How did the large caps in the index perform during the week ended 18 September?
Answer
Answer
The market overall ended flat for the week but there was divergent action among the stocks. At a sectoral level, IT and pharma did extreme level. While pharma has limited weight in the index, it was the IT index that actually held up the market.
For the trading week ending on September 18, 2020, a total of seven out of ten of the most valuable companies in the Nifty lost combined value to the tune of Rs.59,300 crore. In fact, most of the traditional leaders of the index were weak during the week.
Among the big value losers during the week were Hindustan Unilever losing Rs.14,300 crore, HDFC Bank losing Rs.11,600 crore and Kotak Bank losing Rs.10,200 crore approximately. Big boy Reliance Industries saw market cap erode by Rs.9020 crore and HDFC by Rs.8200 crore.
As mentioned earlier, the big gains came principally from the technology stocks. TCS gained Rs.28,900 crore during the week, Infosys managed to add Rs.24,300 crore. Had it not been for the IT sector, the overall market performance would have been much worse.