Sensex @ record high: This stock turned multibaggers since the last high | Rare Techy
With a return of 238% PSU defense stock
tops the list of best performing stocks in the BSE500 pack, shows data from ACE Equity.
The list is dominated by three Adani stocks – Adani Total Gas (164.55%), Adani Power (160.42%) and
Bharat Dynamics and
Ltd (RVNL) are the other two PSU stocks that have more than doubled during that period.
Others on the multibagger list include
Bharat Dynamics, , and.
On the other hand, at least 13 stocks have eroded wealth by more than 50% from the last market high. Bhopal based construction company
has been the worst performer with a loss of over 66%. Zomato, , , , Mastek, Quess Corp and Vaibhav Global have been other top wealth eroders during the period.
What should investors do?
Many analysts are cautious about high valuations amid the looming demand slowdown but say there are enough opportunities for stock picking in the broader market as some pockets do not participate in the rally.
The current leg of the rally is driven by heavyweights like HDFC Bank, ICICI Bank, HDFC, Infosys, TCS, HCL Tech and RIL. “But the market is unlikely to surge from record highs since the valuation headwind will act as a restraint,” said Dr. VK Vijayakumar, Chief Investment Strategist at
Domestic brokerage firm Nuvama Institutional Equities has an overweight stance in FMCG, auto, telecom, internet and pharmaceutical stocks and underweight in industrials, commodities, real estate and durables.
Global brokerage Goldman Sachs, which expects the Nifty to touch 20,500 by the end of 2023, is bullish on banks, insurance, industrials and cement.
Over FY22-24, Nifty earnings seen growing at 14.9% CAGR, domestic brokerage
said. “Keeping some PEs the same, we currently value Nifty at 20,000 ie 21x PE on FY24E EPS of Rs 950. On the earnings front, the BFSI space is witnessing a healthy earnings upgrade (led by corporate banks) while marginal upgrades are being witnessed in FMCG, IT. & oil & gas space,” he said.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not reflect the views of Economic Times)