What caused Sensex to behind Nifty in the pursuit of all-time highs? Place the blame on these top BSE index gainers' mediocre performance

 What caused Sensex to behind Nifty in the pursuit of all-time highs? Place the blame on these top BSE index gainers' mediocre performance

What caused Sensex to behind Nifty in the pursuit of all-time highs? Place the blame on these top BSE index gainers' mediocre performance

Earlier in the day, Nifty 50 reached a new high of 20,285.15, but Sensex is still 400 points behind its all-time high.

While the Nifty has returned about 12% so far in 2023, the Sensex has only returned around 11% so far this year.

Strong domestic GDP growth, recent favorable global indications, a declining dollar index, and the departure of foreign institutional investors provided Dalal Street bulls with enough fuel to propel the NSE Nifty 50 to a new all-time high on December 1.

The BSE Sensex, on the other hand, trailed behind in the competition for the top spot since it is still almost 400 points below its high.

After reaching a record high of 20,285.15, the Nifty 50 were up 139.50 points, or 0.69 percent, at 20272.70 at 12:25 pm. Conversely, the Sensex traded 507.44 points, or 0.76 percent, higher at 67,495.88, barely 400 points short of its record high of 67,927.

One primary reason for the disparity in movement between the two benchmark indexes is the lack of high-performing firms on the Nifty, such as Hero Moto and Adani Group, which are not included in the Sensex.

The top 50 names are listed on the Nifty, while the top 30 equities by market capitalization are listed on the BSE S&P Sensex. Not all of the top performers that helped Nifty reach a new high last week are included in the Sensex.

Sham Chandak, head of institutional broking at Elios Financial Services, said that "some of the 20 stocks missing from the Sensex outperformed the Nifty 50, propelling the latter to record highs faster than the former."

Hero MotoCorp is not included in the Sensex, despite being the best-performing stock on the Nifty since November 24. The stock has increased by more than 7% in the last week due to the ongoing demand for two-wheelers, the recovery in rural areas, and anticipation of the approaching wedding season.

Adani Enterprises and Adani Ports & Special Economic Zone, two Adani Group equities that had increased by around 6% and 4% previous week, respectively, are absent from the Sensex except from Hero MotoCorp.

Adani Group shares increased sharply after the Supreme Court said earlier this week that it was only basing its decision on fraud accusations made by US short seller Hindenburg and that it had not listened to the firms impacted by its rulings. Cannot direct a group investigation.

The decline in oil prices helped FMCG firms by lowering their input costs, in addition to oil marketing companies that now had more opportunities to make a profit. Britannia Industries and BPCL therefore appeared on the list of top gainers on the Nifty last week.

The stocks increased by 6% and 5%, respectively, but they were once again excluded from the Sensex.

It does not follow, however, that the index did not perform well since the Sensex did not include any significant top performers. Sensex has gained over 11% so far this year, but Nifty is still ahead of the pack by a narrow margin after rising nearly 12%.

It goes without saying that the Sensex is also headed for a new all-time high; all that has to happen now is to catch up, since the market trend is still positive overall.