One year of lockdown: These Nifty stocks delivered over 100% return

As many as 20 components in the Nifty index has surged over 100% amid the ongoing bull run on Dalal Street since March 24 last year, the day lockdown restrictions were announced.

With a rally of 342%, Tata Motors emerged as the top gainers in the list. The scrip has advanced to Rs 303.05 on March 22 from Rs 68.55 in March last year. It was followed by Hindalco Industries (up 282%), Grasim Industries (up 253%), Mahindra & Mahindra (up 217%) and Adani Ports and Special Economic Zone (up 211%).

Overall, market sentiment remained buoyant during the year due to liquidity measures taken by the central banks and governments. Sustained inflows by foreign institutional investors further aided market sentiment.

Market experts are advising investors to accumulate largecaps on dips. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “Fears of the second wave of the pandemic impacting GDP growth in FY 22. This might be leading to selling in the economy-facing stocks like banks. Investors may consider buying into such largecaps on declines. A major macro positive is a sharp rise in tax collections which will put government finances in better shape.”

On the other hand, brokerage Motilal Oswal Financial Services like players like ICICI Bank, SBI, Axis Bank, UltraTech Cement, M&M, L&T, Hindalco, Infosys, HCL Technologies, Titan, HUL and Sun Pharma in the largecap space.

Data further highlighted that players like IndusInd Bank, JSW Steel, Tata Steel, UPL, Axis Bank, Infosys, UltraTech Cement, HCL Technologies, Reliance Industries, Bajaj Finance, Bajaj Finserv, Cipla, Tech Mahindra and State Bank of India have rallied between 100%-210% during the past one year.

Angel Broking is positive on HCL Technologies with a price target of Rs 1,161. “Management has highlighted that demand and supply related issues are now over for the company and the deal pipeline has improved significantly since September led by cloud-related services. Management has guided for 2-3% qoq growth in revenue in constant currency terms for the rest of the year providing visibility,” the brokerage said.

Rajesh Agarwal, Head of Research, AUM Capital Market said, “We believe that the markets hold promise over the medium to long term. Although after such a relentless move in the recent past (Nifty from lows of 7,511 to over 15,000) one might witness some amount of correction or consolidation. However, improvement in economic activity, favourable external scenario, monetary and fiscal measures undertaken along with relatively better placed rural economy would yield result in the long term.

Engineering major Larsen & Toubro (L&T) also gained 98% during the one year of lockdown. On the other hand, private sector lenders including ICICI Bank and HDFC Bank also gained more than 90%. Auto majors Hero MotoCorp (up 90%) and Bajaj Auto (up 89%) also managed to outpace the Nifty index, which gained 89% during the past one year.