Highs and lows of Indian business and economy 2013
Zee Media Bureau/ZRG
New Delhi: The year 2013 was quite an eventful year for the business world with stocks shining bright adding to the investors' wealth, and the glitter of gold and silver fading for the second straight year.
Meanwhile, macro data releases through the year indicated that downside risks continue to dominate. The much talked about green shoots were at best visible in parts, and appeared to be deceptive, even as no major steps were taken to spur demand and ameliorate investments.
The negative trigger for the market include -- a weak mandate post the 2014 elections; NPA risk for banks and INR depreciation.
On the positive side, the key factors are -- expectations of a strong turnaround in GDP growth, a win by BJP in the parliamentary elections and an improvement in capital spending.
Let's take a look at the highs and lows of year 2013 in business.
Enduring value: Rupee depreciation and revival in the US economy pitch-forked TCS to be the country's most valued firm. Currently, the market capitalization of TCS is nearly Rs 4.13 lakh crore followed by Reliance Industries (Rs 2.89 lakh crore), and ITC (Rs 2.53 lakh crore) (as of December 24)
Rs 1 lakh crore quarterly club: While announcing the second quarter results of fiscal 2013-14 (Q2FY14), Reliance Industries became the first private sector company in India to achieve revenues of Rs 1, 06,523 crore in a quarter.
Sensex high on politics: Stock soar a new high on assembly poll verdict: Sensex touched the life-time high level of 21,483.74 in the intra-day trading on December 9, 2013. Even Nifty hit record high level of 6415 after a gap of 5 years and 11 months.
NRN returns: The Board of Infosys approved appointing Narayana Murthy as executive chairman of the board and additional director with effect from June 1, 2013. Since then the stock closed with gains of 38 per cent as of December 24.
Breaking the glass ceiling: For the first time, 2013 witnessed a woman head at SBI. On October 8 the government cleared the elevation of Arundhati Bhattacharya as the chairperson of the largest public sector bank State Bank of India. (Gross Advances increased from Rs 8, 93, 613 crores in March 12, to Rs 10, 78,557 crores in March 13 and 20.70 per cent YOY growth).
Free-fall: Rupee touched all-time low of 68.85 against US dollar on August 28. The major reasons behind the sharp depreciation of rupee were: wide current account deficit and slowing growth.
Murthy yet again: On May 21, the board of California based IT outsourcing company iGate Corp announced the sacking of its President and CEO Phaneesh Murthy over alleged sexual harassment claims. Moreover, it was not for the first time that he had been allegedly charged with sexual harassment claims.
Negative for India: According to the ‘Doing Business 2014’ report, India has occupied the 134 position out of the 189 economies surveyed. India’s overall rank in Ease of Doing Business has dropped from 131st position to 134th position.
Biggies say no: In July 2013, South Korean mining giant Posco cancelled plans to construct a steel plant in Karnataka. Similarly, after waiting for seven years, ArcelorMittal scrapped plans for a steel mill in Orissa. Both companies cited similar reasons for pulling out: Weak market conditions and problems in securing land and mining licences in the country.