Indian stocks are relatively resilient despite volatility in the worldwide financial markets and the country can become a leading investment destination going ahead, the Economic Survey said on Friday.
"The (Indian) market has rebounded time and time again, and it is hoped that as the global financial markets settle down, India can become the leading investment destination because of its robust macroeconomic fundamentals," as per the 2015-16 report card of the state of the economy tabled by Finance Minister Arun Jaitley in Parliament on Friday.
"Despite volatility in global financial markets, the Indian equity market has been relatively resilient during this period compared to the other major emerging market economies," it added.
The Survey also said that the average borrowings by banks have increased significantly in the immediate aftermath of US fed rate hike, resulting in appreciation of the rupee.
However, subsequent to easing of liquidity conditions, the rupee started depreciating.
On trends witnessed in capital markets, the Survey said that during the fiscal 2015-16 till December the resource mobilisation through the public and right issues has surged rapidly as compared to the last financial year.
During this period, 71 companies raised Rs 51,311 crore (Rs 513.11 billion) from the capital market compared to Rs 11,581 crore (Rs 115.81 billion) during the corresponding period of 2014-15. Fund garnered by mutual funds also increased substantially to Rs 1,61,696 crore (Rs 1,616.96 billion) from Rs 87,942 crore (Rs 879.42 billion).
During 2015-16 so far, the Indian equity market has remained subdued. The BSE's benchmark Sensex declined by 8.5 per cent (till January 5, 2016) over March 2015, mainly on account of turmoil in global equity markets.
The net investment by Foreign Portfolio Investors in the Indian market was at Rs 63,663 crore (Rs 636.63 billion) in 2015 as compared to Rs 2,56,213 crore (Rs 2,562.13 billion) in 2014.
The Bull statue at the Bombay Stock Exchange. Photograph: Reuters
