P. Chidambaram in Budget 2014 speech says Indian stock markets performed better than emerging market peers

Written by PTI | New Delhi | Updated: Feb 17 2014, 20:54pm hrs
P chidambaramFM P. Chidambaram during presentation of Budget 2014 said that Indian capital market has emerged as one of the better performing markets in the world. (PTI)
Finance Minister P. Chidambaram presented the Interim Budget 2014 and highlighted in his speech that, helped by investor-friendly measures by the government and RBI, India's stock markets were among the better performing ones compared to peers in the emerging economies last year.

P. Chidambaram noted that the Indian capital market, in line with global trends, was affected by the expectation of market participants regarding the tapering of the monthly bond purchase programme of the US Federal Reserve.

However, he added that the investor-friendly measures taken by the government and the Reserve Bank gave a positive fillip to investor sentiment in the Indian market.

"As a result the Indian capital market has emerged as one of the better performing markets in the world in the year 2013, in comparisons to the other emerging markets," it added.

Besides, the Budget noted that Foreign Institutional Investors also reposed confidence in the Indian capital markets with investments of USD 12.13 billion.

FIIs added USD 20.10 billion in equities while they pulled out USD 7.97 billion from the debt market, resulting in total net flows of USD 12.13 billion.

"FIIs have also reposed their confidence in the Indian market manifested in positive net FII investment during the last four months of 2013, reversing the earlier trend of net outflow during the June-August period in the current year," the Budget noted.