Pharma, auto, telecom, and FMCG stocks help Nifty regain 10,000 levels

The Nifty50 index reclaimed the psychological level of 10,000 for the first time since March 13

Shares of telecom, pharmaceuticals, automobiles, and fast-moving consumer goods (FMCG) companies helped the NSE’s Nifty50 index recapture the key 10,000-mark on Wednesday. The index reclaimed the psychological level of 10,000 for the first time since March 13 this year and hit an intra-day high of 10,159 points.

Reliance Industries (RIL), Cipla, Dr. Reddy’s Laboratories, Sun Pharmaceutical Industries, Britannia Industries, ITC, Hero MotoCorp, Bajaj Auto, Vedanta and Oil and Natural Gas Corporation (ONGC) from the Nifty 50 index rallied between 20 per cent and 50 per cent since March 13, 2020.

Of the Nifty 50 companies, as many as 26 stocks were up from their respective March 13 levels. However, financials including banks such as IndusInd Bank, Bajaj Finance, Bajaj Finserv, State Bank of India (SBI), and Axis Bank were down more than 25 per cent from March 13 levels.

In the past 11 trading days, the Nifty50 index has rallied 15 per cent or 1,336 points from the level of 8,823 on May 18. The buying momentum was led by foreign investors who have resumed shopping in the beaten-down financial stocks.

“The recent rally is clearly propelled by the banking space, which is a sign of strength and genuineness. Apart from this, other pockets, too, have contributed on this occasion along with the broader market. Hence, one should concentrate more on individual stocks; because we might see some slowness or consolidation in indices going ahead,” Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking said.

Meanwhile, out of Nifty500 stocks, less than half or 239 stocks from the index are trading past their March 13 levels. Of these, 12 stocks – Adani Green Energy, Glenmark Pharmaceuticals, Aurobindo Pharma, Cipla, Motherson Sumi Systems, and India Cements – have rallied an over 50 per cent during the period. RIL, Cadila Healthcare, Escorts, Lupin, Vodafone Idea, and Jubliant Life Sciences are among 12 stocks that surged between 40 per cent and 50 per cent.

However, Sundaram Finance, Indiabulls Integrated Services, Indiabulls Ventures, Future Lifestyle, DCB Bank, and Repco Finance have seen their share price more than halving from their respective March 13 levels.