BSE Sensex, the Indian equity benchmark index, has rallied nearly 6,300 points or 8.2% in the first 100 days of Prime Minister Narendra Modi’s third term. This remarkable rise has come despite concerns surrounding increases in capital gains tax, and BJP not securing a majority in the Lok Sabha elections on its own.
Coinciding with PM Modi’s birthday, the journey to the 100-day mark has witnessed exceptional performance from smallcap stocks, with at least 18 of them delivering multibagger returns, according to data from ACE Equity quoted by ET.
The BSE Smallcap index has risen by approximately 18% during this time. Interestingly, a shift in investor preference from momentum plays to defensive sectors is evident, with the BSE IT index and BSE Healthcare index emerging as the top sectoral gainers, registering returns of 22% each.
The consumer durables sector follows closely, with a 17% return in the first 100 days. Conversely, the metals index has declined by over 3%, while the realty sector has lost 1% of its value, the report said.
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Among the top-performing smallcap stocks, Refex Industries stands out with an impressive 221% rally in just 100 days. Other notable winners include PC Jeweller (175%), Balu Forge Industries (167%), Gravita India (131%), PG Electroplast (118%), Godfrey Phillips India (114%), and Neuland Laboratories (103%).
Looking ahead, while maintaining a bullish outlook from a long-term perspective, most investors remain cautious about the near-term market prospects.
Factors such as tax hikes on equity capital gains, potential slowdowns in government capital expenditure, and policy risks are contributing to this cautious sentiment.
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However, global brokerage firm Jefferies remains optimistic, stating, “We remain bullish from a long-term perspective as investments driven GDP growth drives corporate earnings. Domestic flows could trend down to a more sustainable level in the near term but potential improvement in foreign flows would act as a cushion.”
Domestic brokerage firm Prabhudas Lilladher has valued the Nifty at a price-to-earnings ratio of 20.2x and arrived at a bull case target of 28,564. The brokerage anticipates that expectations of strong festival season demand, rural revival, and interest rate cuts will provide support to the markets.
However, they emphasize the importance of monitoring the US elections, given the rising geopolitical tensions globally. Prabhudas Lilladher expects a tilt towards defensive sectors such as consumer, durables, building materials, IT services, pharmaceuticals, and telecom, considering the rich valuations in some growth sectors.
Coinciding with PM Modi’s birthday, the journey to the 100-day mark has witnessed exceptional performance from smallcap stocks, with at least 18 of them delivering multibagger returns, according to data from ACE Equity quoted by ET.
The BSE Smallcap index has risen by approximately 18% during this time. Interestingly, a shift in investor preference from momentum plays to defensive sectors is evident, with the BSE IT index and BSE Healthcare index emerging as the top sectoral gainers, registering returns of 22% each.
The consumer durables sector follows closely, with a 17% return in the first 100 days. Conversely, the metals index has declined by over 3%, while the realty sector has lost 1% of its value, the report said.
Also Read | Jim Rogers warns: ‘America & world long overdue for a problem; next market sell-off will be…’
Among the top-performing smallcap stocks, Refex Industries stands out with an impressive 221% rally in just 100 days. Other notable winners include PC Jeweller (175%), Balu Forge Industries (167%), Gravita India (131%), PG Electroplast (118%), Godfrey Phillips India (114%), and Neuland Laboratories (103%).
Looking ahead, while maintaining a bullish outlook from a long-term perspective, most investors remain cautious about the near-term market prospects.
Factors such as tax hikes on equity capital gains, potential slowdowns in government capital expenditure, and policy risks are contributing to this cautious sentiment.
Also Check | Top 10 Richest Indian Persons 2024: Gautam Adani Tops List! Where Do Mukesh Ambani, Shiv Nadar, Azim Premji Rank? Check List
However, global brokerage firm Jefferies remains optimistic, stating, “We remain bullish from a long-term perspective as investments driven GDP growth drives corporate earnings. Domestic flows could trend down to a more sustainable level in the near term but potential improvement in foreign flows would act as a cushion.”
Domestic brokerage firm Prabhudas Lilladher has valued the Nifty at a price-to-earnings ratio of 20.2x and arrived at a bull case target of 28,564. The brokerage anticipates that expectations of strong festival season demand, rural revival, and interest rate cuts will provide support to the markets.
However, they emphasize the importance of monitoring the US elections, given the rising geopolitical tensions globally. Prabhudas Lilladher expects a tilt towards defensive sectors such as consumer, durables, building materials, IT services, pharmaceuticals, and telecom, considering the rich valuations in some growth sectors.
