These 12 stocks turn multibaggers, up 104-335%, from last record high to current record high

This year has been a roller coaster ride for markets and for the investors. From a high in January to a low in March due to COVID-related disruption and then near high now.

Investors who had invested during COVID-led crash made real wealth in just nearly 8 months.

The market corrected 40 percent in two months to hit more than four-year low of 7,511 in March 2020, from its earlier record high seen in January 2020.

However, it recovered quite sharply. The benchmark indices rallied around 65 percent in nearly 8 months to hit a fresh high of 12,451.80 on the Nifty50 on November 9.

Positive global cues (certainty in the US after elections, with Democratic Party's Joe Biden becoming 46th US President), consistent FII inflow, better-than-expected earnings and improving economic data points month-after-month were real drivers for the record high.

"Market has remained strong on the back of good Q2 earnings and positive global backdrop for the past few trading sessions. Q2 FY21 Corporate commentary is positive on demand recovery with discretionary demand seeing an uptick during the festive season," Hemang Jani, Head – Equity Strategist at Motilal Oswal Financial Services told Moneycontrol.

In these two time periods - from last record high date (January 20) to fresh record high today (November 9), 12 stocks turned multibaggers, i.e. rising more than 100 percent, but the advance decline ratio was largely in favour of bears during same period which means 300 stocks declined against 200 rising stocks in the BSE 500 and the participation at index level, too, was led by only two sectors (IT and Pharma) while the rest are still in red.

These 12 stocks were Adani Green Energy, Laurus Labs, Alkyl Amines Chemicals, Granules India, Birlasoft, Dixon Technologies (India), Indiamart Intermesh, Navin Fluorine International, Tata Communications, Vaibhav Global, JB Chemicals & Pharmaceuticals and Thyrocare Technologies which rallied 104-335 percent.

Of these 12 stocks, seven stocks hit a 52-week low in March when pandemic hit the street badly and other five stocks did not fall below their 52-week low touched in November 2019, during COVID-led crash in March.

Moreover, the next 31 stocks also created wealth, rising at least more than 50 percent during benchmark index' last record high to current record high.

Ipca Laboratories, Affle (India), Escorts, Amber Enterprises, Syngene International, Astrazeneca Pharma, Divis Laboratories, Strides Pharma Science, L&T Infotech, Tata Elxsi, Cipla, Persistent Systems, Muthoot Finance, Cadila Healthcare, PI Industries, Aurobindo Pharma, Dr Reddy's Laboratories and Mindtree are among 31 stocks.

On the contrary, nearly 250 stocks corrected in double digits from last record high to current record high dates.

Of which, top 51 stocks were down between 40 percent and 80 percent including Future Retail, Chalet Hotels, Raymond, Canara Bank, Tata Chemicals, Shoppers Stop, Punjab National Bank, Indiabulls Real Estate, Greaves Cotton, Bank Of Baroda, SpiceJet, Lemon Tree Hotels, Edelweiss Financial Services, IIFL Finance, Ashoka Buildcon, Vakrangee, ONGC, Kalpataru Power Transmission, L&T Finance Holdings, Welspun Corp, Delta Corp, Adani Power and NCC.

Experts feel the rally, so far, seen in the equity market was largely led by few stocks and sectors, but unless and until above mentioned stocks participate in the market, the market rally seems to be unsustainable in the short term but the medium to long term trend remains strong.

"Investors should stay invested in the markets despite any short term volatility in the markets. While markets are not cheap at current levels, they are also not very expensive and therefore we believe that a 10-12 percent upside on the Nifty is very much possible in the markets over the next one year, but broader markets could outperform benchmarks over the next one year given expectations of faster earnings recovery," Jyoti Roy, DVP- Equity Strategist at Angel Broking told Moneycontrol.

"Increasing likelihood of a second US stimulus package coupled with low interest rates globally should also result in a supportive global market. Increasing likelihood of vaccination starting in the beginning of 2021 should also provide support to the markets," he said.

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