Stocks That Helped Nifty Journey To 11,000
Indian stocks have continued from where they left in 2017.
The benchmark NSE Nifty 50 index—one of Asia’s best performers last year—scaled the 11,000-mark for the first time today, as investors bet on a pickup in corporate earnings. The S&P BSE Sensex too touched 36,000 levels.
Nifty’s 1,000-point rally was led by oil and gas major Reliance Industries Ltd., followed by automaker Mahindra & Mahindra Ltd. and HDFC Bank Ltd. Meanwhile, Lupin Ltd., UPL Ltd. and Tata Motors Ltd. contributed the least.
The market is in the first year of earnings recovery, Taher Badshah of Invesco Mutual Fund told BloombergQuint in an interview. “We can look forward to a cyclical recovery in earnings.”
Of the 18 Nifty members that have reported earnings so far this season, 12 have beaten or matched estimates, data compiled by Bloomberg show. Earnings at index members are expected to rise an average 20 percent in the last three months of 2017, faster than the 16 percent pace in the previous quarter.
The Nifty scaled the last 1,000 points in 183 days, breaching records over the last year as domestic and foreign investors poured money into stocks.
Overseas investors and domestic funds have bought $1.5 billion of local equities in 2018, adding to the all-time high of $26 billion of purchases last year.
That helped S&P BSE Sensex scale the last 1,000 points in just four sessions.
The Nifty has added over Rs 8 lakh crore in market capitalisation during the period. The country’s top software exporter Tata Consultancy Services Ltd. and RIL added more than Rs 1 lakh crore each to their market value. On the other hand, ITC's lost nearly Rs 18,000 crore, the most among Nifty companies.