it is indicative of a potential that is waiting to be harnessed. The persistence and the quantum of FII money that has flowed into Indian financial markets are impressive. According to data compiled from SEBI, FIIs have invested over one lakh crore rupees in the Indian stock market so far in 2013, which is suggestive that markets are poised for bigger up moves in 2014. Meanwhile, DIIs have been net sellers of over 9000 crore rupees in November, which is consistent with the trend of retail investors, whose decisions influence MFs, Insurance companies, liquidating at recent peaks. This also suggests that we could have more retail participation once newer peaks are seen. Further, with inflation remaining a persistent theme in the last one year, real savings have been difficult, and the launch of inflation indexed bonds could, possibly, influence the way investors approach several savings modes, especially with inflation priced in. This could also increase interest in bonds. Mergers and Acquisitions, which at around $28 billion in 2013 has been at the lowest level in three years. With improving macroeconomic fundamentals, year 2014 could see more such M&As. Investors who track such moves closely would be able to benefit from value-unlocking.
Anand James, Asst. General Manager, Geojit BNP Paribas Financial Services Ltd.
NOTE: The vies expressed are those of the author.