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Last Updated : Dec 10, 2019 10:02 AM IST | Source: Moneycontrol.com

Lucky 3! These Nifty50 stocks outperformed in 2019; time to book profits?

Experts remain constructive on all the three names, but do not rule out consolidation in the near-term which could be used as an opportunity to buy

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Love them or hate them! Well, you will probably love these three stocks if you had invested in them say in January 2019, and probably hate them if you missed out on the opportunity.

These three stocks have been among the top return generators across three-month, six- month and YTD basis as well. Three stocks which top the charts include names like Bharti Airtel, Bajaj Finserv, and from the private banking space, ICICI Bank.

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They have delivered more than 40 percent return each to investors so far in 2019, and if commentary from experts is something to go by then there is still more upside left.

Data suggests that markets are favouring “turnaround” performers such as Bharti Airtel, and Reliance Industries. However, the past month’s trend is showing the market move towards companies with lower sales growth, higher capital intensity, and higher leverage, Elara Capital said in a report.

After rallying by over 40 percent each – does it make sense to put money in ICICI Bank, Bajaj Finserv, and Bharti Airtel? Well, experts remain constructive on all the three names, but do not rule out consolidation in the near-term which could be used as an opportunity to buy.

“The momentum may continue in the stocks as it’s about buying winners and you sell the losers and these stocks are the leaders in their own space that are seeing liquidity coming and hence the premium that is attached to them reflects the same,” Lovelesh Sharma, Head of Research, Epic Research told Moneycontrol.

“The momentum in these stocks may continue as long as investors are less willing to take a risk with profit,” he said.

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Ajit Mishra, VP Research, Religare Broking told Moneycontrol that Bajaj Finserv and ICICI Bank are leaders and consistent performers in their respective sectors. Further, both companies have sound management and bright future growth prospects, which can deliver healthy returns to investors.

“Nonetheless, some consolidation can be expected in the near term given the stretched valuation however future outlook looks stable. Conversely, we remain cautious on Bharti Airtel due to on-going issues in the telecom sector,” he said.

Stocks which were outperformers from YTD, six-month, and three-month perspective include names like BPCL which rose 49 percent so far in 2019, Reliance Industries which had rallied 39 percent on a year-to-date basis, and Bajaj Finance which was the top Nifty50 gainer, up 54 percent in the same period.

Elara Capital in its report mentioned that they read these signs as the beginning of market broadening from the narrow set of “high quality” performers and expect the trend to continue among Nifty 50 stocks and more broadly across broader markets as well.


Note: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on Dec 10, 2019 10:02 am
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