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Just 3 Stocks are Driving Over 50% of the Rise in Nifty 50's Market Cap


As the BSE S&P Sensex hits a new high, we should note that NSE's Nifty 50 is not far away. Factors like a stronger domestic and foreign inflows helped the markets, along with the new changes in GST taxation. Data released by the CSO (Central Statistics Office) this month showed that a net of Rs 66,744.33 crore was infused into Indian shares in the first six months of 2018.

Just 3 Stocks are Driving Nifty 50 While Most Stocks Decline

Though indices are usually considered to give a broad picture of the market as a whole. This is, however, not happening right now as mid-cap and small-cap stocks continue to hurt. In fact, the index Nifty 50 is being driven only by a handful of big player stocks.

As of July 20, the Nifty's market capitalization was up by Rs 827,836 crore after it reached Rs 7,128,244 crore on 23 March 2018. In the same period, as per calculations by Bloomberg, the 3 stocks namely, Tata Consultancy Services (TCS), Reliance Industries Limited (RIL) and HDFC Bank increased their market capital by Rs 466,263 crore, and this is around 55 percent of the rise in Nifty 50's market capitalization.

Further, only seven other stocks have contributed for 39 percent of the growth. These are Hindustan Unilever, Bajaj Finance, Kotak Mahindra Bank, Infosys, HDFC, SBI and Asian Paints.

Meanwhile, 20 companies listed in the Nifty 50 saw a decline in their market capitalization during the same period. This goes to show how the new record of the indices is not really good news for a major chunk of the investors.

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