Who Moved Sensex Beyond 18000?
DSIJ Intelligence / 13 Sep 2012
In last seven days, few good things have happened. Just to remind ECB will go ahead with its unlimited bond buying plan while in US there are hopes of another round of quantitative easing to be introduced by Federal Reserve. As these things have improved the investor sentiment on indian equities. Sensex, the barometer of Indian capital markets has surged by 4% in last seven days reflecting this robust positive sentiment.
As for Sensex there are few stocks that have surged about 2-10%. The movement in the most of the Sensex stocks however (Total 17 stocks) has not been very robust. In fact the biggest Sensex participant ITC (weight 9.68%) has just moved by 1% during this period. Every body would be left wondering who has moved the Sensex.
Wondered by the same, we have done analysis of Sensex movement in last seven days and what we have found that the Banking and financial services has mostly helped the Sensex to touch the 18000 mark again. The contribution of the IT sector has also been 1% while that of Auto has been 0.58%. Underlying assumption could be that investors are either hoping a rate cut (due to surge in BFSI) or expect most of the foreign liquidity to move in the rate sensitive stocks. The investors bearish stance can be seen on the power and telecom sectors which have contributed the least i.e. 0.03%.
| Sectoral Contribution in Sensex gains | |
|---|---|
| Sector | Gain |
| BFSI | 1.04% |
| IT | 0.99% |
| Auto | 0.58% |
| Petro | 0.46% |
| Metal and Mining | 0.45% |
| CG | 0.27% |
| Pharma | 0.18% |
| FMCG | 0.05% |
| Telecom | 0.03% |
| Power | 0.03% |
| Total | 4.08% |
On the individual stocks, Infosys has been the largest Sensex mover stocks. This stock alone has contributed 17% in the Sensex movement, in absolute terms the stock is up 8%. Other two top stocks are ICICI bank and Tata Motors which are also moving the index. The respective movement in the in the stocks is 8% and 15% respectively. Surprisingly ITC and Reliance being the largest stocks, have not contributed significantly. HDFC bank which is seeing buoyant investor sentiment is just up 1% during this period.
Other stocks who have supported Sensex are ICICI bank, L&T, HDFC, Tata Steel, Wipro, Sun Pharma, Wipro, Dr. Reddy’s, Hindalco and Coal India.
From the data we conclude that the investor see good opportunity in Infosys, Tata Motors, ICICI Bank, HDFC and L&T.
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