These BSE500 stocks down up to 15-28% as bears tightened grip on D-Street

It turned out to be a painful week for the investors on Dalal Street as the benchmark index Sensex lost 2,943 points. The broader Nifty50, which ended below the 15,300 mark, is now just 411 points away from entering the bear zone officially. Data shows that it was the worst week for the Nifty in over two years.

Unabated selling of Indian equities by foreign portfolio investors (FPIs) also pushed the headline stock indexes lower. Marking the biggest annual outflow, foreign investors have sold Indian stocks worth over Rs 2 lakh crore in the calendar year 2022 so far.

"Markets are largely taking cues from the global markets, in absence of any major domestic event. And, going ahead, the US Fed chairman's speech and China's interest rate decision would be important triggers for the markets. On the domestic front, the COVID trend and the progress of the monsoon will also be in focus. We reiterate our negative view on markets and suggest continuing with the “sell on rise” approach, said Mr. Ajit Mishra, VP - Research, Religare Broking.

Broader markets also declined in line with the headline indexes, with the BSE Midcap and Smallcap indices shedding 5.3 per cent and 6.6 per cent, respectively.

Four BSE500 stocks have fallen over 20 per cent and more in the week gone by, while 10 counters declined more than 15 per cent.

Shares of RBL bank tanked over 28 per cent after the private sector lender announced the appointment of veteran banker R Subramaniakumar as its new managing director and chief executive officer (CEO).

On Monday, the stock plunged about 19 per cent to Rs 92.95, its new 52-week low. Market participants have turned cautious after the appointment of a PSU banker for a private lender, which has turned the investors cautious. This has led to downgrade in the stock as well. Leading global broking firm CLSA has downgraded RBL Bank from buy to outperform, keepings its target of Rs 130 intact on the counter.

"Leadership flux and liability are the key headwinds but the lender has a manageable asset quality," it said. "RBI has approved R Subramaniakumar as the new MD and CEO of the lender, despite the several questions."

Mastek share price fell over 24 per cent while Mangalore Refinery And Petrochemicals tanked over 21 per cent. Network 18 Media & Investments was down over 20 per cent as well in the week gone by. This was despite the fact that Viacom18, in which Network 18 owns a majority stake, won digital streaming rights for the Indian cricket league IPL from 2023 to 2027.

Ten stocks declined more than 15 per cent in the week gone by, with Angel One and Deepak Fertilisers And Petrochemicals Corporation losing 17.7 and 16.8 per cent, respectively. Chemplast Sanmar and National Aluminium Company Ltd. lost 16.25 per cent and 16.21 per cent, respectively.

The stocks which declined 15-16 per cent last week were Route Mobile, TV18 Broadcast, Tanla Platforms, Oil India and Trident.

"Following weak global cues, Nifty 50 ended the week sharply lower and decisively broke below the critical support level of 15,700. While market sentiment is extremely bearish, the indices have become oversold in the near term. Even the major global indices are trading near the support of the falling channel," said Yesha Shah, Head of Equity Research, Samco Securities.

"As a result, a short-covering bounce cannot be ruled out. We recommend that traders maintain a negative to neutral outlook in the coming week and use any bounce as an exit opportunity. The immediate support and resistance levels are now placed at 15,200 and 16,200 levels respectively," Shah added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)