With a return of 238% PSU defence stock
tops the list of best performing stocks within the BSE500 pack, shows data from ACE Equity.
Bharat Dynamics and
Ltd (RVNL) are the two other PSU stocks that have more than doubled during the period.
Others on the multibagger list include
, Bharat Dynamics,
On the other hand, at least 13 stocks have eroded wealth of over 50% since 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 looming demand slowdown but say there are enough stock picking opportunities in the broader market as several pockets have not participated 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 the record highs since the valuation headwind will act as a restraint,” said Dr V K Vijayakumar, Chief Investment Strategist at
Domestic brokerage firm Nuvama Institutional Equities has an overweight stance on FMCG, auto, telecom, internet and pharma stocks and underweight on industrials, commodities, real estate and durables.
Global brokerage Goldman Sachs, which expects Nifty to reach 20,500 by the end of 2023, is bullish on banks, insurers, industrials and cement.
Over FY22-24, Nifty earnings are seen growing at 14.9% CAGR, domestic brokerage
said. “Keeping the same PE multiple, we now value Nifty at 20,000 i.e. 21x PE on FY24E EPS of Rs 950. On forward earnings front, BFSI space witnessed healthy earnings upgrade (led by corporate banks) while marginal upgrades were witnessed in the FMCG, IT & oil & gas space,” it said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Download The Economic Times News App to get Daily Market Updates & Live Business News.