This outperforming Arbitrage fund bought 6,46,30,559 shares of Suzlon; stock hit a fresh 52-week high

Suzlon Energy has soared by a staggering 234.59 per cent over the past year, solidifying its status as a multibagger stock

In the dynamic world of Indian financial markets, where benchmark indices often dance to the rhythm of uncertainty, one Thursday stands out as a testament to resilience and vigor. The Nifty, a barometer of market sentiment, painted a dramatic picture by reclaiming nearly 140 points from the depths of despair. As the trading day unfolds, it now bears only a modest loss of 18 points, a feat that speaks volumes about the markets' mettle.

In this saga of resurgence, where bulls fought valiantly to regain control, a group of stocks emerged as unsung heroes. Bajaj Auto, Indusind Bank, HDFC Bank, Axis Bank, and Heromotoco rallied together to orchestrate a remarkable recovery, rekindling hope among investors.

Yet, amidst this symphony of revival, there shines a star, brighter and more radiant than its counterparts, and it goes by the name of Suzlon Energy Ltd. This is not just any company; it is a beacon of renewable energy solutions, dedicated to manufacturing, executing projects, and maintaining wind turbine generators. Its dedication to sustainability and eco-friendliness has earned it a distinct place in the market.

Suzlon Energy's stock exhibited remarkable resilience, surging by an impressive 3.72 per cent on the NSE to reach a 52-week high of Rs 32.10. This surge, a resounding vote of confidence, has placed the stock on a pedestal, illustrating its compelling performance in the last year.

Intriguingly, Suzlon Energy's stock was locked in an upper circuit just the day before, accompanied by robust trading volumes. The market witnessed a flurry of activity, and this phenomenon was not by chance. A substantial chunk of Suzlon Energy shares found a new home, as they were eagerly snapped up by none other than the Baroda BNP Paribas Arbitrage Fund.

The Baroda BNP Paribas Arbitrage Fund is no ordinary player in the market. Its investment strategy is nothing short of a work of art, aimed at generating income and capital appreciation. It accomplishes this by investing in a diverse portfolio of equity and equity-related instruments, including the strategic use of equity derivatives and arbitrage opportunities, all while maintaining exposure to debt and fixed income instruments.

On that fateful Wednesday, this fund acquired a staggering 6.5 crore shares of Suzlon Energy, signifying immense faith in the company's future prospects. This investment has proven well-judged, as Suzlon Energy has soared by a staggering 234.59 per cent over the past year, solidifying its status as a multibagger stock.

Speaking of the fund's performance, it's not just a one-off success story. The Baroda BNP Paribas Arbitrage Fund has consistently outperformed its category and even the illustrious Nifty 50 Arbitrage Index over a span of 5 years. This speaks to the fund's prowess, delivering an annualized return of 4.95 per cent, outstripping the category average of 4.76 per cent and the Nifty 50 Arbitrage Index at 4.92 per cent.

So, fellow investors and financial enthusiasts, here's a question for you: Do you hold the stock of Suzlon Energy in your portfolio? Share your insights and experiences with us in the comments.

Disclaimer: The article is for informational purposes only and not investment advice.