Market July roundup: Around 90% of Nifty50 constituents gain – Check top gainers and losers

Market July roundup: As many as 90 per cent of the Nifty50 constituents reported growth in July 2022. Non-banking financial companies such as Bajaj Finserv and Bajaj Finance surged most by 38 and 33 per cent, respectively, while Oil & Natural Gas Corporation (ONGC) slumped most by 11 per cent in July.

According to Motilal Oswal, “Among Nifty companies, only five heavyweights closed lower in July – ONGC, Dr Reddy’s Lab, Reliance Industries, HCL Technologies and Bharti Airtel each down between 1-11 per cent; while 29 stocks in Nifty50 outperformed the benchmark during the previous month.

Similarly, around 46 per cent of Nifty50 constituents traded higher year-to-date in 2022 – Coal India, M&M, ITC, NTPC, and Bajaj Auto led the gainers pack, up between 20-45 per cent. On the contrary, IT majors like Tech Mahindra, and Wipro were down by 41 per cent each while HCL Tech by 28 per cent.

Four of the top-10 gainers are from the BFSI (Banking, Financial Service and Insurance) category followed by Metals and Consumer companies, the brokerage said. Other gainers in July, along with the Bajaj twins, were IndusInd Bank, Tata Steel, Hindalco, Titan, SBI Life Insurance, Grasim, and HUL.

Bajaj Finserv surged in July mainly on the bonus issue and stock split news along with robust Q1 earnings, while Bajaj Finance gained on reporting the highest ever profit in the June quarter. So was the private lender IndusInd Bank that zoomed over 20 per cent and Tata Steel on stock split ex-date.  

At least 31 Nifty companies have outperformed from the recent bottom, Motilal Oswal said. “12/27 companies in Nifty-50/Nifty Midcap-100 are up 20 per cent from their recent bottom. Nifty50 and Nifty Midcap 100 indices are up 12 and 15 per cent from their bottom, respectively.”

The surge in the market could also be attributed to foreign investors' pause of outflows, as the FIIs recorded inflows of $ 0.8 billion in July after nine straight months of $ 33.3 billion outflows, it said.