Financial year 2018 has largely been
a very good year for the share markets as the sensitive Index of BSE (Sensex) rose
by 11.30% by 3,348 points to 32,968.68 during 2017-18. The index touched its
all-time high of 36,443.98 on January 29, 2018.
On account of the surge in stocks,
the total market capitalization (MCap) of BSE-listed companies jumped by Rs
20,70,472 crore to Rs 1,42,24,997 crore.
Investors' wealth rushed forward to Rs
20.70 lakh crore during the financial year 2017-2018 helped by strong broader
market sentiment. A stellar rally on
number of successful Initial Public Offerings also helped the total investor
wealth to rise.
The economic reforms such as
implementation of Goods & Service Tax (GST), Regulation and development in
real estate sector and the ongoing pick up in corporate earnings further aided
the rally. Improvement in macro-economic performance including CPI inflation
also stood positive for the markets.
However, the month February and March
only turned out to be lethargic to a great extent, where Large Cap, MidCap and
smallCap indices have fallen due to selling pressure from Long Term Capital
Gains and increase in domestic and global bond yield.
Some specific stocks from the Nifty witnessed
massive under performance, which include stocks of Lupin, Aurbindo Pharma, Sun Pharmaceuticals
and Dr. Reddy’s Lab. Lupin pharma stock closed 57% lower than its price on
April 1, 2017, whereas Aurobindo Pharma stock was down 37% during the course of the
financial year, hit by squeeze in
margins from the U.S business. Stocks of Sun Pharma also dropped 38% being another
poor performer in 2017-18.
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