The Nifty 50 is up over 6% this week, marking its best week since February 2021. The Midcap index has gained over 7% so far, while the Smallcap index is up 8%. Both these indices have had their best week since April and June of 2020 respectively.
This upmove during the week has seen the addition of ₹22 lakh crore worth of investor wealth. The total market capitalisation of BSE-listed companies is now back above the ₹400 lakh crore mark, currently at ₹412 lakh crore.
In an interaction with CNBC-TV18, Gautam Chhaochharia of UBS Securities said that the market has “definitely made a bottom” and that valuations are not expensive both on an absolutely and relative basis.
Rajeev Thakkar, the CIO at PPFAS Mutual Fund told CNBC-TV18 that the stock market bottom will not take place as a whole, but on a stock-by-stock and a sector-by-sector basis.
Ridham Desai of Morgan Stanley India believes that it is very hard to time the bottom in a market and that he has “no idea whether Indian equities are currently at a bottom” after a 15% fall from their peak.
“However, I can say the stocks are attractive,” Desai told CNBC-TV18 in an exclusive interaction on Tuesday, March 11.
The Nifty 50 is up over 1,400 points since the index made a low of 21,964 on March 4 this year. 46 out of the 50 index constituents have delivered positive returns during this period with gains led by Sun Pharma, Tata Steel, Tata Motors and Coal India.
JSW Infra, MRPL and Bharat Dynamics are among the top gainers on the Midcap index, where 93 out of 100 stocks have delivered positive returns since March 4, while gains on the Smallcap index have been led by Garden Reach Shipbuilders, Chennai Petro and Amber Enterprises. 89 stocks on the Smallcap index have delivered positive returns so far since March 4.