Mumbai: Things seem good for Indian equities at first glance. But a closer look at main benchmark index results Nifty50 would demonstrate that Indian equity remains a story of sharp divergence. In reality, on this front, things got worse.
An assessment by Motilal Oswal Securities Ltd showed that over December 2017-June 2019, the top 15 stocks yielded 30% yields, the remainder dropped 11%. Owing to the rally in big stocks, the Nifty itself has increased 11 percent during this era.
Assessments also demonstrate a strong image of divergence, according to the brokerage house. The stocks that rallied are trading to their long-term average valuations at a substantial price, while others are trading at a discount on their historical valuations.
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