NEW DELHI: The rally in benchmark indices this month has not been restricted to

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frontline stocks, it has been broad-based in nature.

Figures available with Bloomberg on all scrips listed on the Bombay Stock Exchange revealed six out of every 10 stocks traded during January saw gains. According to available data, a total of 2,898 scrips traded on a daily average on BSE this month. Out of this, 1,630 advanced, 1,148 declined while 120 scrips remained unchanged.

The BSE 500 index, which is the broadest index on BSE, jumped 13.43 per cent during the month compared with a gain of 11.51 per cent seen in Sensex.

From the BSE 500 pack, 298 scrips advanced in January on a daily basis during the month. This was in line with Sensex, whose 18 scrips advanced on a daily basis this month. Returns on these stocks during the month depicted a more optimist picture. Month-to-date, 457 scrips from the BSE 500 index advanced with half of them giving more than 15 per cent returns and 18 rising more than 50 per cent.

Barring six stocks from the Sensex pack, others gained during the month.

On the domestic front, food inflation remained negative for the fourth straight week ended January 14. Concerns over euro zone crises too eased, which has led euro to strengthen against the US dollar.

The Dollar Index, which compares the greenback against six major global currencies, has reversed the trend, and is falling. The index is said to have an inverse relationship with equities as it urges foreign investors to shift to risky assets such as equities in emerging markets like India.

“In December, valuations of most of the stocks on the BSE universe were cheap, which was the main reason why all the stocks participated in the rally. Easing euro zone concerns and appreciation of the euro has lifted foreign investors’ sentiments,” said Sudip Bandyopadhyay, director and CEO at Destimoney.

Sensex lost 8.93 per cent and 4.14 per cent in November and December. Data available with market watchdog Sebi revealed foreign institutional investors infused Rs 9,073.10 crore into equities during the month. A rally of this kind had happened in September 2010, when Sensex had climbed 11.47 per cent in a month. On a daily basis, 18 scrips from the benchmark advanced during the month while 11 declined and one remained unchanged. About 3,080 scrips traded during the month. However, only half of them — or 1,492 scrips — were able to close in the green on a daily basis.