Sensex Reaching Record High but No Stock in the Index at Peak


Benchmark Sensex closed at a brand new high of 33,940.3 points on Friday, no individual stocks in the index reached their peak value. They didn’t even manage to touch a 52 week high. More than 240 scrips reached their yearly highs on Friday as the stock market raced to another peak.

Healthcare firms in the benchmark whose weightage fell to a seven year low after Lupin and Cipla exited the Benchmark on 18th December are show steep discount in their peaks. Other healthcare firms in the index are showing a low value as well. Dr. Reddy’s Laboratories and Sun Pharmaceutical Industries closed about 27.2 percent lower than their 52 week high. This was the worst performance in all the companies under the index.

ITC, the heavyweight of the index is quoting at about 25.4% discount of their yearly high value which makes it the second worst show in the index. Another heavyweight, Hindustan Unilever is only 1.1% shy of its peak value.

Companies in Banking Financial Services and Insurance have an increased weightage of 3.3% reaching an all-time high of 40.1% after Sensex’s reconstitution. These companies had a mixed run on the current bourses. ICICI and HDFC bank are just 4.8% and 1.5% shy of their high values and Induslnd Bank and Yes Bank are at 9.3% and 19.1% discount of their peak values.

IT Companies are having a good run with Infosys just 0.6% shy of their high and TCS and Wipro at only 4.8% and 2.4% shy value. Automobile companies touch their 52 week highs on 20th December and Maruti Suzuki crossed their Rs10,000 mark on that day.

Overall, the Sensex has shown record growth ever since Prime Minister Narendra Modi took office. Our economy is slowly going towards a global dominance and global investment companies are showing keen interest in India’s growing market.