Markets at all-time high: These 21 stocks made it possible

Key Highlights: 

• Sensex and Nifty touch all-time high ahead of earning season
• Sensex, Nifty gave over 17% returns since start of 2017 year
• Sensex, Nifty trades at premium of 5% to MSCI World Index

Sensex and Nifty are trading at their all-time highs of over 31,000 points and 9700 points, respectively.

During Monday's trading session, Sensex touched an all-time high 31,632-level while Nifty 50 resumed its trading at a new record of over 9,724-mark.

Anand James, Chief Market Strategist, Geojit Financial Services Ltd said, “Markets look to have more or less accepted that the macros and the corporate performance may be soft in some sectors in the initial period.”

Both Sensex and Nifty are trading at a 5% premium to MSCI World Index and 40% premium to MSCI Emerging market Index with Nifty being a top performer globally.

Last week, Sensex and Nifty outperformed its global peers by 1.42% and 1.52% respectively. 

With this blockbuster performance, both Sensex and Nifty has given over 17% returns since the start of the year 2017.

Sectors like oil and gas, basic material, finance, metal, realty, energy and capital goods have been among top performers on the Indian markets.

Performance of below mentioned stocks has surely supported the current outcome of Indian markets.

Among top-performers were – Indiabulls Real Estate rising by over 171%, followed by Godrej Properties at 82.06%, Piramal Enterprises at 77.83% and Indiabulls Housing Finance at 72.6%.

HDFC Bank has risen by 41.51% till date, while Kotak Mahindra Bank by 41.17%, IndusInd Bank by 32.32%, Yes Bank by 30.92% and ICICI Bank by 25.82%.

Sanjeev Prasad, Sunita Baldawa and Anindya Bhowmik, analysts at Kotak Institutional Equities said, “The Street’s tendency to ignore continued weak results and muted earnings outlook in certain ‘favored’ sectors and stocks suggests that investors have high expectations (or hopes) about a strong recovery in profits of the ‘favored’ sectors and stocks.”

The trio at Kotak added, "The Street expects the current large gap between nominal policy rates and inflation to close through higher inflation. Real interest rates have increased to unprecedented levels in India, which may have partly contributed to strong foreign flows into debt and equity markets in 1HCY17."

Talking on Nifty, an analyst at InvesTrekk said, "I still believe that this market cycle will top in 9850-9930 range in next six month and a full length correction will follow in 2018. A reversal in trend will be marked only if Nifty records a weekly close below 8937 level. I do not see any likelihood of this happening in this downward move."

"It would be interesting to see if this ‘blissful’ state of affairs would continue if (1) global bond yields were to rise on a sustained basis along with global inflation and (2) earnings were to continue to disappoint," added analysts at Kotak.