Nifty at 10,000: These 26 stocks gained between 30% - 500%

Key Highlights: 

• Nifty crossed 10,010.55-mark before retreating 
• Metal, PSU Bank, NBFC and Realty sectors top gainers on Nifty
• Nifty outperforms Sensex and global peers

The 51-scrip NSE Nifty touched a new milestone in the crossing 10,000-level on Tuesday. However, it later ended flat at 9,964.55.

Nitasha Shankar, Sr. VP and Head of Research, Yes Securities on Nifty at 10,000 said, “The markets have crossed a sentimental barrier of 10,000 which is a phenomenal feat in itself. The spectacular run-up in stock prices over the past few years goes on to re-affirm the India shining story which in turn is driven by macro-economic condition and fundamentals of the country.”

While Kunj Bansal - Executive Director & CIO – Equity, Centrum Wealth Management Ltd said, “It’s a great feeling to see the 10,000 mark being breached in trade. Now that the psychological number is achieved, the markets sustaining at these levels would create a solid base the next leg higher.”

With this blockbuster performance, Nifty has outperformed Sensex by giving nearly 18% returns in one year as against 15% return from the latter. 

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

Nifty PSU Bank has turned out to be best performer by gaining 41% year-on-year (YoY) followed by Nifty Realty which saw growth of 38.48% yoy, Nifty Metal by 34.26%, yoy Nifty FMCG by 32.27% yoy and Nifty Financial Services by 30.01%.

There are companies that saw robust growth in the range of 30% to 500% on the index. 

Venkys (India) on Nifty saw growth of nearly 457% in one year. The stock which was trading at Rs 458-level on the same day of last year have now reached above Rs 2,500-mark presently.

Six companies have seen growth of over 100%. On an year-on-year basis, Jindal Stainless Hisar has surged by 203.71%, while Indiabulls Realestate rose 160.23%, MRF by 116.68%, Rural Electrification Corp by 114.77% and Sun TV Network by 126.10%.

Among Nifty PSU banks - Bank of India has witnessed growth of 88.71%, Canara Bank with 80.15% growth, Oriental Bank of Commerce with 73.32% and Bank of Baroda with 35.99% growth on an yoy basis.

Maruti Suzuki with 71.71% growth, Reliance Industries with 61.30% growth, HDFC Bank with 42.93% growth, Godrej Properties with 60.11%, Indiabulls Housing Finance at 65.62% and Godrej Consumer Products at 97.72%.

What's next

Firstly, Nifty is projected to be triple in the next fiver years to hit 30,000-mark, Ridham Desai of Morgan Stanley India told Zee Business. 

However, for near term, Gautam Shah, CMT Associate Director, Chief Technical Analyst- JM Financial Services Ltd said, "One should not get carried away in believing that this run-up would continue for good. For the first time this year the market looks overbought technically and hence could shed some weight in the near term."

Shah added, "Over the medium-term we see the Indian market scaling greater heights and testing the 11000 mark and hence investors are advised to stay put and add to positions on dips of 3-5%."

Bansal said, "If one looks at the bigger picture, results season has not given too many positive surprises, so the markets should consolidate around this number. The risks are ever present but manifest in different ways, one will only know the reason for things turning with the benefit of hindsight."

Is it worth investing now? 

Shankar said, "Our recommendations to long term investors is to remain invested in these markets as the India shining story still has lot of steam in it. However, global geo-political situation could cause aberrations as a results of which it is always prudent to keep booking some profits whenever new peaks are attained."

"We see signification resistance around the 10000-10100 mark and do not think the market is ready to get past this hurdle in the current attempt.Profit booking in trading/leverage positions is recommend," said Shah. 

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