Since Diwali last year, Indian indices have been on a roller-coaster rise. The equity markets have witnessed high volatility on the back of the Russia-Ukraine war, rising inflation, rate hikes leading to monetary tightenings, energy crisis, etc. Further weakening rupee and consistent FII outflows have also weakened investor sentiment in the last 1 year.
As a result, the benchmark indices have fallen a little over 2 percent since Diwali last year. Likewise, the broader indices including Midcap and Smallcap indices have also declined around 1 percent, in line with benchmarks.
Despite the volatility in equity markets since the last Diwali, some stocks in the BSE 500 index have still managed to give multibagger returns to their investors. Around nine stocks have more than doubled investor wealth or risen over 100 percent in this time. Let's take a look at these stocks:
Adani Power: This Adani Group firm has rallied as much as 216 percent from ₹105 on Diwali last year to ₹333 currently. Despite the spectacular rise since last Diwali, the stock has fallen 10 percent each in October (so far) as well as in September 2022. However, it surged 32 percent in August following a 19 percent jump in July. Overall in 2022, the stock has skyrocketed 236 percent.
Deepak Fertilisers: This fertiliser stock has soared 141 percent, from ₹408 last Diwali to currently trade at ₹985. In October 2022 so far as well, the stock jumped 18 percent after a 4 percent fall in September. In August and July, the stock added 29 percent and 19 percent, respectively. Overall in 2022 YTD, it has rallied 177 percent.
Shree Renuka Sugars: This sugar stock has sweetened the pot for investors, rising 131 percent since last Diwali. It jumped from ₹27 last year to currently trade at ₹62. The stock rose 4 percent in October so far, extending gains from a 26 percent rally in September. It has advanced 105 percent in 2022 YTD.
Elgi Equipments: This stock rose 124 percent since last Diwali, from ₹200 to currently trade at ₹450. The scrip rose 7 percent in October so far following a 15.5 percent fall in September. However, before that it gave positive returns in 3 straight months (June, July, August), rising 35 percent just in August. In 2022 YTD, the stock has risen 51 percent.
Adani Total Gas: This Adani Group firm has surged 120 percent since last Diwali. It has risen to ₹3,167 currently from ₹1,434 on Diwali last year. Despite the robust returns since last Diwali, the stock has shed 5 percent and 11 percent in October (so far) and September, respectively. However, in August and July 2022, it surged 20 percent and 31 percent respectively. In 2022 so far, it has advanced 84 percent.
Adani Enterprises: This Adani Group firm also advanced 120 percent since last Diwali, from ₹1,489 to currently trade at ₹3,277. The scrip snapped four straight months of gains to lose over 4 percent in October MTD. Between June-September, it had rallied 59 percent. In 2022 YTD, the stock rose 93 percent.
Bharat Dynamics: This defense stock jumped 114 percent to ₹916 currently from ₹428 last Diwali. The stock has given positive returns for 4 straight months since July, rising 5 percent just in October. Between July-October, it gained 35 percent. In June, however, the stock lost 13 percent. In 2022 YTD, it has advanced 136 percent.
Mazagon Dock Shipbuilders: This Defense stock jumped from ₹300 last Diwali to ₹630 currently, giving its investors 110 percent returns. The stock has been giving double-digit returns in the last 4 months, rising 29 percent in October (so far), 26 percent in September, 41 percent in August and 13 percent in July. Overall, between July-Oct, it surged 158 percent. In May and June, however, the stock lost 8 percent and 11 percent, respectively. In 2022 YTD, it has risen 128 percent.
Schaeffler India: This stock rose from ₹1,564 last Diwali to ₹3,189, giving its investors 104 percent returns. The stock has lost nearly 4 percent in October so far, after rising nearly 38 percent between July to September. In 2022 YTD, it has added 73 percent.
Going ahead, analysts believe that Indian equities offer an attractive opportunity for investors on the back of growing conviction on a multi-year economic upcycle in India. Corporate earnings are also likely to sustain the healthy momentum seen in the past eight consecutive quarters.
"As we enter the new Samvat year, some factors impacting market sentiment will start to ease. The Fed may not be as aggressive on interest rates, and besides, inflation could cool purely because of the higher base effect," said Sunil Damania, Chief Investment Officer, MarketsMojo.
He expects capital goods, pharma, and cement, to outperform, while public and private banks, NBFCs and the auto sector are likely to wind up laggards. He also sees mid and small caps outperforming large caps.
"If you look at the data from the last Samvat to the current one, there is hardly any difference between the performance of large, mid and small caps. On the contrary, small caps have performed better than large caps. Therefore, the performance of the Indian equity market going forward would be driven more by small and mid-caps. We are bullish about mid and small-caps, given the yearly rise of retail investors. By the next Samvat, we expect the market to perform exceptionally well," he said.