All except two Nifty50 stocks gave positive returns in November; what lies ahead?
All except 2 stocks were in the green in the month of November. Only Bajaj Finance and SBI witnessed a decline in this period, while the remaining 48 stocks gave positive returns mirroring the positive market sentiment.
The Indian benchmark equity index Nifty50 hit a fresh record high on Friday, led by broad-based buying after India's GDP for the September quarter came in at 7.6 percent against Street expectations of 6.5 percent.
The Nifty 50 rallied over 153 points to touch a new high of 20,286.30 in intraday trade today, surpassing its earlier record high of 20,222.45 hit on September 15 this year. Broader markets supported the rally with the Nifty Midcap 100 and Nifty Smallcap 100 also hitting their record highs.
Meanwhile, BSE’s 30-share index Sensex was trading 569 points higher at 67,557.14 and was over 370 points away from its all-time high of 67,927.23 hit on September 15.
Overall, Nifty has risen 8 percent in the last 1 year and 12 percent in 2023 YTD. Just in November, Nifty added 5.5 percent, its highest-ever monthly gain since July 2022.
This incredible upward momentum has been driven by optimism over better-than-estimated India’s gross domestic product (GDP) growth for the September quarter, strong listing gains of ongoing IPOs, dovish statements from US Fed officials, intensifying expectations for early rate cuts, and ease in US yields. Further, the upgrade in India’s GDP growth forecast by global rating agency S&P to 6.4 percent for FY24 and FIIs turning net buyers for the last four trading sessions boosted the sentiments.
Meanwhile, FPIs bought Indian equities worth ₹9,001 crore after selling shares worth ₹24,548 crore in October and ₹14,767 crore in September, data with the depositories showed.
Top Nifty50 stocks in November
All except 2 stocks were in the green in the month of November. Only Bajaj Finance and SBI witnessed a decline in this period, while the remaining 48 stocks gave positive returns, mirroring the positive market sentiment.
2-wheeler stock Hero MotoCorp jumped the most, 24 percent in November, followed by BPCL, up 21 percent.
"HMCL is expected to improve market share going forward due to its long-term strategic plan like showroom revamp and upgradation of the portfolio. Further, we are positive on HMCL due to a lower threat to EV transition (scooter 8 percent of overall volume); scaling up the EV portfolio; entry into middleweight MC with HD-X440 and Healthy dividend yield of 3.3 percent. We recommend ADD rating on the stock with TP of ₹3,477," said Choice Broking.
Eicher Motors and NTPC also rallied 17 percent and 15 percent, respectively, during the month. Meanwhile, Apollo Hospitals, Bajaj Auto, Divi's Labs, Coal India, Axis Bank, M&M, LTIMindtree, Tata Motors, JSW Steel, HDFC Life, Hindalco, and Tata Steel also gave double digit returns, up over 10 percent each.
Will this positive momentum in the market continue? Here's what experts say:
Parth Nyati, Founder of Tradingo
The Indian equity market is in a strong bullish mood and is hitting a fresh all-time high. We may continue our momentum and outperform our other global peers, backed by the strong fundamentals and under-ownership of FIIs. State election results may create some kind of volatility, but we are preparing ourselves for a pre-election rally. We believe 21,000 looks like an easy task in the near term for the Nifty.
Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy
The mid-cap and the small-cap indices have had a decent correction over the past two months and reached an all-time high before the broader market. This indicates that the mid and small-cap stocks will continue their upward trend going forward.
Now with the market anticipating a rate hike pause, the crude price cooling down, and easing of geopolitical tensions, sector-specific action might be evident. Sectors like Chemical and IT will have greater sustainability and momentum in this rally as they were laggards in the previous rally and the external conditions are easing for them.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The market construct has turned clearly bullish aided by favourable global and domestic clues. A significant trend in the market is the comeback of Bank Nifty. FIIs turning buyers for 5 days in a row and DIIs buying aggressively is a strong trend that can take the Nifty past the record Nifty high of 20,222 soon. The leader of the rally is likely to be banking assisted by IT.
Global cues are supportive with positive news from the mother market US where growth is strong and inflation is trending down.
Technical
Rupak De, Senior Technical Analyst at LKP Securities
Nifty moved up smartly as the bulls remained at the helm following a consolidation breakout on the daily chart. Besides, the index is sitting comfortably above the crucial short-term moving average. The overall trend looks positive with broader market participation and a smart recovery in the Bank Nifty. Over the short term, the Nifty might move towards 20,450-20,500 unless it falls below 19,850.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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