Indian markets have been on a downward trajectory since the US Fed raised rates for the third time in a row to tame inflation, raising fears of a recession. Benchmark indices extended losses on Wednesday, for the sixth straight session post the fed rate hike.
Meanwhile, just in today's deals, Nifty fell 180 points or 1 percent to hit its intra-day low of 16,827.40 whereas Sensex declined 608 points or 1 percent to its intra-day low of 56,499.62. Just in the last 1 week, both indices have lost over 4 percent.
This latest bout of correction has also turned the indices negative for 2022 YTD, down over 2 percent each. In the last 1 year as well, they have shed over 4.5 percent each.
The soaring dollar as a result of aggressive monetary tightening, slowing economic growth and rising demand from cautious investors are causing turbulence in the global equity market, said market experts. This is creating mayhem in the domestic market led by a weakening rupee, elevated bond yields and pessimistic trends of Asian peers, they added.
Despite this, the indices are still around 11 percent up from their June lows.
Most stocks have also been in the red since Wednesday (September 21). Only 20 stocks in the Nifty50 index were trading in the red, however, non of them were at their 52-week lows.
Meanwhile, in NSE500, over 10 stocks hit their 52-week lows in today's deals while Cipla was the only stock at its 52-week high despite weak market sentiment.
Let's take a look at some of the stocks that hit their respective 52-week lows in trade today:
LIC: Shares of Life Insurance Corporation of India shed over 1 percent to hit its 52-week low of ₹622.45 in intra-day deals today. The stock has been in the red for 6 consecutive sessions including today and has lost 5 percent in this period. Since listing in June this year, it has cracked nearly 25 percent.
Indian Oil: Shares of IOC also fell over 1.5 percent to hit their 52-week low of ₹65.70 in trade today. It has lost 5 percent since September 21 and 11 percent in 2022 YTD. Meanwhile, in the last 1 year, it is down 15 percent.
Indian Energy Exchange: Shares of IEX fell 1.5 percent to hit its 52-week low of ₹139. The stock has lost 9 percent since Wednesday (September 21) and has tanked 45 percent in 2022 YTD. In the last 1 year as well, it has shed 27 percent.
Sona BLW Precision Forgings: Shares of Sona have also hit their 52-week low of ₹458, down 1.5 percent in intra-day deals. Since September 21, it has shed almost 11 percent and is down 10 percent in September so far. It has tanked 28 percent in 2022 YTD and 17 percent in the last 1 year.
P&G Health: This stock also hit its 52-week low of ₹3,900 in trade today, down over 1 percent. It has shed 5 percent since September 21 and is down 7 percent in September so far. It has lost 27 percent in 2022 YTD as well as in the last 1 year.
Going ahead, experts expect the correction to continue amid a lack of any major positive cues. In the short term, the market is expected to remain volatile and the Nifty may find a bottom near the 16,000 level.
"The dominant dynamic roiling equity and currency markets globally is the combination of relentless rise in the dollar and the sustained rise in US bond yields. So long as this trend continues, equity markets will be under pressure. FPIs turning big sellers in India is an indication of the risk-off in equity in emerging markets. In the context of rising US bond yields, RBI will be forced to raise rates by around 50 bps on September 30th. This will be another negative for equity markets," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. In brief, except for falling crude there are no positive triggers for the equity market now, he added.