In the past 11 trading days, the Nifty50 index has rallied 15 per cent or 1,336 points from the level of 8,823 on May 18. The buying momentum was led by foreign investors who have resumed shopping in the beaten-down financial stocks.
“The recent rally is clearly propelled by the banking space, which is a sign of strength and genuineness. Apart from this, other pockets, too, have contributed on this occasion along with the broader market. Hence, one should concentrate more on individual stocks; because we might see some slowness or consolidation in indices going ahead,” Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking said.
Meanwhile, out of Nifty500 stocks, less than half or 239 stocks from the index are trading past their March 13 levels. Of these, 12 stocks – Adani Green Energy, Glenmark Pharmaceuticals, Aurobindo Pharma, Cipla, Motherson Sumi Systems, and India Cements – have rallied an over 50 per cent during the period. RIL, Cadila Healthcare, Escorts, Lupin, Vodafone Idea, and Jubliant Life Sciences are among 12 stocks that surged between 40 per cent and 50 per cent.
However, Sundaram Finance, Indiabulls Integrated Services, Indiabulls Ventures, Future Lifestyle, DCB Bank, and Repco Finance have seen their share price more than halving from their respective March 13 levels.