Markets end turbulent FY14 crossing several frontiers

The rise follows a strong inflow of funds by the foreign institutional investors (FIIs), who pumped in a net of Rs 79,708 crore during the financial year, registering one of the highest tally since 1991. As per the data available with the BSE, FIIs invested a net of Rs 943 crore during the day. During March, FII inflow hit a 10-month high at Rs 20,077 crore, lifting the Sensex by 6 per cent in the month. In March 2013 the investment stood at Rs 6,897 crore. The second highest inflow in the month of March was in 2010 when the net inflow stood at 19,928 crore.

Dollars continued to flow into the equity markets even as the year witnessed sharp volatility in rupee and the stock markets remained choppy for major part of the year.

On Monday, the Sensex continued its rise for the fourth consecutive trading session and rose by 46 points or 0.2 per cent to close at the new high. The biggest gainers on Monday were the metal stocks as the sectoral index at BSE rose by 3.9 per cent. With a jump of 8.7 per cent, Hindalco emerged as the biggest gainer among the 30 Sensex stocks.

While the economic fundamentals around inflation, current account deficit and rupee have improved over the last month, market experts say that the sentiment in the market is more a result of growing confidence on a “decisive mandate” in the general elections.

“As is evident from various polls, the market is getting confident of a strong mandate in the upcoming elections which is improving the investor sentiment and leading into buying,” said Pankaj Pandey, head of research at ICICIdirect.com, adding that the economic fundamentals have not seen significant improvement that may have lifted sentiments in the market. The rise over the last one month has been more broadbased with all sectors with the exception of IT and pharma witnessing strong gains. While the last quarter result season set to kick in within 15 days, the market movement in April is expected to be more aligned to the performance of companies.

While the rise before the elections has been very sharp, experts feel that the rally can hold after poll results too. “Investors will wait till Budget to see the economic view of the new government and that may drive the markets further,” said Pandey.