Up, up and away: on Sensex’s new high
The stock market may be roaring, but the rally is narrow
India’s benchmark stock indices(सूचकांक) are roaring(गर्जन/चिल्लाहट) again, with the Nifty and the Sensex scaling all-time highs on Friday, crossing the 11,200 and 37,300 levels, respectively(क्रमशः). A result largely(काफी हद तक/विस्तार से) of increased(बढ़ा हुआ/वर्धित) buying by foreign institutional(संस्थागत) investors(निवेशकों) and expectations(उम्मीदों/अपेक्षा) of strong first-quarter earnings(कमाई/लाभ) results, it took the Sensex just 13 trading(व्यापार) sessions to move from 36,000 to 37,000 points. Coming after both indices witnessed extremely(अत्यंत/ निहायत) sharp(तेज/स्पष्ट) corrections(सुधार/संशोधन a few months ago, the rally has occurred(प्रयुक्त/घटित हुआ) when other emerging(उभरना/प्रकट होना) market indices have failed to recover their losses since the fall in February. The swift(शीघ्रगामी/तीव्र) recovery, however, is not reflective(चिंतनशील) of a secular rise(चढ़ाव/वृद्धि). While the sharp market correction in February hit stocks across the board, this rally has been limited to a few pockets of the market. Heavyweight blue-chip stocks such as HDFC, Reliance Industries, ITC, Tata Consultancy(परामर्श ) Services and Infosys have contributed (योगदान)the most while many others have lagged(पिछड़ जाना/धीरे चलना) behind. Almost half the companies in the Nifty still trade below their 200-day moving average, a sign of insufficient price strength.
The divergence(विचलन/विस्तार) in the performance of various stocks becomes clearer when large caps are compared (तुलना)to smaller companies. The mid-cap and the small-cap indices, which fell more sharply than the benchmark indices earlier this year, are still trading well below their historic(ऐतिहासिक) highs in January. While the Sensex has gained almost 10% since the beginning of the year, the mid- and small-cap indices are significantly(काफी/महत्व के साथ) down. Not surprisingly(हैरानी की बात है,/चकित करते हुए), overall market capitalisation(पूंजीकरण) is still below its historic high reached in January. The present stock market rally clearly does not yet mark a return to the good old days when investors could expect multi-bagger returns by betting(शर्त लगाना/बाजी) on stocks across the wider(व्यापक ) market. Several stocks in the mid- and small-cap category have fallen to levels reminiscent(स्मरणकारी/याद ताजा) of a bear(संभालना/उठाना) market. Investors are now probably(शायद) seeking(मांग/तलाश) safety(सुरक्षा ) in a few large-cap stocks that offer better quality of earnings compared to untested(अपरीक्षित) and riskier(जोखिम भरी) smaller companies. The return of foreign institutional buying also suggests that investors may be betting on India over other emerging markets that have suffered(भुगतना/का सामना करना पड़ा) more severely. It, however, remains to be seen if mid caps and small caps will follow the large caps and resume their journey upward(ऊपर की ओर). Else, the lack of sufficient breadth(व्यापक विस्तार/चौड़ाई) in the wider market will presage(अनुमान /लक्षण/पूर्व-सूचना) an eventual(अंतिम) correction in the large caps too.
Important Vocabulary
1.Roaring(गर्जन/चिल्लाहट)
Synonyms: boisterous, booming, clamorous, crashing, deafening
Antonyms: calm, moderate, quiet, restrained, light
2.Expectations(उम्मीदों/अपेक्षा)
Synonyms: assumption, chance, confidence, fear, forecast
Antonyms : disbelief, distrust, doubt, hopelessness, impossibility
3.Sharp(तेज/स्पष्ट)
Synonyms: acute, pointed, razor-sharp, sharpened, stinging
Antonyms : blunt, dull, aboveboard, benevolent, bland
4.Extremely(अत्यंत/ निहायत)
Synonyms: acutely, awfully, exceedingly, exceptionally, excessively
Antonyms : incompletely, little, mildly, moderately
5.Swift(शीघ्रगामी/तीव्र)
Synonyms: abrupt, expeditious, hasty, nimble, quick
Antonyms : delayed, expected, lazy, leisurely, slow
6.Reflective(चिंतनशील
Snonyyms: contemplative, deliberate, meditative, studious, cogitating
Antonyms : ignorant, unthoughtful
7.Divergence(विचलन/विस्तार
Snonyyms: discrepancy, disparity, distinction, diversity, aberration
Antonyms : sameness, similarity, conformity, uniformity, accord
8.Bear(संभालना/उठाना)
Snonyyms: carry, deliver, take, buck, convey
Antonyms : fail, hold, keep, lose, maintain
9.Breadth(व्यापक विस्तार/चौड़ाई
Snonyyms: broadness, diameter, latitude, span, spread
10.Presage(अनुमान /लक्षण/पूर्व-सूचना)
Snonyyms: apprehension, apprehensiveness, augury, auspice, boding
