With the market rally percolating to the mid- and small-cap space, as many as 737 stocks rose to their 52-week highs on the BSE. Some of them such as Maruti Suzuki, P&G, CanFin Homes, Deepak Nitrite, J Kumar Infraprojects, National Buildings Construction Corporation and Shriram City Union Finance even achieved their life-time highs.

Strong show

The S&P BSE Sensex gained 318 points on Friday, thanks to a strong show by capital goods, realty, power, metal and oil and gas stocks.

Beaten down shares such as NTPC, Sesa Sterlite and State Bank of India, which came out with strong financial performance, and Tata Power Company, registered their new 52-week peaks on Friday.

The S&P BSE Midcap Index closed 1.4 per cent higher, and as many as 76 stocks rose to their fresh 52-week highs, which include Unitech, UCO Bank, Tube Investments and Tata Communications.

The S&P BSE Smallcap Index surged 1.76 per cent. Among the stocks that hit fresh year highs include AVT Natural, DB Realty, DCB Bank, Heildelberg Cement India, Lanco Infratech, NIIT and Punj Lloyd.

Both Smallcap and Midcap indices touched their year highs on Friday.

Prime Minister-designate Narendra Modi-led wave has propelled India into the world’s 10 biggest stock markets by value for the first time, beating Australia, amid growing investor fervour over economic reforms.

The total market capitalisation of Indian companies has jumped 25 per cent this year in dollar terms to more than $1.43 trillion.

On Friday, as many as 345 stocks hit the upper circuit on the BSE as against just 57 stocks which touched the lower circuit.

Ripe for bull run

According to Vinod Nair, Head — Fundamental Research, Geojit BNP Paribas Financial Services, as investors’ conviction improves in the Indian economy, “we can see fresh buying from those who have remained on the sidelines.” In this consolidation mode, company-specific news and global market sentiments can edge the indices to higher levels. “Overall, we expect the market to trend upwards and investors should join in on every dips as the market looks ripe for a long bull run phase,” he added.

(This article was published on May 23, 2014)
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