Top 5 Stocks that are Rallying Even in this Stock Market Selloff

We've just entered October 2024 and the month has already seen some major events unfold.

The Chinese stock market rally, big ticket changes to India's F&O rules, Israel-Iran conflict, and what not - all these factors have added to the recent volatility.

There's also a change in market sentiment. The overall mood in the markets is looking bearish.

In the past 5 days, benchmarks BSE Sensex and NSE Nifty have declined over 5%.

Performance of Key Indian Indices

Index	Value on 27 Sept'24	Value on 7 Oct'24	Change (%)
BSE Sensex	85,571.90	81,154.80	-5.20%
NSE Nifty	26,179.00	24,821.90	-5.20%
BSE Smallcap	57,091.80	54,221.90	-5.00%
BSE Midcap	49,490.10	46,932.10	-5.20%
Nifty Bank	53,834.30	50,776.80	-5.70%

Source: Equitymaster

Despite all the havoc, there are still some standout performers in the current market.

These companies have shown resilience despite the massive selloff across the entire Indian share markets.

Take a look...

#1 Jyoti

First on this list is Jyoti.

The company is into manufacturing and marketing of electrical and hydraulic engineering equipment.

It manufactures a wide range of pumps and EPC pumping systems from concept to commissioning.

In the past 5 days, Jyoti share price has gained 21% while in the past one month, the stock is up 38%.

The rise in its stock price this year could be attributed to the company's involvement in several high growth sectors including water sewage, power, nuclear and solar, and naval and marine.

The company has also been paying off its debt over the years and the company's interest outgo has decreased.

In FY24, the company registered one of its best years in terms of operating profit and net profit.

Jyoti's June 2024 quarterly earnings show a muted trend, but the company is expected to post improving numbers in the coming quarters.

To know more, check out the detailed financial factsheet of Jyoti.

#2 Power & Instrumentation (Gujarat)

Next on this list is Power & Instrumentation.

The company is engaged in the business of electrical contract work and deals in electrical equipment.

It basically provides engineering, procurement and construction solutions for the electrical requirements of state-owned companies.

In the past 5 days, the stock price has gained 21%.

In 2024 so far, shares of the company have rallied 298%.

The recent rally could be attributed to the company receiving a work order from the Airport Authority of India.

Power & Instrumentation was recently appointed as the specialised agency responsible for the power supply system by the Airports Authority of India.

According to its exchange filing, Power & Instrumentation is now the specialised agency responsible for the power supply system of the new integrated passenger terminal building at Maharana Pratap Airport, Udaipur.

Prior to this in August 2024, it had secured a contract worth Rs 284.1 million (m) from Jharkhand Bijli Vitran Nigam (JBVNL) for electrification projects in Jharkhand under the Mukhyamantri Ujjawal Jharkhand Yojana.

Additionally, the company also raise funds recently while it also acquired a controlling stake in Peaton Electrical Company, a manufacturer specialising in electrical panels, compact substations, and bus trunking systems.

During the fundraise, the company's MD Padmaraj Padmnabhan had said this fund raise will be essential to fund expansion and explore new opportunities.

At present, the company has an order book exceeding Rs 3.2 billion (bn).

The company is diversifying into the solar EPC market and BESS, aligning with trends in renewable energy and digital energy solutions.

It anticipates a 50% year-on-year revenue growth, driven by market expansion and improved execution.

To know more, check out Power & Instrumentation's detailed financial factsheet.

#3 The Anup Engineering

Next on this list is The Anup Engineering.

The Anup Engineering was demerged from its holding company Arvind in 2018. Currently, it manufactures heat exchangers, reactors, pressure vessels, columns & towers, industrial centrifuges and formed components.

The company's products mainly cater to refineries, petrochemical, fertilizer, and power generation plants among other industries.

Anup has an established presence in the market with its niche Helical Baffle heat exchanger known as 'Helixchanger' under license from Lummus Technology LLC, USA.

In the past 5 days, the stock price has gained 20%.

In 2024 so far, Anup Engineering shares are up 97%.

The recent rally could be attributed to Anup Engineering entering into a strategic manufacturing and supply agreement with Graham Corporation, a US based critical equipment firm.

The partnership is aimed to enable Anup Engineering to produce and supply essential equipment for Graham's global projects.

At the end of the first quarter of FY25, Anup Engineering had a strong pending order book of Rs 8.1 bn.

