The stock exchange judge has become narrower than in the period before the crisis (until 19 September). Three large-cap shares – Reliance Industries, Infosys and Hindustan Unilever – contributed nearly 51% to Sensex’s growth, following a low of 52 weeks on 23 January 2008. Mars.
This is almost double the total weight of these companies, which accounts for about 27% of the index.
Since the 23rd. In March, the total market capitalisation of the companies in the index increased by 23%, compared to 49% for these three companies.
In total these three organizations added Rs.5.8 trillion to their coverage m during this period, while the coverage m of the 30 Sensex companies increased by Rs.11.3 trillion.
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Together with HDFC Bank and Bharti Eyrtel, the five largest stocks accounted for almost two-thirds (65%) of the index’s appreciation after its 52-week low. The 10 largest stocks accounted for 83% of market growth during this period.
Analysts attribute it to Covid-19, who caused the collapse. The sectors likely to be least affected by the blockade – telecoms, oil refineries, banks, consumer products, pharmaceuticals and technology companies – are recovering while other sectors remain weak, says G. Chockalingham, founder and PhD student at Equinomics Research & Advisory Services.
The contribution of shares to the index is based on the m-cap of the free float of the company (excluding the shares of the promoter), resulting in a gap between the movement of the market capitalisation and the contribution of the company to the movement of the index.
For example, a company with a higher free float or no sponsor (e.g. Infosys) will have a greater influence on the index than a company with a lower free float (e.g. Tata Consultancy Services).
RIL has been the main driving force in the market over the past month and a half and has been the most important since the 23rd month of operation. The month of March accounted for almost a third of the growth of the total market.
During this period, the m-Cap index rose by 77%, making it the best performing index fund of the period.
Infosys is the second largest investor and accounts for almost 9% of index growth. During this period stocks increased by 28 %. HUL, which accounted for 8.5 percent of the increase, followed.
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The share of HUL in the total rose by 21 percent. On the other hand, HDFC Bank contributed 8.3% to the gradual rise in the index, with its shares rising by 21%, followed by Bharti Eyrtel Bank, which contributed 5.6% to the gradual rise in the index, with its shares rising by 31%.
Other important depositors are ICICI Bank (5%), Housing Development & Finance Corp. (4,4%) and Tata Consultancy Services (3,8%).
At the other end of the spectrum, Budge Finance, the retail lender (excluding banks), experienced the largest decline (its shares fell by 10.6%), followed by SBI (-8.2%) and Tata Steel (+0.6%).