06 Nov , 2021 By : Kanchan Joshi
MUMBAI: Tata group stocks performed exceedingly well in the Hindu calendar year Samvat 2077 that ended on Wednesday. Of the 10 best performing Nifty stocks, during the year, three of them were part of the salt-to-software conglomerate, data showed.
Surging 228%, Tata Motors was the best Nifty performer during Samvat 2077. Tata Steel with gains of 167% and Titan rising 91% were the other two Tata group Nifty stocks which have given strong returns. Rest of the top 10 best performing Nifty stocks were Bajaj Finserv, State Bank of India, Hindalco Industries, ONGC, Grasim Industries, JSW Steel, and Adani Ports which rose 92-139% during the period.
Other Tata group Nifty stocks such as Tata Consumer rose 61%, while jewel of the pack Tata Consultancy Services jumped 30%.
Barring Dr Reddy’s Labs and Hero MotoCorp, which fell 3-14%, all other Nifty stocks ended Samvat 2077 with gains.
Among other Nifty stocks, Wipro rose 89%, Tech Mahindra was up 77%, Reliance Industries climbed 25% and Hindustan Unilever Ltd jumped 10%.
"There are clearly bright lights shining around us when we look at various economic indicators. It does seem that the economy is showing a turnaround, which is looking quite encouraging presently. Will this be sustained or not is a moot question, but for certain, things are looking up," said Care Ratings.
Overall, it believes that the economy is on the right path and will chug along till March. A third wave looks less likely, and the vaccination drive is progressing well and hence it is reasonable to expect that the impact if at all it comes will be better borne by business.
"We believe the pent-up demand would get diluted in manufacturing while it will elongate for services progressively. Job creation is the clue in the medium term if consumption is to be kept ticking. We must remember that inflation is a dampener and while statistically it is less than 5%, high fuel cost, prices of services and manufactured goods will hit consumption once the pent-up fury recedes," it said.
Despite covid led lockdowns and uncertainties which had deterred economic growth, Samvat 2077 ended with best gains in 13 years. Riding on abundant liquidity, investors made nearly 40% profit in equities this year - best returns compared to other asset classes.
Benchmark indices Sensex and Nifty gained 39-40% in Samvat 2077. Last year, when markets had bounced from a major crash in March, both Sensex and Nifty gained 10-11%.
Equity markets had a historical journey in Samvat 2077, touching new life- time highs with the Nifty surpassing the 18000-mark while the Sensex crossing 60,000 for the first time.
Analysts said the government’s fiscal stimulus and a soft monetary policy stance of global central bankers were key drivers of equities in Samvat 2077. Post the second wave of covid, signs of improvement in high-frequency key economic indicators such as GST collection, railway freight, power consumption, import-export data, e-way bills among others amid vaccination boosted investor sentiment.
Overall, most sectors delivered positive returns, with metals ( up 128%), realty (up 113%) and PSU banks (up 93%) as top gainers. Sectors such as pharma (up 23%), FMCG (up 29%) and private banks (up 30%) were underperformers as defensives took a breather.
In comparison, mid- and small-caps did exceedingly well in Samvat 2077. The BSE MidCap index surged 61% while the BSE SmallCap jumped 79% during the year.