Monkeys vault to the top; Sensex, Nifty and brokers flop

Looks like the faith has paid off. After weeks of suffering a slump in the stock markets, several detractors had urged our two Monkeys to just sell their portfolios and climb a tree.

But those cruel sticks and stones just couldn’t break their bones (in a metaphorical sense) because the Monkeys are back to doing what they do best - ride the markets.

Yes, in the week ending 3 February, both Monkey portfolios trumped the benchmark indices and the brokers. And in spectacular fashion, we should add.

Monkey portfolio 1, consisting of 10 randomly-selected stocks from the BSE 100 , wrapped the week with a 5.7 percent gain, while Monkey portfolio 2, comprising 10 randomly-picked stocks from the BSE 500 , scooped up a 5.6 percent gain.

In comparison, the Sensex and Nifty climbed just 2.2-2.3 percent higher in the same period. The brokers’ portfolio, consisting of 10 stocks picked by 10 brokerages, put in the least impressive performance, clocking a 2.1 percent gain.

Impressed? There’s more.

[caption id=“attachment_203498” align=“alignleft” width=“380” caption=“No doubt, it’s party time for our Monkeys. And we mean overflowing-champagne-and-sumptious-buffet-under-a-billowing-white-tent-at-a-manicured-lawn kind of party. AFP”] [/caption]

Even for the period since inception – 19 August, 2011 – both Monkey portfolios have started showing gains (Monkey portfolio 1 had already started showing gains two weeks ago), thanks to robust inflows from foreign investors in the stock markets in recent weeks.

While the Nifty came on top with a 9.9 percent gain, a rejuvenated Monkey portfolio 1 came a close second, putting on 9.6 percent ( See table ). Giving a power boost to the portfolio were Tata Global (up 36 percent) and Grasim (up 31 percent). The Sensex, in comparison, rose by 9.1 percent over the 23-week period.

But Monkey 1’s performance is not the big news. The big news is that Monkey portfolio 2, which had been showing losses of 15 percent just a few weeks ago, finally tipped into positive territory with a modest 1.3 percent gain ( See table . The star performer was Aban Offshore, which surged by an eye-popping 59 percent, partly on the back of a Rs 22 crore investment by Goldman Sachs to buy a 1.02 percent stake in the company, according to media reports.

The brokers’ portfolio also added on 3.8 percent for the period since inception _( See table )._The biggest winners here were MRF (up 30 percent) and Infosys (25 percent).

No doubt, it’s party time for our Monkeys. And we mean overflowing-champagne-and-sumptious-buffet-under-a-billowing-white-tent-at-a-manicured-lawn kind of party.

The Monkeys deserve it - they kept their faith in the India growth story and didn’t lose heart over their market losses. Now, they’ve been rewarded. For sure, there’s a lesson there for the rest of us.

Come back next week to learn more about the antics of the Magnificent Monkeys as they continue their random walk down Dalal Street.