Investors on Dalal Street turned wealthier by Rs 35 lakh crore since last Independence Day as the market capitalisation of the BSE-listed firms jumped to Rs 275 lakh crore on August 12, 2022 from Rs 240 lakh crore on August 13, 2021. However, sustained outflows by foreign institutional investors (FII), rising petrol and diesel prices, a hike in interest rates and the war between Ukraine and Russia kept market participants on the edge during the same period.
Overall, the benchmark BSE Sensex gained 7.26 per cent since August 15, 2021, while the broader Midcap and Smallcap indices added 7.95 per cent and 5.88 per cent, respectively, during the period. Data available with Ace Equity shows that as many as 13 stocks in the BSE 500 index have doubled investors’ wealth in the past 12 months.
With a rally of 305.52 per cent, Adani Power emerged as the top gainer in the index. Shares of the company climbed to Rs 345.10 on August 12, 2022 from Rs 85.10 on August 13, 2021. It was followed by other Adani Group firms, Adani Total Gas (up 276.40 per cent), Adani Transmission (up 266 per cent) and Adani Green Energy (up 137.16 per cent).
Commenting on the general markets, Motilal Oswal Financial Services said, “The upside from here will be a function of stability in global and local macros and continued earnings delivery versus expectations. In our model portfolio, we maintain our overweight stance on BFSI, IT, consumer, and automobiles.”
Tata Group firms including Tata Teleservices (Maharashtra) and Tata Elxsi also climbed 169 per cent and 137 per cent, respectively. Schaeffler India, Elgi Equipments, Fine Organic Industries, Bharat Dynamics, Hindustan Aeronautics, Gujarat Fluorochemicals and Gujarat Narmada Valley Fertilizers & Chemicals also surged between 100 per cent and 120 per cent.
Considering the present market condition, Motilal Oswal Financial Services is positive on Reliance Industries, Infosys, ICICI Bank, SBI, Bharti Airtel, ITC, Maruti Suzuki, Titan Company, UltraTech Cement, Hindalco, and Apollo Hospitals in the largecap space. On the other hand, it prefers Macrotech Developers, Ashok Leyland, Jubilant Foodworks, Clean Science, M&M Financial, Angel One, VRL Logistics, and Lemon Tree Hotel in the broader markets.
Coming back to the top gainers of the past 12 months, Timken India, Adani Enterprises, Varun Beverages, The Indian Hotels Company, Chalet Hotels, Deepak Fertilisers And Petrochemicals Corporation, Linde India and Brightcom Group also rallied between 90 per cent and 100 per cent during the same period.
Going ahead, Sushant Bhansali, CEO, Ambit Asset Management, said, “Companies with leaner balance sheets and better cash flow cycles will not only be able to survive but thrive and gain market share further.” He further added that factors like credit growth, crude oil movement, centre spending, private capex and global inflation will give direction to the market.
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