Sensex Down 3,000 Pts From Peak, But These 30 Stocks Filled Investors’ Piggy Banks!
The BSE Sensex is down more than 3,000 points from the peak tested in December 2022, but more than 130 stocks have given positive returns, and at least 30 of them have seen a double-digit rise in prices.
The Sensex hit a record high of 63,284.19 points on December 1, but has since then been on a southward journey as the sharp spike in COVID cases in China triggered fresh concerns over its impact on the fragile global economic recovery. This saw foreign institutional investors take money back home.
But an analysis of the performance of stocks that are part of the Nifty 500 index showed that stocks like Suzlon Energy, Hindustan Zinc, Max Financial Services, KEC International, Godfrey Phillips, New India Assurance Company, Swan Energy, PNB Housing Finance, and Jindal Stainless have gained 10-33% since December 1.
Infact, state-owned Fertilisers & Chemicals Travancore (FACT) turned a multibagger, having gained more than 129%.
The analysis also showed that one sector that topped the list of outperformers was the banking sector. In the pack, 17 stocks bucked the index trend to give positive returns to the tune of 1-47%.
Public sector banks remained the darling of the Street as they gained by a majority. UCO Bank, Central Bank of India, Indian Overseas Bank, Bank of Maharashtra, Bank of India, Bank of Baroda, Punjab National Bank, Indian Bank, and IDBI Bank joined the gainers’ list.
IDFC First Bank, Bandhan Bank, Federal Bank, IndusInd Bank, Karur Vysya Bank, CSB Bank, RBL Bank, and YES Bank were among the private sector lenders to give positive returns.
What should investors do?
Public sector banks have been among the best bets for investors and despite the stellar run they had in 2022, experts see scope for more upside in the pack.
Not only in terms of stock performance, but according to Jefferies India, PSU banks are also bridging the gap with private sector peers on growth and return on assets fronts.
Their loan growth at 15% is just 5 percentage points below private banks’ versus the pre-Covid average gape of 17 percentage points, the brokerage said,
Still, PSUs’ valuations are at 70% discount to private banks, and this can narrow further, believes the brokerage.
Within the private banking space, RBL Bank looks positive but analysts expect some consolidation in the near term.
“RBL Bank has more than doubled from its June lows and we believe that the significant short positions that prevailed at that time triggered the upmove. The recent weakness in the stock has not invited any shorts, and we believe that the uptrend in the stock is still intact,” said Raj Deepak Singh, head – derivatives at ICICIdirect.
However, considering the trade set up in call options, Singh believes the stock has limited upside in the January series, and it is likely to remain below Rs 190.
“We believe stock may consolidate between Rs 170 and Rs 190 for a couple of weeks before a fresh upmove,” Singh said.
Besides RBL Bank, Singh is also positive on Max Financial Services and believes that dips in the counter should be bought.
“The stock is already trading near its highest call (option) base of Rs 800 strike price, and we expect the current uptrend to continue towards Rs 860-900 levels in the coming weeks,” Singh said.