Last Updated on 10/08/2022 by Deepak Singla
In the last few years, interest rates in the traditional investment avenues such as bank fixed deposits and small savings schemes have decreased. This has eroded the real rate of return for the investors due to the effect of inflation.
Thus, it has become imperative for middle-class investors to turn their attention towards online stock trading. However, it is a herculean task for a naïve investor to choose the right stock that can deliver massive capital gains. The task becomes complicated due to varied economic sectors and a plethora of companies of different sizes in each sector. In addition, the timing of buying and selling the stock in the face of periodic bullish and bearish phases in the stock market is also crucial.
Professional equity analysts have the requisite time and resources at their disposal to perform economic, industry, and company analysis, compute various ratios, perform technical analysis and also employ cutting edge software to zero in on the right stocks.
Impact of Covid-19 on Stock Market Indices
In the last two years, the Covid-19 pandemic has had a profound negative impact on the business environment. This has resulted in stock market indices and oil prices fluctuating frequently.
In this uncertain pandemic period, the Indian equities market has surpassed the 60,000 mark, and Nifty has crossed the 18,000 mark many times. This period also saw the prices of some stocks zooming in to record levels, while others touched nadir. However, this pandemic situation has bolstered the business prospects of healthcare and pharma companies due to the massive demand for medicines, life-saving drugs, and vaccines.
Stocks That Soared Great Heights
Based on the report published by Dalal Street Investment Journal, the following are the five stocks in which an investment of Rs. 1.00 lakh (in 2010), zoomed to Rs. 1.00 crore (by 2021).
- Avanti Feeds
The stock of Avanti Feeds was trading at Rs.1.73 in April 2010. By 2021, the same stock was trading at Rs. 543.60. This translates to a return of about 32,000 %.
- PI Industries
PI Industries has a prominent place in the agrochemicals segment. In April 2010, the share price of the company was Rs. 31. In the 11-year period, i.e., by December 2021, its price jumped to Rs. 3,060, thereby giving a return of about 10,000 %.
- Bajaj Finance
Bajaj Finance is a reputed NBFC company whose business portfolio consists of wealth management, asset management, insurance, and lending. In April 2010, its share price was trading at Rs. 33.67. By 15 December 2021, its share price reached Rs.6,875.10, leading to about 20,000% return in the 11 year period.
- Astral Poly Technik
This company is into the business of manufacturing plastics. Its share price was trading at Rs.11.97 in April 2010. In a period of 11 years, i.e., by December 2021, the share price jumped to Rs. 2,261.00. This rise in price translates to about 16,000% returns in the given period.
- Atul Ltd
Atul Ltd., a Gujarat-based company, manufactures chemicals. In April 2010, Atul share price was R.88.85. By 15 December 2021, its share price was recorded at Rs. 8,659.00. This jump in percentage terms is about 10,000%.
In a nutshell, investors who could lay their hands on the stocks of companies having potential growth, supported by their stock market skills and luck, can reap unprecedented rewards.