In history, 2020 will be remembered for the worldwide changes and ups and downs caused by the Kovid-19. This epidemic led to the implementation of lockdown in most parts of the world. This had a big impact on people's lives and the economy. Equity markets were also not untouched by this. Earlier this year where domestic stock markets were setting new records every day. Sensex touched the 42,000 marks in the third week of January. However, after this news related to the spread of the Coronavirus epidemic, there was a sharp correction in the market. The entire lockdown was announced in India on March 25, 2020. Around this time, the stock market fell between 25,500-26,000 points.
The stock markets witnessed tremendous volatility amid the uncertainties created by the coronavirus epidemic and lockdown. During this period, shares of many big companies also fell. However, shares of Pharma and some FMCG companies saw resilience. However, the stock markets once again saw signs of improvement after removing lockdown restrictions and signs of economic recovery in later months. In November, after the positive news about the Kovid-19 vaccines, the stock market once again reached the previous level of Kovid-19. As of now, the BSE Sensex is trending above the 45,600 mark level. On the other hand, NSE Nifty has also crossed the 13,300 mark level.
In such a situation, we have come up with a list of such stocks for those who invest in the stock market, who performed well in 2020 due to the good foundation despite the Kovid-19 epidemic.
Brittannia
According to Ajit Mishra, Vice President (Research), Religare Broking, Britannia Industries performed well in 2020 and investors got good returns of up to 30 percent. The company performed well due to volume, product range, a strong portfolio of products, and a wide distribution network. Even in the lockdown, the company performed well as the panic buying of people on essential items showed a rise in demand for the company's products. Brands like Good Day, Marie, and Nutri Choice contributed over 80 percent to the company's revenue during the lockdown. We hope that this stock will remain strong in the coming time.
Reliance Industries
Nirali Shah, the Senior Research Analyst at SAMCO Securities, said Reliance Industries shares performed well in 2020. The company has achieved a new position by raising funds of two lakh crore rupees for Jio Platforms and then Reliance Retail. The Mukesh Ambani-led company has raised this fund during the difficult times of Kovid-19 when many companies were struggling to save their existence. Many major investors invested in this giant company and because of this, the company became completely debt-free as promised. Since the March low, the company has given returns of more than 164 percent and patient investors have achieved tremendous returns in just six months. Apart from this, the company paid a dividend of Rs 6.5 per equity share of the face value of Rs 10, which further benefited the shareholders.
HCL Technologies Ltd (HCL Tech)
According to Vinit Bolinjakar, head of the research department of Ventura Securities, the demand for various IT products has gone up considerably in recent times. HCL Tech is the third-largest company in the world in the field of engineering, research, and development (ER&D). This company has done quite well this year. Keeping in mind the possible development and other aspects in the field of technology, it can be said that there will be strong growth in the coming times. Investors will get a direct benefit from this thing.
Aarti Drugs Ltd (ADL)
According to Bolinjkar, the demand for raw materials needed to make medicine has increased. This also saw an increase in their prices. The role of ADL is very important in the pharma supply chain globally. ADL's earnings from the API rose by 22.9% year-on-year to Rs 891 crore and this boom is likely to continue in the coming times. Because of this, investors have benefited a lot this year.