Since Dussehra 2021, the Indian stock market has scaled not only record highs but also plumbed 52-week lows, with benchmark indices falling more than 5 percent.
After hitting record highs in October last year, the stock market has not seen those levels again.
Stock indices have consolidated and corrected amid valuations concerns, policy tightening by global central banks to tame inflation that sparked recession fears in the US and Europe, geopolitical tensions that triggered Russia’s invasion of Ukraine and an increase in oil prices.
Even the breadth of BSE500 stocks was largely in favour of declines, with the index itself falling nearly 5 percent between October 15, 2021 and October 5, 2022.
But among the 500 stocks, more than 180 delivered positive returns in the same period.
And among those gainers, the top 9 stocks were multibaggers, delivering triple-digit returns.
Adani Power and Adani Wilmar topped the list with a more than 200 percent rally from Dussehra 2021.
They were followed by Bharat Dynamics, Adani Total Gas, Deepak Fertilizers and Petrochemicals, Schaeffler India, Elgi Equipments, Mazagon Dock Shipbuilders, and Tube Investments of India, which all gained more than 100 percent.
The next 30 stocks from the BSE500 index surged 50-97 percent in the same period.
They included Adani Transmission, Adani Enterprises, Tata Teleservices (Maharashtra), Shree Renuka Sugars, KPIT Technologies, Gujarat Fluorochemicals, Latent View Analytics, Varun Beverages, TVS Motor Company, Adani Green Energy, Welspun Corp, Asahi India Glass, Devyani International, Mahindra Lifespace Developers, Timken India, ABB India, Lemon Tree Hotels, Hindustan Aeronautics, Triveni Turbine, Thermax, Indian Hotels Company, KSB, Minda Corporation, Bank Of Baroda and Esab India.
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If we look closely at the above list, Adani group stocks dominate because of the signing of several potentially lucrative deals and a robust outlook across segments.
All the Adani group stocks are in the list of the top 100 stocks by market capitalisation with Adani Enterprises, Adani Transmission, Adani Total Gas and Adani Green Energy valued at between Rs 3 lakh and 4 lakh crore in terms of market capitalisation.
Among sectoral indices since last Dussehra, BSE IT has been the biggest loser, falling more than 27 percent, followed by Realty with a 20 percent loss and Metals and Healthcare that have declined more than 10 percent each.
The underperformance of the IT and healthcare sectors was on account of subdued demand from abroad and pricing pressure. Metals reversed earlier gains because of a sharp fall in prices and fears of a global recession.
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Power clocked the biggest gain among the sectoral benchmarks, rising 34 percent, followed by Capital Goods that gained 15 percent. Auto and FMCG also supported the market with 10 percent and 6 percent gains.
Automobile sales rose due to an easing of chip shortages, launch of new models and pent-up demand for personal mobility and replacement.
Fast-Moving Consumer Goods also did well. ITC and some other stocks in the sector performed well because of a revival of urban demand, said Deepak Jasani, Head of Retail Research at HDFC Securities.
In the second half of the fiscal year, he sees healthcare coming back into favour partly as a defensive sector.
"FMCG could continue to do well although at a slower pace and some cyclicals coming under some pressure on valuation and growth concerns," Jasani said.
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