Indian stock market sentiment improves as more stocks move closer to 52-week highs: Report
The data highlighted a positive shift in investor outlook and an encouraging trend for broader market participation.
It stated, "Market sentiment has improved - with more stocks closer to 52w Highs than Lows."
According to the report's data, approximately 30 per cent of stocks are now near their 52-week highs, compared to those near their 52-week lows. Although this is still lower than in June last year, the report indicates that the situation has improved from previous lows.
This trend indicates a more optimistic market environment, where more companies are experiencing price gains rather than declines. The overall sentiment appears to have turned more bullish, reflecting improving investor confidence and stronger market performance.
The report also highlighted the rolling return spread between the Nifty 500 equal-weight index and the Nifty 500 index. This spread is rising from a cyclical low, which, according to PL Capital, suggests improving market breadth.
A rising spread means that returns from equal-weighted stocks, where each company has an equal impact on the index, are improving compared to the market-cap-weighted index.
This indicated that gains are not limited to just a few large-cap stocks but are being shared across a broader set of companies. Such a trend can often signal a potential market reversal or a period of consolidation.
The report also tracked one-year return spreads across different investment styles or factors, including value versus quality, small versus large companies, and momentum versus low-volatility stocks.
The data showed that the return spreads between these factors remain narrow, suggesting that no single investment style is dominating the market.
The report stated, "Narrow factor spreads don't indicate any style polarisation, hinting that a balanced, multifactor approach is better suited in consolidating markets."
The report outlined three key observations: improved sentiment with more stocks closer to 52-week highs, broader market participation as reflected by the equal-weight index performance, and narrow factor spread pointing to the need for diversified investment strategies in the current market phase.
This article was generated from an automated news agency feed without modifications to text.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
7 hours ago
- New Indian Express
Brokers body Anmi moots deepening cash segment to wean away retail investors from derivatives
MUMBAI: The national brokers body Anmi (Association of National Exchanges Members of India) has proposed a five-point reform agenda to grow a healthier market, which includes deepening the cash market segment to wean away retail investors from derivatives. It has also called for entry barriers for retail by way of a cooling period in the market or a professional training in derivatives. Anmi president K Suresh told reporters here Friday that the five-point reform agenda marks the 30th foundation day celebrations of the association that came into being on August 1, 1996, adding that they will submit the agenda to the market regulator Sebi shortly. The five points in the reform agenda are: deepening the cash market through expanded single stock derivatives; building a robust securities lending and borrowing (SLB) ecosystem; reviving currency derivatives market with unified regulatory support; ensuring parity by allowing co-location facility in commodity markets; and introducing a fixed income index derivatives by reforming the retail F&O access. Suresh said these reforms if implemented will go a long way in strengthening and modernizing the financial ecosystem. The problem with the present market structure is structural and more regulatory measures are needed to deepen participation, foster innovation, and enhance our competitiveness in the global capital market landscape, he added. He also spoke on the need to reform retail participation in equity F&O, where over 93% of traders continue to incur losses (to the tune of Rs 1.5 lakh per annum as per Sebi's own findings). This suggests the need to strengthen eligibility norms, position limits, risk management frameworks, and investor protection measures to ensure responsible and sustainable participation, he said. On deepening the cash market by expanding the list of individual stock with derivatives options, he said the problem is that the vast majority of retail investors don't know anything about derivatives. 'So either Sebi should make it mandatory for an individual to get professional training in derivatives before allowing them in. We can follow what Korea does on this front where a diploma is mandatory to trade in derivatives. Another way to curb the faster rising volume in F&O is to make an investor wait for a year to two in the cash segment before allowing her into derivatives,' Suresh said. The objective is to strengthen and deepen the equity market, and one way to do so is to expand the list of individual stocks with F&O options, which currently is limited to only the key index components, he added. In most markets, almost 80% of scrips have F&O while here this is not even 5%, he said, adding to begin with Sebi can widen the universe of stocks eligible for derivatives trading by allowing all the Nifty 500 stocks to be in the F&O space.
