Market rally was confined to selected stocks

According to the internal study made by the finance ministry has found that there were no surveillance or regulatory problems when the Bombay Stock Exchange (BSE) benchmark index touched new highs recently.

The rally was confined only to selected stocks and there is no spurt in all the stock prices. Many stocks in the Mid cap and small cap segment remain un moved. These are some of the findings of a study undertaken by the North Block on the Sensex’s journey from 12,000 to 18,000.

The Sensex crossed the 12,000-mark for the first time on April 20, 2006. It crossed the 18,000, mark on October 09, 2007. Interestingly, more than a quarter, or 25%, of the listed stocks declined during this period, with the rally remaining confined to the top 30 scrips. The rise in mid and small-cap stocks was around 5% of the overall movement. The study, which analysed the movement of the index and the investment pattern, as it crossed each 1,000-point milestone, has revealed that the investment pattern remained the same during the rise. But, many promoters were found to be partly selling their stakes, taking advantage of the bull run.