Samvat 2074 did not encourage Indian equity investors, and knew the winners and losers

Samvat 2074 lacked encouragement for Indian investors

Samvat 2074 did not encourage Indian investors, the Nifty benchmark registering a moderate gain of only 4% – its weakest gain in three years. If the index had not risen more than 5% in the week before Diwali, returns would have been negative this year.

Nifty had returned 17.6% and 10.2% in the previous two years of Samvat.

However, even though Nifty reached several highs during the year, the gain did not lead to significant gains for most investors, as the benchmark rally was fueled by a handful of stocks. As a result, more than half of Nifty50 companies and around 60% of Nifty Midcap companies have finished the year in the red.

The Nifty Small Cap Index has suffered bruising since October 19th, with a loss of 22.6%. have seen a drop in prices. The year was also marked by the return of computer stocks in the radar of investors while they bet a weakening of the rupee. The Nifty IT index tops the list of NSE sector indices with a gain of 32.2%, followed by the Nifty FMCG, which rose 12.7%.

While Tech Mahindra's action had risen 50.7% since the last Samvat, TCS and Infosys grew by 48.1% and 42.9% respectively. On the other hand, the Senbad had grown by 7.68% over the period. The index is currently trading at a multiple of 23.15 price / earnings ratio, making it the second most expensive market after Mauritius in terms of PE ratio. "The current year has been a complete collapse.

Anything that could have gone wrong happened in this Samvat 2074. Crude prices jumped 47% until October and the rupee collapsed by 13.3%. % against the dollar. The monsoon was also below normal, "said VK Sharma, head of financial markets strategy at HDFC Securities.

Shamsher Dewan, vice president of business sector ratings at ICRA, said stated that the increasing share of digital offerings and its recovery Demand from BFSI customers has helped IT stocks to rank among the various BSE indexes, with the BSE IT index gaining the more than 36.08%, while the BSE FMCG index followed at 8.76%, while the other gain sectors were Consumer Staples (+ 7.92%), BSE Bankex (7.78%), %), BSE Capital Goods (3.2%) and BSE Healthcare (2.54) .The S & P BSE Telecom index is the biggest loser of all BSE indexes .The telecom index has lost more than 38% in terms of yield since the last diwali The other losing sectors are the real estate, the automo bile, oil and gas, electricity, metals, energy, finance, utilities and consumer discretionary goods.

The year that was haunted by national and national macroeconomic hurdles resulted in the withdrawal of $ 2.4 billion of stock. This was the first release of this type in a decade. Previously, foreign portfolio investors had unloaded Indian shares worth $ 11.75 billion in 2064.

However, the pace of purchase of domestic investors remained robust this year, this which allowed the market to protect itself against sales by foreign investors. Local institutional investors, including mutual funds and insurers, lost $ 1.27 billion worth of securities, or nearly $ 18.6 billion.

The stock market, which remained unstable due to the trade war between China and the United States, has attracted growing interest. Rates and hardening of crude prices have seen investors lose 18.6 million crores of crowns in the last two months. In addition, the looming threat of tightening liquidity in the NBFC sector has sparked fears of coaching effects.

Market participants observe a recovery in private investment, a recovery in profits and the result of the 2019 general election will indicate the trend

With regard to the lagging countries, Nifty Realty and Nifty Auto showed the way – losing 23% and 17.4 – while rapidly rising interest rates, slowing economy and crude oil prices have made the sector less attractive to investors.

In addition, the rise in Fed interest rates in the United States also affected market sentiment. Earlier, FE reported that, among the many poor performances of a large number of PSUs, the combined value of government-held shares had fallen to an all-time low of 9% in the quarter ended September 2018. Even if the Center had achieved its disinvestment target in FY18, several PSU shares listed in that year are currently trading below their issue price.