Bears are on the front foot since October 2021. However, at the same time bulls are also present in select stocks that have delivered a solid return to investors despite the selloff. You just need an eagle eye to spot them.
Data showed that at least 60 stocks on the BSE have rallied over 250 per cent since October 19, 2021, when the benchmark equity index BSE Sensex hit its all-time high of 62,245.43. Since then, the 30-share index has plunged nearly 13 per cent to date.
With a rally of 1,498 per cent, MRC EXIM emerged as the top gainer in the list. Shares of the company have jumped to Rs 77.05 on July 7, 2022 from Rs 4.82 on October 19 last year. Polo Queen Industrial & Fintech, Cressanda Solutions, Hemang Resources, IKAB Securities & Investment and S&T Corporation have also gained over 1,000 per cent during the same period.
There are expectations that the market is likely to stay range-bound in the near term, primarily owing to weaker global cues as the domestic equity market has shown a correlation of 90 per cent with the US markets in the last one year.
“The market is likely to follow the direction of the US market in the near term. Volatility is likely to continue for some more time before it concludes in a more concrete direction. Now, the market is eyeing on earnings season, which remains critical in terms of upgrades or downgrades amidst elevated raw material prices,” the brokerage said while maintaining ‘Overweight’ stance on equities.
Coming to other major gainers in the list, players like Shankar Lal Rampal Dye-Chem, Vegetable Products, Sadhna Broadcast, Shanti Educational Initiatives, Gensol Engineering, Digjam, Panafic Industrials, Sunedison Infrastructure, GTV Engineering, Zenith Steel Pipes & Industries, CWD, Magellanic Cloud, KPI Green Energy, Panth Infinity, Automotive Stampings and Assemblies, Supreme Holdings & Hospitality (India) and Baid Finserv also rallied between 425 per cent and 1,000 per cent during the same period.
Going ahead, Axis Securities in a report said that given the government’s stance on domestic interest first and India being a domestic consumption economy, domestic-oriented themes are likely to deliver superior performance in the near term.
Motilal Oswal Financial Services said, “The adverse macro backdrop, with heightened worries on rising interest rates, elevated crude oil prices and liquidity tightening has kept the market volatile and jittery. In the broader space, investors can zero in on Cholamandalam Investment and Finance, Macrotech Developers, Gland Pharma, Star Health, Jubilant FoodWorks, L&T Technology Services, Motherson Wiring, Angel One, Sapphire Foods, VRL Logistics, and Lemon Tree Hotel.”
Among other major gainers, Modella Woollens, Ramchandra Leasing & Finance, Suraj Industries, Sawaca Business Machines, National General Industries, Growington Ventures India, BCL Enterprises, Dhanlaxmi Cotex, Diligent Industries, Indianivesh, Jaihind Synthetics, Hemo Organic, Mid India Industries, Modern Steels, SPML Infra, Variman Global Enterprises, Elegant Floriculture & Agrotech (India) and ERP Soft Systems have also gained over 300 per cent since October 19, 2021.