YesBank leads the Bank Nifty Index, while HDFC Bank drags the Index most since 2013 Bull Market.
The article illustrates the performance of the BankNifty Index & stocks in 2014 since the cyclical bull market reversal of August 2013.
To get detailed information on the BankNifty Index, its components, performance & milestones in the past, please read the article: What is BankNifty Index & How to trade BankNifty?
Chart – I, BankNifty Spot performance since August 2013 Reversal till Dec 31, 2014.
BankNifty Index after witnessing a sharp correction in the mid 2013 reversed very sharply in the month of August 2013 to start a new bull market and still continuing to set new records with intermediate corrections in between. From the chart above, we can see that the rally started in the end of August 2013 from a low price of 8366.75 to close the year 2014 at 18736.65 registering a total return of 124% in just 16 months.
Technically speaking, the index continued to make higher tops and higher bottoms and topped out in the month of May 2014 on the day of the election results when BJP government came in then the market sets in for a breather for few time and continued to go up to settle the year 2014 at 18736.65.
Chart – II, BankNifty Spot performance since August 2013 Reversal till Dec 31, 2014.
The bull market reversal from Aug 2013 was majorly supported by the performance of the some banks where two stocks even rallied approximately by more than 200% in these 16 months. Out of twelve banking stocks in the CNX Bank Nifty Index, only three stocks underperformed the bank nifty return while the rest nine stocks outperformed the index. (Refer Table – I)
Table 1 – illustrates the performance of Bank Index stocks Since Sept 2013 Reversal
| Symbol | Low Aug / Sept 2013 | Close 31 Dec 2014 | Return Since Cyclical Bull Reversal | Multiple Return Vs BankNifty |
| BankNifty | 8366.75 | 18736.7 | 123.94% | 1 |
| YesBank | 216.1 | 772.05 | 257.27% | 2.08 |
| FederalBnk | 44.63 | 151.7 | 239.91% | 1.94 |
| AxisBank | 152.68 | 502.4 | 229.05% | 1.85 |
| PNB | 80.04 | 219.1 | 173.74% | 1.40 |
| IndusindBk | 311.5 | 802.45 | 157.61% | 1.27 |
| BankBaroda | 429.95 | 1083.9 | 152.10% | 1.23 |
| BankIndia | 126.5 | 301.8 | 138.58% | 1.12 |
| CanBk | 189.4 | 448.7 | 136.91% | 1.10 |
| ICICIBank | 151.38 | 353.1 | 133.25% | 1.08 |
| KotakBank | 588 | 1263.9 | 114.95% | 0.93 |
| SBIN | 145.27 | 311.85 | 114.67% | 0.93 |
| HDFCBank | 528 | 951.6 | 80.23% | 0.65 |
Yes Bank crowned as the strongest stock in the BankNifty Index since the beginning of bull market started in later 2013. Even after witnessing the biggest crash of 60% in just 3.5 months in mid 2013 the stock outperformed the bank index & stocks by registering a return of 257.27% Vs 124% return of Bank Index.
While, on the other hand, the weakest stock in the bank nifty index since this 2013 bull market has been HDFC Bank which under-performed the Index & stocks by registering a return of only 80.23% Vs 124% return of Bank Index.
#JUSTFACTS
From the Table-I, we can witness that:-
- BankNifty had registered a total return of 124% till the end of 2014 since Aug 2013 Reversal.
- YesBank leads the Bank Nifty Index, while HDFC Bank drags the Index most since 2013 bull market.
- Yes Bank, Federal Bank, Axis bank leads the BankNifty Index with more than 200+% returns since Aug 2013 Reversal.
- Kotak Bank, SBIN & HDFC Bank drags and underperformed the BankNifty Index by generating a return of 115%, 114.67% & 80.23% respectively compared with 124% return of BankNifty Index.
- Yes Bank is the only stock which has outperformed the banknifty index by more than twice by generating a return of 257.27% vs. 124% return of BankNifty Index.
- HDFC Bank was the worst performer in Bank Nifty Index which generated a return of 80% vs. 124% return of Bank Nifty.
- HDFC Bank is the only stock in the Bank Index which has given a return of less than 100%.
* Comparison in the report is done only for the stocks in BankNifty Index
* * Return is evaluated on the basis of the Low price of BankNifty Index & Stocks (Spot Market) in Aug/Sept 2013 Vs the close price as on Dec 31st 2014.
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