The Indian stock market is on fire with the benchmark Sensex scaling one record after another almost on a weekly basis. Currently hovering around the 59,000-mark, the S&P BSE Sensex has gained over 23 per cent in the current calendar year and has fared better than almost all the leading equity indices globally.
But while the 30-share barometer has been racing ahead of others, the same can't be said about its constituent stocks that have been a mixed bag of sorts. While there are a couple of Sensex stocks that have doubled or nearly doubled in the current calendar year, there are many who have underperformed and are in the red even as the index is on a record-breaking spree.
The best performing stock in the Sensex pack this year has been Tata Steel that has more than doubled in the nine months to date. The metal major has surged nearly 103 per cent and is closely followed by financial services major Bajaj Finserv that moved up nearly 99 per cent till Wednesday.
Bajaj Finserv was not the only financial major that gained significant ground this year. Banking and other lending firms like State Bank of India, Bajaj Finance, ICICI Bank, Axis Bank and Indusind Bank have also fared better than the Sensex itself.
This assumes significance as financials have the largest weightage in the Sensex at nearly 41 per cent. Simply put, if financial majors perform better, Sensex will showcase a much faster rise even if few of its constituents perform badly.
But not all banking or lending entities that are part of the Sensex have fared equally. There are some, which have underperformed the index with one -- Kotak Mahindra Bank -- marginally in the red if the current year returns are considered. HDFC and HDFC Bank have also been part of the underperformers, gaining only 7.79 per cent and 6.55 per cent respectively in 2021.
The second-largest sector representation in the index comes from information technology and stocks like Tech Mahindra (up nearly 55 per cent), HCL Technologies (up 38.45 per cent), Infosys (up over 36 per cent) and TCS (up nearly 32 per cent) have provided much support to the Sensex this year.
Incidentally, Reliance Industries, which has the highest weightage in the Sensex, has marginally underperformed the index, gaining around 22 per cent. FMCG majors HUL and ITC have also underperformed the Sensex, moving up in the range of 13-17 per cent. Nestle India has gained less than eight per cent this year.
The worst performing Sensex stock this year has been India's largest auto major by market share, Maruti Suzuki India, which is down over 11 per cent in the current calendar year. Further, Dr Reddy's Laboratories is also down over 7 per cent even as Sun Pharmaceuticals is up over 29 per cent in 2021.
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