As many as 135 stocks on the index are down more than 20 per cent from their 52-week highs, and need up to 210 per cent rally to revisit their recent peaks. Half a dozen stocks are trading 50-67 per cent below their peaks, which indicates that they need a 100-200 per cent rally to regain their recent highs.
Shutterstock.comDeepak Shenoy, founder of Capitalmind, said such a dichotomy is absolutely normal in a bull market as not all stocks have participated in the rally.
New Delhi: As Dalal Street loiters near lifetime highs, more than one-fourth of the shares in the BSE 500 are in a bear grip.
As many as 135 stocks on the index are down more than 20 per cent from their 52-week highs, and need up to 210 per cent rally to revisit their recent peaks. Half a dozen stocks are trading 50-67 per cent below their peaks, which indicates that they need a 100-200 per cent rally to regain their recent highs.
Deepak Shenoy, founder of Capitalmind, said such a dichotomy is absolutely normal in a bull market as not all stocks have participated in the rally. "However, some stocks have fundamental issues. That is why not all stocks of every sector are outperformers," he added. "Investors should stick to the highest quality names."
Future Retail is leading the pack. It had slumped over 67 per cent to Rs 44.65 on September 1, 2021, from Rs 137.15 on the same date previous year. Vodafone Idea has lost 56 per cent from its peak of Rs 13.8, scaled on January 15, 2021.
Ujjivan Small Finance Bank, Bliss GVS Pharma, Wockhardt and Ujjivan Financial Services are other stocks trading below half the price compared to their recent peaks.
Santosh Meena, Head of Research, Swastika Investmart, said the bull market is likely to continue for a long time. Many stocks of poor quality or poor financials have also joined the party. "However, there are corrections, which are healthy for the market. Quality stocks are gaining investors' attention, while there is no euphoria in the BSE 500 space," he added.
Among other notable names, Future Consumer, Vakrangee, Bank of Maharashtra, Hindustan Copper, Varroc Engineering, Strides Pharma Science, Adani Power, RBL Bank, Bank of India and IDFC First Bank have shed 35-50 per cent from their respective 52-week highs, most of which were scaled in the current financial year.
The bear grip is tight on Alembic Pharma, Bandhan Bank, SpiceJet, Indian Overseas Bank, Aurobindo Pharma, Sequent Scientific, BHEL, IFCI, Central Bank of India, NLC India, HFCL, GMM Pfaudler, NMDC, Burger King India, CEAT, Mahindra Finance, Venky, Firstsource Solutions, Biocon, Indiabulls Housing and Affle (India). These stocks are down over 25 per cent from recent highs.
Meena said there are a lot of opportunities and every correction should be used as a buying opportunity. "Those who are not comfortable after such a big rally in the market can go through the SIP route to ride this bull run."
Blue Star, LIC Housing, Manappuram Finance, Hero Motocorp, Lupin, Tata Metaliks, Whirlpool of India, NBCC, Balmer Lawrie, Indus Towers, Rallis India, Exide Industries, Adani Green Energy, JM Financial, NCC, Granules India, Bank of Baroda, Force Motors, Ircon, Motherson Sumi Systems and TVS Motors are also under the bear grip.
Shenoy suggested that investors should invest in beaten down stocks, but only if they are confident of a turnaround and not because these are available at lower prices. He was bullish on themes such as IT, electrical vehicles and new-age technology.
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