Which sectors contributed most to unusual gain in the past two months? How has it fared against review of the whole year

In the past two months, the market has been on an uptrend that has regained the investors’ confidence and interest. This growing trend has outperformed the sluggish trend that clouded the market for most period of the year 2019. To validate this, the sector-wise change in the year 2019 has been considered and compared with the change in the past two months i.e. December 2019 and January 2020.

The highest gainer in 2019 was trading sector with gain of 188.63% followed by Microfinance sector with gain of 17.93%. Non-Life Insurance and Hydropower sector were the top losers with loss of 19.51% and 24.13% respectively. During the period, the total turnover stood at Rs.1.03 Kharba achieved through trade of 36.43 Crore units of shares traded through 15.41 Lakh transactions. The market cap grew by 3.37% while floated cap grew by 7.56%.

Similarly, in the past two months, four sectors have had abnormal gains. They were Trading (74.83%), Life Insurance (52.61%), Microfinance (49.08%) and Non-Life Insurance (48.64%). All the indices have gained in the past two months, which can be attributed to the increased confidence. Hydropower and Others sector gained the least during the period. During the period, the turnover amount stood at Rs.37.46 Arba achieved through trade of 11.36 Crore units of shares traded through 4.50 Lakh transactions. The market cap grew by 19.72% and floated cap grew by 20.07%.

While the growth in the past year was somewhat sluggish, with only some sectors having abnormal gains; the market has managed to perform better in the past two months compared to that of the previous year. The overall growth can be mostly attributed to the high growth in the four sectors, Trading, Microfinance, Life and Non-Life Insurance. Looking at the market summary statistics, considerable improvement can be seen which ensures revived interest in the market, and minimal impact of influence through unethical trade.

Since, only four sectors have had abnormal gains in the past two months, the performance of each of the companies in the particular sector has been reviewed. Some companies closed books for the purpose of dividend during the review period, due to which the bonus adjustment has been done to the overall change in the prices of the stocks.

*During the period WOMI resumed transaction after merger with Nagarik Laghubitta and adjusted 100% right shares. The price after adjustment of the same was Rs.614 per share.