Shares of metal, capital goods and automobile companies have outperformed the market in nearly 3,000 points equity market rally during the past two months.
The Bombay Stock Exchange (BSE) benchmark index S&P BSE Sensex closed near three-year highs at 20,894 points today, on the back of heavy buying by foreign investors in frontline stocks. The index has rallied 2,988 points in past two months from 17,906 points on August 21, 2013.
The BSE metal, capital goods and auto index have gained between 21-28% as against 17% rise in benchmark index during the period. IT, healthcare, Bankex, power, fast moving consumer goods (FMCG) and oil and gas index have rallied 13-17%.
The metal index was the largest gainer, appreciated by 28% after China’s economy grew at its fastest pace this year for the quarter ended September. China is the world's largest consumer of copper and aluminium.
It’s all round performance from across the sectors with all 30-shares from the S&P BSE Sensex has contributed in index gain during the period.
ITC, Reliance Industries, Tata Consultancy Services (TCS), ICICI Bank, Infosys, Tata Motors and Larsen & Toubro have contributed more than 200 points rise each, while HDFC Bank, Sun Pharmaceutical Industries and HDFC have accounted 100-200 points each in the benchmark index rally.
Overseas investors have pumped in nearly Rs 8,670 crore ($1.41 billion) in the Indian equity market so far in the current month. With this, the total foreign investment in the country's stock market has reached to Rs 81,898 crore ($15.06 billion) so far in 2013, according to data latest available with the market regulator Sebi.
Rajen Shah, CIO, Angel Broking remain bullish on the markets and are expecting 23,000 levels by December 2014. The broad range for the market will be 18,000 - 23,000. We don't expect the benchmark Sensex to tank below 18,000 levels as we see a strong support at that level, he add.
Meanwhile, as many as 116 stocks from BSE-500 companies have rallied more than 25% each in past two months. Tata Motors, JSW Steel, TVS Motor Company, Jaiprakash Associates, Sesa Sterlite, YES Bank, BHEL, Tata Steel, Larsen and Toubro and Sun Pharma are among few notable stocks from BSE-500 index gained between 30-70% during the period.
The markets will now look forward to the remaining results, largely of the domestically focused sectors. Any disappointments in those results may lead to stock specific corrections, says Dipen Shah, Head of Private Client Group Research, Kotak Securities.
The other trigger for the markets will be the Fed policy meeting and Reserve Bank of India (RBI) policy meeting at the end of the month. Markets are largely expecting another hike in interest rates from RBI, post the disappointing CPI numbers. Going ahead, results of the state elections in December will be an important determinant of the market movement in the months to come, he adds.
The Bombay Stock Exchange (BSE) benchmark index S&P BSE Sensex closed near three-year highs at 20,894 points today, on the back of heavy buying by foreign investors in frontline stocks. The index has rallied 2,988 points in past two months from 17,906 points on August 21, 2013.
The BSE metal, capital goods and auto index have gained between 21-28% as against 17% rise in benchmark index during the period. IT, healthcare, Bankex, power, fast moving consumer goods (FMCG) and oil and gas index have rallied 13-17%.
| Indices | 21-Aug-13 | 21-Oct-13 | %chg |
| Metal | 7151.0 | 9174.5 | 28.3 |
| Capital goods | 6963.8 | 8781.5 | 26.1 |
| Auto | 9899.4 | 12017.9 | 21.4 |
| IT | 7257.6 | 8501.9 | 17.1 |
| CNX Nifty | 5302.6 | 6205.0 | 17.0 |
| S&P BSE Sensex | 17905.9 | 20893.0 | 16.7 |
| Healthcare | 8397.8 | 9747.2 | 16.1 |
| Bankex | 10562.4 | 12254.2 | 16.0 |
| Data complied by BS Research | |||
The metal index was the largest gainer, appreciated by 28% after China’s economy grew at its fastest pace this year for the quarter ended September. China is the world's largest consumer of copper and aluminium.
It’s all round performance from across the sectors with all 30-shares from the S&P BSE Sensex has contributed in index gain during the period.
ITC, Reliance Industries, Tata Consultancy Services (TCS), ICICI Bank, Infosys, Tata Motors and Larsen & Toubro have contributed more than 200 points rise each, while HDFC Bank, Sun Pharmaceutical Industries and HDFC have accounted 100-200 points each in the benchmark index rally.
| Company | Price in Rs | % chg* | Points# |
| ITC | 344.70 | 14.82 | 292 |
| RIL | 913.35 | 16.52 | 269 |
| TCS | 2073.50 | 20.76 | 246 |
| ICICI Bank | 1010.25 | 21.92 | 245 |
| Infosys | 3335.95 | 12.95 | 222 |
| Tata Motors | 379.95 | 34.02 | 213 |
| L&T | 925.15 | 30.56 | 210 |
| HDFC Bank | 670.60 | 12.96 | 173 |
| Sun Pharma | 630.65 | 30.70 | 143 |
| HDFC | 820.45 | 9.86 | 139 |
| Price on BSE in Rs as on October 21, 2013 | |||
| *Change over August 21, 2013 | |||
| #Points contibution in Sensex gain | |||
| Data complied by BS Research | |||
Overseas investors have pumped in nearly Rs 8,670 crore ($1.41 billion) in the Indian equity market so far in the current month. With this, the total foreign investment in the country's stock market has reached to Rs 81,898 crore ($15.06 billion) so far in 2013, according to data latest available with the market regulator Sebi.
Rajen Shah, CIO, Angel Broking remain bullish on the markets and are expecting 23,000 levels by December 2014. The broad range for the market will be 18,000 - 23,000. We don't expect the benchmark Sensex to tank below 18,000 levels as we see a strong support at that level, he add.
Meanwhile, as many as 116 stocks from BSE-500 companies have rallied more than 25% each in past two months. Tata Motors, JSW Steel, TVS Motor Company, Jaiprakash Associates, Sesa Sterlite, YES Bank, BHEL, Tata Steel, Larsen and Toubro and Sun Pharma are among few notable stocks from BSE-500 index gained between 30-70% during the period.
The markets will now look forward to the remaining results, largely of the domestically focused sectors. Any disappointments in those results may lead to stock specific corrections, says Dipen Shah, Head of Private Client Group Research, Kotak Securities.
The other trigger for the markets will be the Fed policy meeting and Reserve Bank of India (RBI) policy meeting at the end of the month. Markets are largely expecting another hike in interest rates from RBI, post the disappointing CPI numbers. Going ahead, results of the state elections in December will be an important determinant of the market movement in the months to come, he adds.