The Nifty50 has rallied nearly 900 points so far this year and the large part of the rally was led by some of the heavyweights which are pushing the index to record highs almost on a daily basis.

The large part of the rally, in terms of contribution, was led by gains in RILTCSHDFC BankInfosysKotak Mahindra BankITCHULBajaj FinanceHDFC, and M&M.

On the other hand, stocks which are weighing or holding back the rally include names like ONGC, Tata Steel, Vedanta, Tata Motors, and ICICI Bank.

According to the report, RIL contributed over 200 points to the Nifty rally, followed by TCS which added 147 points, and HDFC Bank added 131 points to the Nifty.

Most of the stocks which led the rally also reported decent earnings.

For instance, Reliance Industries broke the Rs 1,000-barrier post Q1 results to hit record highs. The stock was stuck in a range in the past few years. Most brokerages have raised their respective target prices for the oil & gas major.

TCS impressed with 4.1 percent constant currency revenue growth ahead of consensus. Infosys’ performance was marginally weaker than expected but did just enough to indicate that the company was on track for a turnaround which led to brokerage firms reaffirming their faith in the stock.

Top five Nifty stocks that have led the rally this year also witnessed a rise in their weightage in the benchmark index.

RIL, which had a weightage of 7.79 percent as on January 1, 2018 increased to 9.29 on July 31, 2018. HDFC Bank, which had a weightage of 9.64 percent as on January 1, 2018 saw its weight increasing to 10.01 percent towards July 31, 2018.

The Nifty50 picked up momentum last month and is trading comfortably over 11,000 levels. Most experts feel that the strength in the market is here to stay as there are signs which suggest that mid & smallcaps have also bottomed out.

The immediate target which most experts are betting on is 11,500-11,600 for the Nifty. But, for momentum to continue, the index has to stay above 10,400-levels on a closing basis.

Leave a Reply

Your email address will not be published. Required fields are marked *