Only five stocks have contributed a chunk of the gains
The benchmark indices are at or near lifetime highs, but the market is polarised and very few stocks are contributing to the gains. ET Wealth highlight the finer aspects of the rally.
Wide difference in returns within the indices The huge uptick masks the polarisation within large-cap indices. Several Nifty companies are still trading below the 200-day moving average
These stocks are not taking part in the Nifty’s upward march. Nifty 50 valuation has crossed the 10-year peak After the recent uptick, the valuation is at early 2008 levels. Wide difference in returns also seen between large-caps and mid-caps Polarisation in share performance is visible in the two segments. Number of share price advances have been low Higher participation in market uptick observed only in last couple of months. Only five stocks have contributed a chunk of the gains Rally in large-caps has been lopsided and lacks real strength. Participation is narrow across the broader market also A large part of the market has been left out of the rally. When market breadth is narrow, investors should focus on quality stocks The fundamentally strong stocks can be bought at low valuations.
Top Nifty50 stocks analysts suggest buying in this volatile week
