Beaten-Down Stocks: These 30 Shares Took The Hardest Hit In Nifty 500 Over Six Months; Will They Rebound?
The Indian stock market has been on a correction mode for the past few months, with the Sensex and Nifty indices extending their recent losses. The main trigger of this downward trend can be attributed to the high valuations of the market and the attractive yields offered by US bonds. As a result, various Nifty 500 stocks have taken a significant hit, with some plummeting as much as 50% to reach six-month lows.
Identifying the Losers:
To understand the extent of the damage, we have identified the top 30 loser stocks in Nifty 500 over the past six months. The list includes some well-known companies in various sectors, such as technology, FMCG, and auto.
Top 30 Loser Stocks of Nifty 500 in Past Six Months:
| Rank | Stocks | LTP (₹) | Half Yr Chg (%) |
|---|---|---|---|
| 1 | Data Patterns | 1361.1 | -50.53% |
| 2 | Grindwell Norton | 1391.3 | -42.56% |
| 3 | Balaji Amines | 1232 | -43.78% |
| 4 | Cera Sanitaryware | 5170.5 | -44.40% |
| 5 | Apar Industries | 5559.65 | -37.06% |
| 6 | BEML | 2378 | -37.40% |
Expert Analysis:
The correction in the market is an opportunity for long-term investors to buy high-quality stocks. According to Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, "The main triggers for the sustained FII selling in India have been the high valuations and the attractive US bond yields. These important macro factors are undergoing a slow shift."
He added, "Large-cap valuations are now fair, and in segments like financials, attractive. The US 10-year bond yields have declined to 4.21%. So, there is a possibility of FIIs reducing their selling, going forward."
Growth Prospects:
While the short-term dip in the market can be concerning, experts believe that the Indian economy is on the path to recovery. The Q3 GDP growth numbers have picked up from 5.6% in Q2 to 6.2% in Q3, suggesting above 7% growth in Q4. This indicates a cyclical recovery, which bodes well for the stock market.
Investment Strategy:
For long-term investors, this correction is an opportunity to buy high-quality stocks. According to Dr. Vijayakumar, "The February auto sales numbers reveal excellent performance from M&M and Eicher. IT stocks are also turning attractive."
Disclaimer:
The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Conclusion:
The beaten-down stocks of Nifty 500 have taken a significant hit over the past six months, with some plummeting as much as 50% to reach six-month lows. While the short-term trend is bearish, experts believe that the Indian economy is on the path to recovery, and these stocks may rebound in the long run. Investors can consider buying high-quality stocks at these beaten-down levels.
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Note: The data and information provided in this article are accurate as of March 03, 2025, and may not reflect the current market situation. It is essential to consult with a financial advisor and conduct thorough research before making any investment decisions.
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