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Photo: ANI
Photo: ANI

Sensex up 93% from March crash to hit 50,000: Stocks that led rally

  • In the Sensex pack, four stocks have gained over 100% from March lows contributing massively to the 30-share gauge's journey towards the 50,000-mark.

The Sensex has climbed 93% from the brutal sell-off in March when the markets had crashed following government’s strict lockdown to restrain covid. As the Sensex hit 50,000-mark for first time ever on Thursday, BSE MidCap and BSE SmallCap indices have outpaced the benchmark index in last 10 months. Since March lows, BSE Midcap index soared 99% while BSE Smallcap index climbed 112.56%.

In the Sensex pack, four stocks have gained over 100% from March lows contributing massively to the 30-share gauge's journey towards the 50,000-mark. During the period, Mahindra & Mahindra gained 155%, Infosys rose 129%, HCL Technologies jumped 124%, IndusInd Bank gained 115% and Reliance Industries added 103%.

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"The rally in the banking, PSU, metals, auto and IT sectors has helped the Sensex cross the landmark number of 50,000 setting a record high. If the midcaps join the party, which is a high probability, on the back of the vaccinations and the anticipated announcements in the Union budget to boost demand, the stock markets should continue to do well in the foreseeable future. From this level minor ups and downs in the index are not going to bother investors," Waqar Naqvi, CEO, Taurus Mutual Fund said.

Other 15 stocks in the Sensex which gained 50-90% in the same period from March lows till date are HDFC, Asian Paints, UltraTech Cements, Axis Bank, ICICI bank, Larsen and Toubro, Maruti Suzuki, Bajaj Auto, Sun Pharma, Bajaj Finance, Titan, HDFC Bank, Dr Reddy’s, Tech Mahindra and TCS.

“While at one level 50,000 is just a number, the fact that it has come so much faster than most of us thought a few months back is testimony to the remarkable resilience and massive potential that the Indian economy presents. As long as the economy delivers high nominal GDP growth equities will compound and investors should benefit from this by taking a long term view," Manish Gunwani, CIO-Equity Investments, Nippon India Mutual Fund said.

Stocks in the Sensex which have made the least gains from March lows till date are Hindustan Unilever, NTPC, ITC, PowerGrid, Nestle India, Bharti Airtel, ONGC, Bajaj Finserv, State Bank of India and Kotak Mahindra Bank. These stocks surged 14-49% in the period.

Indian markets are rising on the back of the robust foreign liquidity as global central banks eased monetary policy stance to combat disruptions caused by covid. In 2021 so far foreign institutional investors (FIIs) have invested $2.56 billion in Indian shares while DIIs have sold equities worth 12565.10 crore. Last year, FIIs invested $23.37 billion in Indian shares while DIIs dumped shares worth 34,966.38 crore.

On the back of improving macro economy following covid, Indian markets are expected to continue the markets momentum. However, vaccine progress, Union budget announcements and corporate earnings are likely to big factors that will swing the markets forward.

“While India valuations have now started inching above historical premium to emerging ,markets, this should be seen in the context of accelerating earnings upgrades. We expect India's real GDP growth to rebound to 11.5% YoY in FY22, one of the fastest in Asia, following a deeper contraction in FY21. We believe the Indian economy offers large local market potential, low labour costs, macroeconomic stability and the hope of strengthening ongoing reform momentum," UBS said in a note on 19 January.

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