Markets put up their best show ever

 

Markets put up their best show ever

BS Reporter / Mumbai January 1, 2010, 0:45 IST

 

Only Sri Lanka, Indonesia and Brazil better Sensex returns.

The Indian stock markets clocked their best-ever annual performance in 2009. The benchmark Bombay Stock Exchange Sensitive Index, or the BSE Sensex, logged an 81.03 per cent rise, the fourth best globally. Only Sri Lanka (125 per cent), Indonesia’s Jakarta Composite (87 per cent) and Brazil’s Bovespa (82 per cent) fared better. The Sensex just managed to pip the Shanghai Composite Index, which rose 80 per cent. For the Sensex, which rose 7,817 points to close at 17,465, the previous high in terms of returns was in 2003 (see graphic).

The National Stock Exchange’s Nifty also had a record year. It rose 75.76 per cent, or 2,242 points, to close at 5,201.

On the last day of the year, the markets closed at their highest in nearly 20 months. The surge, which began in March, marked a turnaround from a record fall of 52 per cent in 2008.

The rise was driven by portfolio inflows, estimated at $17.46 billion during 2009, just $320 million short of the 2007 record of $17.78 billion.

“Recovery in the markets in 2009 was not surprising considering that benchmark indices had crashed over 80 per cent from their all-time highs. Unparalleled money supply has been the key driver,” said Ajay Pandey, assistant vice-president at Intime Spectrum Securities.

The sentiments of foreign institutional investors were buoyed after the election verdict in May. Even deficient rains did not deter investors searching for higher yields in a world where liquidity was not an issue.
 

SNAPSHOT 2009 Top 5 A Group Gainers
	Dec 31, ‘08	Dec 31, ‘09	% Chg
Oracle Financial	458.30	2317.50	405.67
Tata Motors	159.05	792.60	398.33
Sesa Goa	85.70	410.65	379.17
Jindal Steel & Power	151.98	703.95	363.19
MphasiS	156.35	723.90	363.00
Top 5 A Group Losers
Sterling Biotech	154.94	95.15	-38.59
Tata Communications	500.85	336.05	-32.90
Koutons Retail	508.25	345.15	-32.09
Rei Agro	68.94	48.65	-29.43
Reliance Comm	227.25	172.90	-23.92
BSE sectoral performance
Metal	5214.35	17399.22	233.68
Auto	2444.71	7435.83	204.16
IT Sector	2227.96	5186.35	132.78
Cap Goods	6911.12	14116.69	104.26
Cons Durable	1913.74	3785.39	97.80
Bankex	5454.54	10030.80	83.90
PSU	5279.61	9531.73	80.54
BSE Power	1829.31	3188.55	74.30
Oil & Gas	6050.04	10470.97	73.07
BSE Realty	2274.13	3855.78	69.55
Healthcare	2966.19	5018.33	69.18
TECk	1947.04	3277.04	68.31
FMCG	1987.38	2791.55	40.46

 

Yearly Sensex Performance

(At the end of Year) Sensex YoY % Chg PE PBV 2000 3972.12 -20.65 20.28 2.89 2001 3262.33 -17.87 15.73 2.22 2002 3377.28 3.52 14.64 2.28 2003 5838.96 72.89 18.86 3.55 2004 6602.69 13.08 17.07 3.77 2005 9397.93