Get Broad-Base Rally In 2020 After Polarise Market In 2019!
"If you want a happy ending, that depends, of course, on where you stop your story"- Orson Welles. This quote is quite apt about the market performance for the CY 2019 because that's exactly what the essence of the story is. Any story is just a segment. Where it starts, where it stops, is all up to the writer! However, we will try to look into the performance of CY 2019, more from the investor's perspective. If you go by the performance of the Sensex and the Nifty, you might feel that you are living in a fairy tale, as in, where both the indices are on a ra-ra uptrend, scaling to record high levels every other day. However, if you dig deeper, except for the Top 100 stocks, the rest of the listed universe has been swimming against the tide.
In the beginning of CY 2019, investors were high on josh, however, as the months passed by, the markets started to bump into many issues and the D-Street was gripped by fear and anxiousness. But, it was only after the magic wand move of the Finance Minister that the shackle of the bulls broke and things turned around. If we go by the performance of Nifty in the last quarter of the year 2019, Nifty registered gains of 6 per cent in the last quarter of the CY 2019, and for the CY 2019, it has gained close to 12 per cent. Moreover, if we look at the stock performance of the stock actively traded on Nifty 500 during CY 2019, almost 60 per cent have recorded a decline in the stock price. What is of a greater concern is that 40 stocks have lost more than half their value in 2019. This means that an investor who does direct stock investing would have undergone a hard time in selecting the right stock for the investment.
Talking about the sectoral performances, 4 out of 7 sectoral indices under consideration have delivered a negative return for the year. Nifty Metal and Nifty Auto have been the top losers for the year as they plunged 13.17 and 11.97 per cent, respectively. On the flipside, Nifty Realty was the show-stopper as it gained close to 25 per cent followed by Nifty Bank which surged close to 18 per cent.
If you look at CY 2019 through a microscope, you will get a fair idea that 2019 has been a challenging period for investors. The broader markets have under-performed the key benchmark index, where Nifty Mid-cap and Small-cap has lost almost 5.66 and 11.85 per cent, respectively. Also, many investors have struggled to match the returns delivered by the key benchmark indices, the latest 'Where to invest in 2019' portfolio has outperformed the benchmark index. The latest portfolio recommendation has generated close to 35 per cent** returns while Nifty has generated close to 12.5 per cent returns in a comparable period. With a promising performance delivered in CY 2019 which has had quite a tumultuous ride for the year, makes us more motivated in identifying worthy opportunities for the year 2020. Further, our assessment for the CY 2020 is favourable and we believe the rally will be broad-based thus, bringing a smile on investors who are hoping for recovery in their stock prices since a long time.
A year of hope and hype has gone by and as the markets shifts to the New Year, investors will start afresh and leave behind any pessimism and look for opportunities that 'Mr. Markets' have on offer. Wishing all our readers a Very Happy and Profitable New Year!
** RETURNS ARE ANNUALISED RETURNS
