Nifty's Journey To 26,000—Stocks That Led The 1,000-Point Rally
The benchmark 50-share Nifty took 37 sessions in its 1,000 point rally to hit 26,000.
The NSE Nifty 50 index scaled a fresh high and touched 26,000 intraday for the first time on Tuesday, riding on continued optimism on India's economic growth trajectory and monetary policy easing in the US that is likely to bring more foreign capital.
The benchmark 50-share index took 37 sessions in its 1,000-point rally to hit 26,000. The Nifty had scaled the milestone of 25,000 on Aug. 1.
The top contributors to Nifty's 1,000-point gain were HDFC Bank Ltd., ICICI Bank Ltd. and Bharti Airtel Ltd. Whereas, Bajaj Auto Ltd., Shriram Finance Ltd. and Bajaj Finserv Ltd. are the top gainers in Nifty's rally.
Companies part of the index added Rs 5.84 lakh crore in investor wealth during its bull run to 26,000.
The Nifty 50 is trading at 25.5 times the price-to-earnings multiple and 23 times its forward 12-month' earnings estimates, according to Bloomberg data. This makes the Indian gauge pricier over emerging market peers, sparking concerns of an overheated market.
The Nifty has added over 4,300 points so far this year, despite intermittent hiccups like the results of the Lok Sabha elections that missed market expectations, escalating global geopolitical tensions, and the disappointment over capital gains tax proposals announced in the Union budget.
The country also recently topped China in the MSCI AC World IMI index to make it the sixth biggest in the world, only behind France, according to a Morgan Stanley note.
India's weightage in the EM gauge jumped to a record of 19.8% from 18.8% in May, while that of table topper China slipped to 24.2% from 24.7%, as per the index aggregator's quarterly review for August.
Foreign institutions' enthusiasm hit a peak last week, as last Friday saw the biggest buying so far this year. Global funds mopped up Rs 14,000 crore in the cash market while pocketing Rs 58,500 crore in the derivative market on Friday.
After a brief pause, September is on course to become the best month on inflows in the last six.
Moreover, retail and domestic institutional investors have also upped their bets in the market. Contributions through mutual funds remain robust, while the primary market pipeline remains buzzing.
