As many as 574 stocks, including IndusInd Bank, Tata Steel, Amara Raja, Batteries, Aarti Drugs, BEML, BHEL and Biocon, hit their fresh 52-week lows in intraday trade on BSE on June 20.
Birlasoft, Capacite Infraprojects, Ceat, Dhampur Sugar Mills, Edelweiss Financial Services, Exide Industries, Fortis Healthcare, Glenmark Pharmaceuticals, Godrej Properties, Hindustan Copper, Hindalco Industries, Hindustan Zinc and Life Insurance Corporation of India were also among the stocks that hit their 52-week lows on BSE.
Equity barometer the Sensex opened higher at 51,470.03 against the previous close of 51,360.42 and traded volatile amid weak global cues. At close, the Sensex was 0.46 percent up at 51,597.84 with 17 stocks in the green and 13 in the red.
Mid and smallcap stocks were reeling under pressure as the BSE Midcap index fell more than a percent while the Smallcap index cracked more than two percent.
Major Asian peers traded lower as sticky inflation and aggressive rate hikes have raised the concerns that the world economy may slip into a recession.
Economists have been raising concerns that a recession this year is highly possible as inflation has shot up to multi-year high levels in major economies, prompting central banks to lift rates steeply higher.
As per a Mint report, "economists surveyed by The Wall Street Journal have raised the probability of recession, now putting it at 44 percent in the next 12 months, a level usually seen only on the brink of or during actual recessions."
As per a Bloomberg report, economists at Nomura Holdings Inc believe the US economy may fall into a mild recession by the end of 2022 as the Federal Reserve raises rates.
"Events of the last few days have increased the risk of recession in the US. Synchronised rate hikes by most central banks will certainly hit global growth this year. High-interest rates and lower growth will impact corporate earnings. Risky assets are reacting to this pessimistic scenario. The 72 percent crash in the price of bitcoin is a reflection of the fear and risk aversion among investors," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"The correction in the Indian market is not as steep as in the US mainly because of the sustained buying by DIIs and retail countering the relentless selling by FIIs which crossed ₹7000 crore last Friday. A bounce back from the steady decline is possible at any time. An important factor favouring such a scenario is the six percent decline in crude. If this trend persists it can help tame inflation globally. Investors can use weakness in the market to buy high-quality large-caps across sectors," said Vijayakumar.
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