Indian stock market slides, but 28 Nifty 500 stocks hit fresh 1-year highs this week; MCX, PVR Inox among them

Welspun Corp, Zydus Lifesciences, Engineers India, and Indegene were among over two dozen Nifty 500 stocks that hit fresh 1-year highs this week, even as the sell-off in the Indian stock market deepened.

These stocks, spanning from healthcare to financials, have defied the market weakness to reach fresh milestones as investors appeared to adopt selective buying, given the current market conditions, which are being dominated by elevated crude oil prices and surging global bond yields.

Nifty 50 finished the last week with a cut of 0.88%, extending its weekly losing streak to seven. This was the index’s biggest sustained decline since 2020. It had recorded seven-week losing streaks only four times in the last 25 years.

Barring 2020, the index logged a seven-week decline in 2008 and twice in 2021, and in the same year, it registered one of its longest losing runs after falling for nine consecutive weeks.

Crude oil prices have been a focal point for markets since late February, when the US and Israel launched joint strikes on Iran, triggering a war in the Middle East.

Pharma stocks lead the list of fresh highs

According to Trendlyne data, Welspun Corp, Zydus Lifesciences, Engineers India, Indegene, Multi Commodity Exchange, and Allied Blenders & Distillers have registered their fresh one-year peaks in today’s trade, 25 September.

While in Thursday’s trade, pharma stocks such as Divi’s Laboratories, Aurobindo Pharma, Laurus Labs, and Caplin Point Laboratories, along with Shyam Metalics and Energy and Carborundum Universal, rose to 52-week highs.

Other stocks such as Apollo Hospitals, Redington, RBL Bank, Welspun Living, Vijaya Diagnostic Centre, IDFC First Bank, Inventurus Knowledge Solutions, JSW Infrastructure, Tega Industries, Syrma SGS Technology, ACME Solar Holdings, Apar Industries, Action Construction, Usha Martin, Jyoti CNC Automation, and PVR Inox also touched fresh one-year highs.

Notably, Apollo Hospitals was the only stock from the Nifty 50 index to reach this level, while other index constituents such as Adani Ports & SEZ, JSW Steel, Titan Company, and Grasim Industries were also in the visible range of between 6% and 7%.

What to watch next week?

Looking ahead, domestic activity and global macro data will remain key market drivers. Vinod Nair, Head of Research, Geojit Investments, said domestic IIP data will test the durability of industrial activity, while US job openings, GDP, the core PCE deflator, and PMI readings, alongside commentary from Federal Reserve officials, will frame expectations on the rate path and global liquidity.

“With crude hostage to geopolitics and yields elevated, valuation expansion looks constrained, leaving earnings delivery as the principal driver of returns. The strength in domestic activity signalled by the PMI, alongside steady domestic liquidity, should limit the downside, though investors would be prudent to stay selective and favor earnings visibility and valuation comfort,” he further added.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.