November proved to be a remarkable month for the Indian market, as the Nifty 50 surged 5.52%. This robust performance marked a significant turnaround from October’s 2.84% decline. Notably, November’s achievement stands out as the best monthly performance since July 2022, when the index gained 8.73%.
Commencing the month at 18,989 points, the Nifty 50 maintained its upward trajectory throughout November, avoiding any dip below the month’s closing price. Over the course of 19 trading sessions, it surged by 1,011 points, surpassing the psychological level of the 20,000 mark in the previous session. The index further extended its winning streak in today’s session, reaching 20,133 points, a mere 0.44% away from the historic high of 20,222.
Several factors contributed to this impressive rally. The decline in crude oil prices, a reduction in US bond yields, a weakened US Dollar Index, robust Q2 earnings, and strong domestic liquidity played pivotal roles.
Additionally, positive GDP estimates from S&P Global Ratings, projecting India to achieve a GDP growth rate of 6.4% for FY24, added to the optimistic sentiment. The convergence of these favorable factors propelled the Nifty 50 to near-record highs.
November witnessed 200 out of Nifty 500 stocks closing the month with gains exceeding 10%. Notably, the top 10 stocks spanning sectors like Insurance, Power, IT, and Real Estate, among others, displayed a remarkable rally, ranging from 30% to 89℅
The New India Assurance Company led the pack with a gain of nearly 89%, growing from ₹139.15 apiece to ₹255.20. This stellar performance not only marked the best monthly surge but also propelled the stock to a remarkable 103% growth in CY23, showcasing its best yearly performance since listing in CY17.
In the insurance sector, General Insurance shares followed suit, rallying by 49.52%, driven by positive industry growth outlook reports shifting from “stable” to “positive.”
Another notable performer was RattanIndia Enterprises, surging by 49.52%, backed by various positive developments. The company is engaged in new-age businesses including e-commerce (Cocoblu Retail), electric vehicles (Revolt Motors), fintech (Wefin), fashion brands (Neobrands), and drones (Neosky).
HPCL also emerged as a strong performer, gaining 40.25% in November, achieving its best monthly performance since December 2007.
Shares of Bharat Heavy Electricals (BHEL), a leading engineering and manufacturing company in the energy and infrastructure sectors, skyrocketed 41.22% this month.
The Multi Commodity Exchange of India Limited (MCX) witnessed a 37% surge, reaching ₹3,195 apiece from ₹2,355, in November. The stock touched an all-time high of ₹3,214 in today’s trade, reflecting a 106% increase over the last 11 months.
Continuing their strong upward trend for the second consecutive month, shares of PCBL (formerly Phillips Carbon Black), a leading manufacturer of carbon black, delivered a 36.27% return in November, and the stock hit a new all-time high of ₹278 apiece in today’s trade.
The company’s board of directors, in a meeting held on November 29, 2023, approved the term sheet for entering into a joint venture with Kinaltek Pty Limited (“Kinaltek”).
This marks PCBL’s foray into the global speciality segments of water treatment and oil & gas chemicals, with the potential for long-term new growth avenues. Thus, any weakness in the stock price should be viewed as an opportunity to accumulate stock, said domestic brokerage firm Sharekhan.
On November 23, CDSL stock jumped 4.25% after the company announced that the number of active demat accounts on its platform had crossed the 10-crore mark. In the following five trading sessions, the stock continued the same upward momentum and finished the November months with a gain of 30%.
Other stocks including Power Finance Corporation and eClerx Services have also yielded returns between 50% and 65% in November.