2007: The year of crazy bull run
By--Varindar Bansal, Anichya Shah and Shravan Sreenivasula
CNBC-TV18
The year 2007 was outstanding for Indian equity markets as both the benchmark indices Sensex and Nifty conquered new peak with hefty gains -----47% and 53% respectively for the period December 29, 2006 - December 30, 2007. The BSE Sensex added six thousand points during the year, which was better than the five thousand points it added in 2005.
Index Changes
Indices| | |
| Returns (%) | |
| Sensex | 47% |
| Nifty | 53% |
| Small-Cap | 87% |
| Mid Cap Index | 74% |
| BSEDollex-30 | 65% |
Synopsis of 6000 points
| 20000 | 29th Oct 2007 |
| 19000 | 15th Oct 2007 |
| 18000 | 9th Oct 2007 |
| 17000 | 26th Sep 2007 |
| 16000 | 19th Sep 2007 |
| 15000 | July 6, 07: 15000 |
FIIs Flows
The Foreign Institutional Investors (FIIs) have also shown enormous interest in the Indian markets by making record investment of USD 17 billion in a single year. FII investment of USD 10.7 billion in 2005 was the previous high.
| Year | FIIs Flow (USD bn) |
| 2007 | 17.00 |
| 2006 | 7.99 |
| 2005 | 10.70 |
| 2004 | 8.52 |
| 2003 | 6.59 |
| 2002 | 0.75 |
| 2001 | 2.84 |
| 2000 | 1.38 |
Sectoral Indices
Sectorally, BSE metal, capital goods, oil & gas, consumer durable and bankex have outperformed the Sensex. However, FMCG, healthcare and auto sectors remained underperformers. IT was the only sector that has given negative return for the year.
| Indices | Returns (%) |
| Metal Index | 121% |
| Capital Goods Index | 116% |
| Oil & Gas Index | 114% |
| Consumer Durables | 85% |
| Nifty Junior | 74% |
| PSU Index | 70% |
| Bankex | 61% |
| FMCG Index | 18% |
| Healthcare Index | 14% |
| Auto Index | 1% |
| IT Index | -14% |
Top 2007 F&O Stocks:
In the F&O segment, a few stocks gave hefty returns. Stocks like RNRL gained over 700%, Ispat Industries surged over 600%, IFCI, Jindal Steel & Power and Nagarjuna Fertilisers & Chemicals rose over 500% in one year.
| Stock | 2007 Returs (%) |
| Reliance Natural Resources | 701% |
| Ispat Industries | 635% |
| I F C I | 574% |
| Jindal Steel & Power | 569% |
| Nagarjuna Fertilizers & Chemicals | 545% |
| Essar Oil | 487% |
| India Infoline | 481% |
| Welspun-Gujarat Stahl Rohren | 391% |
| Educomp Solutions | 390% |
| Gujarat N R E Coke | 364% |
| Jaiprakash Hydro Power | 359% |
| Neyveli Lignite Corpn. | 341% |
| Reliance Capital | 331% |
| Bhushan Steel | 318% |
| Reliance Energy | 315% |
| Reliance Petroleum | 253% |
| G M R Infrastructure | 250% |
| Aban Offshore | 248% |
| J S W Steel | 241% |
| Lanco Infratech | 233% |
| MRPL | 230% |
Reliance pack Chg (%) in 2007
Notably, the Reliance pack offered great returns to its shareholders. ADAG stocks like RNRL rose 600%, Reliance Capital increased 326% and Reliance Energy shot up 311%. On other hand, Reliance stocks belonging to Mukesh Ambani--- like Reliance Infra , RPL and Reliance Industries surged 300%, 249% and 128%, respectively for the year.
| Company Name | 2006 Price | 2007 price | Chg (%) | Chg in M-cap (Rs cr) |
| Reliance Capital | 606 | 2581.1 | 326 | 49821 |
| Reliance Comm | 471 | 730.8 | 55 | 54341 |
| Reliance Energy | 520 | 2134.55 | 311 | 39352 |
| Reliance Ind | 1270.35 | 2894.35 | 128 | 243712 |
| Reliance Infra | 528.7 | 2067.95 | 291 | 2324 |
| Reliance Petroleum | 62.95 | 219.6 | 249 | 70493 |
| Adlabs Films | 433.65 | 1458.65 | 236 | 4560 |
| RNRL | 22.2 | 168.65 | 660 | 24561 |
Wealth Creator and Destroyer
There were few astonishing wealth creator stocks for the year. MMTC gained over Rs 135752 crore, Cals Rs 6902 crore and Jindal South West soared Rs 2324 crore. However, there were few stocks which were wealth destroyer like Hexaware Tech (lost Rs 1463 crore), Atlanta (lost 1089 crore ) and Subex (lost 1122 crore.)
