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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!

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Stock Market Updates

RELIANCE COMMUNICATIONS Plunges by 11%; BSE 500 Index Down 0.5% (Today's Market)

Aug 16, 2018 02:49 PM

RELIANCE COMMUNICATIONS share price has plunged by 11% and its current market price is Rs 21. The BSE 500 is down by 0.5%. The top gainers in the BSE 500 Index are TAMIL NADU NEWSPRINT (up 11.3%) and HOUSING DEV. INFRA (up 11.2%). The top losers is RELIANCE COMMUNICATIONS (down 10.6%)..

VAKRANGEE LTD. Surges by 10%; BSE IT Index Up 0.8% (Today's Market)

Aug 16, 2018 02:40 PM

VAKRANGEE LTD. share price has surged by 10% and its current market price is Rs 46. The BSE IT is up by 0.8%. The top gainers in the BSE IT Index are VAKRANGEE LTD. (up 10.0%) and ZENSAR TECHNOLOGIES (up 11.9%). The top losers are PERSISTENT SYSTEMS (down 0.2%) and TECH MAHINDRA (down 0.7%).

INFOSYS LTD at All Time High; BSE IT Index Up 0.8% (Today's Market)

Aug 16, 2018 02:40 PM

INFOSYS LTD share price has hit an all time high at Rs 1,435 (up 1.4%). The BSE IT Index is up by 0.8%. Among the top gainers in the BSE IT Index today are INFOSYS LTD (up 1.4%) and ORACLE FINANCIAL SERVICES . The top losers include TAKE SOLUTIONS (down 0.1%) and PERSISTENT SYSTEMS (down 0.2%).

PFIZER at All Time High; BSE HEALTHCARE Index Up 0.9% (Today's Market)

Aug 16, 2018 02:12 PM

PFIZER share price has hit an all time high at Rs 3,056 (up 4.6%). The BSE HEALTHCARE Index is up by 0.9%. Among the top gainers in the BSE HEALTHCARE Index today are PFIZER (up 4.6%) and ABBOTT INDIA (up 0.2%). The top losers include NATCO PHARMA (down 0.1%) and CAPLIN POINT (down 0.1%).

SONATA SOFTWARE Surges by 12%; BSE IT Index Up 0.8% (Today's Market)

Aug 16, 2018 02:06 PM

SONATA SOFTWARE share price has surged by 12% and its current market price is Rs 367. The BSE IT is up by 0.8%. The top gainers in the BSE IT Index are SONATA SOFTWARE (up 11.8%) and ZENSAR TECHNOLOGIES (up 11.1%). The top losers are TATA ELXSI (down 0.1%) and HCL TECH. (down 0.1%).

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