Dun & Bradstreet India’s Leading BFSI Companies 2017

Domestic Securities Market

Current Scenario of Indian Securities Market FY16 was not a very good year for the global economy. The economic slowdown in China, the European crisis, weak global trade and prospects of an interest rate hike by the Federal Reserve led to risk concerns and volatility, thereby weighing down on economic growth. Consequently, emerging economies were impacted by these global cues. Likewise, the Indian equity markets also remained largely subdued during the year, having been influenced by reactions to weak quarterly earnings, falling crude prices and mounting non-performing assets (NPAs) of banks. In FY16, the primary securities market showed decent growth, as reflected in the healthy rise in resource mobilisation by the corporate sector. Resources raised via private placement of debt were at record levels during the year. Funds raised through preferential allotments doubled as compared y-o-y. IPOs that opened during the year also received an overwhelming response. On the other hand, the secondary markets - the equity and foreign exchangemarkets in particular - were most affected by global spill-overs and fluctuations in global financial asset prices and portfolio flows. The global commodity slump forced Foreign Institutional Investors (FIIs) to reduce exposure to emerging markets, resulting in the portfolio investments by FIIs reflecting net outflows for the first time since FY09. Nevertheless, India is still considered to be a bright spot among its emerging market peers, with the International Monetary Fund (IMF) and the World Bank having been appreciative of India’s growth story.

I. Primary Market Trends

Overall resource mobilisation by corporates rises by 20.8% in FY16 In FY16, the cumulative value of overall resource mobilisation by the Indian corporate sector (public & rights issues, QIP, preferential allotments and private placement of corporate debt all taken together) stood at ` 5,807.5 bn. This translates into a 20.8% growth as compared to a year ago. Resource mobilisation through public and rights issues more than doubles in FY16 During the year, 108 companies accessed the primary market and raised ` 581.7 bn via 95 public and 13 rights issues. The funds raised thus were more than twice the ` 192 bn raised in FY15 by 88 companies through 70 public and 18 rights issues in FY15.

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