With total market capitalisation at Rs 71.69 lakh crore bolstering investors' wealth in tandem with 47.15 per cent or 6,500.08 points rise in the benchmark 30-stock Sensitive Index of the Bombay Stock Exchange during the year, Dalal Street today signed off 2007 on a healthy note, recording an unprecedented growth of investors' wealth.

The 50 share S&P CNX Nifty of the National Stock Exchange had a much better year as it accrued an increase of 53 per cent as on 31 December as it shut the year at 6,138.60 points or 58.90 points up with the day's rise of 0.97 per cent.

Although much of the impressive stock market performance was on account of foreign institutional investors' robust interest in Indian equities ~ as they ensured bigger and handsome returns compared with other Asian markets ~ their sentiment received an abrupt shock in mid-October when the market regulator Securities and Exchange Board of India (Sebi) imposed stricter rules for anonymous investments coming into shares via abuse of participatory notes.

The Sebi's action followed by serious reports by Central intelligence agencies with the data-support from the Reserve Bank of India that some terrorist outfits were using Indian bourses and its booming trends, to wash their money from black to white and also make impressive profits.

Nevertheless, the total inflows by FIIs during 2007 had been over $17 billion which had been the highest ever since foreigners were permitted to play in Indian markets. The previous best was $10.7 billion in 2005. The subsequent year 2006 was a bit weaker with a figure of $8 billion.

Since mid-October when Sebi restricted participatory notes deployment, Indian investors big and retail have stepped up their market participation as they were convinced that the market at higher level would be safer because an effective filter has been put in place to keep dirty money away.

The market has now been operative in the range of 19,500-20,500 points. To perk up their confidence further, the BSE has announced introduction of Sensex mini-contracts in F&O segments for retail traders in the lot of five shares. This comes into force on 1 January 2008.

The year 2007 the saw maximum number of 'k's (1,000s) added to the Sensex. On 29 December 2006 ~ that year's last business session ~ the 30-scrip index was 13,786.91 points.

The ascent in the past 12 months had been steep and naturally difficult in parts as the bull run occasionally looked weary and staggering but in the end the Sensex did close above 20k at 20,286.99 points with an increase of 80.04 points or 0.40 per cent. The peak for the year was on 13 December at 20,498.11.

Most big investors and FIIs, hedge funds etc make their billions in F&O contracts. The year 2007 showed Reliance shares ~ both Mr Mukesh Ambani's and Mr Anil Ambanis' ~ yielding maximum returns with massive increases in their values. The shares of Anil Dhirubhai Ambani Group had been on the top as per year-end analysis. The share of Reliance Natural Resources Limited (RNRL) in the F&O segment gained 701 per cent in returns while that of IFCI increased returns by 575 per cent. ADAG's Reliance Capital with 326 per cent and Reliance Energy 311 per cent put up an impressive show.

On Monday, the Sensex surged ahead and once appeared to have neared the year's highest mark. But it closed near the day's top level. Of the 30 stocks 19 advanced and 11 declined with the volume of traded shares at 1.03 crore and turnover at Rs 869.52 crore. The top three gainers were Bharti Rs 994.55 (5.72 per cent), NTPC Rs 250.05 (3.88 per cent) and Mahindra Rs 860.80 (3.16 per cent).

Courtesy: www.thestatesman.net, January 01, 2008