Indian stock market put up a good show this year, with the benchmark Sensex crossing 21,000 mark: ASSOCHAM

Despite slowing economy, spiraling inflation and uncertain global economic conditions, investors reaped rich dividends from stocks as their wealth jumped to more than Rs 70 lakh crore this year, according to the ASSOCHAM latest assessment.

The 30-share Sensex crossed 21,483 points in December while the key index has gained more than 1,653 points so far this year compared to its closing level of about 19,426 points in 2012, reveals the Associated Chamber of Commerce and Industry of India (ASSOCHAM).

The 50-share Nifty too gained significantly this year. The index reached as much as 6,415 points this month and has gained nearly 370 points in 2013 compared to closing levels of about 5,905 points last year, said Mr. D S Rawat Secretary General ASSOCHAM while releasing its paper.

Taking a look at market capitalisation, the overall value increased more than Rs 20,000 crore so far this year with the total valuation standing at nearly Rs 70 lakh crore, adds the ASSOCHAM paper.

Foreign investors continued to remain a key driver for the equities market even though the market witnessed wild swings occasionally amid continuing uncertainties over political developments and reforms activities, said Mr. Rawat.

Notwithstanding concerns about investment climate in the country, Foreign Institutional Investors (FIIs) put in at least 20 billion dollars so far this year. In 2012, these entities had pumped in more than USD 24 billion, highlights the ASSOCHAM paper.

This year overseas investors seemed to have preferred sectors such as pharmaceuticals, software and financial services, added Mr. Rawat.

There are more than 1,740 registered FIIs in the country while the number of registered sub-accounts stands at around 6,400, points out the paper.

In recent years, the highest overseas inflows into the stock market were witnessed back in 2010 when the amount of such money reached about USD 29 billion, added its paper.

With hopes of stable government and improved business climate, 2014 is expected to be a much better year for the market, further added Mr. Rawat.

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