RIL, HDFC Bank, Infosys, and 5 other large caps are 7-25% below all-time highs

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Indian markets witnessed another stellar rally in today’s trading session, with key benchmark indices reaching record highs. The rally, which began during Monday’s trading session in response to the ruling party, BJP, victory in three state elections, instilled significant optimism among investors. 

Also Read: Bulls celebrate saffron sweep in state assembly elections

While state elections do not correlate with Loksabha elections, the recent outcome removes a key overhang of political uncertainty for the markets for the next five months.

Analysts at domestic brokerage firm Motilal Oswal said, “The equity markets were justifiably anxious about the outcome of state polls and what it portends for the 2024 general elections. With the outcome overwhelmingly in favor of the incumbent BJP, the confidence of the market in the current dispensation and political continuity post-2024 Loksabha elections will get a boost.”

“These augurs well for macro and policy momentum for India, which, at the moment, is seeing the highest growth among major economies (both GDP as well as corporate earnings).”

Also Read: Nifty 50 hits record high for 4th straight day, just 41 points away from 21,000

Taking these signals, the Nifty 50 jumped 419 points during Monday’s trade, and the momentum extended to the following trade with an additional rally of 168.30 points, while in today’s session, the index extended its winning streak, recording a new peak of 20,958.65 points, coming close to the 21,000 level.

Also Read: Stellar rally! Nifty 50 jumps 1,159 points in just 13 sessions

In the last six trading sessions alone, the Nifty 50 has gained an impressive 1,061 points or 5.36%. This robust rally has propelled the index to a gain of 15.19% in the current year so far. However, notable heavyweights have remained on the sidelines, trading 7–25% below their all-time highs.

Shares of Reliance Industries, the country’s largest firm in terms of market capitalization, are trading 14.67% below their all-time high of 2,856. The stock this year so far has generated a modest return of 5.42%.

Similarly, HDFC Bank, the country’s largest private sector bank, is down 7.61% from its all-time high of 1,757.50 apiece. The stock has exhibited a flat performance this year. Out of the last 11 months, the stock finished seven in red, with August experiencing the largest monthly drop of 4.83%.

Also Read: Nifty Bank hits new record high as market surges sharply; ICICI Bank top gainer

Infosys, too, is trading with a deep cut from its all-time high. After a weak first half of the year (H1FY24), witnessing an 11.5% decline, the stock picked up in the second half (H2FY24), gaining 9% so far. However, it is still down by 25.55% from its all-time high of 1,953.90 apiece.

Kotak Mahindra Bank shares, which hit a new 52-week high of 2,064 on May 02, underwent a downward trend in the subsequent five months until October, losing 13.65% of their value. The stock, however, recovered in November with a modest gain of 0.92%, and in the current month, it is up by 4.16%. Nevertheless, it is trading 19.35% below its all-time high of 2,253 apiece.

Other heavyweight stocks, such as ITC, Asian Paints, Wipro, and HUL, are down between 7 and 10% from their respective all-time highs. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 06 Dec 2023, 12:20 PM IST

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