Bulls or Bears: Jury is still out on that one

Since March 9, 309 stocks have outperformed the Sensex, which gained 35% in 24 trading sessions BULLS may be on the rampage, with more than half the companies in the BSE-500 index outperforming the benchmark 30-share Sensex since the rally began on March 9, but the jury is divided if the surge is for real — and will hold.     Some 309 stocks have outperformed the Sensex, which has gained a little over 35% in 24 trading sessions since March 9. Of these, 21 stocks more than doubled in price, while 169 posted more than 50% gains.     Some market watchers say the latest surge is indicative of confidence returning to the market. “A number of these stocks were quoting at absurd valuations — in some cases even below the cash-in-hand these companies possessed,” said C.J. George, managing director of Geojit Financial Services. “Probably, the markets saw some kind of a stoppage of selling by FIIs at those levels, which triggered this bull run.”     According to Mr George, the future direction of the market hinges on the outcome of elections. If a new government is formed with reasonable majority, then it can be safely presumed that the worst is over for the capital markets, he said.     But not all believe this rally is for real, with Anup Bagchi, executive director at ICICI Securities, calling it a bear market rally and urging investors to be cautious. “Most of the stocks which have given phenomenal returns are low-floating ones. While there are positive signs on the stimulus package, it’s still early days to pronounce any judgement on whether bulls are indeed back or not,” Bagchi said.     Leading the bull charge are Alok Industries, a Mumbai-based textile company, and Mukesh Ambani-controlled Reliance Industrial Infrastructure, an infrastructure development firm. These two stocks have risen more than 200% since March 9.     Stocks that rose more than 100% include five IT companies (Rolta India, Tanla Solutions, C M C, Core Projects & Technologies and K P I T Cummins Infosystems), three realty companies (Unitech, Mahindra Lifespace Developers and Housing Development & Infrastructure), two infrastructure companies (Jai Corp and I C S A India), two oil companies (Essar Oil and Aban Offshore), two media companies (Prime Focus and Deccan Chronicle Holdings), two retail companies (Gitanjali Gems and S Kumars Nationwide) and one each from cements, copper and hospitality sector (Mysore Cements, Hindustan Copper, Country Club).     aman.dhall@timesgroup.com

 

 

 

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