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Of Sensex Touching Record Highs, Rally in Banking Stocks and Key Stocks in Action Today
Fri, 19 Jan Pre-Open | Karan Janani, TM Team

Sensex Touches Record High of 35,000

BSE Sensex is on a roll. The index touched a record high of 35,000 on Wednesday and further inched upwards to end yesterday's trade at a level of 35,260. Considering a span of one year, the benchmark index has delivered a 30% return. Such superior returns within a short span have occurred after almost two decades. So, this is historic.

BSE SmallCap and BSE MidCap index too have delivered mind-boggling returns in the preceding year. Both the indices have shot up by 53.8% and 41.5% respectively.

The index has surged mainly on the back of huge domestic inflows coming into mutual funds. Apart from this, an expected recovery in the earnings too has fueled a hope rally in the benchmark index.

Given the sharp surge, the Sensex price/ earnings (P/E) ratio has risen to 25.8 times. This is way ahead as compared to the ten-year median price/earnings (P/E) ratio of 19.6 times. This ratio indicates that the benchmark index could well be in a bubble territory (subscription required) as of now.

The benchmark index lost around 4000 points within a quick span of one month during the 2008 financial crisis. At that time, the benchmark index was trading at a P/E ratio of around 28 times.

Subdued earnings have led to the P/E ratio remaining high. It's high time that corporate earnings catch up to the market's expectation. In-case they don't, a crash as seen in the earlier years cannot be ruled out.

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Rally in Banking Stocks

The rally in the stocks in the private banking space continued yesterday. The government is considering allowing 100% FDI in private banks and 49% in public sector banks. The move could pave the way for higher foreign flows in banks.

Stocks such as HDFC Bank, Kotak Bank and IndusInd Bank shot up by 2.1%, 1.8% and 1.4% respectively.

Key Stocks in Action Today

The heavyweights such as ITC, HDFC Bank, Reliance Industries, Kotak Bank, HCL Tech, Wipro are expected to be in the news today as they declared their results for the quarter ended December 2018.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

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Stock Market Updates

Indian Indices Trade Marginally Lower; Metal Stocks Witness Losses (Today's Market)

May 18, 2018 12:30 pm

The BSE Sensex is trading down by 139 points, while the NSE Nifty is trading down by 34 points.

MPHASIS LTD at All Time High; BSE IT Index Down 0.3% (Today's Market)

May 18, 2018 10:33 AM

MPHASIS LTD share price has hit an all time high at Rs 1,148 (up 1.19%). The BSE IT Index is down by 0.26%. Among the top gainers in the BSE IT Index today are MPHASIS LTD (up 1.19%) and ZENSAR TECHNOLOGIES (up 2.09%). The top losers include HEXAWARE TECHNOLOGIES (down 0.07%) and ORACLE FINANCIAL SERVICES (down 0.20%).

Sensex Opens on a Negative Note; Crude Oil Hits US$80 Per Barrel (Today's Market)

May 18, 2018 09:30 am

Indian share markets open in red with Sensex trading down by 167 points, while the Nifty is trading down by 39 points.

TVS MOTORS plunged by 5%; BSE AUTO Index Down 0.3% (Today's Market)

May 18, 2018 09:49 AM

TVS MOTORS share price has plunged by 5% and its Current Market Price is Rs 596. The BSE AUTO is down by 0.29%. The top gainers in the BSE AUTO Index are BAJAJ AUTO (up 1.76%) and EICHER MOTOR (up 0.71%). The top losers is TVS MOTORS (down 5.27%).

PARAG MILK FOODS LTD plunged by 5%; BSE 500 Index Down 0.2% (Today's Market)

May 18, 2018 09:26 AM

PARAG MILK FOODS LTD share price has plunged by 5% and its Current Market Price is Rs 356. The BSE 500 is down by 0.16%. The top gainers in the BSE 500 Index are RELIANCE COMMUNICATIONS (up 23.56%) and RELIANCE NAVAL & ENGINEERING LTD (up 9.76%). The top losers are PARAG MILK FOODS LTD (down 5.46%) and VOLTAS (down 6.85%).

VOLTAS plunged by 6%; BSE CAPITAL GOODS Index Down 0.8% (Today's Market)

May 18, 2018 09:24 AM

VOLTAS share price has plunged by 6% and its Current Market Price is Rs 559. The BSE CAPITAL GOODS is down by 0.77%. The top gainers in the BSE CAPITAL GOODS Index are RELIANCE NAVAL & ENGINEERING LTD (up 9.76%) and AIA ENGINEERING (up 4.15%). The top losers is VOLTAS (down 6.09%).

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