Nifty hovering in sluggish mode

New Delhi Brightcom Group is the worst performing stock in the NSE-500 in the month of August-- down 32 per cent. As per a research by BOB Economics Research, Tanla Platforms is down 18.5 per cent during the month, Vedanta is down 15.8 per cent, Medplus Health Services is down 15.4 per cent.

Among the other laggards, TCNS Clothing is down 13.3 per cent, Cummins India is down 13.2 per cent, Radico Khaitan is down 13 per cent, Redington is down 13 per cent, Borosil Renewables is down 12.8 per cent, Hindustan Petroleum is down 12 per cent, Bombay Burmah is down 11.8 per cent, Macrotech Developers is down 11.7 per cent, TCI Express id down 11.6 per cent, Apollo Tyres is down 10.3 per cent.

Among the best performing stocks in August in NSE-500, Rattan India Enterprises showed a gain of 52 per cent, Kalyan Jewellers gained 41 per cent, Swan Energy gained 38 per cent, Indiabulls Housing Finance gained 38 per cent, Cochin Shipyard gained 35 per cent, Gland Pharma gained 33 per cent, Apar Industries gained 32 per cent, Indian Railway Finance Corporation gained 31 per cent, BSE gained 31 per cent, Suzlon Energy is up 29.6 per cent, Archean Chemical is up 28.8 per cent, Vaibhav Global is up 28 per cent, Solar Industries is up 27 per cent.

Among other top gainers, Jindal Worldwide is up 26.6 per cent, Linde India is up 26 per cent, Supreme Industries is up 25.6 per cent, Cera Sanitaryware is up 25.6 per cent, Escorts Kubota is up 24.4 per cent, Jubilant Ingrevia is up 24 per cent, Jubilant Pharmova is up 24 per cent, KSB is up 23 per cent, Tamilnad Mercantile Bank is up 22.8 per cent, BEML is up 22.4 per cent, JSW Energy is up 21.6 per cent, Dixon Technologies is up 21.4 per cent.

Nifty-50 was largely in line with global indices in August, but remains a laggard YTD, the report said. Most major global indices were under pressure during August with Chinese indices among the worst performing indices. Hang Seng and Shenzhen were down 8 per cent and 6.5 per cent respectively. S&P500 was down 1.6 per cent, while Nifty50 was down 2.5 per cent. With this correction, now the one year forward PE multiple for Nifty50 is in line with its 5year average, which implies a fair valuation. Nfty50, up 6.3 per cent YTD, has lagged the double-digit returns of other major indices.

Mid & small caps maintained momentum, but most sectoral indices in red. Nifty mid & small-cap indices were up 4 per cent during August. Nifty IT had a 3 per cent recovery indicating bottoming out of the sector. Pharma sector also had a modest recovery given expectation of a milder pricing pressure in generic medicines in USA. That said, weakening INR also played part in the two sectors’ recovery.