India Strategy Report Back
Contrarian Investing: Exploring two sub-themes
26-Dec-2017

  • We pointed out  that among the Nifty stocks;Axis Bank, SBI, BOB, NTPC, Dr.Reddy's, Sun Pharma, Hindalco, IOCL and Vedanta were positioned differently compared to their most likely position.
  • All the above stocks, barring IOCL and NTPC, have outperformed the Nifty. The returns delivered by these stocks range from -6% to 16.6% v/s 6.9% for Nifty.
  • In addition to the above stocks, Bharti Infratel, HDFC Bank, Infosys, Lupin, TCS,and Tata Power are positioned differently compared to their most likely position. Almost all the stocks barring HDFC Bank are relatively less popular than their historical quintile positioning (Q1 being the most popular quintile and Q5the least unpopular)