The Sensex has given 15.5 per cent returns in nine trading days from its recent three-year low of 8,160.40 recorded on March 9 as Indian markets are offering good long-term value at current valuations.
However, only 22 per cent actively-traded stocks have outperformed the Sensex during the period.
Thus, the current bounce-back is restricted to stock-specific actions. Among the 30 Sensex stocks, 15 have appreciated by over 15 per cent. And, of the 127 sectors classified by Business Standard Research Bureau, 32 have gained more than 15 per cent.
Hindalco and Sterlite Industries were the biggest gainers among the Sensex stocks, up by over 35 per cent on strong rally in metal prices on the London Metal Exchange (LME).
| TOP 5 GAINERS | |||
| Sensex stocks | Market price in Rs | ||
| Mar-9 | Mar-23 | % Chg | |
| Hindalco | 37.90 | 52.05 | 37.34 |
| Sterlite Industries | 244.45 | 331.40 | 35.57 |
| ICICI Bank | 262.95 | 346.65 | 31.83 |
| Jaiprakash Associates | 65.84 | 84.25 | 27.96 |
| Tata Steel | 152.3 | 194.4 | 27.64 |
ICICI Bank rose 32 per cent on change in sentiment after the Citigroup chief said that the bank was doing well and had earned profit in the first two months of the current calendar year.
Reliance was up by over 20 per cent as the company geared up to sell gas that would start flowing from its D-6 block in Krishna-Godavari (KG) basin in a few weeks.
Among others, Akruti City shot up by 74.4 per cent on account of follow-up buying in the cash market as short sellers got trapped in the F&O segment.
Ingersoll Rand was up 50 per cent on the news that its board would meet on March 24 to consider a buyback proposal. SEL Manufacturing, Everonn Systems, Country Club, Essar Shipping, Mahindra Lifespace, Hexaware Techno and Dhanalakshmi Bank, entities in which FIIs’ stake was more than 20 per cent, also posted substantial gains.
According to Morgan Stanley Research, many equity investors are now starting to build a bull case for India.
The argument is that India’s long-term story is intact but there is no reason to buy equities till the elections get over. Because recent political developments have given rise to the fear of a hung parliament, which could spoil the chances of a post-election recovery in markets.
The market has witnessed stocks-specific actions based on corporate news and a host of policy measures that have been initiated since October 2008 to boost the economy. Major global equity indices rose last week on US, Japan and England’s stimulus measures.
Another round of global stimulus is on the cards with the Federal Reserve saying on March 18 that it will spend $1 trillion to buy company and government bonds to keep borrowing costs down.
