Majority of Tata Group Stocks Turn Multibagger Since Last General Election Result

Tough Monday for Indian benchmark indices. Despite starting strongly and achieving new heights with the BSE Sensex touching the 76,000 mark for the first time, the indices saw a steep decline towards its end. The NSE Nifty 50 index fell about 170 points from its peak to close in negative territory. This marked reversal of fortunes on D-Street was largely driven by a surge in India VIX which ended above the 23 mark.

At least until the results of the general election are known, volatility is expected to rule. Nevertheless, past trends show that long term investments in equities are usually profitable. To demonstrate this fact, we have looked at the stock prices of Tata Group as reported on May 23rd (2019) till date i.e. the performance of Tata Group stocks from the previous general election verdict till date.

Performance: Tata Group Stocks Performance Since May 23, 2019

Curiously, all Tata Group stocks have given positive returns with TTML leading the pack with a whopping gain of 2,835%. Moreover, the majority of the stocks have turned multi-bagger since the general election outcome of 2019. All in all, three stocks have gained over one thousand percent in just five years (TTML, ASAL, and Trent).

Three stocks namely Tata Elxsi, Tata Investment, and Tata Power have risen more than five times since the previous general election verdict to date.

During this period seven stocks have increased by more than two hundred per cent. Other members of this list include Tata Motors, Tata Communication, TRF, and Tata Chemicals apart from others.

Only one stock has delivered less than a hundred percent since the last election result, which is Rallis.

Conclusion

To sum up, in the short term it may be rough for the market however equities especially those that are of long-established companies like those of the Tatas are sound enough for a long time span into the future. Investing with a long-term bias often finds good opportunities for substantial gains when markets become volatile in short-term periods like now can be an opportunity for significant gains in equity investments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.