52% in red, 48% in green: This is how BSE 500 index played with colours since Holi 2022

Green and red are the two colours of Dalal Street. Where the former indicates that the stock is trading at a higher price, the latter indicates the scrip is trading lower than its previous price. This Holi, the colour of the broader market is red as nearly 52 per cent of stocks in the BSE 500 index traded lower than the price a year ago.

With a fall of 69 per cent, Adani Green Energy emerged as the top loser in the BSE 500 index. Shares of the company retreated to Rs 590.10 on March 6, 2023 from Rs 1905.75 on March 17, 2022. It was followed by Brightcom Group (down 68.70 per cent), Adani Transmission (down 67.30 per cent), Gland Pharma (down 61.20 per cent) and Tanla Platforms (down 55.60 per cent). 

HLE Glascoat, Adani Total Gas and TV18 Broadcast also declined by more than 50 per cent since Holi 2022. On the other hand, the benchmark BSE Sensex gained 4 per cent during the same period, while the BSE 500 index gained just 1.15 per cent during the same period.

Mark Matthews, Head Research Asia, Julius Baer maintained an overweight stance on India, with a Sensex target of 70,000, indicating an upside of over 16 per cent from the current levels.

Global X Management Company in a report said, “While a global slowdown will also likely taper India’s growth, we believe investors will converge to the most resilient option, and India demonstrates a compelling environment. Aside from a significant tail-risk scenario, we continue to remain optimistic on Indian equities and view it as a buy-on-dip market.”

Market watchers believe that a couple of factors including the Russia-Ukraine war, sky-rocketing inflation and tightening financial conditions weighed market sentiment in the past 12 months.

As many as 236 stocks in the BSE 500 index delivered a positive return to investors since last Holi. Five of the stocks in the index climbed more than 100 per cent during the same period. Shares of Mazagon Dock Shipbuilders gained 187.30 per cent to Rs 732.60 on March 6, 2023, from Rs 255 on March 17, 2022. Mahindra CIE Automotive, UCO Bank, Lloyds Metals & Energy and Varun Beverages also gained somewhere between 110 per cent and 135 per cent.

Punjab & Sind Bank, Triveni Turbine, CG Power and Industrial Solutions, TVS Motor Company, Tube Investments of India, Union Bank Of India, Indian Bank, Raymond, Hindustan Aeronautics, Rail Vikas Nigam, Kalyan Jewellers India, Aegis Logistics, Godfrey Phillips India and Finolex Cables also gained over 75 per cent in the last one year.

In the BSE Sensex pack, as many as 12 stocks declined in the past one year. Shares of Wipro, Tech Mahindra, Tata Steel, Infosys, Bajaj Finserv, Bajaj Finance and Titan Company plunged over 10 per cent since Holi 2022. On the other hand, Housing Development Finance Corporation, State Bank of India, Maruti Suzuki India, Ultratech Cement, Axis Bank, Hindustan Unilever, Larsen & Toubro, IndusInd Bank, ICICI Bank, NTPC, ITC and Mahindra & Mahindra gained somewhere between 10 per cent and 60 per cent during the same period.

While sharing its view and top stock ideas, brokerage Motilal Oswal Financial Services in a report said, “Corporate earnings for Q3FY23 were below our expectations led by weak demand environment and macro headwinds, with financials and autos holding the fort once again. The slowdown in consumption is a material concern if trends don’t reverse immediately.”

The brokerage prefers BFSI, IT, industrials, auto and cement sectors. Stocks including TCS, ITC, Bharti Airtel, L&T, Bajaj Finance, Axis Bank, Sun Pharma, Titan Company, ONGC, M&M, Samvardhana Motherson and PI Industries are among its top large cap ideas. In the midcap and smallcap space, the brokerage is positive on Dalmia Bharat, APL Apollo Tubes, Jubilant Foodworks, Poonawalla Fincorp, Metro Brands, Angel One and Lemon Tree Hotel.

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