A YEAR THAT STARTED with dashed hopes is ending with building expectations. The year 2020 was spoiled by the worst pandemic in a century and huge economic losses. Revival of equity markets in the second half was a pleasant surprise.
The year 2021 looks promising. The bulls are raring to go, reflecting expectations about Covid-19 vaccine launch, promising corporate earnings, accommodative monetary policy, flush of liquidity and 15 per cent Nifty returns seen in CY20. Investors are all strapped and set to ride the bulls, although with some caution. “2021 will be a year of recovery. We have already ridden the roller coaster. With government increasing spending and earnings of companies improving, we have added new clients. It’s time to get returns in the first half of this year than the second half,” says Rusmik Oza, Executive Vice President, Kotak Securities. During April-September, India added 63 lakh demat accounts as compared to 27.4 lakh in corresponding period last year, an increase of 130 per cent.
The FII Angle
Foreign investors have also pumped in huge liquidity into markets. Data shows that foreign institutional investors (FIIs) pumped in close to $23 billion in India in 2020. Analysts expect that $15-20 billion more will flow in 2021, making India a relative outperformer in comparison to other key emerging markets. South Korea and Taiwan, which posted stellar returns of 26 per cent and 18 per cent, respectively, saw equity outflows of $15-17 billion in March-November 2020. A more predictable and stable policy making under the Biden presidency in the US and weaker dollar due to higher fiscal spending and lower interest rates also augur well for FII inflows to emerging markets.
Denne historien er fra January 24, 2021-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra January 24, 2021-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS