In absolute terms, top five companies – Tata Consultancy Services (TCS), Reliance Industries (RIL), Hindustan Unilever (HUL), Bajaj Finance and HDFC Bank - have collectively contributed Rs 5.58 trillion m-cap rise since January 23 levels. TCS (Rs 1.77 trillion) and RIL (Rs 1.68 trillion) accounted 62% of total m-cap gain by these five companies.
The nine recently listed companies which include Bandhan Bank, Hindustan Aeronautics, HDFC Assets Management Company, ICICI Securities and Varroc Engineering, added Rs 1.97 trillion in total m-cap, also led the BSE m-cap to hit new high.
The benchmark S&P BSE Sensex hit a new high 38,403 in intra-day trade, finally settled at 38,286 points today. The index gained 6% has outperformed the broader indices, the S&P BSE Midcap (down 8%) and the S&P BSE Smallcap index (down 14%) during the period.
Only 135 stocks from the S&P BSE500 index were trading above their January 23 levels, despite of the market cap hitting new high today. Out of 365 stocks, 15 scrips have seen their market values more than halved, 126 stocks declined in the range of 25% to 50%.
Oil and Natural Gas Corporation (ONGC), Bharti Airtel, Tata Motors, Vedanta, Indian Oil Corporation, Bharat Petroleum Corporation and Punjab National Bank have seen their market value erosion between Rs 200-billion and Rs 500-billion during the period.
Analysts attribute the resilience of Indian markets
amid the recent emerging market turmoil to overall macro stability, low policy uncertainty, improving growth and domestic flows. Domestic equity flows are in the midst of a structural uptrend, they say, resulting in a persistent bid for stocks.
“India's policy environment has defied expectations and remained relatively benign despite the coming elections in 2019. Macro stability is strongly backed by a Central Bank committed to keeping real rates positive,” wrote Ridham Desai, head of India research and India equity strategist, at Morgan Stanley along with Sheela Rathi in their recent report titled India Equity Strategy Alpha Almanac: Why is India behaving differently? CLICK HERE TO READ FULL REPORT