Page 13 - Forbes - India (January 2020)

nIFTy PErForMAnCE
Positive Show The Nifty outperformed gold, fixed deposits and government bonds
in the last decade

in the short terM, MarKets brokerage Motilal Oswal, in the (11 percent a year) came in the
are driven by sentiment, but 10 years since 2009, the Nifty rose first half of the decade and it is
over longer decadal periods, 8.9 percent annually versus an anybody’s guess whether these
it’s the business performance that 8.2 percent earnings growth. A valuations will sustain.
matters. According to an analysis by majority of the earnings growth While the outperformance was
skewed to the second half of the
nifty-50 delivered eight years of positive returns in the decade; decade, it was led by a familiar set of
CY11 and CY15 were exceptions businesses, with banking and financial
services, consumer, auto, IT and
76 18 -25 28 7 31 -4 3 29 3 12 pharma accounting for a majority of
84 23 -37 24 -5 29 -8 0 37 -5 10 the gains. The Nifty outperformed
gold, bank fixed deposits and Indian
caGr in inr: 8.8%
caGr in usd: 4.2% government bonds. On a global
trend in nifty 10,531 10,863 12,168 scale, the Nifty was the second-best
8,283 7,946 8,186 performing market in local currency
5,201 6,135 4,624 5,905 6,304 terms after the US (S&P500), but
fourth in US dollar terms after the
cy09 cy10 cy11 cy12 cy13 cy14 cy15 cy16 cy17 cy18 cy19 US, Japan and Taiwan.
source motilal oswal annual return in inr (%) annual return in usd (%) ● samar srivastava

viPin kumar / Getty imaGes
MISTry-TATA SPAT minority shareholders.”
Mistry, who had succeeded Ratan
Will Mistry Tata as chairman of Tata Sons in 2013 13
Walk Tall and was ousted in late 2016, maintains
he will not chase the executive
chairman post at Tata Sons or the
After SC director’s post at Tata Consultancy
Services or Tata Teleservices. He
Verdict? had challenged the decision of the
Tata Sons board in 2018 to take the
company private. Mistry also alleged
Experts says there was no oppression and mismanagement of
compelling factor for Tata Sons minority shareholders.
to remove him as chairman Proxy advisory firm InGovern
maintains there was no compelling
the CYrUs MistrY-tata legal factor for Tata Sons to remove
battle reopened in January, Mistry as chairman. InGovern’s
this time in the Supreme founder and managing director
Court, and the Tata group has earned Shriram Subramanian says that
some relief as the top court stayed the Mistry, if reinstated by the Supreme
National Company Law Appellate Court, should take up the post and
Tribunal’s (NCLAT) December order, Tata Sons. “This legal fight has never then gracefully resign as executive
which called to reinstate Mistry as been about me. It has always been chairman after an hour. All the other
executive chairman of Tata Sons. and will always be about protecting Tata Sons board members should also
The Tatas would look to try and the rights of minority shareholders...,” step down. “The two groups [Tatas
block Mistry’s re-entry into the group. Mistry said in a statement. “In the and Mistrys] could then reinstate a
Mistry, on his part, will continue last three years, both in conduct and new board,” says Subramanian. “That
to want to protect the rights of his in their statements to the world at will recreate an element of trust
family’s Shapoorji Pallonji Group large, the Tata group’s leadership has between them.”
that owns a minority (18.37) stake in shown scant respect for the rights of ● salil Panchal

jAnuAry 31, 2020 • forbes india