Sensex’s Journey: 7 Index Superstar Stocks Shine in 10000-Point Rallies

Key Takeaways:

1. Seven stocks, including Titan Company, Sun Pharmaceutical Industries, ICICI Bank, Bharti Airtel, UltraTech Cement, JSW Steel, and Nestle India, have outperformed during the 10000-point rallies in Sensex from 40000 to 70000 levels.

2. These stocks have given more than 15% returns during each of the 10000-point rally, with each stock belonging to a different sector.

3. The highest double-digit returns for these stocks were observed when Sensex rallied from 60000 points to 70000 points.

4. India’s weightage in the emerging market basket of global index aggregator MSCI has almost doubled in three years, making it the most preferred emerging market for global investors.

5. Despite expected volatility in the early part of 2024 due to the interim budget and general elections, money managers are optimistic about reasonable returns from Indian equities in the next three to five years.

The journey of Sensex from 40,000 points to 70,000 points has been remarkable, and during this period, seven stocks have outshined by giving more than 15% returns in each 10,000-point rally. These stocks belong to different sectors and have shown consistent performance in each milestone journey of Sensex. The seven index superstar stocks are Titan Company, Sun Pharmaceutical Industries, ICICI Bank, Bharti Airtel, UltraTech Cement, JSW Steel, and Nestle India.

Let’s take a closer look at the performance of these stocks during the three 10,000-point rallies in the Sensex from 40,000 to 70,000 points:

As we can see from the table, these stocks have shown impressive returns during each of the 10,000-point rallies in the Sensex.

Here’s a brief overview of the performance of each of these stocks during the mentioned period:

1. Titan Company: Shares of Titan have gained more than 20% during Sensex’s rally from 40,000 to 50,000 points, but have surged as much as 74% during the rally from 60,000 to 70,000 points. Since 2019, shares of the jewellery maker have nearly tripled in value.

2. Sun Pharmaceutical Industries: Sun Pharma’s shares have shown significant growth, with a 51% increase during the 40k to 50k rally and a 61% increase during the 60k to 70k rally.

3. ICICI Bank: The stock has managed to give more than 40% returns in two instances and has gained 2.4x since 2019.

4. Bharti Airtel: Shares of India’s second largest telecom operator have tripled in value since 2019 and scaled a lifetime high earlier this month.

5. UltraTech Cement: The stock has shown consistent growth in each of the last three 10,000-point rallies of Sensex.

6. JSW Steel: JSW Steel stock has given stupendous returns to investors in each of the last three 10,000-point rallies in Sensex, and has tripled in value since 2019.

7. Nestle India: Nestle stock value has gone up by more than two times since 2019 and it too, scaled a lifetime high earlier this month.

The performance of these stocks reflects the resilience and growth potential of the Indian market. The article also mentions that India has significantly decoupled from most emerging markets, including China, and has seen its weightage in the emerging market basket of global index aggregator MSCI almost double in just three years.

The outlook for the Indian equities market heading into 2024 is positive, with global investment bank Morgan Stanley increasing its overweight stance on Indian equities. Despite expected volatility in the early part of the year due to the interim budget and general elections, money managers aren’t ringing any alarm bells, and there is confidence in the potential for reasonable returns in Indian equities over the next three to five years.