The Indian equity benchmarks are going through a phase of correction. In Thursday's session, the measure of IT shares on the National Stock Exchange - Nifty IT index traded the bear phase for second session after the small-cap index went into bear territory earlier this month. The Nifty IT index has dropped a whopping 22% from its record high of 46,088.90 it touched in December last year.
In the correction that started in October, the NIFTY50 index has dropped 15% and the 30-share SENSEX has declined 14.39%, data from the stock exchanges showed. Expensive valuations, below par corporate earnings, slow economic growth and relentless selling by foreign institutional investors are some of the reasons behind the massive fall in markets.
Foreign institutional investors have so far this year sold shares worth ₹1,41,067 crore, according to data from the National Securities Depository Limited (NSDL). The selling which aggravated in October 2024 has been gaining pace off late as foreign investors are moving money to China after a slew of stimulus measures announced by the Chinese government to boost its economy amid cheap valuations sparked a flight of money to China.
Amid all the pessimism around equities here is a list of stocks, with market capitalisation of over ₹10,000 crore, that have surprised investors by surging in a weak market:
| Company Name | CMP | 6 month return (%) |
|---|
| Orient Cement | 346 | 20.66 |
| Greaves Cotton | 218.95 | 22.31 |
| Camlin Fine Sciences | 171.45 | 52.86 |
| Panacea Biotec | 393.5 | 22.76 |
| NACL Industries | 80 | 34.88 |
Camlin Fine Sciences: Shares of the Mumbai-based specialty chemicals maker have surged 53% in the last six months and touched its fresh 52-week high of ₹175.50 on Wednesday. Last week, the company informed exchanges that Camlin Fine Science and certain significant shareholders of Vinpai, including its founders, have entered into an agreement for the acquisition by CFSL of a majority stake in Vinpai. The acquisition would be paid in newly issued ordinary shares of CFSL, while the price retained per Vinpai share has been set at 3.6 euros.
CFSL has agreed to grant financing to Vinpai for an amount of 3.3 million euros through the subscription of bonds convertible into new shares of Vinpai.
NACL Industries: The Hyderabad-based agrochemicals maker has surged 35% in the last six months, data from stock market data provider Screener showed. The stock in intraday trading on Wednesday closed 12.32% higher at ₹79.98 and touched a fresh 520-week high of ₹80.90. The company informed exchanges that since K Lakshmi Raju, falling under the promoter group category, expressed her inability to subscribe to the 68,96,550 Warrants proposed to be allotted on a preferential basis due to unanticipated circumstances the company has reduced the size of preferential issue.
Panacea Biotec: The Chandigarh-based drugmaker has seen its shares rise 23% in the last six months despite a fall of 195 from its 52-week high price of ₹489. The company's net profit surged multiple times to ₹9.65 crore at the end of December quarter from ₹43 lakh in the same period last year. Its revenue from operations jumped to ₹108 crore from ₹95 crore.
Orient Cement: Shares of the Delhi-based cement maker are up 21% in the last six months despite 9% decline from its 52-week high of ₹379.40. The company last week informed exchanges that Ambuja Cement received approval from the Competition Commission of India for acquisition of Orient Cement. The deal to acquire Orient Cement was announced in October last year.
The company in the December quarter reported net profit of ₹10 crore as against ₹45 crore in the same period last year. Its revenue from operations declined to ₹643 crore as against ₹751 crore in the year-ago period.
Greaves Cotton: Despite a 31% fall from its 52-week high, the shares of Mumbai-based diesel engine maker are up 22% in the last six months, data from Screener showed. The company last week informed exchanges that its subsidiary Greaves Electric Mobility has partnered with Indofast Energy, a 50-50 joint venture between Indian Oil and SUN Mobility to enhance last-mile transportation for B2B fleets and ride-sharing services by aiming to offer innovative, efficient and tailored e-2W and energy solutions that meet the industry’s evolving needs.
The company's net profit in the December quarter reduced by 64% to ₹21 crore as against ₹58 crore in the same period last year. Its revenue from operations rose 13% to ₹750.60 crore versus ₹665 crore in the year ago period.
Disclaimer: The above article is only for informational purposes and should not be considered investment advice from Upstox. The stocks and securities mentioned are illustrative and not recommendations. Investors should consult with their financial advisors before investing.
