Indices, Stock and Cues

Indices, Stock and Cues

The S&P BSE Sensex Index has given returns of 15.26 % while the Nifty 50 has given a return of 12.73 %. But in comparison to other indices at the Asian level or world level the performance has been dismal. If we talk about the Benchmark Indices Global compiled by Reuters in which 36 indices are taken account into, the performance of Indian indices has been in the bottom 10. The list is as follows:

Bottom 10 Performers:

Top 10 Performers:

The major events that kept the market going fuzzy were:

1.    RBI slashed the policy rates 5 times for a cumulative 135 basis point this year.

2.    The Sensex tumbled almost 400 points on Budget day, with another 793 points when markets opened the next Monday, logging its biggest one-day fall this calendar year.

3.    Corporate Tax slashed by 10 percentage

4.    US Treasury Yield Curve inverted for the 1st time since June 2007

5.    Sensex crossed 40000 marks while the Nifty crossed 12000 mark

6.    Fitch, Moody slashed India’s GDP growth forecast to 5 or sub 5 percent in the wake of weak household consumption and contraction in manufacturing output.

If we talk about the Percent change wise, then the biggest winners for this year were Bajaj Finance Ltd, Bharti Airtel, ICICI Bank Ltd. The full list can be seen in the chart. 24 stocks gave positive returns while the rest of 26 ended up in the red zone.

If we talk about the returns of stocks in the last decade listed currently in Nifty 50 then the figures are as follows:

For a perspective, these popular stocks had such gains in the last decade.

Further analysis may be done on the basis of sector and a notion may be proposed though I leave it to the discretion of the reader to analyze the same.

Note:

1. Stocks do get dropped and get included on a predefined time to time basis. So the current Nifty 50 has been used for the results.

2. Dominos have made a substantial gain but because of some data issue, it could not be included in the final list.

The excel sheets have been attached to this link for further references: File

Reference:

1.    https://www.bbc.com/news/business-49764964

2.    https://www.livemint.com/market/stock-market-news/from-slumping-growth-to-soaring-valuations-sensex-remained-stubbornly-optimistic-in-2019-11577609758048.html

3.    https://en.wikipedia.org/wiki/List_of_stock_exchanges

4.    https://www.businesstoday.in/current/economy-politics/moody-slashes-india-gdp-forecast-49-fy20-weak-consumption/story/392159.html

5.    Thomson Reuters Eikon Terminal6.