Stock market collapse: 80% of BSE500 stocks fall to bears; Removes half of 40 companies

NEW DELHI: Domestic equity markets have been under intense selling pressure lately, with benchmark indices falling more than 13 per cent from their 52-week highs, while small cap and midcap indices are down more than 20 per cent each. Against this background, stock-specific declines intensify, with four out of every five stocks falling into bear.

A stock or an index is said to enter the bear’s grip if it falls 20 percent or more from its top.

Valpro director Neha Khanna says the market is at a correctional level, with high-value and high-beta stocks hitting hard.

As many as 400 stocks in the BSE500 index fell 20-76 percent from their respective 52-week highs, according to data from Ace Equity. The BSE500 index constitutes about 95 percent of the total market capitalization of the BSE.

Of these 400 stocks, the price of 10 percent or 40 counters has halved and half a dozen counters have dropped more than 65 percent, the data suggest.

Solara Active Pharma which fell more than 76 percent from its 52-week high. On May 19, 2021, the scrip was scaled at Rs 1,859.3, but on Wednesday, May 11, it was fixed at Rs 442.45.

It is followed by Dilip Bildcon, 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 October 13, 2021.

Wockhardt, Zomato, Strides Pharma, Sequent Scientific,

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

Concerns over inflation, monetary austerity, rising crude oil prices, geopolitical crisis, high valuations, rupee depreciation and continued outflows are the main factors hurting the sentiment of equity markets.

“Inflation is being controlled by rising gorilla interest rates, which is declining, and continued selling by FIIs, simply to move away from equities and emerging markets, is the main reason for hurting markets,” said Konika Agarwal, co-founder, Upside AI.

Analysts believe that market timing is almost impossible and the impending recovery may not be as prompt as March 2020, which is encouraged by the flow of liquidity. A protracted bear should be prepared for the market, they said.

“There are many macro factors where interest rates are rising to control inflation. But at the moment, inflation seems to be a supply-side issue that will not help tighten the currency,” Agarwal added.

There has been a steep correction in stocks and the black sectors are energy, mining and commodities, says Sonal Minhas, founder, Present Capital. “Equity investing needs to be viewed from a 3-5 year perspective,” he added.

Vaibhav Global, Jubilant Formova, Lux Industries, Indiamart, Firstsource Solutions, Tata Teleservices, Dishman Carbogen, Infibeam Avenue, Manappuram, Ujjivan SFB, Sponta KBM, Spandana Sfz, RB , Company, TV18 Broadcast, GIC of India, Aarti Drugs, Zydus Lifesciences, Info Edge, Aegis Logistics, Jubilant Ingrevia, Bank Of Maharashtra, Zensar Tech and Thyrocare fell more than 50 percent.

Bank of India, Jubilant Food, Shova, Starlight Tech, IRCTC, Vodafone Idea, Indigo Paints, Godrej Properties, Greaves Cotton, Hikal, CSB Bank, Dr. Lal Pathlabs, Rallis India, Orbis Pharma, NS Dixon Tech, HDFC AMC, Happy Minds, Lupine MCX, Dalmia India, IRB Infra, SAIL, Central Bank of India, ITI, Sudarshan Chemicals, La Opala RG, Root Mobile, Nippon Life AMC, Vel, IDBI Bank, and There are some other stocks in the feed bear grip.

Market experts suggest that the recent round of corrections could be a bit longer and that benchmark indicators could lead to further corrections, say 10-15 percent.

Minhas from President Capital said investors who have low risk or need close time to fund should keep cash or invest in fixed income, where Agarwal from Upside AI suggests that it is a good time to pick quality names and start SIPs. .

“Investors should be cautious and buy based on pricing and resist the temptation to make quick trading gains due to constant market uncertainty,” Khanna from Valpro suggested.