javed fs ppt

7/29/2019 Javed Fs Ppt

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Latest Trends In

Indian

Securities

Market


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Click to edit Master subtitle style

3/3/13

Programmes

Trends In Indian

Securities Market


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1. Trends in primary Market

1. Trends In Secondary MarketI. Equity marketII. Debt Market

1. Trends in Mutual Funds

1. Trends in Derivatives Market

1. Trends in FIIs

Content


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There has been a decline in the capital marketindices and the market turnover. The reasons fordownward market movement are:v

Low FII inflows into the countryv Sharp depreciation of the rupee in the forex

marketv Uncertainty in the global environmentv Tight monetary policy .

Prospects of Indian economy


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During financial year 2011-12 resource mobilization through the primary marketwitnessed a sharp decline with only 30 new companies were listed at NSE and BSE asagainst 53 companies listed in 2010-11, and the mean IPO size decreased compared to2010. The amount of capital mobilized through private placement in corporate debt in2011-12 has reduced as compared to 2010-11.

Trends in Primary Market

Mode 2008-09 2009-10 2010-11 2011-12

Debt 1500 2500 9451 4791

Equity 2082 46 736 48 654 9683

IPO 2082 24 696 35559 5043

No. IPOs 21 39 53 30

Size of IPO 99 633 671 168

Privateplacement

173 281 212635 218785 188530

Total 176864 261871 276890 203005


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Primary market activities were subdued during 2011-2012.

Weak macroeconomic and investment environment

slackened expansion plans of corporates. Negative returns in previously listed IPOs and

declining trends in equity markets worsen thesituation.

Resource mobilization by company through IPOs andFPOs was substantially lower in 2011-2012 compareto previous year.

The year was dominated by non-convertible

debentures issues of public financials andinfrastructure institutions


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Resource Mobilization

During 2011-12 71 companies assessed primarymarket raised 48468 cr through public(55) andrights issues(16) as against 91 companies whichraised 67609cr in 2010-2011 through public(68)

and rights issue(23) .

The weak investment climate led to fall in thenumber of IPOs. There were 34 IPOs in 2011-12

as against 53 last year .

Amount raised through IPO was considerablylower at 5904 cr compare to 35559cr during

2010-11.


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Particulars 2010-2011 2011-2012

No. of issues Amount(cr) No. of issues Amount(cr)

Public issues 68 58105 55 46093

Equity 58 48654 35 10482

IPO 53 35559 34 5904

FPO 5 13095 1 4578

Publicissues(bonds)

10 9451 20 35611

Rights issues 23 9503 16 2375


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Sector- Wise Resource Mobilization

Sector 2010-2011 2011-2012


Public 14 38223 11 34175

Private 77 29385 60 14293

Total 91 67608 71 48468


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Size- Wise Resource Mobilization Large issues dominated primary market resource mobilization in

2011-12 as 89.7% of resource mobilization was through issues above500 crores.

There were 22 mega issues in 2011-12 as compare to 36 mega issuesin 2010-11.

Largest issues was debt issues of National Highway Authority Of India(10k cr).

Issue size 2010-2011 2011-2012


= 500 cr 26 57256 19 43453


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Industry-wise Resource Mobilization Banks/Financial institutions raised largest amount of resources during

2011-12. The share of banks/Financial institution was 43% of the total resource

mobilization

Industry 2010-2011 2011-2012


Banks/FIs 18 17248 11 20503

Constructions 3 2841 2 187

Chemicals 5 247 00 00

Engineering 5 1394 1 217


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Trends In SecondaryMarket

v Continued to decline in2011-12v Anti-inflationary monitory policy dampened the market

conditionsv

Even though equity market faced severe pressures during2011-12 it closed on positive note as market showed strongpick-up at the last quarter

v During the year SENSEX fell by 10.5% and NIFTY by 9.3%v Both touched the highest points on 6 april 2011 as SENSEX

closed on 19811 and NIFTY on 5944v Lowest point was on 20 Dec 2011as SENSEX fell to 17404

and NIFTY to 4531v During the period of 31 march 2012 to 31march 2011

SENSEX fell by 2014 points and NIFTY by 538 points

EQUITY MARKET


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Downturn in stock market was not confined to front lineindices. Majority of indices decline during 2011-12.

