179 stocks on NSE hit year lows
|Large-cap stocks also wilt under selling pressure|
According to other market participants, India, along with a few other emerging markets such as Vietnam has fell out of favour with global investors.
K.S. Badri Narayanan
Chennai, June 9
With the market condition turning worse, as many as 179 of the 1,252 stocks traded on NSE recorded new52-week lows on Monday.
The selling pressure did not spare even large-cap stocks.
Of the Nifty-50 stocks, ABB, ACC, BPCL, DLF, HPCL, Reliance Power, SBI, and Siemens saw their stock price plummeting to year's lows.
Stocks belonging to sectors such as realty, IT and capital goods were the worst affected.
On the BSE, 325 stocks have hit the lower circuit while 78 stocks hit the upper circuit. The advance/decline ratio also stood in favour of decliners with 80.58 per cent of the traded shares declining and17.6 per cent advancing.
"We maintain our negative view and expect the Sensex to decline further to 13,000, as the market is not fully pricing the lower earnings growth going forward. Rise in oil prices is complicating everything for us," Mr Nilesh Jasani, Head of Research - Asia Pacific, Credit Suisse, said.
According to other market participants, India, along with a few other emerging markets such as Vietnam has fell out of favour with global investors, who resorted to heavy selling in these countries.Crude prices
They added that rising crude prices raised concerns of a rise in inflation rate. Investors are also seen shifting their funds from equity to bullion.
"If the current trend continues for a week or so, we can see another 150 stocks reaching new lows as they are ruling just above their yearly lows," said a broker from Mumbai-based brokerage.
"Expectations of a slowing economic growth, widening deficits, depreciating currency, high inflation and rise in interest rates describe the current macro economic environment of India.
"Further, loss of the ruling Government in key states and its inability to manage growth-inflation trade-off are clear harbinger of upcoming political uncertainty. Given these factors, there is no astonishment as to why we are witnessing huge portfolio outflows from India. This along with disappearing retail investor participation has been trending the domestic market downward," says Mr Amar Ambani, Vice-President Research, India Infoline.