140 stocks from the BSE500 index have outperformed the benchmark index in the first half of calendar year 2019 (H1CY10) by giving a return of over 10 per cent on strong earnings and institutional buying support. In comparison, the benchmark index S&P BSE Sensex was up 9.7 per cent, while the broader S&P BSE 500 index gained 5.6 per cent during the period.
Godrej Properties, SRF, Manappuram Finance, Info Edge (India), DCM Shriram, Adani Gas, AAVAS Financiers and Just Dial have rallied over 50 per cent after these companies reported robust earnings growth in the March 2019 quarter.
Bajaj Finance, Titan Company, HDFC Asset Management Company (AMC), SpiceJet, InterGlobe Aviation (parent company of IndiGo), DCB Bank, JK Cements and 18 other stocks have rallied between 30 per cent and 47 per cent from their December 31, 2018 levels.
Among business houses, stocks of four Tata Group companies and three stocks each from HDFC, ICICI and Bajaj Group have outperformed the S&P BSE Sensex by giving returns of up to 43 per cent.
STRONG FINANCIAL PERFORMANCE
The aggregate growth in net profit of these 140 companies March 2019 quarter stood at 34 per cent from a year earlier, according to data provider Capitaline. Of these, institutional investors have increased their holdings 90 firms in March quarter of the 129 companies, the latest shareholding pattern data available show.
Sector-wise, as many as stocks of 27 companies that comprise the financial sector, including banks, nine from information technology, eight from cement, seven from realty and five from chemicals sector have outperformed the benchmark indices.
Stocks like Bajaj Finance, Reliance Industries, Titan Company, Tata Consultancy Services (TCS) and UltraTech Cement from the Nifty50 index, that outpaced the market during the period, are trading at a substantial premium to their respective 5/10-year average P/E or P/B multiples.
“This polarisation on performance and valuations clearly underscores two things, investors taking continued refuge in the quality/earnings predictability theme in an environment of economic slowdown and there is a lack of pick-up in broader market’s earnings growth,” say analysts at Motilal Oswal Securities.
On the other hand, over 280 stocks from the BSE500 index (over half the scrips that comprise the index) have recorded a negative return in H1CY19, as market sentiment remained exposed to slowdown in the economy, concerns around liquidity woes for non-banking finance companies (NBFCs) and a moderation in consumption on the domestic front. That apart, political uncertainty due to the general elections in May 2019 also impacted sentiment, analysts say.
| SpiceJet | 89.20 | 124.35 | 39.4 | 40.51 | 56.29 |
|---|---|---|---|---|---|
| Reliance Nippon | 159.20 | 220.95 | 38.8 | 112.61 | 151.08 |
| Bajaj Finance | 2641.15 | 3640.15 | 37.8 | 747.55 | 1176.06 |
| PNC Infratech | 147.50 | 202.25 | 37.1 | 111.52 | 139.93 |
| P I Inds. | 857.15 | 1167.80 | 36.2 | 105.40 | 124.40 |
| CreditAccess Grameen | 383.15 | 521.95 | 36.2 | 71.71 | 76.31 |
| Interglobe Aviation | 1165.75 | 1583.00 | 35.8 | 117.64 | 589.59 |
| HDFC AMC | 1509.85 | 2036.45 | 34.9 | 171.85 | 276.17 |
| Somany Ceramics | 327.00 | 439.55 | 34.4 | 25.92 | 24.10 |
| KEI Inds. | 358.85 | 480.20 | 33.8 | 49.56 | 59.93 |
| REC | 122.05 | 163.30 | 33.8 | 839.40 | 1256.13 |
| Oberoi Realty | 445.30 | 592.00 | 32.9 | 142.92 | 155.76 |
| Indiabulls Real Estate | 87.20 | 115.60 | 32.6 | 2181.21 | 108.61 |
| Kalpataru Power | 392.40 | 517.50 | 31.9 | 104.83 | 136.88 |
| Inox Leisure | 246.85 | 325.50 | 31.9 | 57.69 | 48.08 |
| Bharat Electron | 87.95 | 115.00 | 30.8 | 558.74 | 668.62 |
| KNR Constructions | 213.50 | 279.15 | 30.7 | 79.74 | 92.15 |
| Bajaj Finserv | 6481.30 | 8445.25 | 30.3 | 637.03 | 838.74 |
| NESCO | 436.75 | 568.90 | 30.3 | 42.78 | 51.37 |
| APL Apollo | 1160.60 | 1509.25 | 30.0 | 42.65 | 61.70 |
List of stocks from BSE500 index gained more than 30%
Q4 - January-March quarter