Less than 10 Nifty stocks give double-digit returns in Q2; can the largecaps find favour in Q3?
quarter which brought back inflation concerns on Dalal Street did weigh on the performance of benchmark indices and its constituents, as less than 10 stocks that are part of the Nifty 50 have given double-digit returns in this period.
The Nifty 50 net gained about 2% in the current quarter, compared to the 10% gains it clocked in the June quarter.
Nine of its 50 constituents gave 10-26% returns in the September quarter.
Of these 9 constituents, three are public sector companies.
The nine stocks are Coal India, NTPC, Larsen & Toubro, Oil and Natural Gas Corp, Cipla, Tata Steel, Adani Ports and Special Economic Zone, Hindalco Industries, and Grasim Industries.
Public sector companies’ stocks were in favour in the quarter, which reflects in the 16% gains registered by the Nifty PSE index.
Similarly, Nifty CPSE index gained 17%.
The increasing preference over domestic-oriented industries, particularly those in the manufacturing space has driven the gains in the PSU stocks.
Meanwhile, among private players, engineering major Larsen & Toubro clocked 22% gains and also scaled a lifetime high in trade on Thursday.
Money managers are increasingly betting on India’s growth prospects given the government’s enhanced focus to boost infrastructure and revive the capex cycle.
L&T is often seen as a proxy to India’s infrastructure story.
“If India’s economic growth story has to happen, if India’s investment cycle has to happen, L&T is the flag bearer of that,” says Vikas Khemani of Carnelian Capital Advisors.
The investment cycle in India and in the Middle East region is picking up in a big way, and L&T has a very strong position in both these regions.
