The Indian stock market has corrected 7 per cent in the last one month, the biggest monthly correction in more than five years. But a handful of stocks have shown resilience in the past two weeks even as a majority of the stocks floundered.
TCS, Deepak Nitrate, Zensar Technologies, Cyient, AIA Engineering, L&T Technologies, Divi’s Lab and Biocon among others stood firm amidst the broad-based sell-off in the market. For instance, shares of Cyient which gained 30 per cent between January 1 and September 15 further have risen 4 per cent since September 15 when almost all midcaps have slumped. Analysts believe Cyient’s performance in FY19 will be better than that of its peers. Similar is the case of stocks of sector leaders like TCS, HUL and some of the midcaps.
Rising crude, falling rupee and forthcoming elections for state assembly have weighed down investor sentiment in Indian markets. Analysts said the weaker rupee and a strong US economy are prompting investors to opt for shares of exporters.
“Heightened risk aversion because of falling rupee and rising crude has sent shivers through the market and as a result, investors are flocking to safe haven sectors like pharma, IT and metals,” said Ajay Bodke CEO-PMS, Prabhudas Lilladher. “Falling rupee has clearly acted as a hedge to several of these companies”.
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