BSE 100 9.2%BSE 200 9.3%BSE 500 9.1%BSE Small Cap 18.9%S&P CNX 500 8.8%NIFTY Junior 4.1%

CNX Mid Cap 4.1%

Only few sectoral indices exhibited a positive return

The highest increase among sectoral indices was recorded byBSE FMCG (24.9%) followed by BSE Health care index (10%).

Among the sectoral indices of BSE declined was highest for BSEMetal index (29.2%).


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Turnover and Market Capitalizationin Stock Market

Turnover of all exchanges declined by 25.6% from4685034 cr to 3484381 cr.

BSE and NSE contributed for 99.8% of the turnover. Market capitalization I major indicator of size of thestock market.

Market capitalization of BSE declined by 9.1% to 6214941

cr in 2011-12 from 6839084 cr last year whereas marketcapitalization of NSE fell by 9% to 6096518 cr.


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Trends In The Bond Market

Corporate bond market:- During 2011-12 the total value of corporate bond trades at BSE rose by 25.9% to

49842 cr.

In NSE the value of trades for 2011-12 rose by 24% to 193435 cr

Government bonds :-

The share of G-sec in the traded value was 50.4% in 2011-12

The %age of treasury bills increased from 17.6% to 22.0% in 2011-12

year Govt. datedsecurities

Treasury bills PSU/Institutionalbonds

others

2009-10 58.2 16.5 15.4 10.0

2010-11 54.5 17.6 19.6 8.3

2011-12 50.5 22.0 19.6 8.0


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Gross mobilisation of resources by all MFs during 2011-12 was at 6819678cr. comparedto 8859515cr.of last year indicating a decline of 23%.AUM by all MFs decreased by 0.8% to 587216cr.

Private sector MFs dominated resource mobilisation.

Trends In Mutual Funds

Period GrossMobilisation

Redemption Net inflow Assets at theend of theperiod

2011-12 6819678 6841702 -22024 587217

2010-11 8859515 8908921 -49406 592250

2009-10 10019022 9935942 83080 631979


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q

In the equity derivative segment, the NSE witnessed adecrease in the total turnover while the BSE witnessed anincrease in the total turnover.

q The turnover at the Stock Exchanges in the currency

derivative segments increased by 7.33% during the year2011-12 as compared to 2010-11 and stood at Rs. 81,70,858crores.

q

Trading in interest rates futures on 91-day Government ofIndia (GOI) treasury bills (T-Bill) was introduced at the NSEon July 4, 2011. During 2011-12 (April-December), the NSEwitnessed a total turnover of Rs. 3959 crore in thissegment as compared to Rs. 62 crore in 2010-11.

Trends in Derivatives Market

Number of FIIs (actual) 2010 11 2011 12


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Number of FIIs (actual) 2010-11 2011-12

Number of FIIs (actual) 1722 1767

Number of Sub-accounts (actual) 5686 6278

Equity Market Activity (Rs crore)

Gross Buy 77565 442898

Gross Sell 6,61,444 4,43,112

Debt Market Activity (Rs crore)

Gross Buy 2,21,034 2,21,907

Gross Sell 1,84,717 1,91,319

Net 36,317 30,590

Net Total Activity (Rs crore) 1,46,438 30,376


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There has been a marginal growth in the number of FIIs andSub-accounts registered during the year 2011-12. The FIIs havebeen net sellers in the Indian equity and net buyers in the debtmarket activity during 2011-12 (April- December). Howeverthere is a decline of 79% in the amount invested in 2011-12.

Trends in Foreign InstitutionalInvestors (FIIs)

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