Amid the ongoing volatility in the domestic equity market, select little-known stocks from the broader markets have managed to deliver a stupendous return to investors since the beginning of the ongoing calendar year.
Take this: Data available with Ace Equity showed that SEL Manufacturing has soared 2,476 per cent in the past five months. Shares of the company jumped to Rs 970.10 on May 27, 2022 from Rs 37.65 on December 31 last year. On the other hand, the benchmark BSE Sensex has declined nearly 6 per cent during the same period.
Other stocks include Kaiser Corporation (up 2,245 per cent), Hemang Resources (up 1,102 per cent), Gallops Enterprises (up 1,098 per cent), Alliance Integrated Metaliks (up 1057 per cent), Mid India Industries (up 922 per cent) and Sejal Glass (up 915 per cent) have also defied the gravity witnessed by the broader markets in the past five months. The BSE Midcap and BSE Smallcap indices have plummeted 9 per cent and 13 per cent, respectively, during the same period.
Market watchers advised investors to not get excited by lucrative returns given by select smallcap stocks. However, they suggested going with largecaps considering the ongoing selling pressure in the market.
VK Vijayakumar, chief investment strategist, Geojit Financial Services said, “In 2022, safety is in largecaps.” He further added that investors need not rush in to buy aggressively.
“They can nibble at high-quality stocks on declines. Mutual fund investors should continue their SIPs and, if possible, increase SIP amount,” Vijayakumar.
Among the other major gainers, Katare Spinning Mills, Shanti Educational Initiatives, CWD, Diligent Industries, Shankar Lal Rampal Dye-Chem, Dhanlaxmi Fabrics, Khoobsurat, Variman Global Enterprises and Cressanda Solutions have also surged between 350 per cent and 680 per cent during the same period.
For sector-specific investors, Mohit Nigam, head-PMS, Hem Securities suggested that some themes which may outperform the market in terms of returns are defence, electric vehicles, information technology and infrastructure. "We believe that the momentum is going to be very strong in these sectors in the coming few years,” he said.
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