The company has also taken a leap and expanding its green hydrogen biz. Although domestic orders for hydrogen are minimal at present.

Anup Engineering is making continued investment in sectors like gas, hydrogen, and fertilizers, despite lower domestic traction.

Going forward, the commencement of its new manufacturing facility at Kheda, Ahmedabad, is expected to offer growth in topline as well as bottomline. The plant is expected to deliver Rs 1.8 bn in revenue for FY25.

To know more, check out Anup Engineering's financial factsheet.

#4 Windlas Biotech

Next on the list is Windlas Biotech.

The company is a leading domestic pharmaceutical formulations contract development and manufacturing organization (CDMO).

It manufactures both solid and liquid pharmaceutical dosage forms and provides a comprehensive range of CDMO services ranging from product discovery, product development, and commercial manufacturing of generic products, including complex generics.

In the past 5 days, Windlas Biotech shares are up 5%. In 2024 so far, the stock has gained 82%.

In the first quarter of FY25, the pharma company's revenue grew by 21% YoY to Rs 1.8 bn.

The company's management highlighted during the most recent earnings call that it is well-positioned to capitalize on government initiatives like Ayushman Bharat and Jan Aushadhi, which aim to enhance medical coverage for economically backward populations.

The management is also expecting consistent improvement in margins as operating leverage kicks in with increased capacity utilization and the commencement of injectable revenues.

This year, the company has set up a new injectable plant. Full-fledged exports from this plant are expected to commence from FY26, so that should support the medium term growth.

To know more, check out the detailed financial factsheet of Windlas Biotech.

#5 Emkay Global

Last on this list is Emkay Global.

The company is in the business of providing capital market services.

Currently, along with its wholly owned subsidiaries, it offers services in equity broking, commodity broking, currency broking, lending, depository participant, wealth/portfolio management services, distribution of financial products and investment banking operations.

In the past 5 days, the stock price has gained 16% while in a month, Emkay Global is up 28%.

Emkay Global shares are up 86% in 2024 so far.

The recent rally in Emkay Global shares could be attributed to the improved sentiment for companies involved in broking and related services.

Along with Emkay, IIFL Securities, Motilal, Geojit, among others have also seen a rise in their stock prices.

Apart from positive sectoral outlook, Emkay Global shares could also be rallying due to some technical factors. The stock price is trading at its highest level in over 5 years.

In its first quarter earnings for FY25, Emkay reported a 58% YoY growth in revenues while net profit shot up by a whopping 3,375% compared to the year ago period.

During the quarter, Emkay served as the merchant banker for the IPO of Awfis Space Solutions, while it was also the advisor for the preferential issue of Man Industries.

Going forward, Emkay is expected to benefit from the positive market environment, which aids the deal pipeline.

To know more, check out Emkay's detailed financial factsheet.

Which Other Stocks are Rallying Despite the Market Selloff

Apart from the above, here's a list of other stocks that are rallying even in this stock market selloff...

Please note that these parameters can be changed according to your selection criteria.

In Conclusion

As geopolitical tensions are escalating in the backdrop of the Israel-Iran conflict, equity markets worldwide are displaying some wild swings.

That apart, there are more reasons for investors to worry about... overvaluation in stocks, the RBI's upcoming meeting, FII diverting funds from Indian markets to Chinese markets... and so much more.

Investors don't know when the clouds of gloom and doom will clear. So market participants are turning jittery and preferring to go short on the market.

As a retail investor, it's advisable to make use of the selloffs to buy on dips. This will serve to be a meaningful strategy to invest in Indian equities for the long term.

Historical evidence suggests that money invested in quality stocks during times of uncertainty has fetched attractive returns over the long term.

Here's a to do list for smart investors in the current market...

• Track the market sentiment in not just China, but also in US & Europe.
• Pay attention to a negative surprise in corporate earnings when quarterly results are declared this week onwards.
• Keep a tab on geopolitical developments, if not daily then at least once a week. Those who were paying attention, could foresee the Israel-Iran conflict escalate months ahead.
• Finally, watch for any deterioration in the fundamentals of the stocks in your own portfolio. Even if the market is doing great, you shouldn't stay invested in poor quality stocks.
• Keep some cash on hand. If there is a crash, use it to buy high-quality stocks.

This short to do list should hold you in good stead no matter what happens in the stock market for the rest of 2024.

Happy investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...