Nifty Recovers More Than Half Of Its Losses–The Biggest Contributors And Laggards

The benchmark Nifty 50 Index recovered more than half of its losses since its October low as the assembly election overhang lifted, crude prices softened, and foreign investors returned. The rebound was led by beaten-down bank and real estate stocks.

The gauge scaled the 10,900-mark for the first time since October, the most volatile month this year, according to Bloomberg data. The India VIX, used measure market risk, fell more than 20 percent so far in December. Also, the mid- and small-cap stocks outperformed their larger peers.

Foreign investors turned net buyers for the first time in three months in November as crude prices fell and the Indian currency strengthened. They pumped in Rs 5,981 crore into Indian equities during the month, the highest since March this year, according to the National Securities Depository Ltd. data.

The NSE Nifty PSU Bank Index gained the most during the period, led by a 10-18 percent advance in index heavyweights such as Punjab National Bank, Bank of Baroda and State Bank of India.

The Nifty Pharma Index was the worst performer. The 10-stock gauge was dragged down by 22 percent and 13 percent fall in Sun Pharmaceutical Industries Ltd. and Cipla Ltd. respectively.

The 50-member stock index had crashed more than 1,700 points since hitting its peak in August after payment defaults at IL&FS Ltd. triggered a liquidity crisis among non-banks lenders, threatening a contagion in financial markets, and uncertainty ahead of the state elections. The differences between the government and the Reserve Bank of India over surplus reserves coming out in the open amid a ballooning bad loan crisis only added to the volatility in the market.

Here are the biggest contributors and laggards of the Nifty:

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