Reliance, Hero Moto, Coal India, DLF, REC from BSE 100 index hit 52-wk lows

Asian Paints, Power Grid, Tata Motors, Canara Bank, GAIL (India), Indian Oil Corporation, Jio Financial and Tube Investments of India from the index also hit their respective 52-week lows today

Shares of Reliance Industries, Asian Paints, Power Grid Corporation and Tata Motors from the BSE Sensex touched their respective 52-week lows in Wednesday’s intra-day trades after a sharp sell-off in equities. 

 

Coal India, Canara Bank, DLF, GAIL (India), Hero MotoCorp, Indian Oil Corporation, Jio Financial Services, REC and Tube Investments of India from the BSE 100 index hit their respective 52-week lows in Wednesday’s intra-day trade after a sell-off in equities. These stocks were down up to 5 per cent on the BSE in intra-day trade.

 

At 10:00 AM, the BSE 500 index, which accounts for 89 per cent of the BSE listed companies, was down 1.7 per cent, as compared to the 1 per cent decline in the BSE Sensex.

 

 

"The ongoing uncertainty surrounding US trade policies and tariffs, coupled with domestic economic growth concerns and persistent selling by FIIs, is dampening market sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services.

 

The mid- and small-cap stocks experienced significant declines due to demand concerns and higher valuations. Although the Reserve Bank of India’s (RBI) intervention provided some recovery for the rupee from yesterday's record low, it remains under pressure and is likely to keep the market volatile in the near-term. Investors are anticipating the PM’s visit to the US for any potential relief in trade uncertainty, while the US inflation data later today will also be a key focus, Nair added.

 

Meanwhile, HSBC Global Research believes India's premium multiple valuations will remain under pressure until earnings stabilise. FYQ3 results were below estimates, even amid the backdrop of lowered expectations. Growth is likely to remain weak for at least two quarters before the lower base or potential policy impact kicks in, it noted. 

 

“We see downside risk to consensus's 15 per cent growth expectations in CY25. However, there are pockets of growth. The recent sell-off has created a good opportunity for companies with a strong or improving growth narrative,” the brokerage firm said.  Also Read: Error 404! 81% of Nifty 500 stocks dip below 200-DMA; market strategy here 

 

Among the individual stocks, the real estate company, DLF slipped 5 per cent to Rs 676.20, falling below its previous low of Rs 689.90 touched on June 4, 2024. The stock has corrected 30 per cent from its 52-week high level of Rs 677.80 touched on April 1, 2024.

 

According to HSBC Global Research, real estate demand growth is expected to start pivoting towards mid-income housing. The past four years have been dominated by "upgrade" demand, serving developers well to achieve better pricing. 

 

In the past four years (2021-24), residential real estate pre-sales volumes and value increased by compound annual growth rates (CAGRs) of 18 per cent and 31 per cent, respectively. HSBC Global Research still expects growth in 2025 as 2024 was weaker on launches, but the high base will start impacting the pace of growth.

 

However, if the approval cycle remains weak, companies may need to cut growth guidance for FY26e pre-sales to the high-single to low-double digits. From recent discussions, the brokerage firm said they feel investors are still focussed on pre-sales and, hence, any slowness could adversely impact the stock's performance.

 

Shares of Jio Financial Services hit a 52-week low of Rs 223.60, slipping 5 per cent in intra-day trades today. The stock tanked 43 per cent from its 52-week high level of Rs 394.70, touched on April 23, 2024.

 

In the past one month, the stock has declined 20 per cent after the company reported a flat consolidated profit after tax (PAT) at Rs 295 crore for the third quarter ended December 2024 (Q3FY25). The company had earned a consolidated net profit of Rs 294 crore in the same quarter of the previous fiscal (Q3FY24).

 

While PAT remained relatively stable on a year-on-year (YoY) basis, it decreased by 57.2 per cent quarter-on-quarter (QoQ) due to the base effect. Net Interest Income (NII) for Q3FY25 was Rs 205 crore, marking a decline of 21.9 per cent YoY; though it saw a 2.5 per cent increase QoQ.

 

Despite Jio Financial Services ramping up its operations and expanding its product portfolio to include mutual funds, insurance, and digital solutions, the company remains in a growth and scaling phase. With ongoing investments, regulatory approvals, and operational ramp-up efforts, it is challenging to accurately value or make precise earnings estimates at this stage. While the company’s long-term prospects are promising, the volatility in earnings and the uncertain near-term outlook warrant a more cautious approach, according to analysts at KRChoksey Shares and Securities.