One must-have quality for an artist

  1. Theme-based — The healthcare sector has been the theme of the global markets since the pandemic began. Several participants invested in stocks in this sector. The top pick was Laurus Labs (ticker: LAURUS.IN) that manufactures and supplies application programming interfaces (APIs) for anti-retroviral products for global pharmaceutical companies. It provided returns of 62% during the period of the competition.
  2. Event-driven — On 15 June, we had news of clashes between Indian and Chinese soldiers in the Galwan Valley. Participants expected higher spending by the Indian government to bolster its defence capabilities. The major picks were Bharat Dynamics (ticker: BDL.IN) and HAL (ticker: HNAL.IN), which provided returns of 63% and 34%, respectively, from 15 June to 31 July
  3. Growth investing — Several analysts looked for intrinsic value in companies, based on their growth strategies. The top pick was Reliance Industries (ticker: RIL.IN), up 49% during the competition period, driven by multiple investments in the company’s technology platform
  4. Value pick — Given that the stocks were heavily beaten down before the competition started, the participants found stocks trading at deep discounts with potential to provide double-digit returns once the situation normalised, e.g., Maruti Suzuki (ticker: MSIL.IN; up 28%) and UltraTech (ticker: UTCEM.IN; up 25%).
  5. Top-down — The participants analysed macroeconomic and geopolitical tensions, concluding that several manufacturing companies are looking to shift their production facilities from China. The top portfolio pick using this strategy was Dixon Technologies (ticker: DIXON.IN; up 54%) that deals in contract manufacturing of electronic items.
  6. Long-only — The participants resorted to old-fashioned fundamentals-based company research to pick industry leaders and companies likely to contribute to India’s long-term economic growth. The major holding was HDFC Bank (ticker: HDFCB.IN; up 14%).

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Acuity Knowledge Partners

Acuity Knowledge Partners

We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/