Top Performers in Sensex’s 50K to 60K Rally

In this article, we will be discussing the stocks which were the top performers in the rally of Sensex between 50,000 to 60,000. So Let’s Start!

Introduction:

On Friday 24^th September 2021, the benchmark index BSE Sensex crossed the mark of 60,000. The journey of Sensex from 50,000 to 60,000 was the fastest 10,000 points move which took only 167 days to achieve the milestone. The BSE Sensex index has yielded returns of more than 135% since the low of the crash in March 2020 on account of global liquidity, higher earnings expectations, and positive market sentiment.

Top Performers in Sensex 50,000 to 60,000 Journey:

i) Bajaj Finserv Limited:

• The Bajaj Finserv Stock has yielded returns of around 105% between this stupendous rally of Sensex of 10k between 50,000 to 60,000.
• Possible reasons behind the growth of Bajaj Finserv Stock in this rally:

• Life Insurance Business which is a highly underpenetrated industry
• Re-Rating in the major subsidiary firm Bajaj Finance has led to its outperformance.
• Bajaj Finserv received SEBI In-Principle approval for starting Mutual Fund Business.
• Strengthening presence in Digital Payments Business wherein it launched Wallet Business, Applied to RBI for licenses of Payment Aggregator (PA), and Bharat Billpay Operating Unit (BBPOU).

ii) Tata Steel:

• During this phase of Sensex from 50,000 to 60,000, Tata Steel has contributed the second-highest returns of 98% owing to:

• Super-Cycle in Steel Sector.
• Increasing Demand in China
• Rising Inflation in Steel Sector supported by Strong Pent-Up Demand post Covid Recovery and Supply Constraints.

iii) Bajaj Finance:

• The Subsidiary Company of Bajaj Finserv- Bajaj Finance has also performed well in this rally of Sensex from 50,000 to 60,000 and has given returns of 54% on account of re-rating of the stock.

iv) State Bank of India:

• The Largest Public Sector Bank of India- State Bank of India has also generated returns of 53% in this rally of Sensex.
• The Supporting reasons behind this rally in the stock are:

• Re-Rating in the Public Sector Undertaking (PSU) Banks.
• Strong Performance by Subsidiaries
• Value Unlocking of Unlisted Business Subsidiaries- SBI General Insurance, SBI Mutual Fund, etc.

v) Tech Mahindra:

• Another stock is from the IT Sector which is Tech Mahindra which has delivered returns of 52% in this rally of Sensex.
• The growth in Tech Mahindra stock is supported by a strong re-rating in the IT Sector.

vi) Titan Company:

• This stock has yielded a return of 39% during this phase of Sensex benefited by the leading and major player in the organized retail in the Jewellery segment.

vii) Ultratech Cement:

• Due to the strong focus of the Government of India on the infrastructure and revival from the sluggish phase in the cement industry, the Ultratech Cement has also performed significantly well and has generated returns of 37% during the Sensex rally from 50,000 to 60,000

viii) HCL Technologies Limited:

• HCL Technologies commonly termed as the Dark Horse of the IT Sector has also given a healthy return of 34% in the last 10k rally of Sensex to 60,000.

ix) Sun Pharmaceuticals:

• During the Sensex rally from 50k to 60k, the stock has generated returns of 32%.

x) NTPC:

• In this rally of Sensex from 50,000 to 60,000, NTPC Stock has given returns of around 31%.

Biggest Contributors to Sensex’s 20% Gain: 50,000 to 60,000

• Infosys has contributed the highest 30% to the gain of Sensex and has remained first in the list to take the Sensex from 50,000 to 60,000 on account of strong weightage in the Index.
• Likely, ICICI Bank has contributed 30% to this Rally of Sensex from 50,000 to 60,000 on account of developing Bank’s situation compared to its past.
• The next name on the biggest contributor list is Bharti Airtel, which has contributed around 25% which has benefited from the Relief Package to Telecom Sector from the Government of India and possible expectation of tariff rate hikes.
• Lastly, the biggest contributor is Reliance Industries, which contributed around 19% to this Sensex rally.

Conclusions:

At such high levels, one should avoid investing in lumpsum and should follow a staggered manner of investing. Above discussed stocks are not direct recommendations and one should follow diligence before making any investment decision.