A stock or an index is said to have entered the bear grip when it falls 20 per cent or more from its peak.
The market is in a corrective phase, with richly-valued and high-beta stocks taking a much bigger hit, said Neha Khanna, Director, Valpro.
According to the data from Ace Equity, as many as 400 stocks from the BSE500 index have tumbled between 20-76 per cent from their respective 52-week highs. BSE500 index constitutes about 95 per cent of the total market capitalization of BSE.
Out of these 400 stocks, 10 per cent or 40 counters have halved in value and half a dozen counters have slumped more than 65 per cent, the data suggests.
Solara Active Pharma which tumbled more than 76 per cent from its 52-week high is the top loser. The scrip had scaled Rs 1,859.3 on May 19, 2021, but settled at Rs 442.45 on Wednesday, May 11.
It is followed by Dilip Buildcon, which plunged 71 per cent as the counter dropped to Rs 219.6 on Wednesday, from its 52-week high of Rs 749.3 on October 13, 2021.
Wockhardt, Zomato, Strides Pharma, Sequent Scientific,
Housing Finance, Indiabulls Housing Finance, Indiabulls Real Estate, Welspun India, HEG and Indostar Capital Finance are other counters which have plunged 65 per cent or more from their 52-week highs.
Inflationary worries, monetary tightening, elevated crude oil prices, geopolitical crisis, lofty valuations, falling rupee and constant outflow are the key reasons which are hurting the sentiments for equity markets.
Kanika Agarrwal, Co-founder, Upside AI said, “The inflation gorilla is being tamed by interest rate hikes, leading to derating, and constant selling by FIIs, just to move away from equity and emerging markets, are the key reasons hurting markets.”
Analysts believe it is almost impossible to time the market and the upcoming recovery might not be a prompt one akin to March 2020, boosted by the influx of liquidity. One should be prepared for a prolonged bear market, they said.
“There are a lot of macro factors at play where interest rates are rising to control inflation. But inflation this time seems to be a supply-side issue which money tightening may not help,” added Agarrwal.
There has been a steep correction in the stocks and the only sectors in the black are energy, mining and commodities, said Sonal Minhas, Founder, Prescient Capital. “Equity investing needs to be looked at from a 3-5 year perspective,” he added.
Vaibhav Global, Jubilant Pharmova, Lux Industries, Indiamart, Firstsource Solutions, Tata Teleservices, Dishman Carbogen, Infibeam Avenues, Manappuram, Ujjivan SFB, Spandana Sphoorty, Tasty Bite, JK Lakshmi Cement, Bajaj Consumer, RBL Bank, RBA, Hindustan Copper, Venky’s, TV18 Broadcast, GIC of India, Aarti Drugs, Zydus Lifesciences, Info Edge, Aegis Logistics, Jubilant Ingrevia, Bank Of Maharashtra, Zensar Tech and Thyrocare have tumbled more than 50 per cent.
Bank Of India, Jubilant Food, Sobha, Sterlite Tech, IRCTC, Vodafone Idea, Indigo Paints, Godrej Properties, Greaves Cotton, Hikal, CSB Bank, Dr Lal Pathlabs, Rallis India, Aurobindo Pharma, NBCC (India), SpiceJet, CAMS, Dixon Tech, HDFC AMC, Happiest Minds, Lupin MCX, Dalmia Bharat, IRB Infra, SAIL, Central Bank Of India, ITI, Sudarshan Chemicals, La Opala RG, Route Mobile, Nippon Life AMC, BHEL, IDBI Bank, Mahanagar Gas and Avanti Feeds are some other stocks in the bear grip.
Market experts suggest that the recent round of correction may last a bit longer and benchmark indices might be headed for some more correction, say 10-15 per cent.
Minhas from Prescient Capital said that investors who have a lower risk appetite or have a near term need for funds should stay in cash or invest in fixed income, whereas Agarrwal from Upside AI suggests that it is an opportune time to pick quality names and begin SIPs.
“Investors should be cautious and buy based on valuations and not pricing and resist the temptation of quick trading profits given the continuing market uncertainty,” advised Khanna from Valpro.