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H1 FY19 market report card: Only one stock gave over 100% returns

Here are the top gainers and losers of the markets in the first six months of the present financial year

Swati Verma  |  New Delhi 

Markets, LTCG tax

The first six months of FY19 have been nothing short of a roller-coaster for the domestic equity market. This has been a highly volatile period for stocks, thanks to a variety of reasons — from valuation concerns to weakening macros, liquidity tightening, foreign institutional investor (FII) outflows, increase in crude oil prices and trade tensions among the world's biggest economies.

During the April-September period, select large-caps lifted the frontline indices to record highs, while the broader market seemed to crumble like a house of cards.

Data-wise, the S&P BSE Sensex gained 9.88 per cent in the April-September period, while the NSE's broader Nifty50 index gained 8.08 per cent. At the same time, the S&P BSE Midcap and Smallcap indices crashed 7.5 per cent and 17 per cent, respectively.

In the BSE500 universe, nine stocks gave over 40 per cent returns, while over 75 stocks gave double-digit returns in the past six months. Indiabulls Ventures topped the list with 121 per cent, followed by Suven Life Sciences (up 61 per cent), Zensar Technologies (up 56.87 per cent), TCS (up 53.34 per cent) and United Breweries (up 43.93 per cent), ACE Equity data show.

Other gainers on the index include Page Industries, Abbott India, L&T and Reliance Industries.

Top gainers

Company Name Close (as on Sep 28) Close (as on Mar 28) Change (in %)
Indiabulls Ventures Ltd. 536.65 242.50 121.30
Suven Life Sciences Ltd. 270.15 167.80 61.00
Zensar Technologies Ltd. 282.60 180.15 56.87
Tata Consultancy Services Ltd. 2184.50 1424.65 53.34
United Breweries Ltd. 1363.25 947.15 43.93
Page Industries Ltd. 32629.15 22684.65 43.84
Abbott India Ltd. 7782.50 5449.10 42.82
Larsen & Toubro Infotech Ltd. 1912.20 1341.15 42.58
Reliance Industries Ltd. 1258.20 882.80 42.52
L&T Technology Services Ltd. 1722.65 1239.60 38.97
Mphasis Ltd. 1172.15 843.70 38.93
Glaxosmithkline Pharmaceuticals Ltd. 1445.00 1042.70 38.58
Pfizer Ltd. 2979.35 2185.35 36.33
Mindtree Ltd. 1033.55 774.00 33.53
Aurobindo Pharma Ltd. 743.75 557.25 33.47

Source: Ace Equity

Analysts feel valuation worries and liquidity crunch will be the major headwinds for domestic stocks going forward, and the coming Lok Sabha elections will impact the investor sentiment in a big way.

Dhananjay Sinha, head of institutional research, Economist & Strategist, Emkay Global Financial Services, says corporate earnings will be crucial for the market. But the biggest worry is on the valuation front. Earnings growth is likely to be between 8 per cent and 10 per cent this financial year. "For the broader market, election is going to be a bigger concern because the market had witnessed strong retail participation in the equity market after the current government came to power in May 2014. If there is any disappointment in the election, the participation of retail investors will be at risk."

Although a lot of froth in the broader market has been wiped out, the valuation has still not reached the desired levels, Sinha says.

Talking of losers, over 350 stocks in the pack gave negative returns to investors. PC Jeweller bled the most, with its stock crashing 80.54 per cent. It was followed by Kwality (down 77.96 per cent), 8K Miles Software Services (down 71.36 per cent), Manpasand Beverages (down 70.79 per cent) and Jet Airways (down 70.39 per cent).

Big names such as Tata Motors, Punjab National Bank, YES Bank, JK Tyre, Central Bank of India have all fallen between 30 and 45 per cent.

Top losers

Company Name Close (as on Sep 28) Close (as on Mar 28) Change (in %)
PC Jeweller Ltd. 62.20 319.65 -80.54
Kwality Ltd. 13.30 60.35 -77.96
8K Miles Software Services Ltd. 192.25 671.20 -71.36
Manpasand Beverages Ltd. 107.85 369.20 -70.79
Jet Airways (India) Ltd. 180.45 609.50 -70.39
Jaiprakash Associates Ltd. 6.62 18.95 -65.07
IL&FS Transportation Networks Ltd. 22.55 60.75 -62.88
Infibeam Avenues Ltd. 58.80 147.05 -60.01
Rain Industries Ltd. 163.35 374.10 -56.34
Reliance Naval and Engineering Ltd. 12.05 27.55 -56.26
SREI Infrastructure Finance Ltd. 32.35 73.60 -56.05
Hindustan Construction Company Ltd. 10.66 22.30 -52.20
Can Fin Homes Ltd. 237.85 485.05 -50.96
Indiabulls Real Estate Ltd. 88.85 181.10 -50.94
Vodafone Idea Ltd. 38.45 75.75 -49.24

Source: Ace Equity

Given the uncertainty in liquidity tightening at both domestic and global levels, and the possibility of net asset value being negative for three-four months, the flow into mutual funds and retail participation could be reversed, Sinha adds. “We have seen that the flows have already been moderated and I wouldn't be surprised if SIPs (systematic investment plans) also take a hit.”

First Published: Mon, October 01 2018. 11:44 IST
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