Stock watch: Sadhana Nitro Chem rallied from Rs 40 paisa to Rs132 in 8 years, a whopping 33,083 percent!

Market watchers believe that a slew of reforms and a business-friendly regime worked in favour of the market since 2014. As a result, the benchmark index BSE Sensex advanced 120 per cent to 54,326.39 on May 20, 2022 from 24,716.88 on May 26, 2014. During the period, the index touched a high of 62,245.43 on October 19, 2021.

Meanwhile, as many as 491 stocks on the BSE soared more than 500 per cent during the period. With a rally of 33,083 per cent, Sadhana Nitro Chem emerged as the top gainer on the exchange. Shares of the company rallied to Rs 132.10 on May 20, 2022 from Rs 0.40 on May 26, 2014.

It was followed by SEL Manufacturing Company (up 18,859.36 per cent), Tanla Platforms (up 18,702.08 per cent), Apollo Finvest (India) (up 9,623 per cent), Equippp Social Impact Technologies (up 9,485.71 per cent) and Dynacons Systems & Solutions (up 9,316.67 per cent).

Ducon Infratechnologies, NGL Fine-Chem, Raghuvir Synthetics, Rajratan Global Wire, HLE Glasscoat, Shivalik Bimetal Controls, Vidhi Specialty Food Ingredients, Stylam Industries, Sanmit Infra, Sejal Glass, Paushak, Cosmo Ferrites and Balaji Amines also rallied between 6,000 per cent and 8,000 per cent in the past eight years.

Commenting on the eight years of the Modi government, market watcher Kranthi Bathini, equity strategist, WealthMill Securities said, "Overall, past eight years stood business-friendly in terms of tax reforms like goods and services tax, policy continuance, repealing many outdated unfriendly laws which were hurting the business environment. Many measures taken by the government during the COVID pandemic time also helped to improve the market sentiment in the last few months."

Sector wise, the BSE Consumer Durables index rallied the most 358 per cent. It was followed by BSE IT (up 242 per cent), BSE Healthcare (up 129 per cent), BSE Bankex (up 127.86 per cent) and BSE FMCG (up 108 per cent).

BSE Power, Capital Goods, Realty, Auto, Oil & Gas, Metal and Telecom indices also rallied between 22 per cent and 100 per cent.

Going ahead, market experts believe that rising uncertainty over inflation will keep investors on their toes. However, Kotak Institutional Equities believes that the government's recent measures to tackle inflationary pressures are a welcome response to the need for complementary fiscal and monetary policies to manage the adverse growth-inflation mix.

With a view to curb inflationary pressures, the central government recently announced excise duty cuts of Rs 8 per litre for petrol and Rs 6 litre for diesel (annualised revenue loss of around Rs 1 lakh crore with around 30 basis points of lower inflation). It further announced LPG subsidy of Rs 200 per cylinder, approved an additional expenditure of Rs 1.1 lakh crore for fertiliser subsidy and customs duty cuts for coking coal, naptha, ferro-nickel, propylene oxide, among others.

Commenting on the further movement of the domestic equity market, AK Prabhakar, head of research, IDBI Capital Markets said, "Weakness will be there in the equity markets as rising inflation globally will lead to a rise in interest rates and tightening of liquidity. This may lead to 8-10 per cent correction going forward."

On the other hand, Mohit Nigam, head-PMS, Hem Securities added that the market is growing rapidly and is expected to be worth more. "Indian defence market is at the cusp of revolution, with the introduction of government policies like Atmanirbhar Bharat, Make in India and introduction of private players to speed up defence production and increase export by 5 times," Nigam said.

"Economics, jobs and personal lives are becoming more automated which becomes the direct growth factor of the technology industry in coming years," he added.