Over 90 Nifty 500 stocks rose between 100% and 586% since last Independence Day; PSUs lead the way

Every year on August 15, India celebrates its Independence Day, and today marks the 78th anniversary of this significant occasion. This year's celebrations are centered around the theme 'Viksit Bharat,' which translates to "Developed India by 2047."

This theme envisions a prosperous, technologically advanced, and self-reliant India by the centenary of its Independence in 2047. The Indian government is actively working towards positioning the country among the top three global economies.

As the nation revels in this momentous occasion, investors have additional reasons to celebrate. The Indian financial markets have achieved historic milestones, setting new benchmarks with each passing month since the last Independence Day.

Despite a notable correction in global markets, the Indian markets have demonstrated resilience, bolstered by strong participation from retail investors. This has provided a robust cushion against the volatility caused by foreign outflows.

Record-breaking run

Over the past year, the Nifty 50 has delivered an impressive return of 24.3%, while the S&P BSE Sensex has achieved a gain of 21%. Both indices have reached significant milestones, maintaining a strong upward trend for nine out of the last twelve months and significantly outperforming their emerging market counterparts.

In May, the market capitalisation of companies listed on the National Stock Exchange (NSE) surpassed $5 trillion. This milestone was achieved in just six months, following the NSE reaching the $4 trillion mark in December 2023.

Similarly, the total market value of companies listed on the Bombay Stock Exchange (BSE) exceeded $5.5 trillion for the first time in July. The number of registered investors with the BSE has now reached nearly 18.4 crore, marking a 33% increase year-on-year. Experts note that 8–10 lakh new investors are entering the market each week.

Additionally, the NSE remains the world's largest derivatives exchange in terms of the number of contracts traded. The Nifty Mid-cap 100 and Nifty Small-cap 100 indices have also excelled, posting 50% and 54% gains, respectively.

341 companies debut on Dalal Street

The activity in the primary market has shown remarkable strength, as shares of 341 companies, spanning both the main board and the SME (Small and Medium Enterprises) segment, have been successfully listed on Dalal Street since the last Independence Day.

The strong momentum in the IPO market has been primarily driven by retail investors, who have been encouraged by a robust secondary market and easier access to offerings through online platforms, often resulting in significant oversubscription.

This surge in IPO activity has also attracted global corporations seeking to go public in India. Analysts project that strong IPO activity will persist in the latter half of the current year, fueled by an increase in liquidity events.

Wealth doublers

94 stocks from the Nifty 500 index have rewarded investors' handsomely since last Independence Day, with returns ranging from 100% to an impressive 586%. Despite recent correction, shares of Cochin Shipyard have surged by 586% over the past year, pushing the company's market capitalization beyond ₹70,000 crore.

Another PSUs dominate the top positions, with Rail Vikas Nigam's shares delivering a remarkable 339% return since last Independence Day. HUDCO shares have risen by 327%, while Jai Balaji Industries has seen a 306% increase. The defense and railway sectors have been particularly appealing to investors.

The renewable energy sector has gained significant attention from investors, driven by the government's ambitious goal of achieving 500 GW of non-fossil fuel energy capacity by 2030, leading to a notable rally in shares within this space.

Inox Wind stock has returned 301%. Similarly, Suzlon Energy has gained 280%, and Indian Railway Finance Corporation (IRFC) shares have increased by 266%. Other notable PSUs, like NBCC and Oil India, have risen by 266% and 256%, respectively.

Additionally, Trent, a Tata Group company known for its diverse retail concepts, has experienced a 241% rise, with most gains occurring in recent months.

Other stocks, including Garden Reach Shipbuilders, Prestige Estates Projects, Sobha, DOMS Industries, Mazagon Dock Shipbuilders, HBL Power Systems, BSE, BHEL, Himadri Speciality Chemical, Kaynes Technology, Kalyan Jewellers, Zomato, MCX, and RailTel Corp., have rallied between 170% and 260% since last Independence Day.

India remains the bright spot

The Indian economy has surpassed even the most optimistic projections, achieving an impressive 8.2% growth for FY 23–24. This robust performance comes despite substantial global challenges, including geopolitical tensions, trade disruptions, high inflation, and rising interest rates.

Several key factors contributed to this growth, including the government's ongoing focus on infrastructure and housing development, an increasing share of manufacturing in the GDP, and a resurgence in private capital expenditure driven by strong corporate profitability and healthy bank balance sheets.

Looking ahead, the Reserve Bank of India forecasts a GDP growth of 7.2% for the upcoming year. This projection is supported by robust public and private capital expenditure, a recovery in the agriculture and rural sectors bolstered by an anticipated normal monsoon, and steady consumer demand. If achieved, this would mark the fourth consecutive year of GDP growth exceeding 7%.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.