- One of the most common errors which Market retail participants make ever so often is that there is a tendency to get fixated on certain sectors; more often than not, missing out or failing to recognise the rallies budding in other sectors in time.
- We have been so obsessed with the rate sensitives the past three months, though admittedly with good reason since the Rate Cycle was and still is turning and these stocks had taken such a beating in the last 3 months of 2011 thus making them available at bankruptcy valuations. But now, alert investors might already have noticed that the rallies in rate sensitives in Capital goods, infra, Banking, Realty etc has plateaued off with most of these stocks either consolidating or even giving negative returns in the past month.
- On the other hand the last month in particular has again seen a creeping upsurge in the FMCG / CONSUMPTION favourites such as NESTLE, GODREJ INDUSTRIES, GSK CONSUMER, ITC, TITAN, BATA, TTK PRESTIGE, ASIAN PAINTS, COLGATE PALMOLIVE, JUBILANT FOODWORKS, HSIL, KAJARIA CERAMICS, CERA SANITARY etc etc.
- In fact, to carry the earlier point a little further, readers may be a tad surprised to know that NESTLE, GODREJ IND, TITAN, BATA, TTK PRESTIGE, GSK CONSUMER, ASIAN PAINTS, JUBILANT FOODWORKS have all made new 52-week highs THIS MONTH or thereabouts.!!!!!
- ASIAN PAINTS up 10% in last 2 wks 52 wk high on 4/4/2012
- NESTLE up 6% in last 2 wks 52 wk high on 4/4/2012
- GODREJ IND up 15% in last 2 wks 52 wk high 2/4/2012
- BATA up 20% in last month 52 wk high 3/4/2012
- TITAN up 12% in last month 52 wk high 4/4/2012
- ITC up 10% in last month 52 wk high 4/4/2012
- TTK PRESIGE up 16% in last 2 wks close to 52 wk high
- JUBILANT FOOD up 26% in last month 52 wk high 3/4/2012
- COLGATE up 11% last month 52 wk high 3/4/2012
- KAJARIA up 15% last month 52 wk high 20/3/2012
- HSIL up 19% in 1 wk some way to go yet
- VIP up 11% in 1 wk some way to go yet
- LANCO down 4% in last month
- GMR INFRA down 2% in last 1 wk
- GVK POWER down 1% in last 2 wks
- ACE down 4% in last month
- SUZLON down 10% in last 2 wks
- LARSEN up 6% in last month
- BHEL up 8% in last 1 wk
- ICICI BANK down 2% in last 2 wks
- AXIS BANK down 2% in last 2 wks
- HDFC BANK up 3% in last month
- YES BANK up 2 % in last 2 wks
- DLF up 5% in last 2 wks
- HDIL down 15% in last month
- Of course, one is by no means implying that the rally in rate sensitives is over but it surely seems that quietly the FMCG / CONSUMPTION space has again crept back into the limelight - whether it is only a case of them playing catch-up or something more radical such as a temporary shift in the leadership sectors of the rally, only time will tell.
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