BSE indices and smaller indices have fallen by 9 percent and 12 percent, respectively, by 2022 so far. On the contrary, BSE has declined by almost 6 percent over the period.
Despite this poor performance, some equities in the medium and small equities have reversed and returned handsome returns to investors.
According to information from Ace Equity, up to 33 shares have grown by more than 50 percent by 2022 so far. Among them, up to five counters have returned multiple returns to investors.
The inability of small and medium-sized enterprises can be attributed to factors such as the war in Russia and Ukraine, rising crude oil prices, inflation and persistent sales by foreign investors.
Palka Arora Chopra, vice president of mastertrust, said that small and medium-sized stocks have lost significant value in recent months, mainly due to strong stock market fluctuations.
Sunil Damania, Investment Manager of MarketsMojo, further said that after March 2020, the market has performed exceptionally well and medium and small companies have performed better than larger peers.
“In the next phase of the rally, which we expect to see in October 2022 in the Mediterranean and small seas, we believe that a new set of medium and small competitors will propel the rally and not those that have been at the forefront since March 2020, He added.
The list of performers is at the top of Adani Power, which has grown by 242 percent between January 1 and May 30. The certificate rose to Rs 340.75 on May 30 from the close of Rs 99.75 on December 31, 2021.
is another counter that has risen by 161 percent to 268.2 rupees on May 30.
Sharda Cropchem (112 percent increase),
(100 percent up) and (100 percent up) are the other multipackers.
Mitul Shah, head of research at Reliance Securities, said that companies with good quarterly results and which are not affected by high interest rates and inflation have returned healthy profits in recent months.
“Few industries have benefited from commodity inflation,” he added. “We anticipate that these quality centers with strong domestic as well as export potential would continue to perform better in the long run.”
Vadilal Industries, Swan Energy,
Bharat Dynamics, Meghmani Finechem and other counters have ranged between 80-100 percent.
Apcotex Industries, JK Paper, Khaitan Chemicals & Fertilizers and Petrochemicals, Orient Bell, GHCL are other companies that have returned more than 65 percent returns.
TGV SRACC, Vishnu Chemicals, Nava Bharat Ventures, Shanthi Gears, Raymond and Uttam Sugar Mills have risen between 55-65 percent.
Other counters that increase by more than 50 percent include
Andhra Paper,,, and.
The market has become wary of the valuation of medium and small stocks, as well as concerns expressed in some commodity stocks, which rose sharply after March 2020, Damania told MarketsMojo.
Market analysts believe that small and medium-sized companies continue to offer great opportunities for investors to make money. However, it takes some time to recover and rise again.
“We expect the stock market to remain under pressure above 1HFY23, while it would drop sharply to 2HFY23 with likely normal inflation, commodity cost softening and economic recovery,” Shah told Reliance Securities.
The bull run in the stock markets can not last forever and investors should wait for health adjustments to enter the market. Long-term investors should stick to solid fundamentals and not worry about short-term fluctuations.
It is not possible to expect the market to always be booming, some concentration is important as it helps developed and growing economies to achieve monetary and fiscal returns, said Chopra from mastertrust.
“Long-term investors can invest in companies with tangible fundamentals, and short-term investors can replace withdrawals with defined risk management tools and position size,” she said.
(Disclaimer: The opinions, recommendations, opinions and opinions of the experts are their own. This does not represent the views of the Economic Times)
Mail Bonus – #mediumsized #stocks #reversed #trend #year #rising