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Last Updated : Jun 22, 2017 01:56 PM IST | Source: Moneycontrol.com

These 35 stocks touched record highs as BSE Sensex hit 31500 for the first time

As the market moved to new milestone, 99 stocks touched 52-week highs and amongst them, 35 stocks traded at fresh record highs.

After two weeks of consolidation, the market gained momentum during the week to head toward a new peak. The 30-share BSE Sensex surpassed the 31,500-mark for the first time to hit a fresh record high of 31,522.87 on Thursday. The 50-share NSE Nifty was 10 points away from its all-time high of 9,709.30 hit on June 6.

The positive momentum in the market is largely driven by domestic liquidity. Speeding up of NPA resolution process, hope of normal monsoon, optimistic outlook on business environment, and GST implementation expected on July 1, also helped sentiment.

The market seems to have bothered little about China A shares' inclusion in MSCI Emerging Markets Index by MSCI, though experts expect FII outflow of about USD 215 million.

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All eyes are now on GST implementation and its effects on companies' earnings from July-September quarter onwards.

Experts say the market may continue its rally, though valuations currently are expensive. Most experts have a target of 32,000 – 33,000 on the S&P BSE Sensex which translates into an upside of about 5 percent.

“Well, our target is based on fiscal year ending (March). We have a base target of 33,000 for Sensex as on March 2018, which is a marginal return of 5 percent from the current level,” Vinod Nair, Head of Research, Geojit Financial Services told Moneycontrol.

He said this target is based on one year forward P/E of 17.5x assuming that valuation will continue to be on the upper end led by earnings growth. We have a Sensex EPS CAGR of 15 percent for FY17-19.

ICICI Securities said declining discount rate, CAPE (cyclically adjusted P/E ratio) and forward P/E adjusted for optimism bias does not indicate bubble P/E valuations at the index level.

Falling credit default swap (CDS) spreads for India sovereign bonds less US sovereign bonds (a key driver of country risk premium) and the risk free rate (measured by India’s 10 year bond yield) has been on a continuous downtrend in the recent past, thereby reducing India’s discount rate considerably, the research house explained.

It said Nifty implied volatility measured by the volatility index (VIX) has also been on a continuous downtrend suggesting receding fear of loss by equity investors.

As the market moved to new milestone, 99 stocks touched 52-week highs and amongst them, 35 stocks traded at fresh record highs.

Balkrishna Industries, Can Fin Homes, Entertainment Network India, Kirloskar Oil Engines, L&T Finance Holdings, Larsen & Toubro Infotech, MEP Infrastructure Developers, Mahindra Holidays, Shankara Building Products, SpiceJet, VST Tillers Tractors etc touched new highs during the day. (highlighted in below table with yellow colour)

Among stocks that hit new one-year highs are Kotak Mahindra Bank, HDFC Bank, Jaiprakash Associates, Interglobe Aviation, NBCC, Colgate Palmolive, DHFL, NHPC, SPML Infra, BEML, GMR Infrastructure, Goa Carbon, Thomas Cook (India) etc.

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First Published on Jun 22, 2017 01:56 pm
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