Sensex makes new record: NTPC, ITC among top gainers & losers since last peak
Sensex today scaled a new all-time peak of 67,771 by beating the last high of 67,619 touched on July 20 this year, PSU stock NTPC has turned out to be the best performer in the last two months with a 23% return.
Other top Sensex gainers during the period are L&T (17%), Tata Steel (11%), HCL Technologies (10%), Titan Company (9%) and Maruti Suzuki (7%).
On the other hand, shares of ITC, which had recently announced the demerger of its hotels business, is down about 8%. Other losers include HUL, Asian Paints and Kotak Mahindra Bank which are down about 7% each.
Heavyweight Reliance Industries, which has demerged Jio Financial Services into a separate listed entity, has lost over 6% since Sensex's last peak.
Amid solid buying by domestic institutional and retail investors, India has become one of the best performing global markets in September by rallying around 4.2%.
While many investors are expressing concerns around valuations, analysts find the valuations of bank stocks fair.
«Strength in banking stocks can impart resilience to the market even though the overall market valuations are slowly rising beyond comfort levels,» said Dr.
V K Vijayakumar of Geojit Financial Services.
After the US core inflation date for August came on expected lines at 4.3%, the market is thinking that the US Fed is likely to pause in its meeting on September 19-20.
Although the current rally is backed by robust corporate earnings and recovery in sectors like financials, auto & FMCG, factors like erratic monsoons and inflation being beyond RBI’s comfort is keeping investor confidence in check.
«Also, global risk could arise from the Fed’s hawkish stance and global demand getting hurt. Hence, some profit booking is also resulting in resistance.
