Calculate your SIP ReturnsExplore

Indian Market: Is It Really in a Bull Run?

28 May 20246 mins read by Angel One
Over 70% of stocks in the Nifty 50 index are trading below their 52-week highs, signaling potential challenges amid the current market rally.
Indian Market: Is It Really in a Bull Run?
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

A Rally Amidst Optimism

On Thursday, the Indian markets experienced a roaring rally, with both the Nifty and Sensex closing at record-high levels. This surge was bolstered by positive developments such as the Reserve Bank of India’s announcement of the highest-ever dividend to the central government and an uptick in business activity, as evidenced by India’s service PMI hitting a four-month high. Market participants are buzzing about the possibility of a bull run unlike any seen before in the Indian markets. However, it’s crucial to examine the data to determine if this is truly a bull market, especially since most individual investors hold stocks, and general prosperity is often tied to the performance of these investments.

Digging into Data: The Reality Check

To get a clearer picture, we delved into the performance of Nifty 50 stocks. Our analysis revealed that 37 of these stocks are currently trading below their 52-week highs. This means that over 70% of the stocks in the index have not reached their peak levels from the past year. More specifically, 16 of these stocks are down by double digits from their 52-week highs.

Significant Declines: Key Findings

Among these, stocks like LTI Mindtree, HDFC Life Insurance, and HCL Technologies are trading more than 20% lower from their 52-week highs. Additionally, stocks such as Bajaj Finance, Asian Paints, and Kotak Mahindra Bank have declined between 18.62% to 10.66%.

Stock Name CMP in Rs 52-week High in Rs Distance from 52-week high in %
LTI Mindtree 4831.3 6442 25
HDFC Life Insurance 565.65 710.6 20.4
HCL Technologies 1353.55 1697.35 20.26
Asian Paints 2903.75 3568 18.62
Kotak Mahindra Bank 1709.05 2064.4 17.21
Bajaj Finance 6826.65 8192 16.67
HDFC Bank 1492.6 1757.5 15.07
Infosys 1472.4 1733 15.04
IndusInd Bank 1440.85 1694.5 14.97
Wipro 465.8 545.9 14.67
Hindustan Unilever 2382.5 2769.65 13.98
Apollo Hospital 5970.05 6874.45 13.16
Tata Consumer Products 1117.95 1269 11.9
ITC 441.35 499.7 11.68
Titan Company 3452.05 3886.95 11.19
Nestle India 2474.15 2769.3 10.66

Furthermore, 21 stocks are trading between 9.69% to 1.06% below their 52-week highs.

Stock Name CMP in Rs 52-week High in Rs Distance from 52-week high in %
Shriram Finance 2400.45 2658 9.69
Tata Motors 962.35 1065.6 9.69
Dr Reddy’s 5897.7 6505.9 9.35
Sun Pharma 1495.1 1638.85 8.77
TCS 3893.45 4254.75 8.49
SBI Life Insurance 1446.8 1569.4 7.81
Bajaj Finserv 1608.45 1741 7.61
L&T 3585.4 3860 7.11
Bharat Petroleum Corporation 647.45 687.95 5.89
Tech Mahindra 1337.5 1416.3 5.56
Bajaj Auto 8963.45 9357.95 4.22
UltraTech Cement 10170.55 10526 3.38
ONGC 283.45 292.95 3.24
ICICI Bank 1134.5 1169.55 3
NTPC 372.3 380.4 2.13
Cipla 1489.15 1519 1.97
Britannia Industries 5281.15 5386.05 1.95
Reliance Industries 2972.1 3024.9 1.75
Axis Bank 1165.25 1182.9 1.49
Grasim Industries 2453.8 2489.75 1.44
Maruti Suzuki India 12934.9 13073.95 1.06

The Million-Dollar Question: Bull Market or Correction?

So, the million-dollar question: Are we really in a bull market? This analysis suggests a mixed picture. While it is common in a bull run to see some stock rotation, the fact that a significant number of stocks are trading below their 52-week highs indicates that this bull run may not be as widespread or robust as some believe. However, the limited number of stocks trading 20% or more below their highs might suggest that the market underwent a period of healthy consolidation rather than a severe downturn. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Open Free Demat Account!

Enjoy Zero Brokerage on Equity Delivery

Join our 2 Cr+ happy customers

Enjoy Zero Brokerage on Equity Delivery
Enjoy Zero Brokerage on Equity Delivery

Get the link to download the App

Send App Link

Enjoy Zero Brokerage on
Equity Delivery