12-Jun-2020 : The fund managers and market experts have continuously advising to buy quality stocks and avoid medium and small cap stocks. But in the last one month, medium and small cap stocks gave handsome return in comparison to large cap stocks. On 23rd March, 2020, Nifty hit a closing of 7610. After that Nifty and Nifty Midcap index went almost shoulder to shoulder in terms of percentage gain or loss. Nifty small cap lost less ground in the same period of time.
Few small cap stocks returned between 100% and 900% in the three months. Among all these stocks, Ruchi Soya is the most prominent one. On 13th March, Ruchi Soya was closed at Rs 96.05 per share. As on 11th June, the same stock closed at Rs 888.70 per share. Thus it gave a profit of 825% in this period. In this same period, penny stock Alchemist Corporation gained 625%, from Rs 1.00 to Rs 7.25. Similarly Ruchi Infrastructure gave a profit of 490%. Other stocks like Alok Industries, Vikas Ecotech, Manaksia Aluminium, Adani Green, Panacea Biotec, HCL Infosystem, Marksans Pharma, LT Foods, Morepen Laboratories and Vinyl Chemicals appreciated between 100% and 300%.
However, all these moves are not always backed by fundamentals. So if you are an investor, you need to take a call with lots of investigation about the stock. The traders may can take call based on their risk appetite. Now the market is very much volatile and can give wild swing at both the directions. So strict stoploss needs to be adhered.
Written by Research Analyst (SEBI Registered) Suvendu Manna
Disclaimer : The research analyst has No position in the aforementioned stocks as on the date of writing this article.
I, Suvendu Manna, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect my views about the subject issuer(s) or securities. We also certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
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