 "Financials, IT contributes more than half of nearly 2,300 point Sensex rally")
Financial and information technology (IT) stocks have contributed a more than half to the benchmark Sensex’s rally of about 2,300 points thus far in the current month.
Five stocks — ICICI Bank, HDFC Bank, Housing Development Finance Corporation (HDFC), State Bank of India (SBI) and Axis Bank – from the financials and three stocks – Infosys, Tata Consultancy Services (TCS) and Wipro – from IT collectively contributed 1,289 points to the Sensex’s rise since February 29, post Union Budget 2016-17.
The Sensex, which closed at 25,285 on Monday, has risen by 2,283 points, or nearly 10%, compared with 23,002 on February 29.
ICICI Bank, the largest contributor to the 30-share Sensex, has accounted for 288 points in the index’s gain. HDFC Bank and HDFC contributed nearly 160 points each, followed by SBI and Axis Bank, which contributed about 130 points each.
Most of the financial stocks including banks bouncing back sharply from their recent low on the back of supportive global cues and increased expectations of a rate cut by the Reserve Bank of India (RBI).
“Hopes that the RBI would consider cutting rates in its next policy meeting raised sentiment and helped the rupee appreciate. Apart from rate curt optimism, market participants also cheered the government's commitment to fiscal prudence. If the foreign fund inflows continued in the next few session, this could further help the rupee appreciate against the dollar”, IFA Global said in a client note.
Thus far in March, foreign institutional investors (FIIs) pumped in an over $2 billion or Rs 14,760 crore into equity markets. The net inflow by FIIs during the current month is highest since January 2015, when they pumped in net of Rs 17,689 crore ($2.9 billion) in equities, data showed.
Two IT companies - Infosys (247 points) and TCS (149 points) – collectively contributed 396 points of the Sensex rally.
From the non-financial and IT segment, ITC (216 points), Tata Motors (157 points), Larsen and Toubro (135 points) and Reliance Industries (128 points) contributed more than 100 points each to the Sensex’s rally, the Bloomberg data shows.
Since February 29, the stocks of Tata Motors, Adani Ports, SBI, ICICI Bank, Bharat Heavy Electricals Limited (BHEL) and Tata Steel have appreciated between 22%-25%.
Five stocks — ICICI Bank, HDFC Bank, Housing Development Finance Corporation (HDFC), State Bank of India (SBI) and Axis Bank – from the financials and three stocks – Infosys, Tata Consultancy Services (TCS) and Wipro – from IT collectively contributed 1,289 points to the Sensex’s rise since February 29, post Union Budget 2016-17.
The Sensex, which closed at 25,285 on Monday, has risen by 2,283 points, or nearly 10%, compared with 23,002 on February 29.
ICICI Bank, the largest contributor to the 30-share Sensex, has accounted for 288 points in the index’s gain. HDFC Bank and HDFC contributed nearly 160 points each, followed by SBI and Axis Bank, which contributed about 130 points each.
Most of the financial stocks including banks bouncing back sharply from their recent low on the back of supportive global cues and increased expectations of a rate cut by the Reserve Bank of India (RBI).
“Hopes that the RBI would consider cutting rates in its next policy meeting raised sentiment and helped the rupee appreciate. Apart from rate curt optimism, market participants also cheered the government's commitment to fiscal prudence. If the foreign fund inflows continued in the next few session, this could further help the rupee appreciate against the dollar”, IFA Global said in a client note.
Thus far in March, foreign institutional investors (FIIs) pumped in an over $2 billion or Rs 14,760 crore into equity markets. The net inflow by FIIs during the current month is highest since January 2015, when they pumped in net of Rs 17,689 crore ($2.9 billion) in equities, data showed.
Two IT companies - Infosys (247 points) and TCS (149 points) – collectively contributed 396 points of the Sensex rally.
From the non-financial and IT segment, ITC (216 points), Tata Motors (157 points), Larsen and Toubro (135 points) and Reliance Industries (128 points) contributed more than 100 points each to the Sensex’s rally, the Bloomberg data shows.
Since February 29, the stocks of Tata Motors, Adani Ports, SBI, ICICI Bank, Bharat Heavy Electricals Limited (BHEL) and Tata Steel have appreciated between 22%-25%.
| Price on BSE in Rs | |||
| Name | 29/02/2016 | 21/03/2016 | % chg |
| Tata Motors | 300.25 | 374.55 | 24.75 |
| Adani Ports | 196.10 | 243.75 | 24.30 |
| SBI | 158.40 | 196.65 | 24.15 |
| ICICI Bank | 190.00 | 234.80 | 23.58 |
| BHEL | 91.10 | 111.95 | 22.89 |
| Tata Steel | 249.10 | 302.90 | 21.60 |
| Gail (India) | 304.55 | 362.05 | 18.88 |
| Axis Bank | 375.25 | 443.55 | 18.20 |
| Larsen & Toubro | 1079.25 | 1227.80 | 13.76 |
| Maruti Suzuki | 3242.60 | 3670.10 | 13.18 |
| Hero Motocorp | 2499.65 | 2802.75 | 12.13 |
| TCS | 2181.90 | 2443.65 | 12.00 |
| ONGC | 194.10 | 217.05 | 11.82 |
| ITC | 295.80 | 330.40 | 11.70 |
| Bharti Airtel | 316.75 | 350.55 | 10.67 |
| Infosys | 1083.75 | 1195.00 | 10.27 |
| HDFC | 1061.55 | 1152.05 | 8.53 |
| HDFC Bank | 972.55 | 1044.25 | 7.37 |
| Reliance Industries | 966.55 | 1036.20 | 7.21 |
| Wipro | 519.90 | 557.35 | 7.20 |
| NTPC | 119.70 | 127.50 | 6.52 |
| Hind. Unilever | 829.80 | 880.35 | 6.09 |
| Bajaj Auto | 2200.40 | 2311.00 | 5.03 |
| Dr Reddy's Labs | 3031.25 | 3182.90 | 5.00 |
| Cipla | 515.00 | 535.95 | 4.07 |
| Asian Paints | 848.55 | 859.55 | 1.30 |
| M & M | 1226.80 | 1227.90 | 0.09 |
| Sun Pharma | 855.05 | 835.65 | -2.27 |
| Coal India | 311.20 | 296.80 | -4.63 |
| Lupin | 1752.15 | 1535.35 | -12.37 |
| Sensex | 23002.00 | 25285.37 | 9.93 |
