The Sensex managed to hold the ground mainly because of the robust performance by these top 10 companies.
Mumbai: Investors seems be betting on blue chip stocks as they are getting increasingly wary of Small and Mid Cap segment over corporate governance issues.
Analysis shows that despite the huge fall in the market the 10 most valued domestic companies including TCS, Reliance, HDFC Bank Kotak Mahindra Bank are giving positive returns since January 2018.
In the ranking of top-10 firms, Tata Consultancy Services (TCS) led from the front followed by RIL, HDFC Bank, HUL, HDFC, Infosys, ITC, Kotak Mahindra Bank, ICICI Bank and SBI.
In the last one year, Sensex returns stood at -8 per cent, while Mid-Cap and Small-Cap indices have fallen by 22 per cent and 29 per cent respectively over the same period.
The Sensex managed to hold the ground mainly because of the robust performance by these top 10 companies.
The recent corporate scandals in companies like CG Power, DHFL, Yes Bank and Zee group have hit investor sentiments and turning bearish on Mid- and Small-Cap segment.
"Apart from earnings growth, investors are bullish on these blue chip stocks for the corporate governance standards. With Modi 2.0 government emphasis on transparency and governance standards companies with quality management will get market interest and remain pricey in terms of P/E," said head of research with a leading domestic brokerage house.
