scorecardresearchUnderperformers! 10 stocks have lost over 50 percent of their investor wealth in 2022 so far

Underperformers! 10 stocks have lost over 50 percent of their investor wealth in 2022 so far

Updated: 19 Jul 2022, 07:45 AM IST
TL;DR.
In the Nifty500 index, while Future Retail and Dhani Services have shed 86 percent and 82 percent, respectively, stocks including Future Consumer, Solara Active, Indiabulls Real estate, Metropolis Health and Indiabulls Housing have tanked between 55-75 percent.
In the Nifty500 index, while Future Retail and Dhani Services have shed 86 percent and 82 percent, respectively, stocks including Future Consumer, Solara Active, Indiabulls Real estate, Metropolis Health and Indiabulls Housing have tanked between 55-75 percent.

In the Nifty500 index, while Future Retail and Dhani Services have shed 86 percent and 82 percent, respectively, stocks including Future Consumer, Solara Active, Indiabulls Real estate, Metropolis Health and Indiabulls Housing have tanked between 55-75 percent.

10 companies from the NSE500 index have lost more than half of their investor wealth in 2022 so far amid a massive correction in the Indian markets during the year. This steep correction and negative investor sentiment have been on the back of aggressive monetary tightening in a bid to control the rising inflation. Indian markets have declined 7 percent in 2022 YTD.

In the Nifty500 index, while Future Retail and Dhani Services have shed 86 percent and 82 percent, respectively, stocks including Future Consumer, Solara Active, Indiabulls Real estate, Metropolis Health and Indiabulls Housing have tanked between 55-75 percent.

Dilip Buildcon, Zensar Tech, GE Power and Sterlite Tech have also lost over 50 percent each in 2022.

The debt-laden Future Group firm, Future Retail fell from around 53 in December 2021 to 7 currently. Its retail operations have struggled due to the COVID-19-led lockdowns that caused stores to shut down impacting sales. It is also involved in a legal war between Amazon and Reliance Industries.

Meanwhile, Dhani Services fell from 165 in December 2021 to 30 currently. It has lost 86 percent in the last 1 year. The firm is engaged in the business of providing technology-enabled subscription-based healthcare and transaction finance services, through its Dhani App. he Company’s customers can choose a suite of products to manage their financial needs on a daily basis, which includes managing all payments through the Dhani Wallet or Dhani Card and access to personal finance through loans.

However, 12 stocks from the index have risen over 50 percent this year but there are no stocks that have doubled investor wealth. Sharda Cropchem and Gujarat Ambuja Exports have performed the best, advancing over 90 percent each in this time.

Meanwhile, in the Nifty50 index, 30 stocks gave negative returns this year. IT stocks Tech Mahindra, Wipro and HCL Tech lost the most in the benchmark index, down 32 percent, 43 percent and 44 percent, respectively. Other stocks like Shree Cements, Bajaj Finserv, Hindalco, UltraTech Cement, Infosys, Apollo Hospitals, and Divi's Labs shed over 20 percent each in this time.

Only 5 stocks from the index were added over 20 percent in 2022. M&M surged the highest, up 39 percent followed by ITC, up 35 percent. Coal India, Bajaj Auto and NTPC were also up over 20 percent each.

Going ahead, most experts believe that the second half of CY22 (H2-CY22) is also likely to remain volatile due to rising interest rates, high inflation and global growth concerns. Brokerage Axis Securities said that it expects the markets to remain volatile over the next couple of months, by which interest rate, inflation, and growth expectations stabilize globally.

"Post this painful period of a couple of months, we expect the market to start its upward journey slowly and steadily since India continues to remain one of the only few major markets which are growing at a healthy pace," the brokerage noted.

Axis continues to remain positive on the long-term outlook of the market. It believes, that though aggressive policy tightening will help in curbing inflationary pressure, persistently elevated oil and commodity prices would continue to pose challenges to the market multiple in the next few quarters. ‘Growth at a Reasonable Price’ is an emerging theme that provides good long-term risk rewards in the current market environment, it added.

Disclaimer: This article is for information purposes only. Please talk to a SEBI-registered investment advisor before taking any investment related decision. 

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First Published: 19 Jul 2022, 07:45 AM IST