Market crash: 77 stocks on BSE 500 index hit their 52-week low levels

PTI, Feb 24, 2022, 12:15 PM IST

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As many as 77 stocks hit their 52-week low levels in morning trade on Thursday as domestic equity benchmark indices witnessed heavy selling pressure after Russia announced a military operation in Ukraine.

Broader markets were badly hit as sustained selling pressure pulled the Sensex midcap and smallcap down by around 3.31 per cent and 3.37 per cent, respectively.

On the sectoral front, all the sectoral indices were trading in the red with the BSE Telecom, BSE Realty and BSE Teck suffering the maximum loss of around 4.47 per cent, 3.91 per cent and 3.19 per cent, respectively.

The advance-decline ratio was massively tilted in favour of the bears with 266 advances and 2,893 declines.

As many as 77 stocks from BSE 500 index which hit their 52-week low in the morning session on Thursday, include Dr Reddy’s, Exide Industries, HDFC Life, Apollo Tyres, BPCL, DCB Bank, HDFC Asset Management Company Ltd, Gillette India Ltd, and Wockhardt Ltd.

At 1144 hours, the 30-share Sensex was trading 1465.96 points or 2.56 per cent lower at 55,766.10, while the broader NSE Nifty fell 433.95 points, or 2.54 per cent, to 16,629.30.

”The Sensex has fallen 1,800 points, as Russia begins military operations in Ukraine. The geopolitical event has been causing a rout across equity markets, as the world can ill-afford further disruption in trade and commodities when COVID has already weakened sovereign balance sheets,” said Amar Ambani, Head – Institutional Equities at YES SECURITIES.

He noted that alreadsy a consolidation was being witnessed since mid-October 2021 due to lack of fresh triggers. The Russia-Ukraine issue added a negative trigger to the existing overhang of the US Fed likely raising rates in March 2022.

”However, we reiterate our bullish stance on Indian equities for next three years. History has shown us that these wars offer good entry points for investors,” Ambani said.

Narendra Solanki, Head- Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers, said investors should continue to hold growth stocks and let volatility pass.

According to Ambani, be it the wars of Vietnam, Gulf, Afghanistan, Iraq or the Crimean crisis, markets have fallen on war fear, then rallied when the actual battle broke out and further continued its upward journey post the war. The next seven-odd trading sessions will offer tremendous opportunity for the long-term investor. Invest in good quality management in sunrise sectors, he added.