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Indian markets have been on an uptrend in the past 1 year with the benchmark index Nifty50 rallying nearly 55 percent in this period. Positive global cues, expanding economy, an increase in vaccination drives, as well as a rapid decline in COVID-19 cases, are some of the factors that contributed to this rally. A number of stocks and sectors contributed to this rise in the Indian equity markets.

One such top-performing sector is the finance sector. This sector includes banks, financial institutions, housing finance companies, insurance companies, among others.

As per global brokerage house Nomura, finance stocks will see a meaningful recovery in business momentum, with a strong pickup in disbursals and normalizing collection efficiency.

With economic activity broadly picking up through the second quarter, the brokerage expects businesses to recover ground, adding that the focus will remain on asset quality as on growth dynamics.

It expects managements across banks and non-banks to provide optimistic commentaries and NPL formation to be slightly better compared to the previous quarters. However, it noted that the NPLs will continue to be elevated compared with pre-COVID levels, although restructuring could remain elevated, primarily coming from the retail and SME segments.

"Within segments, housing should hold up better, in our view, and hence is a preference within NBFCs. We expect business metrics for large banks will hold up better over mid-caps, regional banks and SFBs," Nomura further stated.

The Nifty Financial Services index gained 65 percent in the last 1 year, outperforming the benchmark Nifty. All constituents of the Nifty Fin Services index were also positive in this period with 6 stocks giving multibagger returns.

Let's take a look at the stocks that have jumped over 100 percent in the last 1 year. Did you miss the rally?

Bajaj Finserv

The NBFC stock has given over 200 percent returns in the last 1 year. Just in 2021, it has gained 110 percent generating robust returns for its investors. Bajaj Finserv Limited is a holding company for various financial services businesses with a market cap of 2.94 lakh crore. The Company is engaged in the business of promoting financial services, such as finance, insurance and wealth management, through its investments in subsidiaries and joint ventures. In a recent report, brokerage house ICICI Securities said that it sees robust premium growth & selective product mix to aid business growth & earnings in life & general insurance business as key triggers for future price performance.

Cholamandalam Investment & Finance

The stock has risen 152 percent in the last 1 year and gained 56 percent in 2021 till date. Founded in 1978, it is a large-cap NBFC firm with a market cap of 48,824 crore. The Company's financial services include vehicle finance, home loans, loan against property, small and medium enterprises (SME) loans, etc. As per brokerage house Motilal Oswal, the firm is expected to see a 36 percent jump in its net profit in Q2 at Rs. 577.1 crore.

State Bank of India

The banking stock has surged over 142 percent in the last 1 year and 80 percent in 2021 YTD. It is the largest public sector bank with a market capitalisation of 4.38 lakh crore. As per domestic brokerage firm Motilal Oswal, SBI appears well-positioned to report a strong uptick in earnings, led by moderation in credit costs, as the bank has strengthened its balance sheet. The lender has shown strong improvement in asset quality, with gross non-performing assets (GNPAs) declining 43 percent in the past three years, it added.

Bajaj Finance

The stock has surged 140 percent in the last 1 year and added 48 percent in 2021 YTD. It is one of the most preferred NBFC stocks among investors as well as experts with a market capitalisation of 4.73 lakh crore. ICICI Securities, in a report, noted that Bajaj Finance is a dominant player in the consumer finance space while it also has made a foray into various other lending segments like housing, SME lending, etc, as and when opportunities have come in. The transition towards fin-tech from being a pure lender to propel valuations and a leaner operating model and robust growth guidance will act as key triggers in the future, it added.

Piramal Enterprises

The NBFC stock has risen 114 percent in the last 1 year and 99 percent in 2021 YTD. The firm, which recently acquired the bankrupt DHFL, has a market capitalisation of 67704 crore. Piramal Enterprises Limited operates in financial services and pharmaceuticals businesses in India, North America, Europe, Japan, and internationally. It operates through Pharmaceuticals Manufacturing and Services, and Financial Services segments. The company was formerly known as Piramal Healthcare Limited and changed its name to Piramal Enterprises Limited in July 2012. Piramal Enterprises Limited was incorporated in 1947 and is based in Mumbai, India.

Shriram Transport Finance

The stock has gained 113 percent in the last 1 year and 34 percent in 2021 YTD. The NBFC firm has a market capitalisation of 37,178 crore and it is a preferred choice for many analysts and investors alike. It is a non-banking finance company, primarily provides commercial vehicle financing services in India. It offers commercial vehicle loans for commercial goods vehicles, passenger commercial vehicles, tractors and farm equipment, and construction equipment. Most brokerages have retained a bullish view on the stock for the upcoming quarter.

These are the six financial stocks that have more than doubled investor money in the last 1 year.

Name                               Mcap 1                    year rise

Bajaj Finserv               2.94 lakh crore       214%

Cholamandalam         48,824 crore           152%

SBI                                 4.38 lakh crore      142%

Bajaj Finance               4.73 lakh crore       140%

Piramal Enterprises   67704 crore            114%

Shriram Transport       37,178 crore            113%

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