Market rally is not all-inclusive

Even as the BSE Sensex, S&P CNX Nifty and sectoral indices including Bankex, oil and gas, realty, consumer durable, capital goods, metal index and the five broader indices - mid-cap, small-cap, BSE-100, BSE-200 and BSE-500 have hit lifetime highs, only 301 stocks listed on BSE have hit all-time highs in the last five days. If one looks at stocks that hit 52-week highs, the number goes up to 496.

The 301 stocks that are currently trading at all-time highs account for 44 per cent of BSE's total market capitalisation. The overall tally of 496 stock accounts for 46 per cent of the total market cap of Rs 51.11 trillion. This demonstrates the selective nature of the current rally and the absence of broad market participation.

It is pertinent to note that 409 stocks, accounting for 31.31 per cent of BSE's market cap, are trading 10 per cent below their all-time highs.

A total of 862 stocks or 30.8 per cent of the 2,800 stocks traded on the BSE, have a combined market capitalisation of 77.7 per cent. This shows that the rally has been centered on large cap stocks, while excluding small cap and mid cap stocks.

Of the 301 stocks that hit all-time highs in the last five days, most are from sectors such as engineering, power, gas distribution, non-banking finance companies, banking and construction.

As many as 40 stocks are from non-banking, 15 from technology, 14 from banking, 13 from engineering and eight each from the electrical equipment and construction sectors.

Twenty one stocks from the Sensex and S&P CNX Nifty closed at their lifetime highs.

All Reliance group stocks closed at lifetime highs. Reliance Industries (Rs 2,426), Reliance Industrial Infrastructure (Rs 1,204.75), IPCL (Rs 476.80) and Reliance Petroleum (Rs 172) from Mukesh Ambani group and Reliance Energy (Rs 1,130.70), Reliance Capital (Rs 1,594.55), Reliance Communications (Rs 607.80) and Reliance Natural Resources (Rs 103) from the Anil Dhirubhai Ambani group closed at lifetime highs on the BSE.

Among the other heavy-weights, Grasim Industries, Larsen & Toubro, BHEL, SBI, HDFC Bank, ABB, Maruti Udyog, Tata Power and Tata Steel also closed at lifetime highs.