Barring Reliance, all the other top gainers are part of the bottom 35.
Pundits often complained how the domestic markets
have become polarised — a term used for a few blue-chip stocks making up for most of the gains. The trend, however, seems to be reversing.
During the June quarter, the gains made by the top 15 Nifty companies lagged that of the bottom 35 (in terms of market value), albeit only by 300 basis points. The Nifty50 and also the top 15 stocks gained 20 per cent during the June quarter, while the bottom 35 stocks gained 23 per cent. The biggest Nifty gainers for the June quarter were Mahindra & Mahindra
(rose 79 per cent), Vedanta
(64 per cent), Hero MotoCorp
(60 per cent), Reliance Industries
(55 per cent), and Hindalco Industries (54 per cent).
Barring Reliance, all the other top gainers are part of the bottom 35. During the June quarter, all the Nifty 50 components, but four posted gains. Market players said most stocks making positive contribution is a healthy sign for the market.
However, the trend needs to get relatively pronounced. The broad-based Nifty Midcap 100 continues to remain polarised. The index gained 26 per cent during the June quarter. Its top 15 components rallied 41 per cent, while the bottom 85 gained an average 28 per cent.