The Economic Times daily newspaper is available online now.

    Not a happy new year! These 70 stocks plunged over 25% in 2022

    Synopsis

    Out of about 1,000 companies on BSE midcap and smallcap index, as many as 70 stocks have dropped more than 25 per cent in the current year so far, of which 20 have eroded one third of investors’ wealth in the new year so far.

    Stock market is fallingGetty Images
    The BSE midcap index has tanked more than 6 per cent in 2022 so far.
    New Delhi: 2022 did not kick off on a happy note for the equity investors, at least not so far. Investors hunting for multibaggers in midcap and smallcap stocks have fallen prey to the volatility on Dalal Street.

    Out of about 1,000 companies on BSE midcap and smallcap index, as many as 70 stocks have dropped more than 25 per cent in the current year so far, of which 20 have eroded one third of investors’ wealth in the new year so far.

    The BSE midcap index has tanked more than 6 per cent in 2022 so far, whereas the BSE smallcap index plunged over 9 per cent. The benchmark and BSE barometer Sensex has shed less than 3 per cent in this year so far.

    Vikas Jain, Senior Research Analyst at Reliance Securities said that the markets were in corrective mode since the start of the earnings season, second week of January. India Inc witnessed a mixed bag of earnings.

    "Price correction was swift post the numbers of the results, downgrades in earnings, global negative news flow, higher interest rates and geopolitical concerns adding the correction mode very sharp in high beta stocks," he added.

    Among the second rung stocks, Metropolis Healthcare has dropped the most, tumbling about 41 per cent to Rs 2,031.1 on February 22 from its close at 3439.55 on December 31, 2021.

    It is followed by Yaari Digital Integrated Services and GE Power India which have fallen 40 per cent each. GE Power India is slumped 39 per cent, whereas Take Solutions and Jubilant Industries eased 38 per cent each in 2022 so far.

    table-1.ETMarkets.com

    Tata Teleservices (Maharashtra), Mahindra Logistics, Stove Kraft, Mahanagar Telephone Nigam, Sterlite Technologies, R Systems International, Zensar Technologies and Himatsingka Seide are other stocks that slipped at least 35 per cent.

    Other companies eroding one-third of investors wealth include Venus Remedies, Ramco Systems, Firstsource Solutions, Subex, GE T&D India and GNA Axles, falling more than 33 per cent during the period under review.

    Table-2.ETMarkets.com

    About 765 constituents of the BSE mid and smallcap index have disappointed investors with negative returns, while others have been able to hold their gains in this year so far.

    However, a few analysts see profit-booking as the major reason for the correction in these stocks after a strong performance in the last few months.

    Ricky Kirpalani, Lead Sponsor, First Water Capital Fund (AIF) said that after a strong 2021 for the mid and smallcaps, investors have started looking for reasons to take some money off the table, resulting in a decent correction.

    He said that healthy deflation in rich valuations along with global worries such as hawkish commentary from the Federal Reserve, inflationary worries and geopolitical concerns is weighing on their counters.

    Table-3.ETMarkets.com

    The correction in some stocks is owing to the underlying fundamentals of the company and the resilience to bounce back post covid setbacks, said Neha Khanna, Director, ValPro - a tech based investment banking platform.

    The dips are a result of such valuations being streamlined by the markets, she added. "This can also be observed in contrast by companies with consistent compounding performance as showcased in Q3 results most recently."

    Not all mid and smallcaps are wealth destroyers as at least a dozen of them have jumped over 35 per cent during 2022, with DB realty being a multibagger. The smallcap real estate player surged about 108 per cent.

    Gujarat Mineral Development Corporation (76 per cent up), Khaitan Chemicals (50 per cent up) and Sharda Cropchem (45 per cent up) also have rewarded investors handsomely.

    Other winners from the segment include Vishnu Chemicals, Deepak Fertilizers, Orient Bell, Nahar Poly Films, TCPL Packaging, Jindal Drilling & Industries, HSIL and Steel Exchange India.






    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in