The Nifty50 large-cap stocks are now in the tank amid coronavirus pandemic which has a contusing effect on Indian stock market. The ongoing panic selling in the equity market due to the virus outbreak has spared none. The selling intensity level is so high that wasn’t witnessed in the last decade. In last month, the foreign investors have so far sold equity worth of Rs. 60,000 crore approx. The foreign institutional investors have sold more than purchased in the Indian capital markets. The Nifty50 index has down by 30 per cent from its record high of 12,430 levels on January 30, 2020.
As a result, more than 90 per cent of Nifty50 stocks are at their 52-week lows. Out of 50 companies, 45 companies have hit their year low amid the havoc of coronavirus outbreak across the globe, as per the data collated on April 01, 2020.
Nifty50: Stocks with 52-Week Lows & Last 30-Days Performance
|Symbol||LTP||52-Week Low||Date||30 Days Change (%)|
|HEROMOTOCO||1636.00||1475.00||24 Mar 20||-17.18|
|BAJAJ-AUTO||2043.00||1788.65||24 Mar 20||-26.83|
|BAJFINANCE||2226.00||2100.00||31 Mar 20||-48.95|
|TITAN||934.90||720.90||24 Mar 20||-24.86|
|COALINDIA||139.70||119.20||26 Mar 20||-17.51|
|DRREDDY||3102.00||2351.20||14 Aug 19||6.76|
|EICHERMOT||12990.00||12725.00||01 Apr 20||-23.65|
|TATASTEEL||266.35||250.85||30 Mar 20||-26.75|
|MARUTI||4229.00||4030.00||24 Mar 20||-32.71|
|GRASIM||469.00||385.05||25 Mar 20||-29.84|
|POWERGRID||156.00||122.15||18 Mar 20||-14.99|
|ADANIPORTS||246.10||203.00||23 Mar 20||-27.76|
|BAJAJAFISV||4491.00||4160.25||24 Mar 20||-49.62|
|CIPLA||413.55||355.30||13 Mar 20||2.89|
|JSWSTEEL||143.00||136.10||30 Mar 20||-39.15|
|SUNPHARMA||344.35||312.00||30 Mar 20||-6.81|
|ZEEL||121.00||114.00||25 Mar 20||-48.26|
|INDUSINDBK||342.50||235.55||24 Mar 20||-68.26|
|VEDL||63.00||60.20||30 Mar 20||-43.22|
|RELIANCE||1084.00||875.65||23 Mar 20||-17.64|
|IOC||79.45||74.45||30 Mar 20||-23.57|
|HDFC||1588.00||1473.45||24 Mar 20||-27.14|
|ITC||166.65||134.60||13 Mar 20||-14.67|
|ULTRACEMCO||3142.00||2910.00||25 Mar 20||-24.14|
|INFRATEL||154.55||120.05||19 Mar 20||-28.73|
|NTPC||81.30||73.20||23 Mar 20||-21.75|
|ONGC||65.90||50.00||13 Mar 20||-26.04|
|M&M||274.60||245.40||25 Mar 20||-40.08|
|ASIANPAINT||1604.80||1291.25||09 Jul 19||-10.19|
|HDFCBANK||829.55||738.75||24 Mar 20||-29.68|
|ICICIBANK||311.50||268.30||24 Mar 20||-38.45|
|NESTLEIND||15670.00||10120.05||14 May 19||-2.73|
|LT||775.55||661.00||25 Mar 20||-33.19|
|WIPRO||188.65||159.40||19 Mar 20||-14.56|
|HINDALCO||91.70||84.90||23 Mar 20||-38.76|
|BHARTIARTL||422.00||305.18||18 Apr 19||-18.59|
|TATAMOTORS||67.95||63.50||24 Mar 20||-45.81|
|BPCL||302.95||252.00||24 Mar 20||-26.53|
|BRITANNIA||2563.55||2100.00||23 Mar 20||-13.07|
|HCLTECH||414.65||375.25||19 Mar 20||-24.57|
|SBIN||187.00||173.25||24 Mar 20||-34.93|
|HINDUNILVR||2179.00||1650.00||05 Apr 19||0.91|
|SHREECEM||16523.00||16068.15||23 Mar 20||-28.29|
|INFY||603.90||509.25||19 Mar 20||-18.51|
|UPL||307.00||240.15||23 Mar 20||-40.31|
|TCS||1714.00||1506.05||13 Mar 20||-14.36|
|AXISBANK||355.50||286.00||25 Mar 20||-48.04|
|KOTAKBANK||1183.50||1001.00||19 Mar 20||-25.98|
|TECHM||512.35||471.40||23 Mar 20||-31.19|
As per data available till 01 April 2020.
As you can see, most of the companies that are listed in Nifty50 index are blue-chip companies, the companies that are leaders in their respective sector and recognized for performing well even at the adverse economic situations. However, such blue-chip companies are in blue right now, many are trading at their 52-week lows.
Now, the question is, Nifty50 Stocks are at 52-Week Lows amid the Coronavirus outbreak. So, should we buy these stocks for long-term investment?
If we look at the last 30-days performance then many stocks have fallen more than 40 per cents such as Bajaj Finance, Bajaj Finserv, Zeel Entertainment, IndusInd Bank, Vedanta, Mahindra & Mahindra, Tata Motors, Infosys, and Axis Bank.
Reason behind Fall in Nifty50 Stocks
When the COVID-19 first struck, it was only assumed that China was only affected. But, once it crosses the globe, the FIIs and FPIs anticipated slower growth rate ahead. And when the disease crossed the continents and countries over February and March, including India, FIIs and FPIs sold massively. On top of that, the 21-days lockdown added the fears amongst investors for weak economic growth.
The panic selling witnessed amongst domestic investors and foreign investors to exit the emerging markets and go for safer options. The intensity was so high that the levels weren’t witnessed in the last 10 years.
As the Indian equity market is dominated by the foreign investors’ participation, when they start pulling money out of the market, the Nifty lost more than 50 per cent. Meanwhile, some stocks are going through turmoil due to industry-specific issues.
So, it is clear that the volatility seems to be present within the market for some time amid coronavirus outbreak or at least till the time a vaccine is not developed to counter the disease.
Should We Buy to Make Long-term Investments?
As the outbreak is still denting the capital markets of India, the situation is not likely to recover and the uncertainty expected to remain in the market as long as the cases keep coming. However, investors who are looking to make long-term investments for more than 5 to 10 years shouldn’t be trying to figure out the bottom instead select the fundamentally strong stocks to make the investments. Most of the Nifty50 stocks are available at the discounted prices and fundamentally strong in a manner that when the market starts to recover, they make healthy returns in upcoming years.
Besides, the blue-chip companies have the tendency to change the market movements. A rupee-cost averaging can benefit investors with long-term goals to make huge profits in the upcoming years. But, investors to invest for 2-3 years should be very careful as the uncertainty over the virus outbreak likely to remain in the market.
Disclaimer: The views and opinions at Invest19.com are expressed by the experts are for educational purposes, not to profile any professional advice to encourage users to make investments. Invest19.com advises users to check with the certified experts before making any investment decisions.