The year 2020 has been a very volatile year for the Indian as well as global indices. The benchmark indices lost around 40 percent from the peak in January to sink to a four-year low in March as the coronavirus outbreak hit a new low.
However, it later found new highs near the year-end on vaccine progress and US presidential election results. After hitting the year’s lowest point on March 24, the market picked up momentum and has surged 80 percent till date.
The recovery was on the back of signs of economic growth and earnings revival. Also, gains in global peers on the back of positive developments on the COVID-19 vaccine and results of the US Presidential elections lifted the sentiment further.
25 stocks from the BSE500 index have more than doubled investor money in 2020 so far, with Alok Industries rising up to 680 percent. In comparison, the benchmark Sensex has gained nearly 14 percent in this period. Most other stocks in this list are from the midcap and smallcap space.
“Small and midcap stocks are picking up steam and they should deliver solid returns in 2021 as economic uncertainties will reduce and volatility will decline. We believe volatility will decline significantly in 2021 which will lead to a small and mid-cap rally,” a recent Axis Securities report stated.
It forecasts benchmark Nifty50 to hit 14,600 by next year-end.
Textile manufacturer Alok Industries rose around 680 percent in 2020, from Rs 3 in December 2019 to Rs 23.35 currently. An investment of Rs 1 lakh in this firm in the beginning of the year would have turned to around Rs 7.80 lakh now.
Another major multi-bagger was Adani Green. This stock rallied over 515 percent, from Rs 167 to Rs 1,030 currently. The renewable power company also became the first Adani Group firm to cross Rs 1 trillion in market capitalisation (m-cap). The company is the largest solar company in the world with 12+ GW of operating, in-construction, and awarded solar parks.
Laurus Labs was another such gainer, up 380 percent in 2020. The pharma firm recently announced the acquisition a majority stake (72.5 percent) in Richcore Lifesciences. Its net sales rose 59.7 percent in Q2 to Rs 1,127 crore while the net profit surged 299 percent to Rs 237 crore in the September quarter. The management also remains confident of not only sustaining performance but also bettering it.
Dixon Tech also rallied 260 percent in 2020. Credit Suisse recently reiterated a positive view on the firm on the back of strong consumer durables demand and expects its market share to rise.
Meanwhile, Alkyl Amines and Granules India surged over 250 percent and 205 percent, respectively in YTD. Birlasoft, IndiaMart, Tata Communications, Vaibhav Global, Suzlon Energy, Navin Fluorine, JB Chemicals, Deepak Nitrite, Affle India, Adani Gas, also jumped 100-200 percent in 2020.
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