Market

November 2020: Catch-up rally leads to broad-based performance; 90% Nifty constituents positive

Updated : December 02, 2020 02:14 PM IST

Just in the month, the benchmark rose over 11 percent with over 90 percent stocks in the Nifty50 index in the green.

45 of Nifty50 stocks gained in November 2020 with Bajaj Finserv and Bajaj Finance as top gainers

The BSE200 index was also up 12 percent for the month with over 100 stocks giving double-digit returns (over 10 percent).

November has been a very strong month for the Indian equity market with benchmarks hitting multiple all-time highs during the month. Just in the month, the benchmark rose over 11 percent with over 90 percent stocks in the Nifty50 index in the green.

In a recent report, Motilal Oswal noted that 45 of Nifty50 stocks gained in November 2020 with Bajaj Finserv and Bajaj Finance as top gainers, up 57 percent and 48 percent, respectively.

The rise in the indices during the month was on the back of progress in the COVID-19 vaccines, highest-ever FII inflows and better-than-expected September quarter earnings, leading to further upsides.

However, on a YTD basis, 31 stocks from the index were positive and the index rose around 7 percent in 2020. Pharma stocks Divi’s Labs and Dr Reddy’s were top gainers in 2020, jumping 95 percent and 68 percent, respectively, the MOSL report added.

The markets witnessed a broad-based rally. Not just the benchmarks, but 90 percent stocks or 182 stocks out of 200 in the BSE200 index also gave positive returns to investors in November.

The BSE200 index was also up 12 percent for the month with over 100 stocks giving double-digit returns (over 10 percent). These include stocks like Adani Gas, SAIL, Tata Steel, Motherson Sumi, Adani Transmission, IndusInd Bank, Edelweiss Financials, GAIL, NALCO, JSPL, and Tata Motors, among others. Adani Gas surged over 64 percent, while the rest rose over 40 percent in November.

As per the report, in 2020, 120 of BSE-200 constituents rose with 45 stocks adding over 30 percent. Among losers, 40 percent of BSE-200 constituents declined – Future Retail and financials such as Canara Bank and BoB were the major laggards.

"Segregating NSE-500 companies into quintiles based on YTD performance as at October-end, we see that companies that were laggards YTD have gained the most in November 2020, with aggregate performance up 22 percent in November 2020," the brokerage report further mentioned.

Meanwhile, the Midcap and Smallcap indices also outperformed benchmarks extending the broad-based rally.

November 2020: Catch-up rally leads to broad-based performance; 90% Nifty constituents positive

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