Stock Market Crash: 80% of BSE500 Stocks in Bear Control; 40 companies erase half of investors’ wealth

New Delhi: Domestic stock markets have been under heavy selling pressure of late, with benchmark indices falling more than 13 percent from their 52-week highs, while small- and mid-cap indices are down more than 20 percent. one hundred each. Amid this backdrop, stock-specific declines are steeper, with four out of five stocks in bearish control.

A stock or index is said to have entered a bearish grip when it falls 20 percent or more from its peak.

The market is in a corrective phase, with highly valued, high-beta stocks taking a much bigger hit, said Neha Khanna, director of Valpro.

According to data from Ace Equity, as many as 400 stocks in the BSE500 index have fallen between 20 percent and 76 percent from their respective 52-week highs. The BSE500 index makes up about 95 percent of BSE’s total market capitalization.

Of these 400 stocks, the value of 10 percent or 40 counters has halved and a half-dozen counters have plunged more than 65 percent, the data suggests.

Solara Active Pharma, down more than 76 percent from its 52-week high, is the biggest loser. The voucher had climbed to Rs 1,859.3 on May 19, 2021, but settled at Rs 442.45 on Wednesday, May 11.

It is followed by Dilip Buildcon, which fell 71 per cent as the counter fell to Rs 219.6 on Wednesday, from its 52-week high of Rs 749.3 on Oct 13, 2021.

Wockhardt, Zomato, Strides Pharma, Sequent Scientific,

Housing Finance, Indiabulls Housing Finance, Indiabulls Real Estate, Welspun India, HEG and Indostar Capital Finance are other accountants that have plunged 65 per cent or more from their 52-week highs.

Inflation concerns, monetary tightening, high oil prices, geopolitical crisis, high valuations, falling rupee and constant outflows are the key reasons that are weighing on sentiment in equity markets.

Kanika Agarrwal, co-founder of Upside AI, said: “The inflation gorilla is being tamed by interest rate hikes, leading to downgrades and constant sales of FIIs, just to get away from the stocks and emerging markets, are the key reasons hurting the markets.”

Analysts believe that it is almost impossible to time the market and that the next recovery may not be as fast as the one in March 2020, fueled by the influx of liquidity. One must be prepared for a prolonged bear market, they said.

“There are a lot of macro factors at play where interest rates are rising to control inflation. But this time inflation seems to be a supply side issue that tightening money may not help,” Agarrwal added.

There has been a sharp correction in equities and the only sectors in the black are energy, mining and commodities, said Sonal Minhas, founder of Prescient Capital. “Stock investing should be viewed from a 3-5 year perspective,” he added.

Vaibhav Global, Jubilant Pharmova, Lux Industries, Indiamart, Firstsource Solutions, Tata Teleservices, Dishman Carbogen, Infibeam Avenues, Manappuram, Ujjivan SFB, Spandana Sphoorty, Tasty Bite, JK Lakshmi Cement, Bajaj Consumer, RBL Bank, RBA, Hindustan Copper, Venky’s , TV18 Broadcast, GIC of India, Aarti Drugs, Zydus Lifesciences, Info Edge, Aegis Logistics, Jubilant Ingrevia, Bank Of Maharashtra, Zensar Tech and Thyrocare are all down more than 50 per cent.


Bank Of India, Jubilant Food, Sobha, Sterlite Tech, IRCTC, Vodafone Idea, Indigo Paints, Godrej Properties, Greaves Cotton, Hikal, CSB Bank, Dr Lal Pathlabs, Rallis India, Aurobindo Pharma, NBCC (India), SpiceJet, CAMS, Dixon Tech, HDFC AMC, Happiest Minds, Lupine MCX, Dalmia Bharat, IRB Infra, SAIL, Central Bank Of India, ITI, Sudarshan Chemicals, La Opala RG, Route Mobile, Nippon Life AMC, BHEL, IDBI Bank, Mahanagar Gas and Avanti The feeds are some other actions in the bear’s control.

Market pundits suggest that the recent round of correction may last a bit longer and benchmark indices could be headed for a bigger correction, say 10-15 percent.

Prescient Capital’s Minhas said investors who have a lower risk appetite or need short-term funds should stay in cash or invest in fixed income, while Upside AI’s Agarrwal suggests it’s an opportune time to pick quality names. and start SIP. .

“Investors should be cautious and buy based on valuations rather than prices and resist the urge to take quick trade profits given continued market uncertainty,” Valpro’s Khanna advised.

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