The third month of 2017 is going to be remembered by market participants for the Nifty50 surpassing the psychological level of nine, 200 for the first time ever on March 17.
In line with the rally in the equity benchmark, 64 BSE500 stocks from across sectors hit their all-time highs during the month.
MRF, the most expensive stock in terms of value, also hit its all-time high level of Rs 58,459.95 on March 22. Others such as Bombay Burmah BSE 2.62 %, Grasim Industries BSE -2.95 %, Future Retail BSE 4.07 %, ICICI Prudential Life Insurance, Motilal Oswal Financial Services BSE 1.10 %, Kotak Mahindra Bank BSE 0.95 %, V-Guard Industries BSE -0.62 % and PVR also hit new highs during the month.
In the auto and auto ancillary space, Exide Industries BSE -0.37 %, TVS Motor BSE 0.13 %, Escorts and Minda Industries BSE -1.32 % hit all-time high levels in March. In the banking space, YES Bank BSE 0.85 %, Lakshmi Vilas Bank BSE -0.84 %, Federal Bank BSE 1.70 %, IndusInd Bank BSE 0.46 % and RBL Bank hit new peaks.
In the NBFC space, HDFC, Dewan Housing Finance (DHFL), Can Fin Homes BSE -0.30 %, IIFL Holdings, Bajaj Finserv BSE -0.57 % and Bajaj Finance BSE -0.35 % also hit new highs this March.
The market rallied after the clearance to much-awaited GST by its governing council, positive outcome in the state elections boosted investor sentiment on Dalal Street.
The clearance to the crucial tax reforms legislations by the GST Council has raised hopes that the new indirect tax regime will be rolled out from July 1. Expectation of additional economic reforms also fuelled the equity market.
Experts are positive on the Sensex and Nifty50 logging further gains.
“We expect strong double-digit earnings recovery over FY18-19E due to a low base, stable commodity prices and revival of consumption-led demand,” said Pankaj Pandey, Head of Research at ICICI Securities.
“We assign a multiple of 16 times on FY18E & FY19 average EPS (average of Rs 1,750 and Rs 2,098) to arrive at a fair value of 30,800 as our CY17/FY18E target for the Sensex and 9,300 level for the Nifty50.” The 30-share Sensex was at 29,167 on March 22.
Food process and dairy stocks such as KRBLBSE -1.88 %, Avanti Feeds BSE -0.80 % and Hatsun Agro BSE -1.27 % also touched the sky this month. On a year-to-date basis, shares of KRBL, Avanti Feeds and Hatsun Agro have gained 35 per cent, 43.5 per cent and 44 per cent as of March 22.
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