It makes sense for investors to track dollar returns of stocks and indices.
Not only is it important in global sense given that foreigners own more than 40 per cent of Nifty, it is also an accurate reflection of Indian stock markets performance when benchmarked against global and other emerging market indices.In first nine months of year, dollar returns were largely negative given weakness in markets and rupees slide against greenback.
But since November, dollar returns have staged a smart comeback thanks to markets gain and rupees rise against dollar.
The Nifty has also performed much better, though overall performance for year is still down due to rupees weakness for much of year.India and Indonesia lead emerging markets outperformance over developed markets in past three months MSCI Emerging Markets index has outperformed MSCI World index by 9 per cent.
Indian markets in dollar terms are up 11 per cent during same period, one of only two markets to give positive return.While in rupee terms Nifty is up 4.8 per cent, a 6 per cent rise in rupee against greenback has led to its dollar return of 11 per cent.
After weeks of underperformance, IT stocks showed some strength in last one week.
Infosys with a 4 per cent gain was top gainer among top 15 FII-heavy stocks.
TCS gained 1.8 per cent.
ICICI Bank, HDFC and Bajaj Finance gained 2.8 per cent, 2.5 per cent and 1.8 per cent, respectively.
Maruti Suzuki with a negative return of 4 per cent was worst performer due to weak auto numbers for December.Indias performance in last one year too has remained impressive in dollar terms in comparison with global markets.
Although 2018 was a bad year for equities with all 15 most-tracked global indices giving negative returns.
Indian markets with a negative 6 per cent return was third best performer after Brazil (negative 5.2 per cent) and US (negative 5.6 per cent), according to Bloomberg.
In local currency terms, Indias markets gained 3.4 per cent, however, rupees fall in first nine months of 2018 kept overall returns negative.TOP PERFORMERS OF 2018Of top 15 FII-heavy stocks, Bajaj Finance was best performer with a 38 per cent gain in dollar market capitalisation (52 per cent in rupee value).
Since October, it has gained 35 per cent in dollar value (27 per cent).
TCS, Indias largest company by market capitalisation, was second-best performing stock in 2018 (29 per cent dollar gain and 42 per cent rupee gain); however, since October, it has lost 2.4 per cent in dollar value (and 8 per cent in rupee terms).
HUL with 20.3 per cent return is third-best performer.TOP PERFORMERS IN THE PAST THREE MONTHSBajaj Finance remained top with 35 per cent dollar returns (26.9 per cent in rupee terms), followed by ICICI Bank with 26.4 per cent returns (19.1 per cent in rupee terms).
HUL with 24.9 per cent return (18.8 per cent in rupee term) was third-best performer.