Reliance, Asian Paints to Tata Motors: Over 700 stocks sink to 52-week lows amid stock market crash

As many as 721 stocks, including Reliance Industries, Asian Paints, Tata Motors and Power Grid, hit their 52-week lows in intraday trade on BSE on Wednesday, February 12, amid an across-segments market decline.

Jio Financial Services, Punjab National Bank, REC, Bank of Baroda, Canara Bank, Coal India, DLF, GAIL, Godrej Consumer Products, Hero MotoCorp, Indian Oil Corporation and Birlasoft were also among the stocks that fell to their one-year low levels.

Falling for the sixth consecutive session, the Sensex closed at 76,171.08, down 123 points, or 0.16 per cent. The Nifty 50 ended with a loss of 27 points, or 0.12 per cent, at 23,045.25.

In the 30-share pack, 17 stocks ended in the negative territory, with shares of Mahindra and Mahindra, ITC, Power Grid and Reliance as the top losers, falling 1-3 per cent.

The BSE Midcap and Smallcap index fell 0.45 per cent and 0.49 per cent, respectively.

The overall market capitalisation (m-cap) of BSE-listed firms dropped to ₹407.5 lakh crore from ₹408.5 lakh crore in the previous session.

In the six sessions of losses, the Sensex has plunged 2,413 points, or 3 per cent, while the Nifty 50 has lost 694 points or 2.92 per cent. Investors have lost nearly ₹18 lakh crore as the overall m-cap of BSE-listed firms stood at ₹425.5 lakh crore on February 4, the last time the Sensex ended in the green.

“The overall sentiment remained weak due to elevated broader market valuations and muted Q3 earnings growth. Concerns over excessive valuations are expected to sustain the ongoing consolidation phase,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Investor confidence was further undermined by the US Fed’s statement that it is ‘not in a hurry to lower interest rates’ and intends to ‘pause rate cuts to assess further progress in inflation.’ Additionally, uncertainty regarding the impact of metal tariffs added to market caution,” Nair added.

Nifty 50 outlook

According to Shrikant Chouhan, the head of equity research at Kotak Securities, the Nifty 50 formed a long-legged Doji candle formation, which indicates indecisiveness between bulls and bears.

Chouhan believes as long as the market trades above 22,950, the pullback formation is likely to continue. On the higher side, it could bounce back to the 23,200-23,250 range.

Chouhan, however, added that if the index falls below 22,950, selling pressure will likely accelerate.

“If that happens, the market could retest the 22,800 level. Further downside movement may also persist, potentially dragging the market down to 22,725,” said Chouhan.

Rupak De, Senior Technical Analyst at LKP Securities, said until the previous low of 22,786 is broken decisively, the chances are high that Nifty might recover towards 23,500–23,600 in the near term.

“Immediate resistance is placed at 23,200, while immediate support is at 23,000,” said De.

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