Five stocks contribute 75% to Nifty's latest 1,000-point rally

Reliance Industries Ltd contributed 15 percent to the gain in the index, while Bharti Airtel Ltd contributed 14 percent.

Only five stocks — ICICI Bank Ltd, Mahindra & Mahindra Ltd, State Bank of India, Reliance Industries Ltd, and Bharti Airtel Ltd— contributed over 75 percent to the 1,000-point rally that propelled Nifty to its fresh record high of over 23,000 on May 24 from the 22,000 mark in January.

The benchmark 50-share Nifty, which breached the psychological 23,000-mark during early morning trading on Friday, took 88 trading sessions to rally 1,000 points from 22,000, which it touched on January 15.

ICICI Bank led the pack as the largest contributor, accounting for over 17.3 percent of the index move, followed by Mahindra & Mahindra and State Bank of India, each contributing over 16 percent and 15 percent, respectively.

Reliance Industries Ltd contributed 15 percent to the gain in the index, while Bharti Airtel Ltd contributed 14 percent.

Meanwhile, HDFC Bank led the pack of index draggers, pulling down the index by 19%, followed by Bajaj Finance and Asian Paints, which pushed it southward by 5% and 4% respectively.

During these 88 sessions, ICICI Bank surged over 14 percent, M&M advanced 60 percent, SBI gained 36 percent, RIL was up 9 percent while Bharti Airtel jumped 30 percent. HDFC Bank lost around 8 percent while Bajaj Finance and Asian Paints lost over 11 percent each.

Despite foreign investors selling shares worth over $3 billion since the start of the year, the market has seen gains, largely driven by domestic institutional investors (DIIs) in the past two months.

Ajay Bagga, an independent market expert, suggests that if FII buying continues, we can expect some intriguing developments ahead.

"As we near the election results, with five phases completed and 429 seats voted for, parties, corporates, and institutional investors rely on private pollsters for voting trends after each phase. However, this picture is clouded by the abundance of false narratives on social media. With 115 seats left to be voted for on May 25th and June 1st, the market anticipates clarity, sitting 13 days from results and 10 days away from exit polls," Bagga added.

On May 23, Indian markets surged to a new high, with Sensex surging over 1,000 points while Nifty closed near 23,000 mark after RBI announcement of special dividend of over Rs 2 lakh crore. Investors are eagerly awaiting the GDP numbers for the March quarter, scheduled for release on May 31, as well as exit polls on June 1. The results of Lok Sabha elections 2024 is scheduled on June 4.

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