COVERS NINE CRASHES IN INDIAN MARTKETS

SINCE 1980S

STANDING
AGAINST THE
CRASH
INDIAN STOCKS THAT
STOOD AGAINST THE CRASHES
IN PAST FEW DECADES

RUCHIR GUPTA
 1
Standing against the Crash

Analysis of Indian Stocks that

stood against the Crashes &
Corrections in past few Decades

Copyright www.ruchirgupta.co.in
Standing against the Crash
2
Forward
• The Inspiration to write this Book comes from the understanding that so
many people loose their hard earned money in these corrections and
crashes due to various reasons and yet there is not a single book that
touches on the issue.
• In this work writer Ruchir Gupta has tried to make a serious attempt to
find the stocks that can work as a shock absorber in these unfavourable
periods of uncertainty and they have been bought out from a vast list of
400 stocks based on mathematical and statistical approach
• Standing against the crash is first attempt to do a statistical analysis and
comparison of Indian Stocks which showed a tendency or characteristics
of strength against the overall falling markets.
• We have tried to find which were these Strong Stocks?
• Which Sector did they belong to?
 3
DISCLAIMER: Futures, Stocks, Commodity,
Currency and Options trading and
investment involves substantial risk of loss and
is not suitable for every investor. The valuation
of futures, stocks and options may fluctuate,
and, as a result, Clients, Investor, Trader may
lose more than their original investment. Past
Performance may or may not repeat. This work
is for Educational Purpose only.
Website: www.RuchirGupta.co.in 4

Copyright © 2018 Ruchir Gupta. All rights reserved.

No part of this publication may be reproduced or transmitted in any

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recording, or any information storage and retrieval system, without
permission in writing from the Author. Details on how to seek
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other arrangements can be obtained through his email,
support@ruchirgupta.co.in ; ruchirgupta2000@gmail.com

This Video and the individual contributions contained in it are protected

under copyright by the Author (other than as may be noted herein)
Before Moving ahead to the stocks 5
lets visualize all the Sensex
Corrections we are going to cover,
these charts could be referred to see
the levels from which Sensex
corrected
 Sensex in 2015-16 Correction
105% 6

100%

95%

90%

85%

80%

75%
30-Jan-15 28-Feb-15 31-Mar-15 30-Apr-15 31-May-15 30-Jun-15 31-Jul-15 31-Aug-15 30-Sep-15 31-Oct-15 30-Nov-15 31-Dec-15 31-Jan-16 29-Feb-16
 Sensex 2010-2011 Correction
21000 7

20000

19000

18000

17000

16000

15000
5-Nov-10 5-Dec-10 5-Jan-11 5-Feb-11 5-Mar-11 5-Apr-11 5-May-11 5-Jun-11 5-Jul-11 5-Aug-11 5-Sep-11 5-Oct-11 5-Nov-11 5-Dec-11
 Sensex Crash of 2008
8
20000

18000

16000

14000

12000

10000

8000
10-Jan-08 10-Feb-08 10-Mar-08 10-Apr-08 10-May-08 10-Jun-08 10-Jul-08 10-Aug-08 10-Sep-08 10-Oct-08 10-Nov-08 10-Dec-08 10-Jan-09 10-Feb-09
 Sensex 2002 Correction
3700 9
3600

3500

3400

3300

3200

3100

3000

2900

2800
6500
Sensex Crash of 2000-01
10

6000

5500

5000

4500

4000

3500

3000
14-Feb-00 14-Mar-00 14-Apr-00 14-May-00 14-Jun-00 14-Jul-00 14-Aug-00 14-Sep-00 14-Oct-00 14-Nov-00 14-Dec-00 14-Jan-01 14-Feb-01 14-Mar-01
4700
Sensex Crash of 1997-98
11
4500

4300

4100

3900

3700

3500

3300

3100

2900

2700
6-Aug-97 6-Sep-97 6-Oct-97 6-Nov-97 6-Dec-97 6-Jan-98 6-Feb-98 6-Mar-98 6-Apr-98 6-May-98 6-Jun-98 6-Jul-98 6-Aug-98 6-Sep-98 6-Oct-98
 Sensex Correction of 1994-96 12
4700

