GVK POW. & INFRA LTD. has destroyed investor wealth on Friday. It delivered -2.67% to close at 7.3. On a day when the overall market breadth was 71%, it closed higher than 26% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
Buy-and-Hold investors in GVKPIL experienced a maximum drawdown of -16.15% over the last three months. It increased by +4.29% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.
GVKPIL has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 1 Jun, 2017 to 12 Feb, 2018. Over the last 3 years and 1 month, GVKPIL underperformed the NIFTY-50 index on 58% days.
During the last three months GVKPIL delivered losses on 69% days. However, it still managed to end this period in a profit. It's best return during this period (of +7.69%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -7.53%) was on Thursday, 6 Dec, 2018. The longest stort-term trend during this period was 4 profitable days, which started on 6 Nov, 2018 and went on till 12 Nov, 2018. This bullish trend returned +2.57% to investors.
The last 12 months saw GVKPIL's investors making profits in 5 months and incurring losses in 7 months. GVKPIL was less consistent in delivering monthly returs than NIFTY-50 index. GVKPIL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -33.76% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GVKPIL and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both GVKPIL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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GVKPIL is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in GVKPIL's volatility from 13 Dec, 2018 to 17 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.
Advanced/professional short-term investors should note that GVKPIL has significant negative skewness in it's return distribution. This indicates that GVKPIL is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than GVKPIL. Therefore, NIFTY-50 must receive a lower allocation than GVKPIL in your portfolio. NIFTY-50 index usually has shorter drawdown period than GVKPIL.
Based on your interest in GVKPIL you may find it interesting to know that BAJFINANCE has shown remarkable performance and deserves to be on every investors' watchlist.
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