The New Year offers great investment opportunities for retail
investors as the country's economy looks to emerge from a prolonged lean
phase. This is, therefore, time for investors to make smart decisions to reap the benefits of a reviving economy.
Apart from the two current favourites, IT and pharma, financial services, segments of automobile industry and companies associated with industrial capex will perform well in 2014, says Anand Rathi, Chairman, Anand Rathi Financial Services.
The Indian mutual fund industry is transforming, in terms of regulation,
primarily for the benefit of the investor. In 2014, funds will have the responsibility of finding opportunities in the current market as well as improving retail participation, says AMFI Chairman Sundeep Sikka.
Life insurance industry can leverage India's burgeoning population if the Union Budget exempts life insurance products from taxation, providing investors an incentive to buy life cover, says Life Insurance Council's V Manickam.
Rupee volatility was a major factor, with the currency's fall supporting exports. Chinese economic growth and its demand for agricultural commodities will be the other crucial factor in 2014, says ADMISI Commodities' Tushar Rathod.
Rupee will trade within a range of 60 and 65 over the next five-six months till the elections are over and the political outcome is known, says Anindya Banerjee, Senior Manager, Currency Derivatives, Kotak Securities.
Experts tell Money Today about their expectations from the various sectors. While business sentiment and policy reforms should pick up after the
general elections in 2014, the investment cycle may take time for any
FIIs have increased their stake in select stocks. Money Today analayses data over four quarters to see which stocks FIIs have been buying and selling in the last one year to give a hint about where to invest in 2014.
Asset management companies, or AMCs, buoyed by returns from their US
funds, are filing applications for funds that will invest in Japan and
Europe. The argument in favour of these funds is that they will allow investors to diversify globally.
Like many government schemes, while the intention was right, the
execution was not. The scheme has failed to bring retail investors to
the equity market in large numbers despite the promotion and awareness
campaigns launched by the government and mutual fund houses.
Sam Mahtani, Director, Emerging Market Equities, F&C Asset
Management, says the country's economic growth, the outlook for domestic interest rates
and results of the coming general elections are going to be the key
drivers of Indian equity markets next year.
A committee set up by the capital market regulator has proposed to
widen the definition of insiders by including public servant, employees
and their immediate relatives who are in possession of price-sensitive