NEW DELHI: With Tuesday’s intraday gain, the BSE Sensex has climbed over 9,100 points from June low, outshining regional global peers by a good margin. The Dalal Street gains, Rs 50 lakh crore in market value terms, have largely been led by hopes that the domestic economy may stay on a strong footing even as developed economies enter a slow lane.
This hope, along with easing commodity prices and healthy June quarter results, has led to the return of FPIs to Indian bourses, easing investor concerns.
Such has been the breadth of this recovery that nearly half of BSE500 stocks have climbed over 20 per cent since June lows, with 374 stocks deliving double-digit returns.
has emerged as the biggest BSE500 gainer, rallying 93.94 per cent since June 17. This was the day when the BSE Sensex hit its 52-week low of 50,921.22. Since then, the 30-pack index has rallied 9,107 points or 17.73 per cent to 60,467.24 level on Tuesday.
soared 84.28 per cent to Rs 2,743.10 a piece during this period. has been the third-biggest gainer of BSE500 during this period, rising 70.69 per cent to Rs 421.10.
(up 69 per cent), (up 65 per cent), (up 65 per cent) and (up 64 per cent) were a few other stocks that gained between 60 per cent and 70 per cent during this period.
climbed 60 per cent, Astral surged 59 per cent, RBL Bank advanced 58 per cent and SKF India added 57 per cent since June 17. The BSE market capitalisation stood at Rs 286.77 lakh crore today, up Rs 49.99 lakh crore over Rs 236.77 lakh crore as of June 17.
Pankaj Pandey, Head – Research, ICICIdirect said the market has been performing well over the last few quarters, owing to huge liquidity, upward earnings cycle and economic revival owing to fading Covid-19 effect.
“However market participants should be wary of the rising inflation and the resulting removal of liquidity from the system. Rising inflation risk and hence the withdrawal of ultra-easy monetary policy by global central banks (mainly Federal Reserve) may trigger a sharp rise in bond yields which can cause risk assets to correct. Hence, one can remain invested with a vigilant eye on the move in yields the world over which can result in sharp 10-15% correction from current levels,” Pandey said.
Apollo Tyres,
, IDFC, Ceat and ABB India rose 53-56 per cent since June lows. The Adani Power, , Metro Brands, EIH, and KSB remained a few other stocks that delivered over 50 per cent return in the period mentioned.
“The ongoing market rally is primarily driven by the sudden reversal of FII strategy: from relentless sellers to relentless buyers. Retail investor support and fundamental support to the market from a strong economy are aiding the rally. Now, this has become a classic momentum-driven market, which has the potential to take the indices to new record highs soon,” V K Vijayakumar, Chief Investment Strategist at
.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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