52 week low stocks: There is an atmosphere of great turmoil in the Indian stock market at present. The direct impact of this continuous decline is visible on the portfolio of common investors. Thursday’s trading session proved to be very disappointing for investors, where heavy selling was seen in the shares of many famous and big companies. The situation has become such that many major stocks, considered the pivot of the market, have fallen to their lowest level in 52 weeks (one year). Even companies with strong fundamentals like Varun Beverages, Hindustan Unilever (HUL) and Trent could not save themselves from this sharp selling pressure. Most of the shares have been continuously falling for the last several trading sessions and have fallen far below their highest levels. FMCG and retail sectors have been hurt the most in this market storm.
- Varun Beverages: There was heavy selling in this stock on Thursday and it fell by more than 4 percent. Falling for the fourth consecutive day, it has reached its lowest level of 52 weeks. So far, it has fallen by about 27 percent from its high of Rs 568.5 made on April 17.
- Colgate-Palmolive: Shares of the FMCG giant also fell by about 4 percent on Thursday. It has been in the red in 5 out of the last 10 sessions. On May 19, it had made a high of Rs 2,747.4, from where it has now declined by 28 percent.
- Trent: There is constant pressure on the shares of this prestigious company of Tata Group. This stock has fallen on 7 out of the last 10 days. This stock, which touched a high of Rs 6,261 on June 30, has now fallen by 43 percent.
- Hindustan Unilever (HUL): The shares of this largest company in the FMCG sector have fallen for the ninth consecutive day. From the high of Rs 2,750 on September 4, the stock has fallen 23 per cent to its lowest level in a year.
- Kotak Mahindra Bank: There is a continuous decline in the shares of this big private sector bank. Out of the last 10 trading sessions, it has closed in the red on 8 days. The stock has slipped 18 percent so far from its high of Rs 460.38 made on April 22.
- Jubilant FoodWorks: This stock of quick service restaurant chain fell by more than 2 percent for the fifth consecutive day. On May 6, it had made a high of Rs 727.95 and now it has fallen 36 percent from there.
- Tata Motors PV: Heavy profit booking is dominating the shares of this auto sector giant. This stock, which reached the level of Rs 744 on June 11, has registered a huge decline of 55 percent till now.
- Berger Paints: The shares of this paint sector company have fallen for the second consecutive day and have reached their 52-week low. It has fallen by about 30 percent from its high of Rs 605 on July 3.
- Jyoti CNC: The shares of this machinery manufacturing company have also fallen by 43 percent from their peak of Rs 1,330 (June 2).
- Five-Star Business Finance: The condition of this company of NBFC sector is the worst. It fell 3 percent on Thursday. Since making a high of Rs 850 on April 23, this stock has suffered a catastrophic fall of 57 percent.
Don’t be tempted by cheap shares
This question is bound to arise in the mind of a common investor whether these 10 fallen shares should now be bought at cheap prices? Although it is believed in the market that the decline brings a buying opportunity, but experts give a strict warning regarding this.
Just seeing that a stock is at its 52-week low, investing blindly in it can be a wrong strategy. Many times it happens that a stock remains stuck under pressure for a long time. Therefore, before investing your hard-earned money in any stock, it is very important to understand the fundamentals of that company, its earnings growth, valuation and the actual situation of that entire sector. Experts clearly advise that in this period of decline, investing gradually (through SIP) only in companies with strong fundamentals is the safest and most prudent step.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.