On 18 November 2013, the benchmark BSE Sensex jumped 451 points to end the day at 20,850. Nearly six years ago, on 8 January 2008, the index had closed at a then-high of 20,873. On the face of it, nothing seems to have changed. However, the fact is that huge changes have taken place beneath the surface during the intervening period.
The biggest among them, of course, was the impact of the Lehman Brothers collapse in September 2008, which sent global financial markets into a tizzy, with the consequent meltdown pulling down the Sensex to 8,160 on 9 March 2009. A remarkable rebound took it to its then all-time closing high of 21,005 on 5 November 2012.
A year later, after riding several waves, the Sensex touched a fresh life-time high of 21,239 on November 3. Amid all the turmoil, a number of stocks navigated their way through to provide stellar returns to whoever was smart enough to pick them early.
A total of nearly 50 stocks in the BSE-200 index have more than doubled in value, or more, since 8 January 2008. Leading the pack has been TTK Prestige, which rose 1,500%, or 16 times in less than six years, followed by Eicher Motors, which returned nearly 900% and Lupin over 600%.
Is there a lesson hidden in these figures? There definitely is. And it is that if you select the right stocks and are willing to hold them for a reasonably long period, you are bound to get good returns. What made these stocks emerge as winners? How does one identify good stocks? Is there a way to spot them early? In our cover story, we analyse the multi-baggers to not only provide you with answers to these questions but also to try and see whether some among these stocks still have some steam left in them? The good news is that many of them are not done yet. After sifting through the pack, we bring you some of the best investment options among these stocks that can provide good returns.
We would, however, like to reiterate the caution put out in our November issue 'Keeping Your Money Safe'. The market remains volatile. Thus, after reaching its life-time high on November 3, the Sensex quickly shed over a 1,000 points in the next few trading sessions till November 13 to reach 20,194.
Investors need to be careful and selective on equities in the near term since macroeconomic concerns over growth and inflation lurk. Global worries also persist. Moreover, it's a hugely foreign institutional investor-driven market, which, by nature, is fickle.
However, we do hold that no investment portfolio is complete without a fair sprinkling of stocks depending on one's risk-profile. But then, you must be prepared to be there for the long haul, as highlighted in our cover story.
SARBAJEET K SEN