NEW DELHI: Who would have guessed this day 10 years back, when the dotcom mania was in full swing, that a builder of apartments from New Delhi
The top-10 gainers of the BSE 500 index this decade come from a wide range of sectors such as oil, real estate, mining, textile, steel, coal, finance and construction, even as the then fancied technology, pharma and fast-moving consumer goods (FMCG) fell by way side when the dotcom bubble burst, a SundayET analysis shows. The index represents 20 main industries and accounts for almost 93% of the total market capitalisation.
“It shows that our economy over the last decade has become more inclusive and growth has indeed percolated to a larger bouquet of industries,” says ICICI Securities executive director Anup Bagchi.
“Proactive government policies have in particular opened up sectors easing funding regulations for capital expenditure.” Unitech, which was trading at about 34 paise, adjusted for splits and bonuses, in 2000, emerged at the top. Its shares ended at Rs 82 Thursday, which is nearly 240 times the price it was in the beginning of the decade, according to data from Centre for Monitoring Indian Economy (CMIE).
A Rs 100 investment in it then translates into Rs 24,000. But that is statistic. Of course, the shares are down from their peak of Rs 538.25 in January 2008.
Then there are five companies, which currently trade at over 100 times their stock price in early 2000. Oil drilling firm Aban Offshore (166 times), construction company Era Infra Engineering (152 times), India’s largest iron ore exporter Sesa Goa (134 times), coal producer Gujarat NRE Coke (106 times) and ferro alloys manufacturer Nava Bharat Ventures (103 times).
The performance shows that what may be a fad at one time, may fade and that a focused sectoral investment could adversely affect the returns. “It highlights stocks with rich valuations. One will be better off to invest in stocks which offer decent prospects and are undervalued though they may not necessarily be in favour right now,” says Shrikant Shetty, head of equity advisory at Delhi-based Unicon Securities.
The other top performers are garment manufacturer Phoenix Mills (98 times), Mumbai-based diversified firm Jai Corp (95 times), equipment manufacturer Nesco (92 times), and truck financier Shriram Transport Finance Company (66 times). As a sector, it was technology with them being half of the 10 big losers, the study shows. Aftek, NIIT, Hexaware Technologies, Polaris Software Lab and Mastek, topped the list of laggards.
“The financial performance of this sector was decent during the current decade. It was the expectations of obscene growth rates which has had made valuations dropping,” says Shetty.
Novartis India, Cals Refineries, BSEL Infrastructure Realty and Himachal Futuristic Communications lost more than 70% of their valuations during the period, the study shows. But technology as a sector may not be a bad investment proposition given that their valuations have fallen substantially from their peaks.
*****************************************
5 investment places you can put your money
Goldman to pick up 9.4% stake in Max India for Rs 540 crore
China: Second largest economy in 2010?
Check out the potential sectors investors need to track in 2010
Check out the deals & deeds that shaped 2009
******************************************
During last one year alone, value funds like ICICI Prudential Discovery, Tata Equity PE, Templeton India Growth and UTI Master Value have delivered over 100% returns, beating the market returns of about 65%-70 % and the 82% average returns posted by the category of diversified equity schemes.
Even over the period, as long as five years, these funds have comfortably beaten the market.
Click here to get full info about your Mutual Fund
Check out Mutual Funds that outperformed Sensex over 5 years
Mutual Fund Scheme: ICICI Prudential Discovery
CLICK HERE FOR MORE INFO on Investment details, return, Risk and full portfolio
Date of Launch: July, 2004
AUM (Rs crore): 502.1
*Absolute Returns(%):
1 Year: 131.7
3 Years: 46.6
5 Years: 221.4
*Returns as on December 16 2009
more @ http://economictimes.indiatimes.com/quickiearticleshow/5360536.cms
*****************************************
TECHNICAL ANALYSIS: Index Outlook: 2009 bows out in style
Indian stocks remained in a glum state in the first two sessions of last week despite the festive cheer brimming over in rest of the global equity markets. But they did a volte-face on Wednesday and Sensex ricocheted 540 points higher. ...
STOCKS: Container Corporation: Hold
Shareholders with a long-term perspective can remain invested in the stock of Container Corporation of India (Concor) which, by far, is the most dominant multi-modal logistics player in ...
STOCKS: Jaiprakash Power Ventures (formerly Jaiprakash Hydro Power): Hold
Investors with high-risk appetite and long-term investment horizon should hold on to the Jaiprakash Power Ventures (JPVL, until recently named Jaiprakash Hydro ...
Investors can retain their share holdings in Firstsource Solutions, a BPO player, considering the company's healthy vertical and geographic mix, the revival in the deal momentum and benefits that accrue from macro trends such as ...
DERIVATIVES MARKETS: Stock Strategy: Go long on NTPC Jan futures
NTPC (232): NTPC was on a roll last week. After moving in a narrow band for quite some time, the stock vigorously pierced the resistance level at 215 and entered the bull zone. It now appears that the stock is heading for its next ...
TECHNICAL ANALYSIS: Query Corner: Jai Corp continues in a long-term down trend
I am holding Educomp Solutions and Satyam Computer purchased at higher levels. Please let me know the short and long-term prospects for these stocks. ...
*****************************************
Which Real Estate stock has the best chart?
Why Morgan Stanley is bearish on Infosys stock?
Two Interesting Bulk Deals
*****************************************
Canara Bank
Mahindra Satyam
Rolta
KS Oils
Reliance Industries, India Energy
Indraprastha Gas
Weekly Watch - Dec 26 2009
Patel Engineering
Mphasis
Essar Oil
Bharti Airtel
****************************************
Src: Economictimes, DP Blog, Businessline, SM Blog and etc