NTPC top performer in Nifty’s rally from 19k to 20kBUSINESS September 15,2023 11:50 AM

NTPC, Coal India, Cipla, L&T and Tata Steel have been top performers, whereas Britannia, Eicher, HUL, HDFC Bank and Nestle have been the important thing laggards throughout Nifty’s 19k to 20k journey throughout Jun’23- Sept’23.

The Nifty-50 has touched the milestone of 20,000 in Sep’23.

After a unstable and lengthy journey from 18k to 19k, the Nifty-50 added the subsequent 1,000 factors (19k to 20k) comparatively sooner — solely 52 buying and selling days (from Jul’23-Sep’23) vs. 425 buying and selling classes (from Oct’21-Jun’23) throughout its journey from 18k to 19k, as per a report by Motilal Oswal Financial Services.

“We reckon the upside from right here will likely be a operate of stability in international and native macros and continued earnings supply versus expectations,” the report stated.

“Moreover, we word that over the last 5 General Elections (1999-2019), the Nifty-50 rallied 10-32 per cent six months prior to the announcement of election outcomes. India will likely be going into General Elections in Mar-May’24.”

Despite the headwinds, the Nifty-50 managed to get well from its Jun’22 and Mar’23 lows to attain 20k, primarily fueled by robust FII/DII inflows of $20.8b/$7.8b between Mar’23 and Sept’23. FII and DII flows stood at $16.5b and $14.2b, respectively, in CY23YTD, the report stated.

Though the Nifty-50 is at an all-time excessive, Mid and Small-caps have outperformed by an enormous margin. In CY23YTD, the Nifty-50 is up 11 per cent, whereas the Nifty Midcap 100 and the Nifty Smallcap 100 are up 28 per cent and 29 per cent, respectively.

The massive caps remained clear outperformers in the course of the Nifty-50’s journey from 18k to 19k. However, the mid and small caps hit new highs when the Nifty-50 moved up from 19k to 20k, the report stated.

As the rate-hike cycle appears over and with constructive retail sentiment, the mid and small caps stay in favour. This was evident in the latest broad-based market rally, when each mid- and small-cap indices rose 13 per cent and 16 per cent, respectively, outperforming the Nifty-50 by a large margin of 780bp and 1,150bp, respectively, throughout Jul’23 to Sep’23 (when Nifty moved from 19k to 20k).

(With inputs from IANS)