4500

4300

4100

3900

3700

3500

3300

3100

2900

2700
 Sensex Crash 1992-93
4500
13

4000

3500

3000

2500

2000
2-Apr-92 2-May-92 2-Jun-92 2-Jul-92 2-Aug-92 2-Sep-92 2-Oct-92 2-Nov-92 2-Dec-92 2-Jan-93 2-Feb-93 2-Mar-93 2-Apr-93
680
Sensex 1986-88
14

630

580

530

480

430

380
 15

Stocks Outperformed
Sensex Every Time
During the Crash
List A- These Stocks 16
Outperformed Sensex Every Time

Asian Paints and Sun Pharmaceutical

Look Exceptional in this List
 17

 In Next few pages we see the performance

of these Stocks from List A compared with
Sensex as well as to other stocks in this
List
 Note that initial pages will have less
stocks as lesser stocks were traded in
1986-88, then the number will gradually
increase as we move ahead in Time Line
 18

 In coming pages Stocks and Sensex have been compared.

 For this comparison the starting point has been considered 100%
 If the stock at the end of period is showing 150% in the graph , that
means it was able to appreciate 50%.
 150% - 100% = 50%
 If the stock or Sensex is 79% this means, it lost 21% of its value.
 100% - 79% = 21%
 Once all the stocks and Sensex are at 100 then only comparison is
possible
Asian Paints and Glaxosmithkline Pharma Outperformed in
1986-87 while other stocks in the List- A did not Traded 19
Though all these Stocks Outperformed Sensex, Asian Paints was the only stock
which was able to again show its strength in this 1992-93 Correction 20
Though all these Stocks Outperformed Sensex, Asian Paints was the
only stock which gave positive return in this 1994-96 Correction 21
New set of winners, GlaxoSmithKline Pharma and Sun Pharma (Both
Pharma) are seen in this correction, while Asian Paints manages to 22
be at 3rd Position in 1997-98
HDFC Ltd Outperformed and gave 80% positive returns in 2000-01
correction, while Asian Paints again catches the Eye being able to 23
sustain the Returns along with HDFC Bank
Paint Stocks Asian Paint and Kansai Narolac Gave Positive Returns,
While BlueDart, HDFC LTD and GlaxoSmithKline Pharma were able 24
to stand at stable values in the Correction of 2001-02
Sun Pharma gave positive returns in a crash like 2008,
GlaxoSmithKline Pharma and Asian Paints again Outperformed 25
Sensex and kept a check at price erosion
BlueDart and Sun Pharma were positive , while Asian Paints and
Kansai Narolac were stable 26
Kansai Narolac Gave Positive Returns while Asian Paints followed
list by GlaxoSmithKline Pharma and Sun Pharma (Both Pharma) 27
 28

Crux from the Previous List- A

leaves Asian Paints to be
topping this list, followed by Sun
Pharma and GlaxoSmithkline
 29

Stocks that Outperformed

Sensex Every Time During
the Crash Failing Only
Once
List-B: These Stocks Outperformed 30
Sensex Every Time Failing Only Once

