For all of 2018, the stock market was not easy for investors. A larger number of stocks ended in the red, making it harder for investors to find outperformers. As the chart below shows, over three-fourths, or 76.9%, of all stocks in the Nifty 500 index fell in 2018.
In 2019, the markets have sprung a surprise. A wider array of companies is seeing their market capitalization increase. Better liquidity, lower valuations, and a better-than-expected earnings season are driving larger participation. Nearly half, or 49.8%, of the stocks in the Nifty 500 index, have added to their market cap this year.
While nearly 209 stocks had fallen more than 25% last year, only 11 stocks have witnessed similar decline so far this year. We are only in March and it’s early days, but 2019 sure feels much better than 2018 for investors.