Despite Sensex and Nifty reaching record highs in the last 3 months, a study of Nifty 500 stocks reveals that 185 stocks are at least 20% away from their 52-week high levels. Stocks that need to more than double in share prices to touch previous peaks include Adani Transmission, Gland Pharma, Adani Green Energy, Piramal Enterprises, Piramal Pharma, Adani Wilmar, Campus Activewear, and Tata Teleservices (Maharashtra). The underperformance of sectors like pharma and metal is said to be the main reason, while the bull market this time seems to be getting sectoral rather than making new highs and bottoms in all areas.
Analysts on Dalal Street believe that investors should keep an eye on export-oriented sectors as the rupee slipped to a fresh all-time low of 80.06-mark against the US dollar on Tuesday. The local currency has depreciated nearly 8 per cent on a year-to-date (YTD) basis due to the strengthening greenback and Fed’s monetary tightening bias despite the weakening growth outlook.
Moving beyond Sensex and Nifty: How ETFs and mutual funds are mimicking newer indices
Low volatility or value-based ETFs can be considered for staggered investments January 11, 2021 / 10:56 AM IST
Index and exchange-traded funds (ETF) based on the S&P BSE Sensex and Nifty 50 indices have been rolled out by several fund houses over the years. But the preference for these two standard indices has shifted in recent times. In the last two years, 31 ETFs and index funds based on other indices were rolled out. A broader market rally that lifted many more stocks in the year 2020, as opposed to the polarized phases in 2018 and 2019, has also nudged investors to look beyond Sensex and Nifty-based passive funds.