On Thursday, the government plans to eliminate the restrictions imposed when the COVID-19 problem first hit India in March 2020. From then until now, the Indian stock market has had amazing lows and remarkable highs, with benchmark indexes seeing a consistent degree of volatility.
But, despite the huge changes in share prices, several firms have withstood the storm and given steady returns to investors.
According to ICICI Securities research, 18 equities in the NSE100 index qualify as resilient outperformers – those that profit more during market upswings and lose less during market downturns.
The outperforming stocks come from conglomerate-driven sectors like energy, retail, and telecom, as well as metals, energy, retail, industrials, financials, and exporters like IT services, pharmaceuticals, and chemicals, according to the brokerage.
Meanwhile, the NSE Midcap, NSE Smallcap, NSE High Beta, Nifty Metals, Nifty Infra, Nifty Auto, and BSE Consumer Durables were the top sectoral indexes that outperformed.
The firm defines resilient outperformers as stocks/indices that have outperformed in at least half of the cases, both during market up and down swings. Additionally, to qualify as a robust outperformer, the stock/index should have beaten Nifty for the whole time under investigation (since Mar’20), according to the brokerage, which added that the stock should be on the F&O list for meeting the requirement of enough liquidity.
Since the lows of March 2020, when the initial restrictions on activity were placed, the Nifty50 has climbed by 10% or more seven times and fallen by 6% or more six times, according to ICICI Securities.
Over this time, the markets have experienced three COVID waves, a full cycle of US monetary policy from ultra-easy policy to rate rises and the present surge in commodity prices as a result of Russia’s invasion of Ukraine.
According to ICICI Securities, the COVID period saw a substantial change in the fabric of stock markets, with cyclical and capital-intensive industries and export-oriented equities displaying resiliency.
These equities have also profited from the nature of India’s economic recovery, which has been powered by commodity price increases, the investment cycle, construction, exports, and pent-up discretionary demand.
The brokerage subscribed midcaps and smallcaps’ resilience to the valuation gap that was established with large caps during the first phase of outperformance following March 2020.
It went on to suggest that the post-COVID growth spurt was primarily coming from small and midcap companies.
These equities have also profited from the nature of India’s economic recovery, which has been powered by commodity price increases, the investment cycle, construction, exports, and pent-up discretionary demand. The brokerage ascribed midcaps and smallcaps’ resilience to the valuation gap that was established with large caps during the first phase of outperformance following March 2020.
It went on to suggest that the post-COVID growth spurt was primarily coming from small and midcap companies.
