Markets rebound as mid-caps lead charge

M-cap up 20% in 4 months; All sectors barring cars gain.

From the pits of Black Monday "" May 17, 2004 "" the stock markets have bounced back by a whopping 20 per cent in the last four months.

As a result, market capitalisation has increased by Rs 242,000 crore in these four months to Rs 1,206,121 crore today. With net purchases of Rs 4,309 crore since June 1, 2004, local operators and foreign institutional investors have led the rally from the front.

Almost all sectors, classified by Business Standard Research Bureau, except the automobile (cars) segment, gained. Of the 2,213 actively traded stocks on the Bombay Stock Exchange (BSE), almost 83 per cent (1,835 stocks) have appreciated in value, while only 17 per cent (378 scrips) have lost ground in the last four months.

The rally is led by mid-cap stocks, with the National stock Exchange's S&P CNX Mid-cap index rising to an all-time high of 1930.40, up 37.47 per cent in the last four months. The two headline indices today closed at four-month highs.

The BSE Sensex has appreciated by 21.59 per cent to close at 5477.68 while the NSE's S&P CNX Nifty has appreciated by 22.82 per cent to close at 1705.70.

Among sectoral indices on the BSE, the information and technology index (BSEIT) outperformed all others sectoral indices with a strong 41.50 per cent gain in the last four months. The BSE capital goods index is up 40 per cent while the BSE consumer durables index has gained 35.25 per cent.

The benchmark indices have, however, underperformed the market as a whole. But bank stocks have largely disappointed, with the BSE Bankex up only 14.78 per cent.

The FMCG and healthcare stocks also under performed the headline indices, with the BSE FMCG index up 18.39 per cent and the BSE Healthcare index up 15.66 per cent.

A strong price recovery was seen in B1 group stocks with almost 95 per cent of the scrips in the group reporting a strong appreciation in prices. On the whole, B1 group stocks have appreciated 34.49 per cent in value in the last four months.

Stocks traded under the trade to trade (T) group have gained 58.2 per cent in value while B group stocks were 21 per cent higher, on an average. But A group stocks have gained 24.1 per cent.