Due to the Ukraine-Russia war, pressure is being seen on the Indian markets along with the whole world. Sensex-Nifty has broken 16 per cent from its record high, but the fall of all individual stocks has been much higher and they have slipped by 30-66 per cent. From the day Russia started its military operation on Ukraine, investors were seen showing apathy from the market. Investors want to avoid this risk at this time. In general, the market needs good performance and economy growth for the growth of the market, but in this fight, the risk has increased in the market.
Due to the Russia-Ukraine war, the price of crude oil has reached the highest level in 13 years. Apart from this, the prices of all the metals have reached their multiyear high or new high. This has created fear of rising inflation and increasing costs of companies.
Companies can pass only a fraction of their cost of production to consumers. A major part of this increased production cost will have to be borne by the companies themselves. Due to which fear has arisen about the growth of the market. If we look at the country level, due to the rising price of crude oil, the fiscal deficit and current account deficit of all the countries can be seen increasing. Due to all this, huge pressure is being seen on the market.
Russia is the world’s third largest oil producer and second largest natural gas producer. Apart from this, various types of metals are produced in Russia in which it has a large market share.
In the recent turmoil in the market, Sensex and Nifty have broken nearly 16 from their highs. On the other hand, Nasdaq Composite, Hong Kong’s Hang Seng, South Korea’s Kospi and Germany’s DAX bear markets have entered the zone as all of them are trading more than 20 per cent below their all-time highs.
VK Vijay Kumar of Geojit Financial Services says that there is a lot of volatility in the market. The steep rise in the prices of all the commodities is indicating a strong uptick in inflation. Although the market looks oversold at the moment, the sentiment remains negative. He further said that amid all this, the fall in US bond yields and the possibility of a lower-than-expected interest rate hike by the US Fed is going to give some relief to the market.
It is worth noting that in the recent fall, there have been some stocks which have broken more than the Sensex-Nifty. All the stocks included in BSE 500 are in negative range as compared to their all time but here in our analysis we have included those stocks which touched record high in 2021-22.
On this basis, there are 306 stocks that have made new highs in the last year and the current year. Out of these, 295 stocks have seen double digit decline from their record highs and out of these, 115 stocks have fallen by 30-66 per cent from their record highs.
It is a bit difficult to name all these stocks here but we are giving the names of some of these stocks as examples. Like Tata Teleservices (Maharashtra), Sequent Scientific, Vaibhav Global, Jubilant Pharmova, IndiaMART InterMESH, Indigo Paints, Hikal, Lux Industries, Jubilant Ingrevia, Aegis Logistics and Mahindra Logistics are the top losers of these 306 stocks with 50-66% from their highs. decline has been observed.
Market at a low of 7 months, these strong stocks are available cheaply, can make you rich in the long term
Considering the huge correction in these stocks, market experts feel that the time has come to choose quality stocks from these stocks. Now we should start buying them slowly.
Yesha Shah of Samco Security says that now buying can be started by being selective in these stocks. On the other hand, VK Vijayakumar says that in the current conditions it will be safest to invest in IT, Energy, Metal and Pharma, but those who want to invest from a long perspective can invest in such stocks which are fundamentally strong but in recent times. He has been severely beaten during the days. In this category you will find all the quality financial sector stocks.
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