As many as 75 stocks have delivered double-digit returns. Among them, eight counters have zoomed 50 per cent or more, including two multi-baggers on a year-to-date basis.
Divam Sharma, Founder of Green Portfolio, SEBI Registered PMS, said that almost all major sectors have remained under pressure, and there were mostly stock-specific winners and some value stocks, which had shown resistance.
Abhishek Jadon, smallcase manager and vice president, Windmill Capital, said that uncertainties like interest rate hikes, war crisis, and rising crude oil prices impacted the markets, and they are likely to witness bouts of volatility until these issues subside.
Among the wealth creators, Gautam Adani’s power arm Adani Power has delivered over 170 per cent return this year so far. The scrip zoomed to Rs 269.95 on June 29, 2022, from its close at Rs 99.75 on December 31, 2021.
It is accompanied by (MPRL), which has rallied 116 per cent in the year. The stock has moved to Rs 93.05 from Rs 43.15 during the period under review.
Adani Power is likely to be upgraded from mid-cap to large-cap in the upcoming Association of Mutual Fund in India’s semi-annual upcoming reclassification, whereas MPRL has been on a high, thanks to better margin and rising crude oil.
Bharat Dynamics (79 per cent up),
(71 per cent up), (69 per cent up), (64 per cent up), (57 per cent up) and GHCL (52 per cent up) are other stocks which gained over 50 per cent.
Stocks like JK Paper, , , , , PVR, Tata Elxsi, and have rallied between 35-50 per cent.
TVS Motors, GNFC, Mahindra & Mahindra,
, , Capri Global Capital, RHI Magnesita, Oil India, Swan Energy, Linde India, , and Fine Organics also gained over 30 per cent.
Experts believe that the upcoming month would be better for equity space, and domestic markets are poised for a rebound. However, investors need to be cautious while allocating their capital.
Sharma from Green Portfolio believes that the majority of the negatives have been factored in and he continues to see a positive business outlook and supportive relevant economic indicators.
“We believe Q3 FY23 should see a positive inflow from FPIs,” he added. “We like companies in the textile, sugar, EV, cement, and automobile segment. The recent correction is providing a good entry opportunity in some great businesses.”
These phases of high volatility can result in large drawdowns in the short term. Leveraged or short-term commitments to the market can be counterproductive, they added.
“Corrective phases are a great stimulator for investment activity,” said Jadon from Windmill Capital. “In such phases, investors should be cautious as diversification among different assets becomes more important in such times rather than investing in a single asset.”
He is bullish on infrastructure sectors following the capex cycle. He is also positive on sectors like autos, pipes & fittings and consumer durables, which derive a good portion of their revenue from rural areas.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)