Just five stocks have, between them, accounted for more than 50% gains of the 12% rally, to 19,602.23, in the Sensex from its the recent lows in February. Five of the components of the 30-scrip Sensex ?Reliance Industries, ITC, ICICI Bank, HDFC and HDFC Bank ? have contributed to 1,173 points or 54% of the gains. The Sensex had come off to levels of?17,463 on February 10, 2011, from a high of 21,008 on November 5, 2010, a fall of almost 17%, on concerns of graft, rising inflation and soaring crude oil prices. It has since risen 2,139 points, or 12.25% to 19,602.23.
The rally has been fairly broad-based as all Sensex components have made positive contributions, with the exception of Infosys Technologies, whichhas lost 12% in the last five trading sessions following announcement of a disappointing set of numbers for the March 2011 quarter. Infosys is down 5% from its February levels, while DLF and Bhel have stayed where they were. The biggest gainers, in percentage terms, have been JP Associates, which has gained 33%, followed by Hero Honda and HDFC, which have risen 22% each from the levels on February 10, 2011. All banking stocks in the Sensex pack have done well ? HDFC Bank has gained 19%, while ICICI Bank has added 16%. The country’s top lender SBI too has seen nearly 15% rise. The rise in banking stocks, despite a rate-tightening environment, has resulted from the sharp fall they witnessed post the November highs. The BSE Bankex had come off by 25% in February from its November levels.
The Indian markets have been very volatile since they touched a record high in November;the markets slumped 11% in January as FIIs net sold equities worth $1.4 billion. They sold another $0.8 billion in February and the market declined close to 3% in that month. However, in March, FIIs started buying and the market saw inflows to the tune of $1.6 billion which led to a 9% rise in the Sensex. Foreign funds have pumped in $1.9 billion in 12 trading sessions in April.