The Year 2014, was an eventful year for India be it
Politics, Economics or Stock Markets.
A clean sweep victory of BJP led NDA government, where
the BJP itself won 31% vote share and 51.9% (282 seats) of all seats, making it
the first time since 1984 general elections that a party won a clear mandate to
form the government. On macro economic front, HSBC Manufacturing PMI has
significantly improved from 50.7 in December 2013 to 54.5 in December 2014
while the HSBC Services PMI has improved from 46.7 in December 2013 to 52.6 in
November 2014.
Inflation measures such as WPI & CPI has cooled
down drastically from 6.4% & 9.9% to 0% & 4.4% respectively. Core
inflation (WPI) has also come down from 3.3 in December 2013 to 2.2 in November
2014.
More importantly the food inflation which hovered
around double digits has come down from 13.7 in December 2013 to 0.63 in
November 2014, due to the base effect and timely government interventions.
GDP improved from 4.8% in 2QFY14 to 5.3% in 2QFY15.
The pro-reform government at the centre and
improvement in the macro economic conditions has spurred the rally in Indian
stock market, with both the broader Indices SENSEX and NIFY gaining 29.6% and
31% respectively, outperforming most of the major global indices.
Net FII’s inflows in 2014 stood at USD 1,620 crore,
while DII investments stood at USD 380 Crore. CNX Midcap & CNX Smallcap
indices gained 55.7% and 54.4% respectively and outperformed the broader
indices in 2014.
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