ITC, Voltas, PB Fintech: These 44 BSE 500 stocks defied gravity in this falling market; do you own any?
Despite the ongoing weakness in the domestic equity market, as many as 44 stocks in the BSE 500 index have still managed to deliver double-digit returns to investors in the ongoing calendar year. The benchmark equity index BSE Sensex plummeted around 5 per cent on a year-to-date basis due to subdued global cues, heavy selling by foreign institutional investors and rising interest rates.
The 30-share index declined to 57,989 on March 17, 2023 from 60840 on December 30, 2022. On the other hand, the BSE Midcap and BSE Smallcap index plunged 4.75 per cent and 6 per cent during the same period.
With a rally of 47 per cent YTD, Finolex Cables emerged as the top gainer in the list. Shares of the company climbed to Rs 805.55 on March 17 from Rs 546.55 on December 30 last year. Finolex Cables is India’s largest manufacturer of electrical (80 per cent of revenue) and telecommunication cables (16 per cent). The company has a vast distribution network with a high brand recall. Revenue of the company in Q3FY23 grew by 18 per cent YoY, while PAT increased by 42 per cent YoY, largely led by strong volume.
It was followed by Sonata Software (up 42 per cent), PB Fintech (up 32 per cent), Zensar Technologies (up 30 per cent), Symphony (up 26 per cent) and Medplus Health Services (up 26 per cent). IIFL Securities is further bullish on PB Fintech with a target price of Rs 700.
While sharing his investment strategy, G Chokkalingam, Founder, Equinomics Research and Advisory said, “It is time to tilt towards large caps as small and midcaps are likely to be under pressure for a couple of more months. One could consider large cap stocks in sectors like automobile, telecom, FMCG and private banks. In the large cap space, we are bullish on Maruti Suzuki, HDFC Bank, Reliance Industries and Titan.”
Coming back to other major gainers in the list, KPIT Technologies, Oil India, ABB India, NCC, Jindal Stainless, Cummins India, Procter & Gamble Health, Blue Star, Persistent Systems, Lloyds Metals & Energy, Cyient, Cera Sanitaryware, Thermax, Mahanagar Gas, Radico Khaitan, Equitas Small Finance Bank, Elgi Equipments, Sterling and Wilson Renewable Energy, Siemens, Triveni Turbine and GAIL (India) have also gained somewhere between 15 per cent and 23 per cent on year-to-date.
When asked which sectors may throw big gainers going ahead, Anand Shah, head of portfolio management services (PMS) and alternative investment fund (AIF) investments, ICICI Prudential AMC said, “ We are positive on manufacturing themes including auto, metal, capital goods. Engineering, logistics and banking sectors also look attractive to us. However, we are watchful on the IT sector.”
Data further highlighted that ZF Commercial Vehicle Control Systems India, Zydus Lifesciences, Indiamart Intermesh, APL Apollo Tubes, ITC, K.P.R. Mill, Gujarat Pipavav Port, Polycab India, Tech Mahindra, KEI Industries, Hindustan Aeronautics, Power Finance Corporation, Anupam Rasayan India, Linde India, Carborundum Universal, Firstsource Solutions and Voltas also gained over 10 per cent in 2023 till March 17.
Where investors should do in this falling market? Nilesh Jain of Centrum Broking told Business Today TV that the NSE Nifty index is heading towards the 16,500 mark. “It is better to adopt a sector and stock-specific approach amid the ongoing uncertainty in the domestic equity market. The focus is slightly shifting towards defensive and safe-haven bets,” Jain said. The NSE Nifty index traded 16,850 in the afternoon trade on March 20.
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