Retail investors are the biggest victim of this stock market crash: Vijay Kedia
Market veteran Vijay Kedia believes that the ongoing correction in the domestic equity market was long due.
- Feb 24, 2022,
- Updated Feb 24, 2022 3:13 PM IST
Market veteran Vijay Kedia believes that the ongoing correction in the domestic equity market was long due. The conflict between Russia and Ukraine is just one of the reasons.
The benchmark equity index BSE Sensex crashed over 2,000 points in the morning trade on Thursday after Russian President Vladimir Putin announced a military operation in eastern Ukraine. Meanwhile, oil prices soared and topped the $100 a barrel mark for the first time since 2014.
In an exclusive interaction with Business Today, Kedia said that retail investors who entered the market in the middle of 2021 or late 2021 are the major victims of the ongoing selloff. At present, their portfolios are down somewhere between 40 per cent-60 per cent.
“There is also the absence of buyers right now,” he said.
Data available with corporate database Ace Equity showed that nearly 50 per cent of stocks in the BSE500 index have eroded investors’ wealth in the past six months. With a fall of 56 per cent, Solara Active Pharma Science emerged as the top loser in the index. Shares of the company declined to Rs 710.70 on February 23, 2022 from Rs 1,613.30 on August 23, 2021. It was followed by Dilip Buildcon (down 46 per cent), Mahindra Logistics (down 45 per cent), HEG (down 44 per cent), Vaibhav Global (down 42 per cent) and Strides Pharma Science (down 40 per cent), among others.
On the other hand, Brightcom Group, Tata Teleservices (Maharashtra), Trident and Adani Green Energy gained over 100 per cent during the same period.
“I always advised investors to zero in on companies which show earnings on the table and enjoy strong fundamentals,” he said, adding otherwise correction like this may continue to erode wealth if investors go with euphoria and forget the basic rules in the bull market.
The Mumbai-based investor, who is known for picking quality stocks on D-Street, further added that market participants should continue to hold growth stocks. “Froth stocks which are down 50 per cent-60 per cent may take at least 5 years to come back to their previous levels,” Kedia added.
Market veteran Vijay Kedia believes that the ongoing correction in the domestic equity market was long due. The conflict between Russia and Ukraine is just one of the reasons.
The benchmark equity index BSE Sensex crashed over 2,000 points in the morning trade on Thursday after Russian President Vladimir Putin announced a military operation in eastern Ukraine. Meanwhile, oil prices soared and topped the $100 a barrel mark for the first time since 2014.
In an exclusive interaction with Business Today, Kedia said that retail investors who entered the market in the middle of 2021 or late 2021 are the major victims of the ongoing selloff. At present, their portfolios are down somewhere between 40 per cent-60 per cent.
“There is also the absence of buyers right now,” he said.
Data available with corporate database Ace Equity showed that nearly 50 per cent of stocks in the BSE500 index have eroded investors’ wealth in the past six months. With a fall of 56 per cent, Solara Active Pharma Science emerged as the top loser in the index. Shares of the company declined to Rs 710.70 on February 23, 2022 from Rs 1,613.30 on August 23, 2021. It was followed by Dilip Buildcon (down 46 per cent), Mahindra Logistics (down 45 per cent), HEG (down 44 per cent), Vaibhav Global (down 42 per cent) and Strides Pharma Science (down 40 per cent), among others.
On the other hand, Brightcom Group, Tata Teleservices (Maharashtra), Trident and Adani Green Energy gained over 100 per cent during the same period.
“I always advised investors to zero in on companies which show earnings on the table and enjoy strong fundamentals,” he said, adding otherwise correction like this may continue to erode wealth if investors go with euphoria and forget the basic rules in the bull market.
The Mumbai-based investor, who is known for picking quality stocks on D-Street, further added that market participants should continue to hold growth stocks. “Froth stocks which are down 50 per cent-60 per cent may take at least 5 years to come back to their previous levels,” Kedia added.