Top stocks that made investors richer in first six months of 2021

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Broader markets clearly outperformed the benchmark equity indices BSE Sensex and NSE Nifty this year amid the ongoing rally on Dalal Street. On a year-to-date basis, the BSE Midcap and Smallcap indices have gained 39% and 26%, respectively. On the other hand, 30-share BSE index has advanced 10% to 52,735 as on June 28. Market analysts believe that factors like robust liquidity, lower interest rates, normal monsoon, gradual reduction in Covid-19 cases, inflows by foreign institutional investors and robust corporate earnings in Q3 and Q4 kept the momentum upbeat.

Largecap: Top gainers

With a rally of 218%, Adani Enterprises emerged as the top gainer in the largecap space. Shares of the company have advanced to Rs 1,526 from Rs 479 during the past six months. Adani Transmissions (up 165%), Tata Motors (up 87%), Tata Steel (up 84%) and JSW Steel (up 80%) stood among other top gainers in the top 100 stocks in terms of market capitalisation. Other majors like State Bank of India, Adani Ports, ONGC and Reliance Industries have gained between 5%-55% YTD.

Going ahead analysts believe that broad-based participation to continue with midcap and smallcap leading gains. Post Q4, ICICI Securities has upgraded the Nifty target to 17,500 with an equivalent Sensex target at 58,300, indicating a potential upside of around 10% from the present levels.

Top Gainers – Largecap

Data source: Ace Equity

Broader markets

At least 442 stocks in the midcap and smallcap space have more than doubled investors wealth in 2021 so far. Shares of Adani Total Gas jumped the most 201% YTD in the midcap space. It was followed by Indian Overseas Bank (up 146%), Adani Power (up 137%) and JSW Steel (up 126%). On the other hand, some 31 stocks including Central Bank of India, Polycab India, BHEL, Gujarat Gas, Dixon Technologies and Bank of India have also gained between 50%-100% YTD.

Top gainers: Midcap

In the smallcap space, little-known player Gita Renewable Energy jumped 1017% to Rs 74.90 on June 28 from Rs 6.70 on December 31. Chitradurga Spintex (up 896%), Nyssa Corporation (up 776%), Orchid Pharma (up 705%), Texel Industries (up 687%) and Diligent Media Corporation (up 651%) stood among other top gainers in the smallcap space. Overall, more than 90% of the stocks in the listed universe have managed to deliver a positive return to investors in the ongoing calendar year.

Commenting on the further movement of the domestic equity market, ICICI Securities said, “With the peak of the Covid resurgence behind us, increasing pace of vaccination domestically and calibrated state-specific unlocking underway, we expect economic activity to bounce back sharply in 9MFY22E. Our view is further reinforced by the step up capex by the government, which will create a multiplier effect on the economy. We expect the present broad-based up move in markets to continue, with smallcap and midcaps leading the gains.”

Top gainers: Smallcap

Top stocks to buy now

After the stellar performance of equities during the first of the ongoing calendar year, ICICI Securities still prefers ACC, Tata Communications, Power Finance Corporation, TVS Motors, Aditya Birla Capital, NHPC, Oil India and Federal Bank in the midcap space.

On the other hand, it is positive on Shriram City Union Finance, CESC, Mahindra CIE, Kalpataru Power, Engineers India, Bajaj Consumer, Karur Vysya Bank, Mishra Dhatu Nigam, PTC India, Green Panel Industries, Garden Reach Shipbuilders, VRL Logistics, Repco Home Finance and Visaka Industries in the smallcap space.

While sharing his advice with Money9.com, Abhishek Basumallick, Founder, Intelsense Capital said sectors like pharma, healthcare, chemicals, IT, real estate could do well. Also, emerging sectors like renewable energy looks very interesting at this point of time.