Kshitij Anand Moneycontrol News
The S&P BSE Sensex rallied by 6.6 percent to reclaim its crucial resistance of 35,000 in April after correcting by around 8 percent over the last two months. But even amid all this volatility, there was plenty of stock-specific action that kept investors busy.
As many as 243 stocks on the BSE 500 index have outperformed the Sensex over the last one month. Nearly 400 stocks on the index ended the month in the green, and around 40 stocks gained more than 20 percent. In fact, one stock -- Indiabulls Ventures -- more than doubled investors’ wealth in that period.
The stock has been in focus ahead of the company's March quarter results, and on expectations of a preferential issue of shares. A meeting of the board of directors of the company will be held on May 4, 2018, to consider and approve a preferential issue to certain foreign investors.
Apart from Indiabulls Ventures, other stocks that remained on buyers’ radar include Astar Microwave (up 41 percent), MindTree (up 40 percent), Zensar Technologies (up 40 percent), GATI (up 36 percent), NIIT Technologies (up 35 percent), and Take Solutions (up 33 percent).
The market gained some much-needed stability in April after bearing the brunt of the bears in February and March. Benchmark indices dived below their crucial support levels, with the Nifty actually breaking below 10,000.
Most experts feel that the market is likely to remain volatile in the short term amid uncertainty around the Karnataka assembly elections, rising crude oil prices and rate action by the US Federal Reserve this year. Positive news from the Korean peninsula is also acting as a fresh tailwind for equity markets across the globe.
The market may be looking to find its feet after its recent fall, but the mid-to-long term outlook is good, Sundaram Mutual Fund’s Krishna Kumar told CNBC-TV18 in an interview.
"There have been many positive developments on the global front, peace among Koreans, etc., have all been there. Fundamentally, earnings trends have been extremely good this time, barring corporate lenders. With monsoon likely to be normal, there are many tailwinds as well," said S Krishnakumar, CIO, and EVP, Sundaram Mutual Fund. Having said that, he does not rule out volatility due to elections.
Foreign investors remained net sellers in April, having net sold shares worth over Rs 5,000 crore. On the other hand, mutual funds bought shares worth over Rs 9,000 crore (net) during the same period, NSDL data collated till April 25 revealed.
Although the bulls remained in control of D-Street in April, there were nearly 100 stocks that fell by over 50 percent during the month, which includes Vakrangee (down 55 percent), PC Jeweller (down 55 percent), Reliance Naval (down 33 percent), Reliance Communications (down 30 percent), DCM Shriram (down 21 percent), and Kwality (down 19 percent).
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