What a difference a day makes. On November 4, the US presidential polls were a dead heat. Many experts predicted that Kamala Harris would squeak out a win, while prediction markets were betting on Trump. On election day Donald Trump swept to an easy victory, defeating Democrats even in the historic strongholds of the 'blue wall' states.
What does this election result mean for India? A Trump administration would be more pro-market and pro-crypto. Trump, despite claiming to be 'a friend to India', is suspicious of globalization, and has promised a universal tariff of 10% on all US imports, and retaliatory tariffs on India.
Still, as many are discovering today, trying to predict the future is a dangerous game. So rather than make predictions, we look at the past and present. Past and present multibaggers, to be precise.
In a bull market, many investor portfolios are in the green. But when markets turn volatile, some stocks are better to hanging on to their gains than others.
In this week's Analyticks:
The steady ships: Companies and sectors that are holding on to their gains in a volatile market
Screener: Multibagger stocks which are rising in the past quarter
Let's take a closer look.
As the multibagger count falls, which stocks are holding up?
While investors watch the market mood closely, the still-standing Oracle of Omaha, Warren Buffett, has some advice: "Remember that the stock market is a manic-depressive." So amid the shifts that keep happening, we need to look for clear trendlines.
A useful marker of market bullishness is the number of multibaggers in the stock universe. As momentum turned positive at the end of 2023, the number of stocks with more than 100% change in share price jumped sharply, peaking in March 2024.
The momentum has slowed since then, although the decline has not been steep -- indices after all are still up 27% from September 2023.
The Nifty500 index however, shows a sharper swing. Gainers had surged by the end of March, but since then there has been a broad decline.
What is interesting are the stocks that have continued to surge. Currently, the big gainers in the Nifty500 are dominated by financial companies like exchanges (BSE, MCX), capital markets players (Motilal Oswal, CDSL, Nuvama Wealth), and funding agencies for the public sector (IREDA, IRFC). Manufacturing companies across industries are also upbeat - from consumer electronics players like Dixon Tech to equipment players like Kaynes Technology. In these sectors, the bullish sentiment has been consistent.
Capital market players in particular, have continued to outperform the market. Companies like Motilal Oswal, BSE and others are up by double-digit percentages over the past month. A surge in IPOs and inverstor interest in stocks and mutual funds has driven the growth of demat accounts, with an average of 4 million new accounts opening every month. And despite the muted forecasts for GDP, Indian manufacturing is showing signs of a recovery, with players across verticals reporting a jump in order book volumes and a rise in demand.
Both trendline and sector specific movements are going to be key for investors in the coming months. While economists and analysts are seeing a slowdown in GDP growth, some sectors will stay resilient, keeping gains strong in the top performers in these segments.
Screener: Multibagger stocks which are rising in the past quarter
Quarter winners: Tech, consumer electronics, industrials are among the big gainers
The Indian equity markets have seen a massive sell-off of Rs 88,267.9 crore by foreign investors in the past month, resulting in the Nifty 50 falling by 3.2% in the same period. In this volatile market, we look at multibagger stocks which have continued their growth. This screener shows multibagger stocks which are rising in the past quarter despite a volatile market.
The screener is dominated by stocks from the software & services, pharmaceuticals & biotechnology, general industrials, banking & finance, and consumer durables sectors. Most notable stocks in the screener are Trent, Oracle Financial Services Software, Dixon Technologies (India), BSE, PB Fintech, Bharti Hexacom, Kalyan Jewellers India, and Siemens.
Trent turns up in the screener after rising by 221.6% in the past year. This department stores company has continued this trend in recent months, rising 27.5% in the past quarter after posting positive results in Q1FY25 where its revenue and net profit grew by 54.8% YoY to Rs 4,150.4 crore and 126.3% YoY to Rs 392.6 crore, respectively.
The growth in stock price is further supported by new Westside and Zudio store additions in August. The company, which has fallen 5.4% over the past month, is set to release its Q2FY25 results on Thursday with Trendlyne’s Forecaster expecting its revenue and net profit to grow by 42.8% YoY and 102.2% YoY, respectively.
Investor darling Dixon Technologies (India) has risen 173.7% in the last year. This consumer electronics company’s stock price increased by 23.9% in the past quarter, driven by strong Q2FY25 results. Its revenue grew by 133.2% YoY to Rs 11,528.4 crore on the back of an improvement in the mobile phones, electronic manufacturing services (EMS), home appliances, and lighting products segments. On the other hand, net profit increased by 263.3% YoY to Rs 389.9 crore during the quarter. The company’s stock was also added to the MSCI index on August 13. It also entered memorandums of understanding (MoUs) with HP and Asus on September 9 and September 13, respectively, to manufacture laptops.
You can find some popular screeners here.
