Stock market roundup 2019: Sensex, Nifty surge to record highs; rally remains selective

Even as stock markets rallied in 2019, the surge was limited to a few large stocks as the mid and small stocks performed negatively. For investors, Sensex and Nifty gave positive returns for the straight fourth and third year, respectively. While Sensex was up over 14 per cent, Nifty ended higher by 12 per cent in 2019. The BSE 30-share  index hit 52-week low of 35,287.16 on February 19. However, it later surged to the record high of 41,809.96 on December 20.

On August 23, the BSE mid-cap index hit its one year low of 12,914.63 and the small-cap hit 52-week low of 11,950.86 on the same day. The index plunged about 3 per cent this year, while the small-cap index at about 7 per cent. However, Sensex climbed over 5,000 points or about 15 per cent and also crossed the historic 40,000 mark. In the same year, the Sensex rallied 1,921 points on September 20, its biggest single-day jump in a decade.

Nifty Bank ended up 18.4 per cent, while Nifty Realty was up 28.5 per cent. Similarly, Nifty Finance rose 25.6 per cent and Nifty Energy ended higher 11 per cent. Nifty IT, Nifty Infra and Nifty Junior ended up 8.4 per cent,2.5 per cent and 0.5 per cent, respectively. However, Nifty FMCG down 1.3 per cent, Pharma down 9.3 per cent and Nifty auto were down 10.7 per cent. The major Nifty gainers include Bajaj Finance up 60.1 per cent, Bharti Airtel up 58.7 per cent, ICICI Bank up 49.6 per cent, Bajaj Finserv up 45.4 per cent, Reliance India Ltd up 35 per cent, BPCL up 35.5 per cent, Kotak Mahindra Bank up 34 per cent, Nestle India up 33.4 per cent Asian Paints up 30.4 per cent and Titan up 27.6 per cent.  Yes Bank down 74.1 per cent, Zee Entertainment down 38.7 per cent, GAIL down 32.8 per cent, Mahindra & Mahindra down 33.9 per cent, Vedanta Down 24.7 per cent, Hero Moto Corp down 21.2 per cent ITC down 15.6 per cent, ONGC down 14.2 per cent were the major losers.

“It’s been a phenomenal run for the benchmark indices in 2019 despite the slowdown in the economy. The benchmark indices, Nifty and Sensex, ended higher by 12% & 14.4% respectively and by 2020 (December end) Sensex has the potential to reach 43000+ zone and Nifty can test 13,000+,” Ajit Mishra, VP Research, Religare Broking told Financial Express Online.

Among the major decisions by the government that lifted the markets include slashing corporate tax by almost 10 percentage points — the biggest reduction in almost three decades. On the last trading day of 2019, the market benchmark Sensex slumped 304 points, dragged by losses in index-heavyweights Reliance Industries, HDFC twins, ICICI Bank and TCS. After swinging over 423 points intra-day, the 30-share BSE Sensex ended down by 304.26 points, or 0.73 per cent, at 41,253.74.

Brokerage picks

Citi Research has a December 2020 Nifty target of 12,700. HCL Tech, HDFC Bank & ICICI Bank are among the top picks in large-cap space and ACC, Apollo Hosp, Biocon in midcap.

Morgan Stanley has a December 2020 Sensex target of 45,000. Bajaj Auto, M&M, Maruti, Motherson Sumi, Indian Hotels, Jubilant Food, ITC, and United Spirits are the top picks.