Markets across the world dropped heavily in Mar 2020 due to the new about Corona Virus Covid-19 Pandemic including our Indices. Both our Sensex and Nifty touched recent low on 23rd March and recovered sharply after that. Here is a summary of stocks performance during this recovery times – in large, mid and small caps.
Large Caps
In large caps two stocks gained more than 50% – Cipla and IGL (Indrapstha Gas). PEL, Icici Pru life insurance, Muthoot Finance and Tornt Pharma gained more than 40% in last two weeks period. Stocks like Hdfc life, Reliance, Sun pharma, Axis bank, Sbi life, Abbot India, Hindustan Zinc and Godrej Consumer Products gained more than 30% during this recovery period in largecaps.
Mid Caps
In Mid caps Auro Pharma is the only company gained more than 50% during the above mentioned period. Stocks like Icici securities, Alembic Pharmaceuticals, Avanti Feed, Shriram Transport Finance, ITI and Emami ltd zoomed more than 40% after 23rd March. Ajanta Pharma, Manappuram, Aarti industries, Jubilant, Ofss, NIACL, Godrej Agro and Amaraja batteries are the stocks which gained more than 32% in the last few trading sessions after the big crash on 23rd March.
Small Caps
In the small caps here we are taking only the first 250 small caps stocks. In that few stocks zoomed more than 50% during the period – HSCL, FACT, Gujarat Alkali, Baramchin, RCF and Venkeys. Stocks like caplipoint, BEML, Rallis, Granules, Wockpharma, JK paper, Navinflour, Intellect and Graphite surged more than 41% during the above mentioned period.
Overall our markets and stocks performed very well during the period compared to other many major international markets mainly due the hope that we can manage corona outbreak better compared to European countries and US. Even though cases are raising in past few days overall it is still under control and better than many developed nations.
But remember still we are in like a bear market situation and still down almost 30% from our recent highs so we cannot fully rely on this recovery. Also cases in India are increasing at an alarming rate. All business activities are stopped for past 2 weeks and going to be standstill for another two weeks as Govt of India decided to extend the lock down by another two weeks.
So our economic activities and business sentiments are not going to be same any time soon and most companies are going to report a negative return in this quarter. So be very careful while investing in this time. Invest in diversified and well managed companies with good cash balance, low debt and good track records because nobody know when this issue is going to be over. Also always keep some cash in hand so that if markets comes down further you will be able to buy attractive stocks at much cheaper price.
Keep an eye on above mentioned stocks because these are the stocks much sought as investors jumped in to these stocks when there was a positive sentiments in last two weeks. So even if markets goes down further it will be a good opportunity to accumulate these quality stocks.