Reason for rise in India' Share Market

Current rise in share market is due to the top five Indian blue-chip companies which have driven 97 percent of the stock market's rise to record highs this year, and analysts reckon uncertainty heading into next year's general elections will keep the rally in the months ahead just as narrowly focused. India's broader NSE index has been hitting successive record highs during the past couple months even as worries over the Sino-US trade war dragged other major stock markets down. It is up 10 percent so far in 2018.

The BSE index is Asia's top performer for the year, even in dollar terms after accounting for the rupee's nearly 9 percent decline.

Only a handful of companies led by the country's biggest software services firm Tata Consultancy Services have led that rise in share prices.

TCS has been responsible for 35 percent of the rise in the NSE index this year. It became the first Indian tech company to hit the USD 100 billion mark in April and its recent quarterly earnings beat expectations.

TCS has been responsible for 35 percent of the rise in the NSE index this year. It became the first Indian tech company to hit the USD 100 billion mark in April and its recent quarterly earnings beat expectations. 

Next is Reliance Industry. Reliance Industries became the first Indian company to cross 8 trillion rupees (USD 114.14 billion) in market capitalisation on Thursday. This comes shortly after its valuation hit USD 100 billion in July. Reliance posted a record profit in the March quarter. It contributed 27 percent to the Nifty's rise this year.

Indian companies reported a 11.6 percent annual increase in profits for the June 2018 quarter, their strongest growth in five quarters, according to data for 560 listed Indian companies. That double digit profit growth comes at a time when Asian peers, such as South Korea and Singapore, missed estimates and reported declining profits.,

While TCS trades at a price to two-year forward earnings ratio of 22.58, Reliance Industries is at 14.72. Hindustan Unilever Ltd, HDFC Bank Ltd and Infosys Ltd are the other top contributors to the Nifty's rise so far.