There were fireworks on Dalal Street after the Bombay Stock Exchange (BSE) Sensex closed above 19,000 for the first time since January 2008.
The 30-stock index, which closed at 19,208.33, took just eight trading sessions to go from 18,000 to 19,000. It had closed at 17,971.12 on August 31. More than half the Sensex’s 1,237-point gain during this period came from just five stocks.
ICICI Bank (186.19 points), Infosys (149.57 points), SBI (126.43 points), Reliance Industries (102.19 points) and HDFC Bank (71.47 points) contributed about 635 points to the rally in the last eight sessions, data compiled by BS Research Bureau showed. Among the Sensex stocks, 11 gained more than the index while 19 underperformed.
In percentage terms, Tata Steel (up 15.07 per cent), Hindalco (up 14.33 per cent), SBI (up 13.83 per cent), ACC (up 13.54 per cent), ICICI Bank (up 12.28 per cent), Jaiprakash Associates (12.16 per cent), DLF (up 10.31 per cent) and Sterlite Industries (up 10.06 per cent) were the major gainers in the Sensex’s journey from 17,971.12 to 19,208.33.
All Sensex stocks, except Hero Honda, delivered positive returns. The list of underperformers during this period includes Hero Honda (down 3.58 per cent), ITC (up 0.22 per cent), Wipro (up 0.73 per cent) and Cipla (up 1.09 per cent).
The swift upmove in the Indian market in the last eight sessions is not surprising considering the continued inflows from foreign institutional investors (FIIs), say experts. “The outperformance of the Indian market is quite robust year to date. There are some late entrants who are joining the party now. That’s what is driving the market higher,” said UR Bhat, managing director at Dalton Capital Advisors (India), a registered FII. FIIs net bought Indian shares worth $981.05 million (Rs 4,579.50 crore) in September, taking their net purchases to about $14 billion in this year so far. Banking, metal and realty stocks have been the major beneficiaries of the rally in the last eight sessions. No wonder, among the sectoral indices on the BSE, Bankex (up 10.37 per cent), metal (up 9.42 per cent) and realty (up 9.27 per cent) have gained the most. On the other hand, defensive sectors like FMCG and healthcare underperformed, reflecting the improved risk appetite among investors.