On 26th Dec’16, Nifty made a low of 7894 on expectation of adverse impact of demonetization, which was announced on 8th Nov’16 , where BJP Government banned old 500 and 1000 Indian currency notes. Initially it was expected that it will hurt trade and commerce in India, as most of the transactions are done in cash, but afterwards it was understood that it was a good way to flush out black money from the system and that it will have a positive impact on trade and commerce. Today Indian benchmark Nifty is standing near its all time high of 9218, which is almost up by 17% from its recent low of 7894. Bank Nifty made a low of 17607 on 26th Dec’16 and has made record high of 21336, rallied 21% from its low. BJP Government’s euphoric win in UP elections has added fuel to the positive sentiment in the Indian stock market.
Top 10 Nifty stocks weight-age and performance from 27th Dec’16 till 17th Mar’16:
The above table shows that the top 10 weight-age companies in Nifty on an average performed 18% during this period. The total weight-age of these top 10 stock is 52.65. Highest performer in these top 10 stock is ITC (NS:ITC) which rose 25% after it was clarified that GST cess would have neutral effect on the company. Reliance being the 2nd best performer, zoomed 24% after company, announced its “Jio” Tarif plans. HDFC Bank (NS:HDBK) rose 22% after RBI increased FII limit to 74%.
Top 10 Performers in Nifty 50 Stocks:
In the above table, Idea was up by 56% after Vodafone (LON:VOD) announced its merger with the company to give competition to new telecom entrant “Reliance Jio”. Metal sector zoomed after China lowered its production for Steel and Aluminum to curb pollution. Tata Steel and Hindalco rose by 32% & 30%.
It has been observed that top Index constituents and top performing stocks always have a huge impact on the movement of the Index. Thus the performance of these stocks will give direction to the Nifty Index.
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