Demonetisation Effect: Defensive Sectors Corrected As Much As Smallcaps - Chart Of The Day 23 December 2016 - Equitymaster
X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  •
  • MyStocks
MEMBER'S LOGIN

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Demonetisation Effect: Defensive Sectors Corrected As Much As Smallcaps
Dec 23, 2016

Demonetisation Effect: Defensive Sectors Corrected As Much As Smallcaps

How often has your broker told you to buy defensive stocks? Every time there is a market correction, the so called defensive sectors fetch the limelight. The perception is that whether GDP growth is high or low, no one stops buying consumer durables and medicines. And therefore the stocks can stay resilient. Demonetisation or what is popularly called Notebandi changed that! The demand for most essential items including lifesaving drugs has taken a hit. FMCG companies have seen big drop in semi urban and rural areas. And pharma companies are also seeing a dip in the domestic demand. The Consumer Goods, FMCG and Healthcare indices have corrected by 6% to 12% since November 8, 2016. In fact the correction is almost at par with that of BSE Smallcap index, with much riskier stocks in its components.

The valuation multiple of the defensive sectors have come off the peaks over the past month. However, it's the disappointing earnings that we expect over the next few quarters, which could bring the multiples to our comfort zone. And that would be the best time to look for not defensive but safe stocks!

Data Source: BSE

This Chart Of The Day was published in The 5 Minute WrapUp - Even the Most Defensive Sector Is Not Immune to Demonetisation

Equitymaster requests your view! Post a comment on "Demonetisation Effect: Defensive Sectors Corrected As Much As Smallcaps". Click here!

  

Our Most Popular Charts

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

OTHER USEFUL LINKS

MARKET STATS


ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

FREE NEWSLETTERS
PREMIUM PRODUCTS
QUICK LINKS
APPS
  • Get Equitymaster Android App on Google Play
  • Get Equitymaster iOS App on App Store
FOLLOW

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.