According to data from AceEquity, at least half a dozen counters have rallied between 100-180 per cent between January-April 2022, whereas the same number of stocks have rallied between 90-100 per cent during the period under review.
Benchmark indices- BSE Sensex and Nifty50- have dropped 4 per cent in the current year so far. The indices gauged to second-rung stocks – midcap and smallcap stocks – have tumbled up to 5 per cent.
Market experts say that rising inflation, momentum in the bond yields, constant FII outflows, rising commodity prices, war crisis between Russia and Ukraine and supply chain disruptions are hurting the market sentiments.
Siddharth Oberoi, Founder, Prudent Equity, said global issues have increased the costs for most producers. “A hit in corporate profits is expected, especially for businesses unable to pass on the costs to the end users.”
FIIs have been on a selling spree for the last seven months. Their aggregate selling is the highest ever witnessed by the Indian market, he added. “This along with an already high-priced market, the upside has remained capped.”
The list is topped by Adani Group’s power arm, Adani Power, which has zoomed 181 per cent since the beginning of the year. The scrip has rallied to Rs 280.3 by the end of April from its close at Rs 99.75 on December 31, 2021.
It is followed by Chennai Petroleum Corporation, which has gained about 172 per cent, whereas Gujarat Mineral Development Corporation (GMDC) has zoomed 154 per cent in the first four months.
Swan Energy (119 per cent up), Adani Green Energy (117 per cent up) and TGV SRACC (109 per cent up) are other counters to more than double investors’ wealth in the current year.
Majority of the multibagger counters are from power, energy or commodity chemicals. Such sectors have been in favour lately amid the rising demand for commodities and energy across the globe.
“The country has seen a spike in peak demand on account of 100 per cent electrification and rise in air-conditioning penetration. Peak power shortage has risen to 3.9 per cent and coal inventory has reduced to eight days from 25 days earlier,” said Charanjit Singh, fund manager of DSP Mutual Fund’s TIGER scheme.
“This is creating a positive sentiment for power companies which were struggling at one time price to book and ESG (Environmental, Social, and Governance) concerns,” he added.
Khaitan Chemicals & Fertilizers, Gujarat Ambuja Exports, Bharat Dynamics, Meghmani Finechem, BLS International Services, DB Realty are the counter to rise between 90-100 per cent between January-April 2022 period.
Interestingly, another 15 stocks have gained between 70-90 per cent during the period under review. More than 35 stocks have jumped more than 50 per cent since the beginning of the year.
Among largecaps and especially Nifty, financial services and consumers which comprise around 50-55 per cent, have got derated because of the challenges in the consumption segment, says Shreyash Devalkar, Senior Fund Manager- Equity, Axis Mutual Fund.
“The weightages of that segment is higher in the largecaps and that is why on the index front also, largecaps have underperformed midcaps,” he added.
However, the bears have had an upper hand over bulls in 2022 so far as the number of wealth destroyers is higher than those who delivered positive returns.
As many as eight companies have tanked between 50-70 per cent during the period. Other than five beleaguered Future Group stocks, the list includes One97 Communication, Yaari Digital Integrated Services and KBC Global.