Time of India
21 hours ago
- Time of India
August Blues or Gains? Historical trends show mixed market performance
According to Motilal Oswal, the Nifty on average has moved up 0.9%, while the Nifty 500 index has gained 1.25% in August between 2015 and 2024. Historical market data reveals mixed performance trends for August, with both Nifty 50 and Nifty 500 showing gains in six out of the last ten years. Global indices like S&P 500 and Dow Jones also exhibit similar inconsistent seasonality. Investors anticipate continued volatility this month, influenced by US tariffs and other uncertainties, expecting Nifty to fluctuate within a specified range. Tired of too many ads? Remove Ads Mumbai: For investors tracking historical market trends, August offers more questions than performance data in August over the past decade show mixed trends with Nifty 50 and Nifty 500 having gained on six out of 10 instances. Even global indices have shown similar mixed seasonality trends, as US benchmarks S&P 500 and Dow have ended higher five times since the looming uncertainty over the effects of US tariffs on India adding to haze, investors are bracing for a rollercoaster ride this month."The past decade's performance offers mixed signals for August, with returns being split. Like we saw July's typical seasonality not playing out this year, volatility is expected to persist in August as well, with the Nifty likely to trade within the 24,400-25,500 range," said Chandan Taparia, head of technical and derivatives research at Motilal Oswal Financial Services . The Nifty ended at 24,768.35 on Thursday - the last day of to Motilal Oswal, the Nifty on average has moved up 0.9%, while the Nifty 500 index has gained 1.25% in August between 2015 and 2024.
Economic Times
2 days ago
- Economic Times
Market taking 25% Trump tariff in its stride after initial knee-jerk reaction: Gautam Duggad
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , Head Of Research, Director - Institutional Equities at, says the market's reaction to the 25% tariff imposed on India by Trump is muted, with only a slight dip, as the full impact remains to be seen. While textiles face the brunt, sectors like pharma, metals, and IT remain largely unaffected. Despite a minor cut in forward earnings, overall earnings growth remains in line with and so far as tariffs is concerned, this news has been there for three-four months now. The reaction of the market is very muted, just half a percent down. So, I do not know how to look at it in the short term because a lot of things are still to unravel. I am sure the Indian government will also react. We have not seen the last of it yet given the way the US has repeatedly changed its stance on this matter. So, let us wait it out for a few days and see if there are more twists and sector-specific impact will be there depending on which sector gets hurt more. We do not cover textile, but clearly textile seems to be bearing the brunt of it. We will have to see what they do to pharma because as of now, pharma is not impacted, metals are not impacted, financials are not impacted, consumer is not impacted, IT is not impacted and cement is not impacted. Some indirect impact could be there for some of these sectors. It is very difficult to pencil in a specific quantifiable measure that post this tariff, X, Y, Z percent will be the impact on the earnings and this is how the PE will contract. That will evolve as we move 25% seems to be slightly higher than what most people have been working with. But the market is taking it in its own stride, given that this has become too recurring an issue now and the market has moved beyond some of these exogenous factors and people are focusing on the stock where things are in their control and looking at the portfolio from that point of view.I do not agree with the point that earnings have done nothing. So far 132 companies in our coverage have reported numbers. It is a 10% growth which is in line with expectations. Yes, the forward earnings have got cut by a percent, percent-and-a-half. So, while we were expecting about 11% Nifty EPS growth for FY26 when the quarter began when we published our preview three-four weeks back. As we speak, that 11% growth has come down to 9.5%. But there is too much of a narrative that earnings are bad. If you look at sector by sector, stock by stock, and then aggregated it, the numbers are in line with thing which we have learned repeatedly in the markets over the last decade-and-a-half is that the only thing the stock markets respect over a period of time is corporate earnings. FY20 to FY24, we added 20% plus corporate earnings growth , in fact 30% for Nifty 500. You saw phenomenal stock market returns depending on which index you look at. In the last one year, earnings growth has been absolutely tepid. FY25 saw flattish earnings in Nifty, 3-4% growth in broader markets and markets have done absolutely you look at point-to-point returns of the last 12 months, we have gone all over the place and ended up nowhere. Clearly all these factors – rump, tariffs, geopolitics, wars, other headwinds, will come and go. The only thing which will matter for the market from a one- to three-year perspective will be the corporate earnings. We are hopeful that this year will be slightly better than last the government and RBI have taken a series of measures on income tax cuts, rate cuts, and liquidity. So, let us see. After a couple of months, the tailwinds from those steps that the government and RBI have taken may manifest in better high frequency indicators with the advantage of a very good monsoon and festive season beginning to start from September. So, I would think that while valuations are expensive for midcaps and smallcap indices, the growth is also there in mid and year, while the broader markets grew at 3%, midcaps earnings in our coverage grew at 10%. This year we are pencilling in an 8-10% earnings growth for largecaps and 20% for midcaps. In our model portfolios, we have further increased the component and allocation of midcaps from 24% to 31%, and consequently, we have brought down the weightage of largecaps in our model portfolio across sectors.
