| The stocks of about 15 per cent of the actively traded 3,300 companies have hit a 52-week low on the Bombay Stock Exchange (BSE) in the past couple of days.
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| The cutting of speculative positions built on colossal leverage sums, and the diversion of funds by top institutions to commodities such as crude oil and gold have taken its toll even on the so-called ‘fundamentally strong stocks'.
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| The list includes some of the frontline companies such as ICICI Bank, Tata Motors, State Bank of India, HDFC Bank, Reliance Capital, Reliance Communications, DLF and Maruti Suzuki among others.
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| The stocks of over 55 large-cap companies, categorised as ‘A' by BSE, have hit their 52-week lows. Other 200 mid- and small-cap companies and nearly 100 penny stocks have hit lows.
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Out of nearly 5,000 BSE-listed companies, 1,500 have been suspended for non-compliance issues.
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FRONTLINE ATTACK |
|
Stocks |
52-week
high |
52-week
low |
|
ICICI Bank |
1,465 |
675 |
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Tata Motors |
840 |
460 |
|
SBI |
2,540 |
1,155 |
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Reliance Capital |
2,925 |
911 |
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DLF |
1,225 |
418 |
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(Price in Rs) |
While the Sensex has plunged by nearly 34 per cent, or 7,400 points, since its January peak, the shares of these companies have lost 40-70 per cent compared to their peak prices.
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| "It is the best time to invest in equities," believes Gaurang Shah, Geojit Financial Services' Vice President, Portfolio Management.
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| Investors should start looking at companies which do not depend on a single vertical for their revenues and purchase those stocks which they were trying to buy at peak prices. "Those looking for the markets to hit rock-bottom would regret as no one can predict it," Shah says.
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| If Ramdeo Agarwal, Joint Managing Director, Motilal Oswal, is to be believed, then the bear attack on the frontline stocks is not likely to last very long as is being deemed by marketmen.
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| "The corporate earnings would still be growing by over 20 per cent. And, it is likely that the economy could grow between 7 and 8 per cent, so there is no real need of worry. Also, the inflation would start moderating by the year end, considering the steps taken by the Reserve Bank of India," he says. |
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