Wednesday 1 January 2014

Part - 2 || New Year Resolution & Brief Note on Stock Market Year - 2014 Public · By Xpert Nifty

What are the major factor that took place in Year - 2013, which directly triggered to Stock Maket
  1. Rising Inflation
  2. Slow Down Growth
  3. Downgrading of Indian Currency INR
  4. Rising Essential Food Price
  5. Current Account Deficit ( CAD )
  6. Entry of Mr. Raghuram Rajan
  7. 5 State Election & Results
  8. Increase of Interest in Landing / Borrowing Rate
  9. Gold Import Condition
Last Year - 2013 was very much challenging time for government as many leading Finance House and expert's has lower down the Growth Projection.

Lets look at some of other Happening of the Year - 2013

Everything began well with the Finance Ministry's Economic Survey in February asserting that the growth rate during 2013-14 would improve to 6.1-6.7 per cent, from decade's low of 5 per cent recorded in the previous fiscal.

Growth rate during April-September slipped to 4.6 per cent from 5.3 per cent in the same period last fiscal, and it is doubtful that the full financial year would show an uptrend.
In a recent forecast, International Monetary Fund ( IMF ) lowered the growth projection to 3.75 per cent in 2013 from 5.7 per cent estimated earlier. It, however, forecast about 5 per cent in 2014.

Similarly, ADB lowered India's growth forecast for 2013-14 to 4.7 per cent from 6 per cent earlier. Like IMF, it too expects some improvement in the next fiscal and has projected a growth of 5.7 per cent. Other organizations have forecast a similar trend.

Prime Minister's Economic Advisory Council (PMEAC) had lowered the growth forecast to 5.3 per cent from 6.4 per cent. RBI had lowered the growth projection for 2013-14 to 5.5 per cent from its earlier estimate of 5.7 per cent.

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The declining value of the rupee and widening CAD were the other challenges the country faced this year. The domestic currency started depreciating after the US Federal Reserve announced in June that it could gradually cut down the bond purchases with the improvement in the outlook. The announcement sent the global stock and currency markets in a tizzy.

India was not left untouched. The rupee dipped to a historic low of 68.85 to a dollar in August. The BSE Sensex too bore the brunt. However, the efforts of the Finance Ministry as well as RBI, especially the new Governor Rajan, bore fruits and the rupee stabilised. The domestic currency has improved to around 62 to a dollar, while the BSE Sensex is trading above 21,000-mark.

CAD, which is the difference between the inflow and outflow of foreign currency, touched an all-time high of $88.2 billion or 4.8 per cent of the GDP in 2013-14.

 ------------------Continue in Part 3


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