Wealth Creator Stocks of Calendar year 2018
Last Calender year 2017 was really good for the Indian Share Market thanks to GST and other major economic reforms Government took after Economy recovered from the effect of the biggest fiasco of Demonetization in 2016. Analysts predicted that it will be very difficult to earn good returns in the calendar year 2018 and unfortunately their prediction is turning out to be correct.
This year many indices gave single digit to negative returns. The market recovered when the tension between the USA and North Korea resolved for some period but it could not sustain at the top thanks to the USA-China trade war. In 2018, we saw Crude oil prices and Rupee mostly affected the sentiments of Investors. From 3rd of Oct, fortunately, things are in favor of Market and Nifty is showing great rally since then.
The Assembly Elections Results of 5 states in December are already factored in in the Nifty level and right now we are witnessing a Santa-Rally. Before FIIs book their profits and go for their Christmas vacation, let us discuss how Indian Markets performed in the Calendar year 2018.
| Indices | Percentage Change (%) | Indices | Percentage Change (%) |
|---|---|---|---|
| Nifty 50 | 5.53 | S & P BSE Sensex | 8.5 |
| Nifty Midcap 50 | -39.17 | S & P BSE Midcap | -9.31 |
| Nifty Bank | 6.62 | S & P BSE Smallcap | -19.12 |
| Nifty IT | 28.02 | S & P BSE Bankex | 5.71 |
| Nifty Realty | -47.98 | S & P BSE IT | 30.55 |
This year some Bluechip stocks really performed well. Let’s see which Nifty 50 stocks gave really good returns in the Calendar year of 2018 in the following table.
| Stock | % Return in 365 days | CMP | 52 Week High | 52 Week Low |
|---|---|---|---|---|
| Bajaj Finance | 48.28 | 2613.75 | 2994 | 1511.20 |
| Tech Mahindra | 40.48 | 696.90 | 780.80 | 485.30 |
| Hindustan Unilever | 38.91 | 1849.85 | 1869.50 | 1281.10 |
| Reliance | 24.22 | 1144.45 | 1329 | 862.65 |
| Asian Paints | 22.75 | 1402.35 | 1490.60 | 1090.10 |
| Bajaj Financial Services | 22.19 | 6395.95 | 7200 | 4500 |
| JSW Steel | 21.97 | 310.45 | 427.55 | 243.40 |
| Kotak Bank | 20.40 | 1230.65 | 1417 | 992.50 |
| ICICI Bank | 18.70 | 367.20 | 375.30 | 256.50 |
| LT | 17.83 | 1435.10 | 1470 | 1175 |
This year Private sector banks like Kotak Bank, ICICI Bank and Axis Banks gave good returns to investors. The IL & FS Crisis affected NBFCs and HFCs really badly. Money from these sectors shifted to Private Sector banking stocks. That’s why Nifty Bank index could give 7% returns even in such a bad year. Financial Sector stocks like Bajaj Financial Services (22.39%) and Bajaj Finance (48.90%) too performed really well.
The year 2018 was really good for IT sector stocks thanks to depreciation of Rupee for most of the year. Stocks like NIIT Technology (80.88%), MindTree (45.14%) and Tech Mahindra (40.95%) gave tremendous returns.
The implementation of GST definitely helped some FMCG stocks which gave double-digit returns to their investors.
Dabur (31.90%), UBL (33.58%), Marico (27.31%), Colpal (24.07%), GSKCons (22.63%) etc. stocks helped Nifty FMCG give 17.12% returns in 2018. Thanks to HUL (38.78%) which lead this pack. HUL-GSK deal announcement will definitely take HUL further up at new 52-w High level.
Some Pharma sector stocks wiz. DivisLab (44.51%), Glenmark Pharma (26.92%) and Biocon (22.92%) managed to recover the Nifty Pharma index from the year lows. This index gave -4.24% return in last 365 days.
NSE Auto Index traded in red for most of the year 2018. It gave 18% negative returns in 2018. Still, stocks like ExideIndustry managed to give 27.31% positive returns thanks to the decrease in raw material prices.
US-China Trade war affected Nifty Metal sector really bad in 2018. This index gave -13.65% return in 1 year. Surprisingly JSW Steel (22.19%) made to top 10 performers list of Nifty 50 stock this year.
Apart from these stocks, there are many such stocks who created wealth for the Investors. wiz.
V-Mart Retail, HEG, Vinati Organics Ltd, L & T Infotech, L & T tech Serve, VIP Industries, Bata, Jubilant Food etc.
After the heavy selling of 40-60% in Midcaps and SmallCaps in last year, we can clearly see that Investors prefered to Invest in Large Cap and BlueChip stocks to avoid risk. We saw more buying in highly liquid stocks and front-runners in Market who are always favourites of leading Analysts. Let’s see how these Wealth Creators of Calendar year 2018 performs till 31st March 2019.
If you have followed my Facebook Live videos you will realize that I gave positional calls in most of these stocks at very correct levels wiz.
HUL @ 1200
Axis Bank @ 460
Kotak Mahindra Bank @ 1050
Jubiliant Foods @ 900
LT @ 1100
and so on.
(Disclaimer: Please note, this post is for educational purpose only. Stocksbaazigar does not take any responsibility of profits/losses of the reader. Please consult your financial Advisor before taking any Investment decision. Mr Deepak Doddamani is NSE’s Certified Investment Analysis Professional and NSE’s Certified Marketing Professional Level -4, but he isn’t SEBI registered Financial Advisor.)