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  • Stocks that took Sensex to a new high

    ‘Scaling new heights’, ‘breaking bigger records’, ‘rewriting history’: these are some of the phrases being used to describe not Virat Kohli but the Sensex! The S&P BSE Sensex ended at a record high for the third straight day. After touching a new all-time high of 36,947 points, the Sensex closed at 36,858 points, rising by 0.1% or 33 points. In this piece, let’s discuss some of the stocks and factors that took Sensex to such new heights.

  • Contribution of select large cap stocks

    The macros have nothing new to offer and nearly 80% of the broader market has been in the red zone according to a report by the Financial Express. Yet, the Sensex has been touching new record highs over the past few days. This was the result of great performance by just a few stocks. Tata Consultancy Services (TCS) tops the list of stocks that fuelled this rally by rising around 50% in 2018.
    Infosys (34%), Kotak Mahindra (30%), Hindustan Unilever (25%), and Asian Paints (25%) were some of the major contributors to the growth. Other stocks like Maruti Suzuki, Larsen & Toubro, ITC, Reliance Industries, Yes Bank, Mahindra and Mahindra and IndusInd Bank also chipped in.

    • Related read: IT company TCS’s Q1 performance here

  • Earnings based rally

    Strong corporate results have also been influential in the market rally. TCS announced better than expected results for the first quarter, posting a 23% jump in profits. HDFC Bank, HUL, Ashok Leyland, Havell’s India, Mindtree and ICICI Lombard also registered substantial jump in their quarterly numbers. Coming to sector wise performance, the sectors that boosted the rally were Bankex, technology, metal and FMCG indices.

    • Related read: Find out more about the performance of the metal sector here

  • Market capitalisation data

    In rupee terms, the Sensex has gained around 8% in the year to date. However, the broader market has clearly underperformed. The BSE Mid cap lost roughly around 12% since the start of the year while the BSE Small cap lost around 16%. Only the large cap segment gained around 5%. That said, nearly 77% of all stocks with a market capitalisation of more than Rs 1,000 crore are in the red according to a report by Financial Express. This indicates that the market rally has been powered by only a handful of stocks.

  • Other factors

    In addition to strong market results, the market rally got a further boost from the government’s announcement to cut down GST rates for many products. Tax rates were slashed on around 190 goods, leaving just 35 items in the 28% tax slab. Investor sentiment was also given a fillip when the government won the no-confidence motion tabled by the opposition. The correction in crude oil prices too helped ease earlier worries about higher crude prices.

    • Related read: Find out more how the GST rate cuts affect you in this article.

    • Sensex ends at an all time high for the third straight day   Read more

    • Sensex hits all time high. What fuelled the rally?    Read here

  • Rs 104.34 crore

    Foreign Portfolio Investors (FPIs) supported the market rally, buying shares worth Rs 104.34 crore on Tuesday, 24th July, 2018, according to provisional data from the stock market exchanges. Domestic Institutional Investors (DIIs) purchased equities Rs 513.78 crore. The Sensex touched an all-time high level for the third day in a row, riding on gains in banking, metal and energy stocks and a sustained buying by foreign and domestic institutional investors.