India’s financial markets have been witnessed extreme volatility since the onset of May 2024 – the month that marks the crucial last phases of polling for the high stakes’ Lok Sabha elections, followed by the counting of votes and results on June 4, 2024. A lower voter turnout so far in poll phases has raised concerns whether Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) and its allies can achieve the landslide victory predicted by opinion polls last month.
Investors had already priced market stability over BJP returning to power, however, the current volatility has raised concerns of uncertainty. This has subsequently led to a significant change in the market’s fear gauge index — ‘India VIX’—which gained 386 percentage points during last week to touch 18.47, a 19-month high.
In the week ended May 10, the frontline indices logged their worst since mid-March, dropping about 1.8 per cent each and also snapped two straight weeks of gains. On a weekly basis, the BSE benchmark tanked 1,213.68 points or 1.64 per cent, and the Nifty 50 declined 420.65 points or 1.87 per cent. So far in May, Sensex and Nifty 50 have swung 2.67 per cent and 2.68 per cent respectively.
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D-Street movers in 7 sessions of May
In terms of changes in stock prices, Dalal Street’s top five best-performing stocks in the first sessions of May include Tata Group’s largecaps such as Tata Motors and information technology (IT) giant TCS. However, fast-moving consumer goods (FMCG) major HUL has merged as the top Nifty 50 gainer in the first seven market sessions this month. FMCG and auto stocks have witnessed the biggest gains in their respective prices so far in May 2024.
On the other hand, index heavyweights including banking majors ICICI Bank, HDFC Bank and Axis Bank have been among the top Nifty 50 losers so far this moth. The banking index has emerged as the top drag over weak March quarter results and volatility due to the Reserve Bank of India’s orders against bank majors.
Nifty 50’s top 5 best-performing stocks in 7 sessions of May:
Hero MotoCorp Ltd: The auto giant has emerged as Nifty 50’s best-performing stock and clocked gains of 7.36 per cent in its stock price over the last seven sessions, according to Bloomberg data. The two-wheeler manufacturer’s net profit rose 18 per cent to ₹1,016 crore in the January-March quarter.
Hindustan Unilever Ltd (HUL): The FMCG giant has emerged as Nifty 50’s second best-performing stock and clocked gains of 5.92 per cent in its stock price over the last seven sessions. HUL posted a six per cent decline in its standalone net profit to ₹2,406 crore in the March quarter of FY24.
Tata Motors Ltd: India’s third-largest carmaker by sales has emerged as Nifty 50’s third best-performing stock and witnessed a gain of 3.82 per cent in its stock price over the last seven sessions. The auto giant’s net profit surged over three folds to ₹17,407 crore in the fourth quarter of FY24.
Tata Consultancy Services (TCS): India’s biggest IT services provider as emerged as Nifty 50’s fourth-best performing stock and clocked a rise of 1.92 per cent in its stock price in the last seven sessions. The IT major registered a net profit of ₹12,240 crore in the March quarter and declared a dividend.
Mahindra & Mahindra (M&M) Ltd: The auto major has emerged as Nifty 50’s fifth best-performing stock clocking a gain of 1.70 per cent in its stock price over the last seven market sessions so far in May, according to Bloomberg data.
Nifty 50’s 5 worst-performing stocks in 7 sessions of May:
Larsen & Toubro Ltd (L&T): The infrastructure giant has emerged as Nifty 50’s worst-performing stock and witnessed a decline of 8.98 per cent in its stock price over the last seven sessions, according to Bloomberg data. L&T’s net profit rose four per cent to ₹1,393 crore in the March quarter of FY24.
HDFC Bank Ltd: The country’s largest private lender has emerged as Nifty 50’s second worst-performing stock and witnessed a decline of 4.12 per cent in its stock price in the last seven sessions. HDFC Bank’s net profit in the March quarter stood at ₹16,512 crore and was not comparable to the year-ago period.
Reliance Industries Ltd (RIL): India’s most valuable company has emerged as Nifty 50’s third worst-performing stock and witnessed a decline of 4.06 per cent in its stock price in the last seven sessions. RIL’s consolidated net profit declined around two per cent to ₹18,951 crore in the fourth quarter of FY24.
Axis Bank Ltd:
ICICI Bank Ltd:
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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Published: 11 May 2024, 07:43 PM IST
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