An Investor’s Wishlist For 2014

The year 2013 is coming to an end, and before we know it, a brand new year will be upon us. New Year is the time for new hopes, resolutions and aspirations…. and wishlists. Speaking of the Indian equity markets, the indices are at crucial levels and all-round change is on the cards. Here are some top asks we see on the Indian investors’ list for 2014.

In the year gone by, the markets remained highly volatile as domestic factors created an atmosphere of uncertainty. All investors would surely wish to see this volatility temper down.

At the heart of this volatility is the government. Naturally, the second most important wish is for a change of leadership at the centre. It appears that the Congress party is not much of an investor, or its leaders would not have taken decisions that worked against the markets. Investors on the street are now expecting the Modi-led BJP government to win the 2014 General Elections. While this lies in the hands of the voters, what we at Dalal Street Investment Journal wish for is that the new government lives up to the expectations in the first 100 days of coming into power.

The third wish is for inflation to ease out. Prices of vegetables have remained higher for a fairly long period, and this has resulted in higher WPI and CPI. Food inflation, especially, has remained consistently in the double digits. Investors’ would fervently wish that no more tears are shed over onions in 2014, and that electricity and petrol bills remain under control. Hopefully, that would save them some money to invest.

Then there would also be the wish that the RBI maintains a dovish stance on interest rates ahead, after all the efforts it has taken in this direction in the recent past.

Next on the list is the hope for an expansion in GDP. For the preceding two quarters, the country witnessed the slowest growth it has seen in the past 10 years, but investors are expecting the GDP figure to grow as the new government takes reforms onto its platter.

In terms of global developments, investors would wish for FII inflows to continue in the next year too. Liquidity has been the prime reason behind the indices sustaining at the higher levels, and the markets may witness pressure again if the money dries up. Along with this, the hope would be that the Indian rupee also strengthens against the USD.

Above all, investors would like to generate good returns from the markets. We feel even if few of these wishes come true, investors would be able to create good value in 2014. On our part, DSIJ’s efforts would always be directed towards maximising the profits our readers make.