Indian equity benchmark indices ended at record highs on Tuesday, with the Nifty50 index closing above 16,100. In the broader markets, smcallcap and midcap indices underperformed the frontliners.
CNBC-TV18’s Nigel D’Souza has done some number crunching on how the market has performed during the COVID pandemic.
The Nifty has crossed the 16,000 mark. If one takes a look at April 2020 when the Nifty was at about 8,000, half of what it is at present, and if one were daring enough, then one would have made more returns because the Nifty midcap Index is up two-and-a-half times, while the smallcap Index is up nearly three times.
So, the more risk one took, the better return one earned because some of the high pedigree stocks haven't done as well as some of the cyclical stocks and the total market capitalisation gained on the BSE listed stocks is nearly Rs 110 lakh crore
Top gainers in the Nifty
In the Nifty50 index, Tata Steel, JSW Steel and Hindalco have seen big returns. The stocks that are doing well today are Grasim and Tata Motors, but the list doesn't end there. There have been stocks that have given big returns and in the top-10 list, there are some of those IT-related stocks. Wipro, which was a ranked underperformer in the previous year, has bounced back and a couple of other names like Bajaj Finserv and Adani Ports have done fairly well.
Some of the high-pedigree names, which normally are on top of the buy list, have been relative underperformers. The Nifty has doubled but some of its constituent stocks have given returns of anything between 25 percent and 70 percent –these are Britannia, Bharti Airtel ITC and HUL.
HUL had the large block trade with regard to GlaxoSmithKline. So, on the back of that that one was a relative underperformance with gain of only about 10 percent, while the index has doubled.
For more, watch the video