Indian markets delivered robust performance month-on-month (MoM) in December 2022, as funds rose 79 per cent through privately placed debt and 489 per cent in preferential issues and qualified institutional placement (QIP), data from the Securities and Exchange Board of India (Sebi) showed.
Equity and debt segments saw increased resource mobilisation, with the former generating Rs 15,340 crore, and the latter Rs 1,36,966 crore, nearly double the amount raised in November 2022.
Furthermore, the primary equity segment raised Rs 1.33 lakh crore during April-December 2021, while it fell by 50 per cent to Rs 71,171 crore in the same period of 2022.
In December 18 companies tapped the primary market through public issue of equities, raising Rs 5,119 crore. Also, 36 companies are listed on the IPO main board and 87 on the SME platforms to date in FY23.
Axis Bank mobilised a record Rs 12,000 crore by issuing Basel-III compliant tier-II bonds on a private placement basis in December 2022.
State Bank of India (SBI) raised Rs 10,000 crore through issuance of its maiden infrastructure bond on the EBP platform to fund infrastructure and housing projects.
Likewise, NABARD and ICICI Bank raised Rs 5,000 crore each through private placement of debt.
In addition, four issuers have raised Rs 2,250 crore through AT-1 bonds in December, while Rs 23,350 crore were mobilised through 15 private issuances of AT-1 bonds so far in FY23.
Segment-Wise Trading Activity
The equity cash segment fell three per cent MoM due to reduced trading activity by foreign portfolio investors (FPIs), compared to a 36 per cent MoM jump in trading activity in the equity derivatives segment. On the other hand, in currency derivatives, their turnover fell 15 per cent MoM.
Sebi data further showed that barring energy, the trading activity across agriculture and non-agriculture segments in the commodity derivatives section declined.
In addition, the cumulative cash segment’s turnover plunged 20 per cent in the April-December period of FY23 compared to the same period of FY22.
Conversely, the total volume of equity derivatives jumped 116 per cent in the same period, driven by proprietary traders and individual investors.
The combined currency and commodity derivatives turnover also witnessed 76 per cent and 47 per cent increase during April-December 2022, compared to the same period in 2021.
Demat Accounts & Market Performance
Sebi’s monthly dashboard for December 2022 also shows that the number of demat accounts rose 35 per cent to 10.8 crore in the month year-on-year (YoY), with a total custody value of Rs 373 lakh crore. Corporates accounted for 46 per cent of the demat value in the equity segment, followed by individuals and FPI holding 20 per cent and 16 per cent of the demat value.
In the debt segment, corporates held 27 per cent of the demat value followed by mutual funds and banks with 20 per cent and 13 per cent, respectively.
Since April 2020, a total of 7.1 crore new demat accounts were opened.
Sebi data also reveals that Indian markets in December ended lower after two months of upward trajectory, in line with other global indices under consideration. Nifty 50 was down 3.5 per cent MoM.