Over 700 Stocks Sink to 52-Week Lows on BSE as Market Crash Wipes Out ₹18 Lakh Crore
Over 700 Stocks Sink: The Indian stock market faced a significant downturn on Wednesday, February 12, as more than 721 stocks, including market giants like Reliance Industries, Asian Paints, Tata Motors, and Power Grid, tumbled to their 52-week lows on the Bombay Stock Exchange (BSE). The broader market selloff led to sharp declines across various sectors, leaving investors anxious about the near-term outlook.
Sensex and Nifty Continue Losing Streak
The Sensex extended its losing streak for the sixth consecutive session, closing at 76,171.08, down 123 points (0.16%). Meanwhile, the Nifty 50 ended at 23,045.25, down 27 points (0.12%).
Out of the 30-share Sensex pack, 17 stocks finished in the red, with Mahindra & Mahindra, ITC, Power Grid, and Reliance Industries among the biggest losers, declining between 1% and 3%.
The downturn was not limited to large-cap stocks, as BSE Midcap and Smallcap indices also suffered, falling 0.45% and 0.49%, respectively.
Massive Wealth Erosion in Six Days
The six-day market slump has led to a staggering erosion of investor wealth. The overall market capitalization (m-cap) of BSE-listed firms fell to ₹407.5 lakh crore, down from ₹408.5 lakh crore in the previous session. Since February 4, when the Sensex last ended in green, investors have lost nearly ₹18 lakh crore as the market capitalization plunged from ₹425.5 lakh crore.
Which Stocks Hit 52-Week Lows?
Several prominent stocks hit their 52-week lows, reflecting the extent of the decline. Some of the major names include:
- Reliance Industries
- Asian Paints
- Tata Motors
- Power Grid
- Jio Financial Services
- Punjab National Bank
- REC
- Bank of Baroda
- Canara Bank
- Coal India
- DLF
- GAIL
- Godrej Consumer Products
- Hero MotoCorp
- Indian Oil Corporation
- Birlasoft
The banking, energy, real estate, and consumer sectors were among the worst hit, with major financial institutions like Punjab National Bank, Bank of Baroda, and Canara Bank seeing sharp declines.
Why Did the Stock Market Crash?
The recent downturn is driven by multiple factors:
- Overvaluation Concerns: Analysts believe that broader market valuations were too high, leading to a natural correction phase.
- Muted Q3 Earnings: Many companies reported below-expectation Q3 earnings, dampening investor sentiment.
- US Fed’s Cautious Stance: The US Federal Reserve indicated that it is “not in a hurry to lower interest rates,” which led to increased uncertainty in global financial markets.
- Metal Tariff Worries: Concerns over metal tariffs and potential trade disruptions further added to the market’s nervousness.
Expert Opinions on Market Outlook
Nifty 50 Technical Analysis
- According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the Nifty 50 formed a long-legged Doji candle, signaling market indecisiveness.
- If Nifty holds above 22,950, it may see a pullback towards 23,200-23,250.
- However, if it breaks below 22,950, selling pressure may accelerate, dragging it to 22,800 or lower.
Market Recovery Possibility
- Rupak De, Senior Technical Analyst at LKP Securities, believes that unless Nifty breaks below 22,786, there’s a chance of recovery towards 23,500-23,600.
- Key resistance is at 23,200, while support lies at 23,000.
Financial Ratios of Key Stocks
Here’s a look at key financial ratios of some major stocks that hit their 52-week lows:
| Stock | P/E Ratio | P/B Ratio | Debt-to-Equity | ROE (%) | Dividend Yield (%) |
|---|---|---|---|---|---|
| Reliance Industries | 27.5 | 2.1 | 0.3 | 9.8 | 0.34 |
| Asian Paints | 59.2 | 15.4 | 0.1 | 23.4 | 0.69 |
| Tata Motors | 19.7 | 2.9 | 0.8 | 12.1 | 0.42 |
| Power Grid | 11.4 | 1.9 | 1.5 | 17.2 | 4.15 |
| Jio Financial Services | 45.3 | 5.6 | 0.4 | 8.9 | 0.0 |
| Punjab National Bank | 8.2 | 0.9 | 1.2 | 6.4 | 1.87 |
| Bank of Baroda | 7.5 | 1.2 | 1.1 | 10.2 | 2.15 |
| Coal India | 6.8 | 2.5 | 0.2 | 28.1 | 8.23 |
(Data is approximate and subject to market changes)
Should Investors Be Worried?
While the market correction has led to panic selling, many experts believe this could be a healthy consolidation phase before another rally. Historically, stock market dips provide long-term investors with opportunities to accumulate quality stocks at lower valuations.
Investment Strategy During a Market Crash
- Avoid Panic Selling: Market fluctuations are common, and selling during a downturn can lock in losses.
- Look for Strong Fundamentals: Invest in companies with low debt, high return on equity (ROE), and strong cash flow.
- Diversify Your Portfolio: Reduce risk by holding a mix of large-cap, mid-cap, and sectoral stocks.
- Monitor Key Support Levels: If major indices hold key support levels, a bounce-back rally could be imminent.
Final Thoughts
The Indian stock market’s six-day losing streak has caused significant wealth erosion, with over 721 stocks sinking to 52-week lows. The combination of global economic uncertainty, overvaluation concerns, and weak earnings has intensified selling pressure.
However, technical indicators suggest a possible recovery, provided key support levels hold. Long-term investors should focus on fundamentally strong stocks, while traders must watch resistance and support zones closely.
As the market navigates through volatility, keeping an eye on economic indicators, corporate earnings, and global trends will be crucial in determining the next direction.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.