Tata Group stocks lead as 18 Nifty 50 stocks surge up to 37% in just 2 months. Do you own any?

Stock market today: Tata Motors, Tech Mahindra, Hero MotoCorp, Trent, Reliance Industries, M&M, and Bajaj Auto are among more than a dozen Nifty 50 stocks that have recovered sharply from their recent lows, as improved investor sentiment toward riskier assets, driven by favorable domestic and global cues, has helped these stocks regain lost momentum.

In addition to continued domestic buying, overseas investors have also returned in May, contributing to the sharp recovery in Nifty 50 heavyweights from their April lows. Global factors such as easing trade tensions, progress in US trade negotiations with key partners, and reduced fears of a global economic fallout have supported sentiment.

On the domestic front, the long-awaited India–UK free trade agreement (FTA), stronger-than-expected Q4 GDP growth, early monsoon, expectations of an India–U.S. trade deal, and improved liquidity conditions in the financial system have all aided the robust recovery in the Indian stock market.

Although valuations still appear stretched across sectors and stocks, expectations of earnings recovery in the current fiscal year have encouraged domestic investors to continue their buying spree.

18 stocks led by Tata Motors soar up to 37% from April 07 lows

Against this backdrop, 18 constituents of the Nifty 50 index have rebounded more than 35% from their April 7 lows. Tata Motors led the recovery, surging 36.7%, followed by other Tata Group stocks, Trent, Titan Company, and TCS, which gained 30%, 20.5%, and 13.31%, respectively.

Among auto stocks, Hero MotoCorp, Mahindra & Mahindra, and Bajaj Auto have risen 31%, 26.49%, and 22%, respectively. In the pharma sector, Dr. Reddy’s Laboratories and Cipla jumped 32.24% and 13%.

Within the tech pack, Tech Mahindra, HCL Technologies, Infosys, and Wipro climbed 32.2%, 28%, 22.11%, and 12%, respectively.

Can the Nifty 50 sustain its winning momentum?

The next leg of the rally in Nifty 50 stocks hinges on multiple factors, especially as the 90-day pause on reciprocal tariffs by the US is set to end in July, and no clear progress has emerged from the ongoing trade talks between China and the US. Additionally, Mint had earlier reported that the US had put forward tough terms in its trade negotiations with India.

Until strong growth is visible in high-frequency indicators, valuation concerns are likely to persist. Analysts believe the market needs clear signs of revenue and earnings acceleration to break out of its current range.

“In the near term, the market will respond to news regarding the trade negotiations between the US and China. If there is a clear agreement, the market will respond positively, and there is a high probability of Nifty breaking above 25,100 and remaining above this level. Liquidity will support a mild rally. But a strong rally needs earnings support. There are no indications yet about a strong recovery in earnings. This will cap any short-term rally in the market,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.