In Charts: How India’s Stock Market Fared In Samvat 2075
Samvat 2075 was an eventful year for equity investors because of domestic and global cues.
The Hindu year started on a negative note as liquidity shortage and political uncertainty ahead of general elections kept investors on the edge. Sentiment was further weakened by the now rolled back tax surcharge, a slowing economy and trade war tensions. But India’s surprise corporate tax cuts helped investors recoup some of the losses as the benchmark indices bounced back.
The Nifty 50 Index wiped out its losses and is trading nearly 9 percent higher, buoyed by select heavyweights. But the broader market is yet to recover as the Nifty Midcap and Smallcap indices are down nearly 8 percent and 12 percent, respectively.
And as investors wait to make ceremonial purchases after stock exchanges open for about an hour on Sunday, the auspicious trading period called Mahurat, here’s a look at how the market has performed from the last Diwali to now.
Nifty Ends With Gains
The 50-stock gauge rebounded after India unexpectedly slashed corporate tax rates in September. Steady domestic fund flows on account of the government’s measures to revive the economy from a six-year low, too, propped up the index.
Also, the Nifty index was the second-best performer among global peers during the year.
Win Some, Lose Some
Bharat Petroleum Corporation Ltd. ended Samvat 2075 with the biggest gains on the Nifty 50 Index. That came after Bloomberg reported India is considering selling its 53.29 percent stake in the oil refiner and marketer to a strategic investor.
On the other hand, Yes Bank Ltd. was the top loser on the Nifty 50 Index as concerns over the private lender’s asset quality spooked investors. Shares of Zee Entertainment Enterprises Ltd. tanked on issues related to promoter pledge.
Most base metals ended the year in losses as slowdown in demand, coupled with trade war tensions, hurt commodity prices.
Nickel prices rose after Indonesia, the world’s largest producer of the commodity, said it will enforce a complete ban on exports from Jan. 1—two years earlier than planned—creating a supply deficit in global market. Domestic and international companies’ push toward electric vehicles is also driving nickel prices as the metal is used to make batteries for the transport.
Crude oil prices fell on weak demand outlook and a rise in U.S. inventory. Thus, bullions such as gold and silver, too, rallied as investors turned to safe haven commodities to mitigate the risk.
Ten of the 13 companies listed during Samvat 2075 gained.