scorecardresearchSensex down over 7,000 points from its all-time high; 30 stocks from BSE500

Sensex down over 7,000 points from its all-time high; 30 stocks from BSE500 index tank over 50%

Updated: 24 Feb 2022, 03:10 PM IST
TL;DR.

Indian benchmark index Sensex has lost over 7,000 points or 11 percent from its all-time high of 62,245.43, hit on October 19, 2021. The index hit an intra-day low of 55,147.73 in today's deals.

Indian benchmark index Sensex has lost over 7,000 points or 11 percent from its all-time high of 62,245.43, hit on October 19, 2021. The index hit an intra-day low of 55,147.73 in today's deals.

Indian benchmark index Sensex has lost over 7,000 points or 11 percent from its all-time high of 62,245.43, hit on October 19, 2021. The index hit an intra-day low of 55,147.73 in today's deals.

With the downward spiral continuing in the Indian markets following major losses across global peers as tensions between Russia and Ukraine escalated. Along with the worsening situation between Russia and Ukraine, the surge in oil prices, concerns of an aggressive rate hike by the US Fed and continued outflows by foreign investors kept the investors on the sideline.

Indian benchmark index Sensex has lost over 7,000 points or 11 percent from its all-time high of 62,245.43, hit on October 19, 2021. The index hit an intra-day low of 55,147.73 in today's deals.

Just in today's trade, the index has lost over 3 percent. This comes after Russian President Vladimir Putin on Thursday announced a military operation in Ukraine, claiming it’s intended to protect civilians.

In a televised address, Putin said the action comes in response to threats coming from Ukraine. Putin also warned other countries that any attempt to interfere with the Russian action would lead to “consequences they have never seen.”

“Geopolitical events often come up with short-term reactions in the market as the dominant news flow leads to market volatility. The current Russia-Ukraine crisis would lead to a rise in oil prices, higher than the current levels. High crude prices could delay the cool-off in inflation, which was expected to go moderate by the second half of 2022," said Naveen Kulkarni, Chief Investment Officer, Axis Securities.

Foreign investors have also not been very bullish on India which has been further weakening the market sentiment. In last 5 months (including Feb till date), the FPIs have sold as much as 93,456 crore since October 2021. Before these current 5 months, the highest level of selling by foreign investors was witnessed during the global financial crisis in 2008 when they sold 44,378 crore between May-November 2008.

On the BSE500 index, around 30 stocks have fallen over 50 percent from their respective 52-week highs while over 300 stocks have shed over 20 percent each.

Dilip Buildcon and Strides Pharma Sciences have lost the most, they are down around 67 percent from their 52-week high. Meanwhile, Solara Active Pharma, Vaibhav Global, Ujjivan Financial Services, Sequent Scientific, Ujjivan Small Finance Bank, Tata Teleservices, PNB Housing Finance, HEG, Spandana Spoorty, Wockhardt, Valiant Organics, Jubilant Pharmova and Indiabulls Housing had declined over 55 percent each from their respective 52-week highs.

Meanwhile, on BSE Sensex, Tata Steel, IndusInd Bank, Dr Reddy's, Tech Mahindra, Wipro, HUL, HDFC, UltraTech Cement and ITC have lost over 20 percent from their 52-week highs.

Kulkarni believes that the present macroeconomic developments are leading to volatility in all major asset classes, including equity and debt.

"The volatility is here to stay for some time before we conclude a market direction. Investors should focus on asset allocation and use this volatility to build long-term positions in quality large and mid-cap stocks as they become attractive after the recent correction and provide a good entry point,” he advised investors.

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First Published: 24 Feb 2022, 03:10 PM IST