Big Bigger and the Biggest of Equity market.

For last 12 months Indian Equity market witnessed big shift in sector allocation. While Blue chip Stocks hitting life high , mid and small cap companies are facing huge selling pressure. 

Tata Consultancy Services ltd (TCS), the IT giant after 2 year of consolidation started its new journey. TCS generated 61% return in past 12 month and added 2.87 lac cr in market cap. Also company entered in $100 Billion club of m-cap. TCS is now ranked 82th in term of M-cap in the World.  Management  is confident of future growth and approved buyback of 16000cr at price of 2100 INR which is still premium to current stock price.

Reliance Industry(RIL) also joined TCS in $100 Billion club after its stellar results. In last 12 month RIL generated 43.29% return and added 2.02 lac cr in m-cap . RIL is outperforming in all the sectors and Reliance Jio Infocomm Ltd is consider to be the next big thing for RIL growth in future.

FMCG is consider to be the most defensive sectors and  Hindustan Unilever ltd (HUL) proved it. Even after  stiff competition form Patanjali , company is able to delivered double digit volume growth due to strong demand coming from rural economy. In past 12 month , HUL stock also outperforming with 53.97% return. 

On banking side while most PSU banks are facing NPA issues. And private sectors banks like Axis, ICICI are under pressure due to management and compliance problems, there are two banks HDFC and Kotak which are wining the clients and investor's confidence with sustainable and quality growth. HDFC and Kotak bank generated 28.8% and 45.2% return on street respectively. On NBFC front  Bajaj Finance is the marathon runner for last 10 years. Stock is one of the few stocks which generated 100 times returns in 10 year time. In past 12 month Bajaj Finance generated 67.82% return and added 55thousand cr in its m-cap.

Street is currently favoring this this few giant of market. And like relay race, each day one other take charge to hold the indices at higher levels. Mid cap benchmark is 3000pt down from it high while, Nifty50 is just 100pt away to make new record. Recent Mutual Fund restructuring also one of the major reason of  this widen gap between madcap benchmark return and Nifty return. 

Lack of buying interest from FII side and also from Retail side is one more reason of mid-small cap under-performance . We believe that value investors should build strong long term portfolio by adding quality mid cap and large cap stocks. Mutual Fund is also one of the best route to invest in this market. Good Multi cap Fund  is best option to invest via SIP.

At the end just remember that Rome is not build in one day. Have patience and keep investing.

Be Smart. Invest Smartly.