stocks|sensex|reliance industries ltd.|investors|icici bank ltd.
MUMBAI: The stock market has a different story to tell this time around, as the 30-share Sensex approaches the psychological 20000-mark, last seen in January 2008. Yesterday’s flag bearers have been unceremoniously dethroned, as investors have chosen a new set of stars to ride the boom in the domestic economy.
ET compared the two rallies when the Sensex rose from 10,000 to 20,000, the first one between June ’06-January ’08 and the second one between April ’09-September ’10. The comparison showed how the previous rally’s movers and shakers have now fallen out of favour with investors, resulting in a sharp decrease in their contribution to the index in terms of points.
Each stock’s contribution to the rise or fall in the index is based on its weightage in that index, and is directly proportional to its free-float, non-promoter holding, market capitalisation. Free-float implies that portion of equity is available for trading in the stock market.
RIL topped the list of biggest contributors to the Sensex in most of the big rallies that happened in the past. The country’s most-valued company added as much as 1,734 points during the 10,000-point rally in the Sensex between 2006 and 2008. The current year’s rally, however, has seen the stock underperform most of its peers in other prominent sectors, particularly banking and IT, because of which it now figures much lower in the eighth position with 439 points.
RIL has been displaced by private sector banking giant ICICI Bank which now top
More @ Sensex picks up new stars; RIL, Bharti make way for ICICI, Infosys
Today's Bets: Nifty may touch 6000 level
IT, FMCG in limelight, RIL to lead next rally: Analysts
Bull's Eye: RIL, Larsen & Toubro, LIC Housing Finance, HDIL
Investors can consider MFSL IPO for a long term
Exide is a reasonable bet for the long term
Investors may subscribe to Eros International's issue
Src: Economictimes
