Sensex disappoints in FY 16 as many of the 30 constituents lose big value
FY 16 has been a mixed year for Stocks with Markets on a downward drift with Sensex closing 9.4% lower at 25341
Sensex disappoints in FY 16 as many of the 30 constituents lose big value
Interesting & Heartening to it’s Shareholders ,Reliance has been the biggest constituent gainer at @ 27% while at the other end BHEL has lost half it’s value at 51% ! ~ another 11 companies have lost between @ 19% to 30 % values
Domestic Concerns revolved around second consecutive failure of monsoon in 2015 & slow pace of Reforms & Corporate Earnings Lethargy with growth in single digits despite boasts of GDP Growth of over 7% and lower Inflation and Oil Price falling 40%
Global Concerns revolved around China’s Growth slowing down considerably & It’s Stock Markets losing a lot of it’s froth in panic falls, continuing recession in Europe & expectations of the US Fed raising rate
Consequently FPI Inflows which were a record US $ 17 b in FY 2015, reversed to outflows of US 2.1 b in FY 16.These outflows would have been higher if last month March 2016 had not seen a reversal back to FPI Inflows of US $ 3.2 b
In the first three months of this Calendar Year 2016 , January & February 2016 witnessed significant outflows of US 1.67 b & US $0.8 b respectively that dropped Sensex to 23000 levels.On the back of many countries like Japan,Switzerland and Sweden embarking on Negative Interest Rate Policy,the US Fed send out dovish signals and has delayed Rate hikes.This saw FPI Equity Inflows smartly cross US $ 3 b in March 2016 getting them back into the Green in 2016 & revive the Sensex back up @ 10% to 25500 levels or else FY 16 would have seen a Sensex drop of nearly 5000 points & @ 18%,double than what it actually did in the end
Here are some FY 16 Trend observations :