Mumbai. Samvat 2075 was an eventful year for equity investors because of domestic and global cues. Both the key indices closed Samvat 2075 with smart gains. The Sensex rallied 3820.38 points or 10.84 per cent, while the Nifty soared 985.50 points or 9.30 per cent in Samvat 2075. BSE Midcap and Smallcap indices ended the Samvat year in losses for a second year a row, which is a rarity. An 10.84 per cent rise for the BSE Sensex may look reasonable, but those gains were powered by few, select index stocks.
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Top 10 Sensex performers added Rs 9.06 lakh crore during the ongoing Samvat. This is against 2,455 other stocks on the domestic bourses that lost Rs 1.83 lakh crore in market value during the same period. Only 12 of the 30 Sensex stocks are ending the Samvat year with over 10 per cent return. For the Samvat year, Sensex is up 11.62 per cent, which is better than previous Samvat year’s 8.79 per cent return.
In last 10 years, it will be only the fourth time that the index would be ending a Samvat year with double-digit returns. The BSE Midcap index is down 4.78 per cent for the Samvat year against a 7.65 per cent drop in last Samvat. BSE Smallcap index, which declined 11.47 per cent this Samvat compared with a 14.6 per cent slide in the previous year. Not once did these two indices fall in two consecutive years, 10-year data revealed.
Samvat 2075 began with a bang with a 245.77 points gain for Sensex and 68.40 in NSE Nifty in Muhurat trading on November 7, 2018 Samvat 2075 started off with the all-important state assembly elections in Rajasthan, Madhya Pradesh, and Chhattisgarh. The loss in Rajasthan was the traditional oscillation factor between NDA and Congress. However, NDA lost MP and Chhattisgarh, which it had ruled for close to 15 years.
That did create a flutter in the markets about the prospects of the NDA in the general elections of 2019 and the impact was felt on the markets. The Samvat year saw the Modi-led NDA government retain power with a stronger mandate. Earnings played catch-up with valuations, monsoon was delayed a bit but was plentiful by the end of the season.
Some market-unfriendly proposals such as a tax surcharge on the super-rich that hit a section of the FPIs, mega bank mergers and a major corporate tax caused a lot of ups and downs on the bourses. The corporate tax cuts helped investors recoup some of the losses as the benchmark indices bounced back.