It’s a great day for Indian investors as Nifty reclaimed 11000 points and Sensex touched an all-time high. Nifty 50 has gained more than 1000 points which cumulated over 76 sessions to chart this journey.
“The market rallied on the back of short-covering (buying in of stocks against short selling) and buying in selective stocks, while mid caps underperformed during the period”, said T.S Harihar, founder and chief executive officer at HRBV Client Solutions Private Ltd.
Concerns over trade war coupled with a rally in crude oil remains an overhang for the market along with a depreciating rupee, he said.
IT Stocks are outperformed sectoral indices, gaining over 15% since March 23rd. The major factor behind the rally of tech stocks has been depreciating rupee.
The Indian currency has weakened as compared to the US Dollar by nearly 6% during this period.
Since most of the business of tech giants are US clients, this brings more earning power for these tech companies, thus making them perform better.
Nifty Media Index has been the worst performer since the March low, followed by reality and infrastructure indices. The exception to this has been PVR Ltd., Dish TV India and Entertainment Network India Ltd.
Print stocks were impacted by low ad growth and sharp inflation in newsprint prices, besides general weakness in mid and small caps.
After Tata Consultancy Services (TCS) to become India’s first major IT company to breach $100 Billion mark in Market Capitalisation (MCap), Mukesh Ambani’s owned Reliance Industries Ltd.’s Mid-Cap fund crossed the mark today for the first time in 10 years.
This comes surprisingly as Reliance was able to scale despite the rupee depreciating in value.
Major reason attributed to this is Reliance Jio Infocomm Ltd. Since starting its operations on September 5, 2016,the major reason was free services and cheap tariff plans.
Reliance Jio was able to garner the most number of subscribers and a very loyal customer base in a very short span of time.
Within 12 months of its operations, the company turned profitable with reporting a net profit of Rs. 723 Crore during FY ending March 2018.