Bajaj Finserv, M&M, Coal India top Nifty gainers in August: Analysts explain what investors should expect in September

As many as 82 per cent of Nifty50 constituents gained month-on-month (MoM) in August 2022. Heavyweights such as Bajaj Finserv, M&M and Coal India were among the top gainers, while Divi’s Laboratories, Sun Pharma and Britannia were among the top laggards in in the previous month.  

According to domestic brokerage firm Motilal Oswal, around 28 constituents outperformed the benchmark index and among Nifty50 companies, nine closed lower in August 2022. 

Non-Banking Finance Company major Bajaj Finserv gained most of all 50 constituents in the Nifty index up by over 13 per cent, followed by M&M up 12 per cent, while Coal India and Titan each jumped by 11 per cent in August 2022.  

On the contrary, pharma majors such as Divi’s Lab and Sun Pharma each slipped around 5 per cent in the previous month, while Britannia and Infosys were down by 4 per cent each in the last month. 

Among Nifty constituents, 66 per cent of Nifty50 constituents traded higher Year-To-Date, the brokerage said, adding that Coal India, M&M, ITC, NTPC, and Eicher Motors led the gainers' pack. 

In August 2022, the Nifty50 index jumped by 4 per cent, while it gained by around 2 per cent year-to-date.  

The second half of 2022 seems to be working in favor of Indian investors and therefore the market sentiment has strongly revived post-mid-June, with the Nifty moving closer to the 18000 mark and the Sensex to the 60000 level, Sunil Damania, Chief Investment Officer, MarketsMojo said. 

The surge in the market and Nifty index constituents could also be contributed to the foreign investors buying interest. FIIs returned in the past couple of months, as per expected in August-2022, markets witnessed a substantial influx of Rs. 51204 crores, Damania added. 

The market expert added that the equity market will closely watch rainfall data in September to understand rural development and the future inflation trajectory. Food inflation could further impact people's purchasing power, thus slowing down consumption, he said.