Revenge of the Sensex, brokers stun Monkeys

After being pummelled repeatedly for the past 12 weeks, the benchmark indices finally got their first taste of victory as they overtook the Monkey portfolios and brokers’ picks by a fair margin to become the top gainers for the period since 19 August, the date when all the portfolios were created.

While the Sensex gained 6.5 percent, the Nifty put on 6.7 percent for the 12-week period.

Next on the list were the brokers’ picks - 10 stocks picked by 10 brokerages - which gained 5.5 percent ( View table ). The outstanding gainers in this portfolio were Infosys (up 25 percent), Bajaj Auto (up 22 percent) and Reliance Industries (up 21 percent). Six out of 10 stocks ended in the green.

[caption id=“attachment_129525” align=“alignleft” width=“380” caption=“While the experts’ picks slipped 1.7 percent at the end of the week, the Sensex and Nifty fell about 2.1-2.2 percent. Photo:Augapef/Flickr”]  [/caption]

More from Investing

MSMEs are breaking the traditional convention. Look who’s funding them Scale-up your startup without an investor! Here’s how

Monkey portfolio 1 -a collection of 10 randomly selected stocks from the BSE 100 - posted a gain of 4.4 percent (View table ), while Monkey portfolio 2 - a selection of 10 randomly picked stocks from the BSE 500 - came in last with a paltry 2.6 percent gain (View table).

The top winners in Monkey portfolio 1 were DLF (up 22 percent) and Grasim (up 18 percent). Eight out of 10 stocks ended in positive territory. In Monkey portfolio 2, gains were lead by Manappuram Finance (up nearly 30 percent) and Aban Offshore (up 22 percent). However, those gains were offset by huge losses in KSK Ventures (down 30 percent) and former star VIP Industries (down 13 percent).

No doubt, it’s a total reversal of fortunes for both Monkeys. Through August and for most of September and October, the stock markets seemed to be completely in the hands of the Monkeys , with either Monkey 1 or Monkey 2 leading the list of winners every week. That is no longer the case.

So, is this the start of the end or just a temporary patch? We’d bet it’s the latter.

For now, their streak of bad luck continues. Even for the week ending 11 November, the Monkeys gave way to the brokers, who managed to outperform the benchmark indices with lower losses.

While the experts’ picks slipped 1.7 percent at the end of the week, the Sensex and Nifty fell about 2.1-2.2 percent.

What happened to the Monkey portfolios, you ask? They were left eating dust : while Monkey portfolio 1 lost 3.4 percent, Monkey portfolio 2 tumbled 3.9 percent.

Still, you can be certain of one thing: neither Monkey will be brooding over its stock market losses.

Monkey 2 is recuperating from a broken ankle after slipping on a banana peel last week, and given his nature, we’re pretty certain that he’s unlikely to be spending any sleepless nights fretting about the performance of his portfolio. He’s probably more preoccupied with getting back on his feet (literally).

Monkey 1, meanwhile, is preparing to attend a session of “Eat, Pray, Love,” which, we hear, is aimed at helping people - and simians - find answers to “everything that exists in the universe”. More on that next week!

Come back in seven days to find out whether the Monkeys regain their footing or continue to taste defeat in the markets.