Marquee investors Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala, Ashish Kacholia, Dolly Khanna, Porinju V Veliyath, Sunil Singhania's Abakkus Fund and Mukul Agrawal made a fresh buy in 13 stocks in the quarter ended March 2021.
Jubilant Ingrevia, a specialty intermediate to pharma, agrochemical and other industries, entered the portfolio of ace investor Jhunjhunwala and his wife during the quarter, after the restructuring of Jubilant Life Sciences. He and his wife held a 6.29 percent stake in the company at the end of March quarter, according to data from Trendlyne.com.
Under the restructuring, Jubilant Life Sciences transferred all its life sciences business to its new subsidiary, Jubilant Ingrevia, and retained the pharmaceutical business with itself. Later Jubilant Life Sciences was renamed Jubilant Pharmova.
Well-known fund manager Sunil Singhania's Abakkus Emerging Opportunities Fund-1 acquired fresh shares totalling 1.06 percent in Easy Trip Planners, 2.38 percent in Nureca, and 1.01 percent in Sarda Energy & Minerals during the quarter.
Abakkus bought shares in online travel company Easy Trip Planners, and healthcare and wellness products distributor Nureca, through their initial public offerings (IPO) during the March quarter.
Kacholia picked up fresh stake in India's largest carbon black manufacturer, Phillips Carbon Black (1.45 percent), a part of the RP-Sanjiv Goenka Group, and Garware Hi-Tech Films (2.03 percent), the erstwhile Garware Polyester, one of the largest exporters of polyester films in India.
These investors' portfolio stocks are largely from the midcap and smallcap categories which outweighed frontline indices. The BSE Midcap and Smallcap indices surged 80 percent and 106 percent, respectively, in the last one year, much higher than the BSE Sensex that gained 53 percent in the same period.
In calendar year 2021 as well, these indices outpaced frontliners as the BSE Midcap index gained 23 percent and Smallcap 32 percent, while the Sensex was up nearly 9 percent.
Can the broader market outperformance continue?
Experts expect the momentum to continue in the broader space in the coming years, given the expected economic growth across segments. Hence, these stocks could also provide good returns in the coming period.
"The scenario for the broader markets has changed much, which is clearly visible in big investor’s portfolio too. We believe smallcaps and midcaps might outperform in the next few years. This transition is due to a structural shift owing to growth and under-performance for more than three years," Gaurav Garg, Head of Research, CapitalVia Global Research, told Moneycontrol.
Vinod Nair, Head of Research at Geojit Financial Services, also feels mid and smallcaps can continue their buoyancy at least in the short- to medium-term because they are disconnected compared to the performance of largecaps.
In the March 2021 quarter, Dolly Khanna made fresh buying into Neuland Laboratories, with a 1.26 percent stake, Mangalore Chemicals & Fertilizers 1.71 percent, and Asahi Songwon Colors 1.57 percent.
"Midcap pharma space is another pack where the traction might continue. We are overweight on Neuland Laboratories," Garg said.
"Also, these big investors have chosen stocks which are said to be new-age stocks, like Phillips Carbon Black and Garware Hi-Tech Films, where we are seeing a big upside from the current levels," he added.
Porinju V Veliyath, the fund manager and owner of Equity Intelligence India, bought fresh shares of 1.15 percent in Danlaw Technologies India, a leading global supplier of technology and services to the automotive and aerospace industries.
Mukul Agrawal, who held the portfolio valued at nearly Rs 1,700 crore, made fresh entry into engineering company Greaves Cotton with a 1.73 percent stake, and state-owned MSTC with 1.42 percent shareholding, and engineering solutions provider Thejo Engineering with 1.63 percent stake.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.