Ace investor Warren Buffett has a famous saying: Only when the tide goes out do you discover who’s been swimming naked. This saying is apt for select stocks that have witnessed a huge correction amid the ongoing uncertainty on Dalal Street since October last year. Data available with Ace Equity showed that as many as 26 stocks in the BSE 500 index nosedived 50 per cent and more from their respective 52-week highs during the selloff.
The benchmark equity index BSE Sensex dipped 3471.6 points, or 5.6 per cent to 58773.9 on August 22 from its 52-week high of 62245.4 mark in October 2021. Likewise, the 50-share NSE Nifty index declined 1113.8 points, or 6 per cent, to 17490.7 during the same period.
Market watchers believe that the recent turmoil in the global economy due the Russia-Ukraine conflict, soaring crude prices, currency depreciation and ballooning inflation all around the globe have hammered the stock market returns in most of the countries.
Coming back to top losers, Dilip Buildcon retreated nearly 69 per cent from its 52-week high levels. It was followed by Tanla Platforms (down 66 per cent), Tata Teleservices (Maharashtra) (down 65.1 per cent), PB Fintech (down 64 per cent), Zomato (down 63 per cent), Vaibhav Global (down 62.4 per cent) and (Lux Industries down 62.2 per cent).
Other players, including Brightcom Group, Metropolis Healthcare, Zensar Technologies, One97 Communications (the parent firm of fintech major Paytm). Indiabulls Real Estate, Indiamart Intermesh, Hikal, Manappuram Finance, RBL Bank, Indiabulls Housing Finance, Welspun India, HLE Glascoat, Firstsource Solutions, The New India Assurance Company, Thyrocare Technologies, Indian Energy Exchange, Jubilant Pharmova and TV18 Broadcast also declined between 50 per cent and 62 per cent from their 52-week high levels.
Brokerages too are bullish on select stocks that have cracked over 50 per cent from their 52-week high mark. For instance Emkay Global Financial Services has set a target price of Rs 125 for RBL Bank, indicating an upside of over 30 per cent from the current market price. Likewise, IIFL Securities is positive on Metropolis Heathcare with a target price of Rs 1,900. Shares of the company traded at Rs 1,372 on August 22.
Considering the present market scenario, Prabhudas Lilladher is overweight on auto, banks, IT services, capital hoods and healthcare. While retaining its bullish view on the Indian equity market, the brokerage sees NSE Nifty index at 20,057 by June 2023, this indicates an upside of 14.7 per cent from the current levels.
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