While the key indices the Sensex and the Nifty scaled record highs in November, stocks such as Aurobindo Pharma, Max Financial, Mphasis, Bandhan Bank, Voltas and Divi's Lab were among those largecap stocks that ended near their 52-week low levels in the month, as per data available with Capitaline.
Aurobindo Pharma shares hit their 52-week low of ₹455.05 on November 25; Max Financial's 52-week low level was ₹627.80 hit on November 23.
The 52-week low of Mphasis was ₹1,898.10 which it hit on November 22; Bandhan Bank also hit its 52-week low of ₹209.45 on November 22.
Voltas hit the 52-week low of ₹804 on November 21 while Divi's Labs hit its 52-week low of ₹3,197 on November 14.
Domestic market benchmarks the Sensex and the Nifty extended their monthly gains into the second consecutive month in November.
Benchmark Sensex and Nifty50 jumped up to 4 percent in November. Largecaps performed better than the mid and smallcaps. The Nifty 100 index also rose nearly 4 percent while the Nifty Midcap 100 index rose 2 percent and Nifty Smallcap 100 rose 3 percent.
Sustained buying by foreign portfolio investors amid hopes of a moderation in the pace of rate hikes, healthy quarterly earnings and encouraging macroeconomic prints supported market sentiment high even though concerns over a recession in the US and Europe, the Covid situation in China and geopolitical issues persisted.
"The domestic rally since October was triggered when the global market started to perform well after a long period of consolidation in 2022 and got extended when crude and commodity international prices started to fall in November, uplifting India’s corporate earnings outlook," Vinod Nair, Head of Research at Geojit Financial Services, pointed out.
Nair, however, added that the markets will have to digest the Fed and RBI policy meetings in December, which will determine the future trend of interest rates and economic growth. Inflation and interest rates are forecasted to be upbeat in 2023, which will weigh on the central banks' monetary policy and affect the performance of equities.
The road ahead for the Indian market may be challenging due to the lingering headwinds. Moreover, the premium valuation of the market has emerged as a fresh concern.
"It is highly possible that India’s future performance will be a challenge, being the most expensive market compared to other emerging markets, which are trading very cheaply today. Hence, there is a risk that India will underperform," said Nair.
"The total performance will depend on the overall performance of the global market, which has to overcome the risk of recession. Other issues which the domestic market will have to overcome are Union Budget and election, which can trigger volatility in the short-term, while the long-term view is strong," he added.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.