Wealth Creator
| Company Name | 2006 Price | 2007 price | Chg (%) | Chg in M-cap (Rs cr) |
| Shristi Infra | 26.51 | 806.5 | 2942 | 1761 |
| Cals | 3.23 | 86.95 | 2592 | 6902 |
| Lloyds Metals | 5.18 | 129.9 | 2408 | 1326 |
| Innovative Foods | 4.16 | 90.4 | 2073 | 41 |
| Orissa Sponge | 26.6 | 529.35 | 1890 | 1497 |
| Sahara Housing | 45.5 | 865.55 | 1802 | 574 |
| Jindal South West | 155.3 | 2248.9 | 1349 | 2324 |
| MMTC | 2206 | 29356.3 | 1231 | 135752 |
Wealth Destroyer
| Company Name | 2006 Price | 2007 price | Chg (%) | Chg in M-cap (Rs cr) |
| Tripex Overseas | 162.25 | 24.4 | -85 | -111 |
| Atlanta | 982.7 | 314.9 | -68 | -1089 |
| Hexaware Tech | 199.65 | 81.6 | -59 | -1463 |
| Allsec Tech | 287.55 | 142.2 | -51 | -221 |
| Crew BOS | 228.35 | 123.45 | -46 | -134 |
| Sasken Comm | 535.8 | 333.25 | -38 | -560 |
| GMR Ind | 320.3 | 153.55 | -52 | -725 |
| Subex | 650 | 325.3 | -50 | -1122 |
Non-Index Gainers in 2007
From the non-index pack, some stocks, especially from steel and oil, have given phenomenal returns. From the steel pack, stocks like Ispat Industries has given a return of over 630% in one-year. Jindal Steel has gained over 530%.
Essar Oil, from the oil refinery space, has done phenomenally well giving a return of almost 460%; Neyveli Lignite gained 338%; and GMR Infra, which is in the construction space, is up about 240% in the non-index space.
| Company Name | 2006 Price | 2007 price | Chg (%) | Chg in M-cap (Rs cr) |
| Ispat Industries | 10.98 | 80.65 | 635 | 8517 |
| Jindal Steel & Power | 2267.8 | 14404 | 535 | 37370 |
| Essar Oil | 54.55 | 308.9 | 466 | 28984 |
| India Infoline | 305.4 | 1692.75 | 454 | 7642 |
| Neyveli Lignite | 56.35 | 246.65 | 338 | 31927 |
| G M R Infra | 71.09 | 242.7 | 241 | 32419 |
| Aban Offshore | 1382.65 | 4712.15 | 241 | 12723 |
| J S W Steel | 386.9 | 1303.8 | 237 | 15306 |
| Mangalore Refinery | 40.8 | 133.6 | 227 | 16267 |
Large/Non-Index Losers in 2007
Among the non-index losers in the tech space, Tech Mahindra lost almost 32% over the last one year. i-Flex lost about 22% of its market share while Infosys lost about 19%, and TCS 10%.
Tata Motors lost about 18% from the auto space. Cipla was down about 14%. From the construction space, stocks like Sobha Developers has seen about 10% reduction. Ultratech from the cement space lost about 10%.
| Company Name | 2006 Price | 2007 price | Chg (%) | Chg in M-cap (Rs cr) |
| Tech Mahindra | 1670.15 | 1136.4 | -32 | -5611 |
| I-Flex Solutions | 1947.7 | 1514.45 | -22 | -3167 |
| Patni Computer | 417.75 | 327.95 | -21 | -1218 |
| Infosys | 2240.5 | 1804.3 | -19 | -21460 |
| Tata Motors | 900.25 | 736.7 | -18 | -6284 |
| Cipla | 250.7 | 215.7 | -14 | -2721 |
| Sobha Developers | 995.7 | 892.1 | -10 | -755 |
| Ultratech Cement | 1096.9 | 982.95 | -10 | -1419 |
| TCS | 1218.6 | 1100.2 | -10 | -11587 |
Large Cap Change in 2007
| Company Name | 2006 Price | 2007 price | Chg (%) | Chg in M-cap (Rs cr) |
| Reliance Ind | 1270.35 | 2894.35 | 128 | 243712 |
| ONGC | 870.05 | 1240.8 | 43 | 79299 |
| N T P C | 136.4 | 239.95 | 76 | 85382 |
| Bharti Airtel | 628.85 | 966.3 | 54 | 64174 |
| Reliance Comm | 471.3 | 730.8 | 55 | 54341 |
| ICICI Bank | 890.4 | 1242 | 39 | 58586 |
| State Bank Of India | 1245.9 | 2382.7 | 91 | 59830 |
| BHEL | 1149.08 | 2557.45 | 123 | 68943 |
| Larsen & Toubro | 1442.95 | 4160.7 | 188 | 80900 |
| SAIL | 89.2 | 273.2 | 206 | 75999 |
| TCS | 1218.6 | 1100.2 | -10 | -11587 |
| Infosys | 2240.5 | 1804.3 | -19 | -21460 |
| Reliance Petroleum | 62.95 | 219.6 | 249 | 70493 |
Happy Investing in year 2008
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