For this study, ETmarkets.com has considered the market capitalization of only BSE500 companies, which accounts for 95 per cent of the entire BSE‘s mcap.
The geopolitical conflicts make India even more attractive as an alternate investment and outsourcing destination, says Anil Rego, Founder and Fund Manager, Right Horizons. “The rally is sustainable and earnings will improve from Q3FY23.”
During the period under review, a dozen companies contributed as much as one third of the gains as their market cap rose by Rs 14.14 lakh crore. The next eight names contributed another 10 percent of the m-cap rise.
“From one earnings season to the other, we are definitely seeing some progress being made in terms of better operating profits,” said Dipan Mehta, Director, Elixir Equities.
“These are great times for investors who have weathered the correction which took place over the past few months and now the next few weeks and months look quite interesting,” he added. “I see a lot of reversion to mean and maybe the indices can cross the previous highs.”
The two names – and – added Rs 1.75 lakh crore and Rs 1.45 lakh crore in their valuations. Interestingly, four companies in the top 12 names belonged to Gautam Adani’s Adani Group.
ICICI Bank (Rs 1.37 lakh crore),
(Rs 1.34 lakh crore) (Rs 1.25 lakh crore) HDFC Bank (Rs 1.24 lakh crore), (Rs 1.21 lakh crore) and (Rs 1.07 lakh crore) were the other companies whose m-cap jumped over a Rs 1 lakh crore each.
The other contributors in the top 12 names included
(Rs 91913.48 crore ), (Rs 91354 crore), Infosys (Rs 82085.04) and (Rs 81570.95 crore).
Registering a rise of Rs 48,000 crore to Rs 80,000 crore in mcap, HDFC,
, ITC, , , Larsen & Toubro, Adani Power and were the other contributors to the list.
Among the top 20 companies in this list, 14 belonged to benchmark index BSE Sensex, whereas five were Adani Group stocks. Avenue Supermarts, with an addition of Rs 64861.68 crore in m-cap, was the only exception.
However, independent market expert Sandip Sabharwal has a different view on the market rally. In an interview with ET Now, he said that booking profits now is not harmful.
“Next two months will be challenging for the markets and that could give better opportunities to enter. For people who have made disproportionate profits or portfolios and have gone up substantially, it makes sense to have 15-20 per cent in cash,” he added.
On the BSE500 index, only three dozen companies witnessed a decline in their market capitalizations during the same period. Mcap of 12 companies dropped in the range of Rs 1,000 crore to Rs 7,500 crore.
The list of losers included ONGC, Oil India,
, Bandhan Bank, MRPL, Sona BLW, Gland Pharma, Indus Towers, , Alkeh Labs, GAIL (India) and PB Fintech.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)