India Sector Sales Growth

India Sector Sales Growth Chart shows aggregate Sales Growth by sector from 2008 to 2017, ordered by top 40 sectors by Sales in FY17. The growth columns show compounded growth rates broken into two periods, 2008 to 2014 and from 2014 to 2017. The red shaded cells in the ’14 – ’17 column show sectors that have seen negative sales growth in the last three years. The green shaded cells highlight the sectors that have grown faster in the last three years than in the six years before that. Banks continue to be the largest sector by revenue over the

Read more

India’s top sectors over the years

India Sector Market Cap Rankings Graphic shows sectors that have been in the top 10 sectors by aggregate market capitalisation in India over the last ten years. Top 10 rows in the table correspond to the rank as of March 2018. The final ‘CAGR’ column shows annualized growth rate in market cap over the same period. Takeaways 20 different sectors have been in the top 10 largest sectors by market cap at some point from 2008 to 2018 implying significant churn in investor interest However, the current top 3 market cap sectors, Banking, IT Consulting & Software, Pharmaceuticals in addition

Read more

India Market Cap Growth: 2008 to 2018

Continuing the #indiamarketnumbers series on data-centric posts on the India Market. India Market Cap Growth: 2008 to 2018 Chart shows total India Market Cap from 2008 to 2018 with the year-on-year % growth (orange line). Takeaways Total Market Cap of publicly listed companies in India has grown from ₹26 Lakh Crores ($400B in constant currency terms) in 2008 to ₹140 Lakh Crores ($2,162B) over ten years, a growth of 5.4X Over the last ten years, markets have shrunk in three years, the biggest fall of 29% happening during the 2008 financial crisis. 2012 and 2016 saw marginal negative growth. Other than 2013,

Read more

India Markets in Numbers – Top sectors by Market Capitalisation

This is the first in a series of short data-centric posts on the universe of publicly listed companies in India. The data spans 10 years of financial performance of over 1,700 companies listed on the NSE across 100+ industry sectors. The series of posts tagged #indiamarketnumbers summarizes key takeaways and trends in sector growth, profitability, and stock performance. None of these posts should be construed as investment advice. The Universe of listed Indian Companies As of March 2018, the market cap of 1,723 companies listed on the NSE is at 1,50,54,158 INR Crores (2,162.8 USD Billions). This accounts for almost all

Read more

Markets after FY2018: Bull or Bear

FY2018 was an ok year for Indian markets. The statement seems strange given what has been happening since late January. In spite of the correction over the last two months, we still ended the year up 10%+ on both the NIFTY and the NSE 500. Not quite the blockbuster returns we saw in Jan 2018 when both indices were at 20%+ returns for the financial year and certain individual stocks were giving double-digit returns in a matter of days. Things were so good that a random selection of stocks would have done fairly well over the last year [Read this before deciding

Read more

Difference between ordinary equity and DVR shares

Ever wondered why there are two tickers (stock codes) for Tata Motors on the major Indian stock exchanges? Both trade at different stock prices. But what are DVR Shares? If you had to guess, you might say they’re shares of two different subsidiaries of the same massive Tata group. They have so many businesses, it’s hard to keep track. A logical guess, but it would be wrong. The chart above with stock prices for the last 3 months shows an obvious correlation (0.993) between the two, i.e. they mirror each other’s percentage price changes. Both stock codes represent equity ownership of

Read more

Should you buy stocks newly added to the NIFTY

From April 2nd, 2018, the NIFTY will look different. Bajaj Finserv, Grasim Industries, and Titan Company will be included and Ambuja Cements, Aurobindo Pharma, and Bosch will be excluded. [link] This is not a rare or ad-hoc phenomenon, but a semi-annual ritual conducted by the organization that owns the NIFTY index, the National Stock Exchange, effective every April and September. Here’s what the index methodology document says about index reconstitution: The index is reconstituted semi-annually considering 6 months data ending January and July respectively. The replacement of stocks in NIFTY 50 (if any) is generally implemented from the first working day after F&O

Read more

Learning from the latest market decline

Long periods of boredom punctuated by moments of terror This phrase is attributed to many different people said to be describing many different professions. From driving big-rig trucks, flying aircraft to modern warfare. And of course, it has since been co-opted by the investment profession and by the best investors, as a metaphor for the vagaries of the market. Personally, I think it’s a bit dramatic comparing warfare with the buying and selling of stocks. True to form, financial media in the US announced 5th Feb 2018 was “the worst point decline in history“. Phrased like that you can’t help

Read more