43.9 -2.28 (-5.18%) Sell

Don't even consider investing in INDLMETER now, it is a volatile investment

14 min read

IMP POWERS LTD was among the worst performers on Tuesday. It returned -5.18% to close at 43.9. On a day when the overall market breadth was 70%, it closed higher than 54% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing INDLMETER]

INDLMETER showed a strong down trend over the last 3 months. During this period INDLMETER returned -27.38% and saw a maximum drawdown of -37.55%. There were 3 short signals during this period that returned a cumulative of +9.87% to investors.


INDLMETER has been underperforming the NIFTY-50 index in recent time, after having outperformed till 22 Apr, 2016. INDLMETER is currently at it's worst performance to the NIFTY-50 index and therefore does not make a good investment candidate. Over the last 3 years and 1 month, INDLMETER underperformed the NIFTY-50 index on 52% days.

During the last three months INDLMETER was mostly loss making and delivered on average -0.44% per day. It's best return during this period (of +9.89%) was on Thursday, 29 Nov, 2018. While it's worst loss in the same period (of -17.04%) was on Wednesday, 14 Nov, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +17.46% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 12 Dec, 2018. This bearish trend lost -18.28% of investor capital.

On monthly basis, INDLMETER delivered losses in more months over the last year, than profits. INDLMETER delivered profits less regularly than NIFTY-50 index. INDLMETER was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -15.56% compared to -6.42% returned by NIFTY-50 index in Sep 2018. INDLMETER had a longer winning streak of losing months than NIFTY-50 index. It went down in 8 straight months (from Feb 2018 to Sep 2018) during which period it delivered -61.37%. It is interesting to note that both INDLMETER and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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INDLMETER is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in INDLMETER's volatility from 25 Oct, 2018 to 21 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 INDLMETER has significant negative skewness in it's return distribution. This indicates that INDLMETER is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than INDLMETER. Therefore, NIFTY-50 must receive a lower allocation than INDLMETER in your portfolio. NIFTY-50 index usually has shorter drawdown period than INDLMETER.

Based on your interest in INDLMETER you may find it interesting to know that SQSBFSI and RESPONIND have both performed similar to INDLMETER and can be considered by investors as alternative investment options.

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