Stock Market Crash: Hindustan Unilever, SBI Cards, and UPL among equities reaching 52-week lows; see list here
More than 250 BSE equities, including Hindustan Unilever, SBI Cards and Payment Services, Page Industries, UPL, and Zee Entertainment, fell to 52-week lows during intraday trade.
On Wednesday, the Indian stock market declined by more than 1%. This decline came a day after the release of US inflation data for February, which showed a modest uptick.
The Nifty 50 closed at 21,997.70, down 338 points (1.51 percent). In contrast, the Sensex closed at 72,761.89, down 906 points or 1.23 percent.
On March 13, around 161 equities on the NSE reached their 52-week low, while just 17 stocks reached their 52-week high, according to NSE data. Furthermore, 223 stocks reached their yearly lows on this day. On the BSE, 89 shares reached a 52-week high.
Stocks on the NSE, including Sindhu Trade, Marshall Machines, GRM Overseas, Cello World, and BGR Energy, have reached their lowest values in the last 52 weeks. Meanwhile, Somi Conveyor, Intellect Design, Modern Threads (India) Ltd., Diamond Power, and Dolphin Offshore all hit fresh 52-week highs.
More than 250 BSE equities, including Hindustan Unilever, SBI Cards and Payment Services, Page Industries, UPL, and Zee Entertainment, fell to 52-week lows during intraday trade. TCS, Delta, and NBL were among the equities that reached 52-week highs.
In a single day, investors saw a significant drop as the aggregate market capitalization of firms listed on the BSE fell from over ₹385.6 lakh crore in the previous session to around ₹372.1 lakh crore. Investors lost around ₹13.5 lakh crore over this period.
Commenting on today’s market collapse, Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd, stated, “The Nifty and Sensex, India’s key benchmark indices, witnessed a substantial decline over 1.5%, reaching levels last seen on March 01. This decline happened despite a dip in domestic inflation rates, which fell to 5.09% year on year in February from 5.10% in January.
The slump in the Indian stock market is mostly due to a big drop in the midcap and small-cap indices, which fell by 4 to 5% during today’s trading session.”
“This dip is in response to the market regulator’s concerns about the overvaluation of mid- and small-cap companies, which has resulted in froth in these segments. On Monday, the regulator raised concern about potential frothiness in these areas, citing their extraordinary performance and current high valuations. The words have spurred speculation about prospective restrictions on fund allocation, prompting market volatility. In reaction to these changes, certain mutual fund AMCs have implemented procedures to restrict fund allocation or lump sum investments in the midcap and small-cap segments,” Nanda remarked.
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