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After the Annual Examination results for Indian companies that gave 48:52 Success Failure ratio. Time for half yearly exams for present govt.

For a Party which started as favorite and had huge expectations it is very difficult to sustain the same even after three years. The present govt is doing well major factors like inflation, GDP & Exchange rate has improved very well.

It is Known fact that Stock Market is a leading indicator of country’s economic growth and it reacts to any Govt policies.  The big reaction Friday taking the Nifty, Sensex and Bank Nifty to all-time highs is a proof of Govt Success. Reforms like GST, Bankruptcy act have been a big booster to Indian economy. Many schemes and liberal policies have led to stunning 17% returns in just one year on Nifty.

Now Let’s look at the Top 10 performers and worst 10 companies in this year when nifty grew 17% in just 5 months

TOP 10 Performers

Company Name 1-Jan-2017 26-May-17 YTD %
Indiabulls Housing Finance Ltd. 650.45 1086 66.96
HDFC Bank Ltd. 1192 1626 36.41
IndusInd Bank Ltd. 1087 1477.7 35.94
Kotak Mahindra Bank Ltd. 714.05 965.05 35.15
Larsen & Toubro Ltd. 1360.8 1787 31.32
Yes Bank Ltd. 1144.05 1493.6 30.55
Indian Oil Corporation Ltd. 327 426 30.28
Maruti Suzuki India Ltd. 5466.1 7064.8 29.25
I T C Ltd. 241.2 308 27.69
ICICI Bank Ltd. 251.8 321 27.48

 

The above table shows the list of companies which have seen the highest growth rate in 5 months and are the highest contributors for nifty.  Banks are the major companies which have seen outstanding growth.

In the top ten, 5 are banking companies, proving how important Banks are for an economy to grow.

Schemes started by Govt with respect to banks have created a very positive outlook in people’s mind thus there is lot of investment pumped into banks. Both Foreign and Domestic.  Adding to Banks are NBFCS. Indiabulls Housing Finance which is a NBFC is the highest grown company with lot of potential still left in it and can be looked as stock for long term investment.

Next are the manufacturing companies from different areas. From Automobile company ‘Maruti’ to FMCG company ‘ITC’.  All these four companies have seen more than 25% returns. Demonetization effect was completely played out in this last 5 months. Policies have clearly helped these manufacturing companies to do well in the secondary market.

Finally, it is not the end for these stocks, there is still lot of potential left in these companies which will be a great buy for a period of 2-3 years. Forecast is that all these top ten 10 stocks will drive the Indian economy for next few years and analysts have already come out stating the target of 8,000 for Maruti!

10 Worst Performers

Company Name 1-Jan-2017 26-May-17 YTD %
NTPC Ltd. 164.7 156 -5.28
Tata Motors Ltd DVR 307.95 286 -7.13
Oil & Natural Gas Corporation Ltd. 192.08 175 -8.89
Sun Pharmaceutical Industries Ltd. 634.8 567.65 -10.58
Coal India Ltd. 300.7 268 -10.87
Tech Mahindra Ltd. 487.75 430 -11.84
Cipla Ltd. 565.9 488.9 -13.61
Aurobindo Pharma Ltd. 674.8 532.5 -21.09
Dr. Reddy’s Laboratories Ltd. 3087.45 2414 -21.81
Lupin Ltd. 1504.35 1112 -26.08

 

Now coming to the worst performers in the Indian Stock Exchange.

Pharma sector and PSU’s are still the laggards. Govt has to do much more for the upliftment of these companies. Coal India is now tagged as a corrupt company. NTPC fall is short fall but expecting that stock should come back to bull run very soon.  Pharma companies have all seen a huge fall and are still suffering from that fall. Emphasis has to be given on the PSU companies because they have enormous potential to grow. Whereas Pharma is going through very rough cycle and it will take its own time for it to get out of it and grow well again.

To conclude, off the 50 companies in Nifty 38 have seen the uptrend and only 12 are not going well. It means 75% companies are doing great and 25% companies are in red. Which shows that there is still a lot of scope for growth in the stock market and market is on a mega bull run for years to come.

Choose Wisely, Happy Investing!

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