio (CRR) unchanged at 4 pct
(read highlights below). Having raised repo rate, RBI Governor Raghuram Rajan said slowdown in
economy getting 'increasingly worrisome'.
Jan 28: Indian bonds fall after surprise RBI repo rate hike; outlook supportive
Jan 30: Investment limit for foreign investors raised to $10 billion
In a move to attract more long-term dollars into government bonds, the Reserve Bank of India (RBI) has
hiked the investment limit for foreign investors, such as sovereign wealth funds, pension funds and
foreign central banks, to $10 billion from $5 billion.
Feb 01: Forex reserves up marginally as RBI refrains from selling dollars
Forex reserves, as on January 24, were $292.24 billion, down $3.5 billion from a year ago, data from the
RBI showed.
Feb 03: RBI raises FII limit in Power Grid to 30%
RBI raised Foreign Institutional Investors' investment limit in Power Grid Corporation to 30 per cent.
Feb 04: NSE Nifty recovers from multi-month lows; holds on to 6,000 mark
After hitting multi-month lows in early trade, the NSE Nifty smartly recovered the lost ground.
Feb 08: RBI removes 26% cap on MFI interest rates
Feb 08: Last bond auction for FY14 ends on bright note
RBI sold three bonds, including the benchmark 10-year bond, for a total of Rs 10,000 crore.
Feb 09: Bitcoin gang inches towards 100-member mark, hits $13-bn value
Enhanced regulatory oversight in India and other countries seems to be having little impact on spread of
bitcoins and other virtual currencies, whose number is fast moving towards a century with a total
valuation of close to USD 13 billion.

Feb 17: Budget 2014

Govt to borrow 25p for every rupee in its kitty. Cars, two-wheelers, soaps set to be cheaper. P.
Chidambaram plans to boost financial markets, revamp ADR, GDR scheme. Govt cuts Plan spending by
Rs 79,000 cr for current fiscal.
Feb 11: India FY15 GDP to improve to 5.3% from 4.7% in FY14: Standard chartered bank
Feb 17: Govt to infuse Rs 11,200 cr in PSU banks in 2014-15
The government today said public sectorbanks should raise capital on their own in future.
Feb 17: Indian rupee rises to nearly 1-month high of 61.84, up nine paise vs US dollar
Sustained US dollar selling by exporters and positive stocks cues aided Indian rupee sentiment
Feb 18 : NSE to launch India VIX futures contracts from Feb 26
The NVIX contracts will be available in the existing futures and options segment on the NSE.
Feb 22: CAD to come down to 2 pct of GDP this fiscal: C. Rangarajan
Exports have picked up. Imports have come down not only in relation to gold but also in relation to oil.
Feb 23: Indian govt approves eight FDI proposals worth Rs 1,024 crore
Feb 28: India's April-January fiscal deficit touches $86 bn, 101.6 per cent of full year target
Mar 01: Q3 GDP at 4.7 pct, need 5.7 pct in Q4 to meet full year target of 4.9 pct. Infrastructure sector
slows to 1.6 pct in Jan
Mar 05: Current account deficit narrows sharply to $4.2 bn in Q3
Current account deficit had reached $5.2 bn, or 1.2 pct of GDP in July-Sept quarter last year.
Mar 07: Indian Rupee rallies to 3-month high, goes from worst performer to rising star
The worst-performing currency among emerging markets less than a year ago, the rupee has staged an
impressive comeback to become a much sought-after asset for foreign investors. The Indian currency
closed at a three-month high of 61.12 against the dollar, gaining 1.5% in just three sessions.
Mar 07: RBI raises FII purchase limit in Manappuram Finance to 49 pct
Mar 09: FIIs infuse Rs 3,000 crore in Indian equities in past week
Overseas investors pumped in over Rs 3,000 crore in the Indian stock market in the past week mainly on
hopes of a strong mandate for the government to be elected in polls starting next month.
Mar 10: Indian rupee ends at 7-month high of 60.85 vs US dollar on robust FII inflows
The Indian rupee appreciated 22 paise against the US dollar to end at an over seven-month high level.
FIIs have pumped in 6 Billion in a period of one week.
Mar 10: BSE Sensex hits all-time high of over 22,000 intra-day; HDFC Bank, L&T shares soar

BSE Sensex hits lifetime high of 22,024 pts and closed at yet another record of 21,935 pts
Mar 11: Emerging market funds see outflows of nearly $30 billion in 2014
Emerging market (EM) funds witnessed another $3.8 billion of outflows for the week ended March 5,
extending the outflow streak to 19 weeks and taking the aggregate outflows for this year to $29.4
billion.
Mar 11: NSE Nifty hits lifetime high of 6,562.85, BSE Sensex trading over 22,000-mark
NSE Nifty shot up by 0.39 per cent, to trade at an all-time high of 6,562.85
Mar 13: Banks feel NPA pinch: For every Indian rupee lent, 13 paise go bad
Mar 14: Inflation eases to 9-month low, RBI interest rates seen on hold for now
Inflation in India falls to nine-month low of 4.68 per cent in February due to easing prices
of kitchen staples like onion and potato, creating some headroom for RBI to cut interest rate in its
forthcoming monetary policy.
The food inflation, based on Wholesale Price Index (WPI), dropped to 8.12 per cent in February,
compared to 8.8 per cent in the previous month as the rate of price rise slowed in almost all items,
except fruits and milk.