Market tempest: 60 of top 100 stocks brave stormier seas than Nifty50

Less than 10 stocks stay afloat, over 40 sink by 5%

Around 60 per cent of the stocks in the top 100 universe have shown more significant declines than the benchmark National Stock Exchange Nifty50 Index in the latest market downturn.

Since October 17, the Nifty has dropped by 764 points, marking a 3.9 per cent decrease, attributed to the risk-off sentiment driven by increasing US bond yields and the ongoing conflict in West Asia.

During this period, fewer than 10 stocks from the top 100 have managed to remain in the green, while over 40 have fallen by over 5 per cent each.

Noteworthy is that the few stocks that have weathered the storm include Adani Power, Bajaj Auto, and Nestlé India, whereas IDBI Bank, GAIL (India), Macrotech Developers (Lodha), and Havells India are among those that have suffered the most, with each plummeting by around 10 per cent.

In addition to global headwinds, the release of results by individual companies has significantly influenced stock prices. Interestingly, even after the recent drop, nearly 75 per cent of the stocks within the top 100 universe are trading above their 200-day moving average (DMA), a crucial technical indicator for market sentiment.

While this figure has declined from approximately 90 per cent two weeks ago, the current reading does not necessarily suggest a sharp bearish turn in the market.

An analyst noted, “If the markets continue their decline, more than half of the stocks could potentially fall below their 200-DMA. This could serve as a bearish signal. For now, we can consider the recent decline as a short-term blip.”