32 stocks jump over 50% in 2022 YTD; 5 more than doubled investor wealth

32 stocks from the NSE500 index have given over 50 percent returns in 2022 so far. Among these 5 stocks have more than doubled investor wealth in this period.

The Indian Markets started the year 2022 on a negative note. Of the 8 months in 2022, the markets have given negative returns for 6 of those. The negative sentiment in the markets earlier during the year came on the back of the Russia-Ukraine crisis which led to a surge in crude oil prices as well as other commodities. The rise in commodity prices, in turn, led to a massive jump in inflation across the globe which forced central banks to raise rates in order to curb the inflation.

FIIs also remained net sellers from October till June while also weakening the investor sentiment. However, since July turned positive, buying worth ₹4,989 crore in Indian equities on softening dollar index and good corporate earnings. This came after the foreign investors sold ₹50,145 crore in June, the highest since March 2020 when the FPIs had pulled out ₹61,973 crore. In 2022 so far, foreign investors have sold worth ₹2,12,369 crore.

The reversal in the trend comes on the back of consolidation in commodity prices, decent earnings by India Inc, and positive growth commentary by the US Fed as well as the RBI, say experts.

Indian markets rose nearly 9 percent in July and have added around 4 percent in August so far. Apart from these 2 months, the markets were also positive in March 2022, up 4 percent.

Despite the overall weak macros and declining markets, some stocks defied the trend.

In the NSE500 index, Himadri Special was the top gainer in 2022 YTD, up 123 percent followed by Bharat Dynamics, up 114 percent. JK Paper, Adani Transmission and Adani Total Gas also surged over 100 percent in 2022 YTD.

Meanwhile, stocks including Shoppers Stop, Hindustan Aeronautics, Tata Elxsi, Varun Beverages, CreditAccess Gramin, Adani Enterprises, GNFC, GE shopping, MRPL, and Gujarat Ambuja Exports jumped over 70 percent each.

Further, Schaeffler India, Fine Organic, Adani Green, chalet Hotels, TVS Motor, Lemon Tree Hotels, Timken India, M&M, etc also advanced over 50 percent each in this time.

However, it is important to note that most of these stocks are smallcap stocks that are highly volatile and risky. While they give exceptional returns, they can also tank as quickly as they rise. Hence, it is very important for investors to consult their financial advisors before buying such high-risk stocks.

Top losers for this period included Future Retail, down 91 percent, Future Consumer, down 77 percent, and Dhani Services, down 71 percent.

Apart from these, Solara Active, Tanla Platforms, Metropolis Health, Zensar Tech, Indiabulls RE, and Lux Industries also lost over half of their investor wealth in 2022 so far.

Going ahead, analysts have mixed views on the outlook of markets. While some believe the rise in the markets will continue, others seem to think the markets will fall again in going ahead.

Brokerage BofA Securities, on the other hand, believes that there is more pain in store for investors in Indian equities and expects the benchmark indices to correct another 10 percent by December. It sees Nifty at 15,600 points by December 31, 2022.

However, Sunil Damania, Chief Investment Officer, MarketsMojo said, "July's rally helped reinstate the gains that investors eagerly awaited after seeing a steady portfolio bleed over the months. But then again, this is how the market operates -- it frustrates you and suddenly changes trajectory. There were talks in July that the Nifty would touch 14000, but now no one talks about the Nifty touching the 14,000 levels."

Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.