The Sensex has lost 13% since January 29, when it touched 29,681.77 points, but stocks such as Chennai Petroleum Corporation (CPCL) have yielded a whopping 200%, as crude oil prices continue to fall.
Brokerages continue to downgrade their Sensex targets — CLSA has lowered its forecast for December 2015 to 30,000 points from 31,800 — and foreign investors continue to take risk off the table, but there are several stocks that have brought cheer to investors. Indeed, if the Indian markets haven’t done too badly despite the volatility in the global markets over the last few months, it’s because close to 300 companies — that’s 60% of the BSE 500 universe — have outperformed the Sensex after the benchmark index hit a record high in January 2015.
The Sensex has lost 13% since January 29, when it touched 29,681.77 points, but stocks such as Chennai Petroleum Corporation (CPCL) have yielded a whopping 200%, as crude oil prices continue to fall. Stocks that have doubled in value include Rajesh Exports, Tata Elxsi, Ricoh India, Welspun India, Jubilant Life Sciences and Vardhman Textiles.
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Lower-than-expected GDP growth for the three months to June of 7% has dampened sentiment in the market. While the government’s decision to not levy minimum alternate tax on foreign investors with retrospective effect has eased concerns on that front, the depreciation of the Indian currency is worrying analysts. They point out that a falling rupee would offset some of the advantages of falling prices of commodities, which will make inputs cheaper for a whole host of companies.
Nevertheless, being a commodity consumer, with a credible reform story, the outlook for India is better than that for other emerging markets, Macquarie observed in a report. Macquarie trimmed its Nifty target for December 2015 to 8,700 points from 9,600.