Mumbai: Even as benchmarks hit all-time highs on Monday, more than half of Nifty’s shares are still performing massive. In early trading, the 50-share index hit the all-time high of 12,451.80, while the Sensex also broke its all-time high at 42,566.34.
The data showed that around 27 stocks that make up the Nifty index are still negative. Overall, 21 stocks have fallen between 10% and 45% since Nifty last hit a record. The lack of participation of more than half of the shares in the index, while the Nifty reached a record in a span of almost 10 months indicates a wide polarization in the stock markets.
“The defining characteristic of equity market performance in 2020, thus far, has been the marked divergences between and within sectors and companies. This highlights the differentiated impact of covid in various sectors. Clearly, essential businesses (healthcare, commodities) and technology / online / e-commerce were affected much less than financial, cyclical (metals, infrastructure, oil and gas) and discretionary (travel, aviation, restaurants, hotels). , etc.), “said Guatam Duggad, head of research at Motilal Oswal Financial Services Ltd.
On January 20 of this year, the Nifty had previously hit an all-time high of 12,430.50. Since then, the stocks that have drastically lost are ONGC (46% less), Indusind Bank (45% less), Coal India (41% less), Bajaj Finserv (35% less), IOC (34% less) less), Gail India (32% less), State Bank of India (31% less) and Tata Motors (29% less).
Overall, for the healthcare and technology sectors, the pandemic acted like a tailwind, leading to its strong outperformance in 2020. By contrast, finance bore the brunt of the covid.
Of all Nifty shares, only 14 shares have risen between 10% and 70% during January-November. Stocks such as Divi’s Labs (up 70%), Cipla (up 65%), Dr Reddy’s Labs (up 61%), Infosys (up 44%), HCL Technologies (up 42%), while Reliance Industries it has gained 29% in the period. .
Shrikant Chouhan, Stock Technical Researcher at Kotak Securities, said: “The sudden drop in the dollar index has been the reason for the surge in our market. The dollar index fell to 92 after the US elections after trading at 94 before the US elections. foreign institutions have been buying a lot of cash, as well as the derivatives segment has also improved confidence in the overall market. “
.
