What Contributed To Nifty’s 1,000-Point Jump From March Low
Nifty 50 has gained more than 1,000 points from its previous low in March, with the benchmark index taking 76 sessions to chart the journey.
The 50-stock gauge beat small- and mid-cap indices on returns but lagged the Nifty Bank Index during the period. It’s now trading close to its all-time high that the index scaled in January before it started retreating.
The market rallied on the back of short-covering and buying in selective stocks while mid caps underperformed during the period, said TS Harihar, founder and chief executive officer at HRBV Client Solutions Private Ltd. Concerns over trade war coupled with a rally in crude oil remain an overhang for the market along with a depreciating rupee, he said.
Nifty IT outperformed sectoral indices, gaining over 15 percent since March 23. The single factor behind the rally in technology stocks has been the depreciating rupee, Urmil Shah, research analyst at IDBI Capital Markets and Securities Ltd., had told BloombergQuint in an interview. The Indian currency weakened nearly 6 percent during the period.
The Nifty Media Index has been the worst sector performer since the March low, followed by realty and infrastructure indices. Barring three media stocks—PVR Ltd., Dish TV India and Entertainment Network India Ltd.—all other constituents of the index declined led by Hathway Cable & Datacom Ltd. that lost nearly half its value since March 23.
The multi-service operator stocks have been impacted by Jio’s announcement of launching fibre-to-the-home operations said Rohit Dokania, research analyst at IDFC Securities. While print stocks were impacted by low ad growth and a sharp inflation in newsprint prices besides the general weakness in mid- and small caps.
Nearly half of the 1,000-point rally has come from the top five contributors. Here’s how much individual stocks contributed: