Saturday, 10 June 2017

Rising Sensex: Rise or Fall in Markets?

By Himani Gandhi


With Sensex been busy hitting new heights, expectations of rising markets increases. Is this true in the present scenario? Not completely! Since 16 May, when S&P BSE All-cap index peaked, nearly three-fourths of all stocks traded on BSE have fallen in value, and about half of all the stocks have fallen by over 5%. The only category of stocks that has risen during this period is the one with extremely high market capitalization. On the same note, flows from foreign portfolio investors have amounted to more than $850 million in past two weeks and mutual fund flows remain strong. The top category companies (leaving behind some outlines like ITC Ltd, Tata Consultancy Services Ltd, HDFC Bank Ltd and Hindustan Unilever Ltd) there is a decline of over 1% in the remaining. Most other large sectors such as energy, pharmaceuticals, metals and mining have also seen a correction. 

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