Up to 800% rally since Interim Budget! How these shares made money on D-Street

At least 163 stocks in the domestic equity market, from across sectors including agriculture, auto, capital goods, chemical, finance, hospitality, electricaland healthcare, among others have more than doubled investors’ wealth since the Interim Budget 2024, which was presented by the Union Finance Minister Nirmala Sitharaman on February 1.
 
With a return of 801%, Sayaji Hotel (Pune) emerged as the top gainer on the list. The scrip climbed to Rs 865.55 on July 18, 2024, from Rs 96.02 on February 1, 2024. It was followed by Artificial Electronics Intelligent Material (up 759%), Healthy Life Agritec (up 737%), Royal India Corporation (up 720%), Tinna Trade (up 580%), and Sayaji Hotels (Indore) (up 576%).
 
Meanwhile, the benchmark equity index BSE Sensex gained nearly 14% to 81,343, while the BSE Midcap and BSE Smallcap indices rallied 23% and 18%, respectively, during the same period.
 
Sharing his views on the forthcoming Union Budget on July 23, Vijay Dewan, Managing Director, Apeejay Surrendra Park Hotels Ltd and Past Chairman CII Eastern Region said, “Hotels must be granted infrastructure status which will propel private investments. A new incentive scheme needs to be announced for additional job creation in the labour-intensive sectors. Visa-free arrival for travellers from top source markets will make India emerge as a leader in the tourism industry. Tax rates need to be rationalised and reduced in lower income groups to boost consumption.”
 
Coming back to the top gainers, shares of Spright Agro, Diamond Power Infrastructure, Inland Printers, Ceenik Exports (India), Aerpace Industries, Kaycee Industries, Ace Software Exports, Alphalogic Techsys, Eraaya Lifespaces, Kisan Mouldings and Ashish Polyplast also gained somewhere between 300% and 455% since the Interim Budget.
 
Deepak Jasani, Head of Retail Research, HDFC Securities said, “The Budget could bring benefits to several sectors, including affordable housing, industrials, engineering, consumer goods, among others. The NDA 3.0 has already announced the decision to help three crore additional rural and urban households for the construction of houses. Higher focus on capex (vs higher revenue expenses) in the Union Budget will send a good signal to the markets and investors – both local and global.”
 
Shares of media and entertainment firm Vashu Bhagnani Industries also gained 297% between February 1, 2024 and July 18, 2024. Mini Diamonds (India), Gujchem Distillers India, Bondada Engineering, Unifinz Capital India, Blue Cloud Softech Solutions, TechNVision Ventures, Vikalp Securities, Shekhawati Poly-Yarn and ITCONS E-Solutions also rallied over 250% since the Interim Budget.
 
Vinnaayak Mehta, Founder, The Infinity Group said, “Government initiatives in key sectors such as defence and railways are set to bolster investor confidence further.”
 
Real estate players including Jamshri Realty, Arihant Foundations & Housing, Kesar India, Navkar Urbanstructure, Vipul Ltd and IITL Projects also rallied more than 100% since February 1.
 
Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers said, “The Union Budget 2023-24 is highly anticipated by the real estate sector to keep up the momentum seen last year. While many expectations on the residential side can aid home buying, we believe that some push on the commercial office side will go a long way in overhauling and improving the ease of doing business.  India’s domestic consumption is growing by the year, and a pro-investor policy for investment hubs can take India’s manufacturing abilities to the next level.”
 
 Alok Agarwal, Head-Quant & Fund Manager, Alchemy Capital Management said, “We continue to be positive on domestic cyclicals including real estate, power, defence, railways, industrials and auto. Revival in rural incomes may also spur earnings growth in related themes. The real estate sector is reviving after being in the dust for over a decade and a half. The average size of new houses offered by builders in India increased to 1,300 square feet in 2023 from 1,050 square feet in 2019. Inventory levels are under 15 months of sales, which is lowest in the recorded history of 16 years, EMI (as a percentage of household income levels) are at record lows and a K-shaped recovery driving demand in the premium segment.”