Selling pressure extended in the last five trading sessions which resulted in the fall of nearly 1,800 points in the S&P BSE Sensex and over 500 points for the Nifty
Sensex, which was hitting record highs almost on a daily basis in August, has plunged a little over 6 percent in just 17 sessions. It lost nearly Rs 10 lakh crore in market capitalisation since August 29 when it hit a record high of 38,989.
The S&P BSE Sensex has fallen 2,684 points, or nearly 7 percent, since August 29, but a big carnage was seen in individual stocks. More than 200 stocks in the S&P BSE 500 index slipped 10-40 percent during the same period.
Multiple factors have contributed to the fall in the past 17 sessions which include falling rupee, relentless selling by foreign investors, rising bond yields, fears of default and rising cost pressure for NBFCs, trade war fears as well as rising fiscal concerns.
As many as 207 stocks in the S&P BSE 500 index have plunged 10-40 percent, including Dewan Housing Finance, Yes Bank, Central Bank of India, Reliance Communications, Bharat Electronics, Adani Power, Jaiprakash Associates, Reliance Capital, IL&FS Transport etc. among others.
In the mid-cap space, Reliance Nippon, Balkrishna Industries, Edelweiss Financial Services, PNB Housing Finance, Indian Bank, IIFL Holdings, Reliance Power, IDFC Bank, Godrej Properties, Union Bank of India, Sun TV, Canara Bank etc., among others.
In the S&P BSE Small-cap index, as many as 405 stocks have plunged 10-50 percent which include names like Rolta India, Sunil Hitech, IL&FS Investment Managers, Ruchi Soya, Gravita India, Unitech, HDIL, Jet Airways, Escorts, Kwality, Nitco, Vijaya Bank etc. among others.
Here is a list of top 20 stocks from the BSE 500 index which have plunged 25-40 percent since August 29:Selling pressure extended in the last five trading sessions which resulted in the fall of nearly 1,800 points in the S&P BSE Sensex and over 500 points for the Nifty.
The S&P BSE Sensex saw an intraday swing of 1,000 points Friday’s selling which was perpetuated due to the unwinding of leveraged trades on fear of capitulation due to fall in a particular NBFC.
Rumors and fear in the market are likely to rule the roost till the general elections of 2019 and investors must brace for such events, albeit each such event gives long-term investors to accumulate their choicest stocks, suggest experts.
“In the current market scenario, one should avoid leveraged positions and investors should diversify their portfolios and keep at least 15-20 percent in liquid funds or cash. Value-picking can be seen in a host of stocks where valuations have hit nadir compared to some of the flavor of the season stocks or sectors,” Ajay Jaiswal, President – Strategies & Head of Research, Stewart & Mackertich Wealth Management told Moneycontrol.
“For instance, most blue-chip PSU stocks have fallen 40-60 percent primarily due to falling fiscal health of the country and uncertainties surrounding general elections 2019. The outcome of the General Elections is just 8 months from now hence value investors with 12-18 months perspective can buy a host of PSU and capital goods stocks,” he said.