Week ending 31st December 2023

Summary in quick 2 min read below:

Principal lessons from equity market frenzy in 2023 do indicate that to make consistent profitable return, investors need to stay long in in equity markets. Small-cap stocks can be volatile, and their performance can vary cyclically. Asset allocation is essential for building a balanced portfolio, as different asset classes perform well in different market phases.

RBI made various regulatory changes, including extending the deadline for penal charges implementation, introducing bond forwards in government securities, proposing a new "Forex Correspondents Scheme," and releasing a report on banking and financial stability. The report gave robust picture of banks and NBFCs – including asset growth, reduced bad loans, improved capital ratios and better provisioning ratio. While the fraud causes hit a six year low, RBI’s concerns on risk models in consumer lending need attention by players.

SEBI took a consultative approach, releasing numerous draft consultation papers in 2023. They also proposed changes to rumor verification rules, aimed at making the process more responsive to market impact. SEBI eased regulations for online bond platforms and introduced a new settlement mechanism for stock trades.

Finally, the Centre for Economics and Business Research (CEBR) projected India to become the world's largest economic superpower by the end of the century, with strong growth driven by factors like a young population and rising middle class.

In the private equity and venture capital (PE/VC) sector, investments saw fluctuations, with a decrease in 2023. However, Private Investment in Public Equity (PIPE) investments grew, and PE/VC firms made successful exits through open-market block deals, reflecting market resilience and successful divestments.

Suggest reading detailed blog with data points >> https://bit.ly/WeekendingDec31st