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Top gainers in India fail to impress on global charts

No Indian company made it to the top 200 list of Bloomberg 500.

May 17, 2019, 08.32 AM IST
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The 11 Indian stocks that feature in the Bloomberg 500 list are amongst the better performing ones on the domestic bourses.
Blue-chip stocks have been the top performers in India so far in 2019 but their gains pale in comparison to their global counterparts. No Indian company made it to the top 200 list of Bloomberg 500, a club of the top 500 listed companies globally by market value, in 2019, according to an ET study on the basis of their returns. In comparison, nine companies made it to the top 200 list in 2018.

Out of the 11companies that figure in Bloomberg 500, private lender Kotak Mahindra Bank is the best performing Indian stock in the list with a rank of 208. Hindustan Unilever (HUL) is the worst performer with a rank of 475 out of 500, data showed.

Toppers snip 1

Analysts said Indian blue chips have underperformed their global peers in 2019 on the back of growth concerns. “Indian equities have underperformed benchmark World and EM indices year-to-date, and this explains why our companies are not at the top of the performance rankings,” said Bharat Iyer, head of India equity research at JP Morgan. “The underperformance this year is partially pay back for last year’s outperformance and could also be attributed to the near-term slowdown in the economy and some uncertainty over the election results .”

Indian entities put up a better show in the last two years in the Bloomberg 500 club. In 2018, Tata Consultancy Services (TCS) was ranked 20 in the list with returns of over 37 per cent while HUL and Infosys featured in the top 50 list. Even stocks such as Reliance Industries, ICICI Bank and HDFC were among the top 100 in Bloomberg 500.

The action has shifted from emerging markets to developed markets in 2019 with the US benchmark index S&P 500 gaining 13 per cent . Other developed market indices such as FTSE 100, Euro Stoxx and DAX too have risen in the range of 8-15 per cent during 2019, data showed. In contrast, India’s Nifty has underperformed with 2.3 per cent returns this year.

The 11 Indian stocks that feature in the Bloomberg 500 list are amongst the better performing ones on the domestic bourses. Over 80 per cent of the gains made by the benchmark Nifty this year has been driven by four stocks -- Reliance Industries, the HDFC cousins and Kotak Mahindra Bank. These four stocks are a part of Bloomberg 500. Most of the other Indian blue chips have fared even poorly in the global context.

This weakness in the Indian markets is also on account of several global headwinds including the sharp rise in the crude oil prices and escalating trade war tensions between world’s largest economies – the US and China. Global oil prices have risen by over 40 per cent since January and are currently at $71 per barrel, data showed.

“If the oil price trajectory remains an upward one, this factor alone could overshadow the rest of the macro context and trigger a phase of vulnerability in the short term,” said HSBC in a recent note to investors. The brokerage, however, pointed out that the riskon in the Indian equities is expected to continue since there is enough room for growth thanks to the recent correction.

E-commerce firm Shopify is the best performing stock amongst the Bloomberg 500 this year with year-to-date returns of 84 per cent . The US-based telecom firm Qualcomm, Facebook, Ford Motors and Japan’s Softbank are among other best performing stocks in the pack with each going up by over 40 per cent during 2018.
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