The benchmark indices Sensex and Nifty are ending 2019 on a strong note, with the two gaining 15 percent and 13 percent, respectively, even as the growth is at a multi-year low. According to experts, the corporation tax cut in September, along with US-China trade optimism and rise in FII inflows boosted the market in the latter half of the year. Financials were the major gainers in 2019 with three of the top five contributors belonging to this space, while the major losers included Yes Bank and Zee. Here are the best and worst-performing stocks of 2019:
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- 1 / 10
Bajaj Finance: The stock gave robust returns to investors, rising over 60 percent even as the NBFCs struggled in the shadow of defaults, shrinking balance sheets and bankruptcy. The stellar performance has been on the back of double-digit growth in earnings, assets and net interest income. Analysts expect a similar performance to continue in the coming year as well, despite woes in the NBFC sector.
- 2 / 10
Bharti Airtel: Despite various headwinds, the stock surged over 60 percent in 2019, making it one of the top performers on Nifty. The company is India’s second-largest telecom operator with a revenue market share of 30 percent versus Jio revenue market share of 32 percent and Vodafone Idea at 28 percent as on Q2FY20.
- 3 / 10
ICICI Bank: The private sector lender gained almost 50 percent in 2019. The business of the bank had increased at an accelerated pace of 19 percent Y-o-Y at the end of September 2019, supported by deposits growth rising to 25 percent in September-end 2019. The loan book of the bank had also risen 13 percent.
- 4 / 10
Bajaj Finserv: Bajaj Finserv rallied 44 percent in 2019. In Q2 itself, its consolidated net profit rose 71 percent year-on-year (YoY) to Rs 1,204 crore on the back of robust growth in revenues.
- 5 / 10
Reliance Industries: The stock added 36 percent in 2019 amid deal with Saudi Aramco, and gains in its telecom, retail business. In its AGM in August, the company announced its intention of becoming a zero-debt company in 18 months. The recent hike in tariff by reliance Jio is also a positive for the company. Most brokerages also raised their target price for the company to near Rs 2000 per share post the development
- 6 / 10
Yes Bank: This stock was the worst performer on benchmark indices down nearly 75 percent for the year amid defaults, exposure to troubled companies, rating downgrades, and concerns over investors. In September, Yes Bank announced its capital raising plans and said it has received "strong interest" from multiple foreign as well as domestic private equity and strategic investors for the capital raise. For Q2, Yes Bank reported a net loss of Rs 600.08 crore as compared to the net profit of Rs 964.70 crore in Q2 FY18.
- 7 / 10
Zee Entertainment: Zee is another major dragger for the year 2019, down over 36 percent amid concerns over potential default for the company. Even the stake sale by promoter Essel Group in the company to financial investors did not seem to please the investors. Most brokerages remain cautious on the company and expect the stock to be volatile until debt issues are resolved.
- 8 / 10
M&M: The year was not a good one for the auto space, with M&M being one of the top losers for the sector as well as the benchmark, falling 33 percent in 2019. Investors remained wary of the stock after the company announced a rejig of its top management with Anand Mahindra, 64, transitioning to the role of non-executive chairman from the executive chairman, effective April 1, 2020.
- 9 / 10
GAIL: The stock has lost 33 percent in the year on poor earnings and fines imposed by the Department of Telecommunication (DoT). In Q2, the company posted a net profit of Rs 1,167.58 crore, down 34.7 percent year-on-year (YoY). Meanwhile, the DoT has sought Rs 1.72 lakh crore in past statutory dues from state-owned gas utility company following the Supreme Court's ruling on revenues that need to be taken into consideration for payment of government dues.
- 10 / 10
Vedanta: This metal stock was another major dragger on the Nifty50 index, shedding 23 percent in 2019. The company has been declining mostly due to the US-China trade war and lower metal prices. Weakening global economic growth added pressure to the entire space in 2019.
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