Why India's stock market rally lacks depth

Analysts believe the top 10 shares by market value will continue to outperform and lead the Indian index, given the backdrop of a weaker rupee and their stronger earnings growth.


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Five Indian blue-chip companies 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.

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

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