These 5 Sensex stocks hit new highs; TCS, HUL soar 20% in one month

Eleven Sensex stocks, including RIL, Bharti Airtel, Titan Company, Bajaj Finance, Bajaj Finserv, HDFC Bank, HCL Technologies and Nestle India have gained more than 10 per cent in the last one month

Information technology (IT) giant Tata Consultancy Services (TCS), fast-moving consumer goods (FMCG) company Hindustan Unilever (HUL), telecom services provider Bharti Airtel, cement major UltraTech Cement and Titan Company were the five companies from the S&P BSE Sensex that hit their respective new highs the BSE in intra-day trade on Thursday.

The BSE barometer S&P BSE Sensex rose 548 points or 0.95 per cent to day's high of 57,886 today. In the past one month, Sensex has outperformed the broader markets by surging 9.3 per cent. In comparison, the S&P BSE Midcap index was up 4.2 per cent, while the S&P BSE Smallcap index gained less than 1 per cent or 0.50 per cent during the period.

HUL, TCS and Bajaj Finance from the Sensex have rallied between 20 per cent and 21 per cent in the past one month. While 11 other stocks, including Reliance Industries (RIL), Bharti Airtel, Titan Company, Bajaj Finserv, HDFC Bank, HCL Technologies and Nestle India from the index have gained more than 10 per cent.

TCS, the top gainer in the Sensex kitty of stocks, hit a new high of Rs 3,858, up 4 per cent on the BSE in intra-day trade. Analysts believe the company is well-positioned to benefit from the strong demand environment, acceleration in cloud adoption and digital transformation opportunities going ahead.

In the April-June quarter (Q1FY22), TCS had delivered decent numbers except for the India business, which suffered from partial lockdowns. On the whole, the demand for digital transformation is extremely strong. In our view, a robust deal pipeline along with exemplary execution will drive earnings growth over coming quarters, analysts at Edelweiss Securities said.

The stock of HUL too hit a new high of Rs 2,808.85, up 3 per cent on the BSE. In the past one month, it has rallied 20 per cent on the expectation that the company will deliver sustained recovery in the discretionary portfolio and accelerate growth in the nutrition portfolio.

"With the second wave subsiding, the mobility is normalising, which will lead to demand recovery for out-of-home (OOH) and discretionary products. The companies are seeing broad-based recovery from Q2FY22 and have resumed investments in product innovation, distribution expansion, cost and capital efficiencies," analysts at HDFC Securities said.

With mobility increasing, we see the industry having a decent recovery in H2FY22 in impacted categories like OOH and discretionary, the brokerage further said, adding that resumption in distribution expansion and investments in brands and products are the near-term key monitorables for our coverage universe. "The likeliness of a third COVID wave still looms over India, which can disrupt OOH and discretionary demand. The vaccination rolls out and new COVID cases remain the key monitorables," it said in the FMCG sector update.