Perfect mix for equity investors

It was 50-50 for equity investors in calendar 2006. Of the 2,334 actively traded stocks, 1,264 were gainers and 1,266 losers.

While A group, B1 group, B group and S group underperformed the benchmark Sensex that gained 46.70 per cent, stocks traded under trade-to-trade groups gave their investors hefty returns between 72 and 251 per cent.

The real winners of 2006 were 106 stocks that withstood the volatility of the stock markets to register gains in all the four quarters. All-quarter winners from various groups in descending order were: B1 and B groups (each 30 scrips), S (16), T (14), A (seven), Z (six) and TS (three).

Seventy-seven scrips were losers in all the four quarters of calendar 2006, with Tata Tea being the only loser from A category. The company declined 24 per cent to Rs 720.05 from Rs 948.35. It lost 8.48 per cent in Q1 CY06, 11.80 per cent in Q2, 2.14 per cent in Q3 and 3.88 per cent in Q4. The all-quarter losers from other groups were: B group (30 scrips), S (21), B1 (17) and T, Z and TS (together nine). 
 

SWEET 'N' SOUR
Growth (%)	Q1	Q2	Q3	Q4	YoY
Sensex	20.03	-5.95	17.39	10.70	46.70
A	17.29	-11.64	16.12	8.94	31.11
B1	19.47	-16.23	16.91	14.93	34.47
B	13.21	-10.16	9.83	12.96	26.19
S	14.26	-16.53	14.70	13.27	23.92
T	18.50	-21.29	13.86	78.31	89.35
TS	71.30	13.94	12.74	59.77	251.53
Z	54.36	48.56	-19.90	-6.20	72.30
All	17.88	-11.70	15.36	10.23	32.36

Ritesh Industries, a T group scrip, was the biggest gainers, rising an incredible 3738 per cent to Rs 78.25 on December 29, 2006 from Rs 2.04 on December 30, 2005. The stock hovered around Rs 2-3 in the first six months of 2006 and moved up to Rs 15.37 on September 29. Ritesh Industries' fundamentals are weak with sales of Rs 3 crore and a net loss of Rs 1.31 crore in the financial year 2005-06.

The other big gainers that posted annual returns of over 1000 per cent were Unitech (up 2917 per cent to Rs 459.75), Vas Animation & Entertainment (up 2740 per cent to Rs 80.09), Mefcom Agro Industries (up 2581 per cent to Rs 154.40), Vipul (up 1701 per cent to Rs 2356) and Country Club India (up 1494 per cent to Rs 401.80).

As for large-cap stocks, most of them dominated the markets throughout the year. The 30-share Sensex appreciated 47 per cent compared with 16 per cent rise in the Small-cap index and 31 per cent rise in the Mid-cap index.

The Sensex gained 4388.98 points from 9397.93 levels at the beginning of 2006 to 13786.91 at the year-end. In comparison, the Mid-cap index climbed 1378.15 points to 5,805.18 (4,427.03) and Small-cap index 949.21 points to 6,892.32 (5,943.11).

The total market capitalisation grew by Rs 8,25,319 crore to Rs 33,67,568 crore, from Rs 25,42,249 crore, during the year. As high as 60 per cent of the frontline A group stocks registered rise in their market prices, while less than 50 per cent of B1 and B2 group stocks posted gain in their market values.

Of the 1,283 stocks that gained in market prices, 288 stocks appreciated more than 100 per cent. Market values of 284 stocks advanced in the range of 50 to 100 per cent, while of another 283 stocks gained between 25 and 50 per cent.

However, of the 1,274 stocks that saw a slump in their market values during calendar 2006, prices of 142 stocks declined more than 50 per cent. As many as 487 counters reported a fall in their market prices in the range of 25 to 50 per cent and 426 scrips between 10 and 25 per cent.