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11,624
The Point

Equity Funds’ NIFty 10,114 Buffett Indicator rAilwAy FrEight

AssEts PlungE 8,491 9,174 8,598 turns Attractive trAFFiC sliPs For

AFtEr six yEArs 7,738 î India’s market MArkEt CAp to thE First tiME in
cap to GDP ratio
gdp rAtIo
AssEts UNdEr 8.9 has fallen from 120 two dECAdEs
î The Nifty plunged close to 26 per MANAgEMENt 79 per cent as on
cent in FY20, the sharpest fall since the (in `lakh cr) 7.5 end-FY19 to 54 100
2008/09 financial crisis 6.6 per cent (FY20) î Railway freight traffic slipped 1.1 per
î This reflected in assets under equity 5.4 î This is even 80 cent in FY20 compared to growth of 5.3
per cent in FY19
mutual funds, which fell from `8.9 lakh lower than
crore at the end of FY19 to `6.6 lakh crore 3.9 the level seen î In FY20, freight traffic stood at 1,210.5
at the end of FY20 3.5 during the global 60 million tonnes, down by 12.7 million tonnes
î This is the lowest since financial crisis compared to the previous financial year
and much below
October-end 2017 the long-term 40 FY04 FY20* î The fall in was majorly because of drop in
î Since most of this fall came towards average of 75 *GDP number is freight traffic of coal, which is the largest
commodity carried by Indian Railways
the end of the financial year, total mutual per cent Source: Care Ratings an estimation
fund assets still managed to rise 10.7 per FY15 FY16 FY17 FY18 FY19 FY20 î Traffic of commodities such as cement,
cent to `27.1 lakh crore in FY20 Source : Motilal Oswal foodgrains, fertilisers and other goods also
declined
no. of Companies 6 FrEIgHt trAFFIC groWtH (%)
Consumer, Above $1 billion 5

Healthcare Market-cap 4

Cushion -6.5 -8.8 -11 shrinks 30% 3
2
Impact for Healthcare Consumer Oil & Gas Technology -11.8 Telecom -13.2 î After hitting a peak of 329 in CY17, the 1

Equity MFs Utilities -20.5 Retail -21.3 Cement -24.6 Auto -26.2 -26.3 number of billion-dollar companies has 0
come down sharply
-1
î Healthcare, consumer and oil Chemicals î The number was 228 in April 2020 -2
î It is expected to fall even more in 2020
& gas holdings of equity mutual due to economic slowdown -3 *projected
funds fell the least MoM in March
î Holdings of real estate, No oF CoMpANIEs WItH FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21*
infrastructure, metal and financial $1 BIllIoN-plUs VAlUE Source: Railway Ministry
companies saw the steepest 350
decline in value
î In March, the top holdings were 300
bank (18.1%) followed by consumer 250
(9.8%), technology (8.9%) and
NBFC (8.5%) stocks 200
150
Capital Goods -28.3 Textiles -30.6 NBFC -30.8 Media -30.8 Banks Private -31.3 Banks Public -34.3 Metals -34.6 Infrastructure -35.8 Real Estate -36.7 50 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 20-Apr
100

Fall in value of sector holdings in Source : Motilal Oswal
March (%); Source: Motilal Oswal

10 Business Today 31 May 2020 31 May 2020 Business Today 11