Hindustan Unilever Looks

Exceptional in this List
GlaxoSmit Consumer Doubled during this correction while Nestle and
Hindustan Unilever just managed to outperform in 1986-88 31
No Stock from this list managed to even stay positive while Hindustan
Unilever and GlaxoSmit Consumer showed some strength 32
Wipro gave 20% returns while all others not even gave positive
returns. Though Hindustani Unilever again stood against the crash 33
with marginal negative returns
Wipro and Infosys Technologies both IT Stocks gave huge returns,
while Nestle and GlaxoSmit Consumer also gave above 30% returns 34
and Hindustan Unilever and Pidilite stayed marginally positive
IT Stocks Infosys and Wipro fell 80-85% in this Crash as were so much
overvalued LIC Housing and Nestle Closed positive 35
Pidilite, Nestle and Infosys gave positive returns in 2002 Correction
36
Nestle and Hindustan Unilever both FMCG, were the only stocks from
this list –B which closed marginally lower, while no other stock 37
showed strength
Hindustan Unilever, Nestle and GlaxoSmit Consumer managed to give
positive returns all the three stocks from FMCG Sector 38
Pidilite followed by Infosys Technologies and Glaxosmit Consumer
were able to very marginal positive returns in 2015-16 Correction 39
Infosys Technologies and Pidilite were able to very marginal positive
returns, GlaxoSmit Consumer managed to stay same 40
 41
Crux from the Previous List- B
leaves us with three FMCG
Stocks Hindustan Unilever,
Nestle, GlaxoSmith Consumer
showing some meaningful
instances of worthy
outperformance.
 42

Stocks Outperformed
Sensex Every Time
During the Crash
Except Two cases
List-C of 43
Out-
performers

This is a long list of

stocks that were
able to outperform
Sensex for all the
Times except Two
Cases. Lets see if we
get some good
stocks from this list as
well. The list has
been reduced
further in coming
pages so that we
can have better
stocks
Explanation of New Column 44
Headings
 >-10% the stock which fell lower than 10% or was positive,
 Example: +8.6%, +14%, -7.9%, -9.99%
 <-20% means the stock which fell lower than 20% or was positive,
 Example: +35%, +10%, -19.999%, -7.9%,- 9.99%
 It was also include cases of >-10%

 Now this parameter is different

 >-30% means stocks which greater than 30%, if a stock has more
instances of this big decline we try to exclude it from our list
 Example: -54%, -32%
 45

cv

Stocks like Siemens, ITC and Grasim which fell more than 30% (Last Column) for
so many instances have been removed in next list
Stocks List-C further Reduced
46
Bajaj Holdings and Colgate Palmolive gave 20% returns, while
Britannia ended marginally lower in 1986-88 correction 47
Dr Reddy’s Labs gave Positive returns while Cipla (Both Pharma)
managed to end only marginally lower in 1992-93 48
No Stock could outperform Sensex and stay against this crash Other
than Bajaj Holdings in 1994-96 49
Britannia Inds Doubled While DR. Reddy and Cipla gave 30% and 13%
returns respectively in 1997-98 Correction 50
Dr Reddy’s Tops the List, Cipla and Colgate Palmolive Managed to
end Marginally lower in 2000-01 Correction, Lupin has been ignored 51
as the price action could not verified
Godrej Cons Goods gave 80% returns, CityUnion Bank 30% and
Marico20% returns, while Avanti Feeds and Britannia Inds were 52
marginally up and down
Lupin ended positive even in 2008 crash, while Cadila Health and
Colgate Palmolive ended marginally lower 53
Avanti Feeds Almost Tripled in this Duration, let see next chart
without Avanti Feeds as the Image is distorted now 54
Colgate Palmolive and Britannia Industries (Both FMCG) were other stocks
that ended marginally higher, Marico (FMCG), Cadila, Lupin, Cipla , Dr. Reddy 55
(all four Pharma) ended marginally lower with negative returns in 2010-11
Britannia and Marico Both FMCG gave good returns while Godrej
Consumer, Avanti Feeds and Lupin (Pharma) managed to stay 56
positive in 2015-16 Crash
 57
Crux from the Previous List- C
Shows Britannia and Cadila
Health as out performers, while
there are more stocks have
outperformed Sensex in
Corrections
Top Two performers from all the three lists have been highlighted,
though other stocks in the list are also worthy and have the 58
capability to stand against the crash or Correction
 59
Sectors that Outperformed
We saw repeatedly that FMCG, Pharma, Paints
and Agri Related Stocks (Fertilizers) showed
many times outperforming in the declining equity
markets

In Paint Stocks like Asian Paints and Kansai

Narolac (Pidilite as well overlaps paints industry)
 60
Stocks that Outperformed

We saw repeatedly that Asian Paints was the

best performer without any doubt followed by
Hindustan Unilever
 61

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