24 stocks fuelled FY21 market rally: Report
Mumbai: As the Indian equity market bucked the pandemic-induced slowdown and surged to new highs in the current financial year, an ICICI Securities report said that 24 stocks have contributed over 75 per cent to the movement of BSE-100 index.
The report noted that although the bulk of the equity market performance since FY17 has been driven by a handful of stocks while the broader indices have underperformed, significantly, the recent rally is becoming broad-based for the first time since FY17.
"The tide is turning in terms of the number of stocks contributing to majority of the Index performance (>75 per cent of BSE 100 index movement) at 24 stocks, which is the highest over the past four years," it said.
Small-cap and mid-cap indices have also outperformed large-caps for the first time since FY17. The report noted that anatomy of FY21 market rally indicates four distinct phases where high level of sector and style rotation has been observed.
Activity in Phases II and IV indicates that the rally is becoming broad-based, it added. Normalisation of economic activity continues, but second wave of Covid poses near-term challenges even with hopes of vaccine turning into reality, said the report.