We all discuss stock picking & stock advice and how some of us are not able to track the markets on a regular basis & thus refrain from investing in the markets. Find below an example of how you can simply pick up blue chip companies which constitute of the index (we have chosen the SENSEX Index below) and simply stay invested in the long run without timing or trading the stock markets.
SENSEX STOCK RETURNS | ||||||
Company Name | Last Price (19th Aug ’16) | Mkt Cap (Rs cr) | Initial Price | Absolute Returns (%)* | CAGR^ | Date of IPO/ Ref date |
Adani Ports | 273.0 | 56537.0 | 184.3 | 48.1% | 4.6% | 27th Nov ’07 |
Asian Paints | 1115.3 | 106566.9 | 16.1 | 6822.7% | 29.1% | 3rd Jan ’00 |
Axis Bank | 588.4 | 140513.1 | 5.2 | 11259.1% | 33.0% | 3th Jan ’00 |
Bajaj Auto | 2931.5 | 84827.9 | 302.3 | 869.9% | 31.9% | 26th May ’08 |
Bharti Airtel | 350.9 | 140248.8 | 22.1 | 1489.0% | 21.0% | 18th Feb ’02 |
BHEL | 141.9 | 34731.4 | 22.5 | 530.7% | 11.7% | 3th Jan ’00 |
Cipla | 555.6 | 44644.6 | 120.1 | 362.6% | 9.7% | 3th Jan ’00 |
Coal India | 334.2 | 211092.9 | 342.4 | -2.4% | -0.4% | 4th Nov ’10 |
Dr Reddys Labs | 3011.3 | 51401.7 | 389.3 | 673.4% | 13.1% | 3th Jan ’00 |
GAIL | 363.7 | 46134.5 | 46.0 | 690.7% | 13.3% | 3th Jan ’00 |
HDFC Ltd | 1369.7 | 216743.3 | 30.9 | 4334.0% | 25.7% | 3th Jan ’00 |
HDFC Bank | 1245.0 | 316024.4 | 34.9 | 3469.2% | 24.0% | 3th Jan ’00 |
Hero Motocorp | 3359.3 | 67081.4 | 241.4 | 1291.6% | 17.2% | 3th Jan ’00 |
HUL | 912.0 | 197379.2 | 239.1 | 281.4% | 8.4% | 3th Jan ’00 |
ICICI Bank | 254.0 | 147761.6 | 15.1 | 1581.0% | 18.5% | 3th Jan ’00 |
Infosys | 1021.1 | 234541.0 | 245.0 | 316.8% | 9.0% | 3th Jan ’00 |
ITC | 251.1 | 303530.3 | 23.9 | 948.7% | 15.2% | 3th Jan ’00 |
Larsen & Tubro | 1490.4 | 138928.2 | 100.6 | 1382.1% | 17.6% | 3th Jan ’00 |
Lupin | 1577.3 | 71131.0 | 5.2 | 30348.8% | 41.1% | 3th Jan ’00 |
M&M | 1453.9 | 90297.5 | 113.4 | 1182.2% | 16.6% | 3th Jan ’00 |
Maruti Suzuki | 4899.4 | 148001.1 | 164.1 | 2886.5% | 29.6% | 9th July ’03 |
NTPC | 166.8 | 137836.9 | 75.6 | 120.7% | 6.9% | 5th Nov ’04 |
ONGC | 242.0 | 207000.1 | 35.1 | 588.5% | 12.3% | 3th Jan ’00 |
Reliance Ind | 1014.9 | 329110.9 | 126.2 | 704.3% | 13.4% | 3th Jan ’00 |
SBI | 258.5 | 200667.8 | 22.9 | 1028.8% | 15.7% | 3th Jan ’00 |
Sun Pharma | 782.7 | 188376.6 | 15.3 | 5029.1% | 26.8% | 3th Jan ’00 |
Tata Motors | 510.0 | 173179.7 | 40.1 | 1170.6% | 16.5% | 3th Jan ’00 |
Tata Steel | 392.3 | 38100.8 | 90.1 | 335.5% | 9.3% | 3th Jan ’00 |
TCS | 2604.0 | 513089.6 | 246.9 | 954.7% | 21.7% | 25th Aug ’04 |
Wipro | 520.6 | 126546.9 | 280.9 | 85.4% | 3.8% | 3th Jan ’00 |
*Please note that returns calculated are only on the principle and not dividends. Infact if we account for dividends for most of the companies one would have got back the entire purchase price from dividends received till date. Although Coal India has not given any absolute returns, it has given significant dividend payouts every year. ^CAGR is calculated on approximate completed years. For Bajaj Auto the erstwhile company was de-merged in 2008 & thus price is available from that date though the company was listed before that also. Stocks such as BHEL, NTPC & Tata Steel are currently under performing in in subdue industry conditions, despite that they would have given significant profits. IT Companies have not really given significant returns over the last decade. Please also note that these are just index stocks & similar calculations for some other mid cap companies will show even better performance over the years.
Sabyasachi Paul has been associated with equity research and advisory on equity markets in India for over 9 years & currently heads the equity research desk of Eastern Financiers Ltd, Kolkata.He also manages a portfolio on the online platform Kristal. Find link to the strategy named ‘The Tortoise’