INSUBCONTINENT EXCLUSIVE:
Calendar 2018 turned out to be a rollercoaster ride for Dalal Street, as global uncertainty, macro and micro headwinds kept bulls and bears
Global trade tensions, a sudden spurt in crude oil prices, rupee volatility, liquidity crisis for NBFCs back home and outflow of foreign
portfolio money kept Sensex and Nifty fluctuating like an ECG monitor through year.
But at dawn of a New Year, 10 charts showed Mr Market
may be on mend:Sensex Vs NiftyWith 5.90 per cent return, 30-share BSE Sensex outperformed 50-share Nifty, which advanced 3.20 per cent in
Sensex added 2011 points to end year at 36,068, while Nifty gained 331 points to 10,862.
FIIs on selling spreeForeign portfolio investors
pulled out over Rs 30,000 crore in 2018, registering their biggest net outflow since 2008
Their net inflows stood at Rs 49,729 crore in 2017 and Rs 20,566 crore in 2016.
Is India looking cheapICICI Securities said Indian market
looks undervalued against its global counterparts
In other markets, earnings growth looks muted or there are uncertainties like Brexit (UK)
Domestically, our two-year earnings CAGR is pegged at 18.5 per cent with consequent PEG ratio at 0.9 times vs a global average of 1.8
corresponding standard deviation placed at 2.6 times, ICICI Securities said
The brokerage is valuing Nifty50 PE at 19.0 times, which with an average + 1.5 standard deviation gives a Nifty target of 12,100
Standard Chartered said macro environment is still supportive of equities
The earnings growth outlook remains robust with high double-digit growth expected in 2019
In our assessment, recent market correction from 2018 peak has created a greater valuation buffer, with valuations converging closer to
longer term averages, compared with peak valuations a few months back.
ICICISecuritiesSectoral performer of yearInformation technology, or
IT, emerged as clear winner
BSE IT index rallied 25 per cent during year
It was followed by FMCG (up 10 per cent) and Bankex (up 5 per cent)
tailwinds, digital spending by clients gaining scale and sharp depreciation of rupee against US dollar
Nifty delivered up to 50 per cent returns to investors with Bajaj Finance rallying 50.30 per cent, followed by Tech Mahindra (up 43.20 per
cent), Tata Consultancy Services (40.30 per cent) and Infosys (up 26.60 per cent).
Top Nifty LosersAuto major Tata Motors declined nearly 60
per cent between December 29, 2017 and December 31, 2018
It was followed by YES Bank (down 42.30 per cent), Bharti Airtel (down 41 per cent), Vedanta (down 38.70 per cent) and HPCL (down 40 per
cent).
Stock that doubled investor wealthMerck emerged was only stock in BSE500 index to rally over 100 per cent during year gone by
The scrip jumped to trade at Rs 3,084 on December 31 from Rs 1,288 on December 29, 2017
The company is engaged in manufacturing and marketing of pharmaceuticals, bulk drugs, fine chemicals and pigments
Other top gainers included NIIT Technologies, V-Mart Retail, Indiabulls Integrated Services, LT Technology Services and Vinati Organics,
which climbed 60-80 per cent.
The IPO storyOnly 36 per cent of 11 IPOs with issue size of Rs 1,000 crore or more offered positive returns in
Investors were better off selling on first day instead of holding for long term
As many as 64 per cent of IPOs had closed above issue prices on first day of listing.
Midcaps Vs smallcapsThe selloff was brutal in
smallcaps as BSE Smallcap index tumbled 23.50 per cent to 14,706 on December 31 from 19,230 on December 29 last year
The BSE Midcap index declined 13.37 per cent to 15,438 from 17,822
Valuations have come to reasonable levels and some of them have come to very attractive levels
