Wealth Creators

The year 2017 saw several wealth creators, with the realty sector surprising investors with its superlative performance. Yogesh Supekar analyses sector-wise wealth creation in the past one year, while Tanay Loya finds out the market outlook for 2018 from the experts.

Many who have been investing in equity markets will agree that investing in equity markets is a tricky game. However, if one were a newbie investor who started investing since December 2016 or January 2017, then one would tend to believe that stock market investing is one of the easiest and fastest ways to create wealth. The global equity markets in 2017 have enriched majority of the investors who have played long in the markets with a long-term perspective.

So, how good was 2017 and how many stocks created how much wealth?

If we filter all the listed stocks on the BSE by market capitalisation and consider only those stocks with market capitalisation greater than `100 crore, we find that there are nearly 239 stocks which have more than doubled, i.e provided returns in excess of 100 per cent in one year, for the period between March 4, 2017 to March 4, 2018. For the same time period, there are almost 285 stocks which have delivered returns in the range of 50 per cent and 100 per cent, while the number of stocks is 297 for those stocks which have generated returns in the range of 25 per cent to 50 percent. That makes it 821 stocks which have generated returns in excess of 25 per cent in less than one year. During the same time period, Sensex was up by 16 per cent, BSE Mid-cap index gained by 20 per cent and the BSE Small-cap index advanced by 30 per cent. Thus, in the last one year, we saw performance of the broader market, with at least 821 stocks having market capitalisation in excess of `100 crore managing to outperform not only the Sensex but also the BSE Mid-cap index.

Sectoral wealth creation: