Among the Nifty constituents, Bajaj Finance rose over 100 percent followed by Indiabulls Housing Finance which rallied 83 percent, and Tata Steel which climbed 81 percent so far in the year 2017.
It is difficult to generate wealth in equity markets especially in the short term but the year 2017 has been a rewarding one for the bulls. The benchmark indices hit fresh record highs with the S&P BSE Sensex hovering near Mount 34K and Nifty near 11K levels.
But, the real winners of 2017 are not the indices, it's individual stocks which stole the show. As many as 470 stocks on the BSE rose up to 1200 percent so far in the year 2017. Three stocks including HEG, Indiabulls Ventures, and SORIL Holdings rose over 1000 percent each in the last 12 months.
As many as 120 stocks rose between 200-900 percent in the last 1 year which includes names like Graphite India, Yuken India, Rain Industries, Venky’s (India), Avanti Feeds, v2 Retail, Bharat Seats, Kolte Patil, and Phillips Carbon etc. among others.
And, as many as 347 stocks more than doubled investors wealth in the same period which includes names like Jaypee Infratech, V-Guard Industries, Lux Industries, Bajaj Finance, Vadilal Industries, Prabhat Dairy, Punjab Alkalies etc. among others.
The S&P BSE 500 index outperformed the S&P BSE Sensex so far in the year 2017 by a good margin which was propelled by gains in small and midcap stocks such as Indiabulls Ventures, Graphite India, Rain Industries, Avanti Feeds, Minda Industries, Future Consumer, DCM Shriram, Vakrangee, Motilal Oswal Financial Services etc. among others.
The S&P BSE Midcap and Smallcap index which has been hitting record highs in the run-up to the year 2018 is likely to continue with the momentum, feel experts but the move would be gradual.
Most experts are looking for a quiet 2018 and await earnings recovery as most of the stocks in the broader market are trading above their long-term averages.
The moves would remain quiet gradual and that would in a way weed out the worse from the good lots. In line with the view on the benchmarks, we feel the broader markets (read as midcaps & smallcaps) would perform with their natural Beta.
As such the midcaps & smallcaps would continue to rally. A gradual rally with intermediate corrections is what we except that would give rise to both sectoral as well as stock specific churning. Thus the worse may get pushed off, while the good amongst the lot would be met with incremental demand.
Benchmark Indices
The S&P BSE Sensex and Nifty50 have rallied by about 26 percent so far in the year 2017. The index managed to climb all wall of worries in the year 2017 and is all set to enter 2018 on a bullish note.
The Nifty might not see a runaway rally in the year 2018 but could well climb up to 12000, suggest experts. “Rerating of the companies is on the cards, and expected NIFTY EPS growth of 15-17% in FY19, a number of 12000 in Nifty 50 by December 2018 is not achievable.
At the same time, instead of looking at Nifty numbers, we are of the view that one should invest in a diversified equity portfolio. Careful stock picking and being overweight on equity as an asset class would yield the investors higher double-digit returns in near future
Among the Nifty constituents, Bajaj Finance rose over 100 percent followed by Indiabulls Housing Finance which rallied 83 percent, and Tata Steel which climbed 81 percent so far in the year 2017.
The S&P BSE Sensex which added over 7000 points so far in the year 2017 could rally marginally by about 2000 points to claim Mount 36K in the year 2018, suggest experts.
As of now, there is a strong support around 31500-31000 levels and as long as these supports hold on monthly closing basis analysts see Sensex heading higher towards 36000, but not without some consolidation.
For Sensex, we are looking at over 36500 levels while we have Nifty Target at around 11,700 zones. We are expecting these levels but we are also expecting a 10 percent correction in valuations prior to that.
GEPL Capital sees Sensex at 36000 and Nifty around 11,200-11,500. They remain cautious at higher levels, a 10-15% rise from current level may not be an uphill task for the market. The move thus would still remain in line with the long-term averages of growth in the Indian markets,
Among the Sensex constituents, Maruti Suzuki, Tata Steel rose by over 80 percent each, followed by Bharti Airtel which rallied 71 percent, RIL gained 70 percent while HUL rose 59 percent in the same period.
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