Broader market gets the feeling of Covid deja vu
small-cap stocks have tumbled by 25-70% from their yearly highs.
The slump in nearly one-third of the stocks has been as severe as the Covid-led sell-off in March 2020. Among 1,472 stocks with a market capitalisation of over Rs 1,000 crore, 29 have plunged between 50% and 70% from their yearly highs, while 533 have fallen between 25% and 50%.
A decline of more than 20% in an index or a stock from its highs typically signals a bearish trend. Among large-caps, Indian Railway Finance Corp, the favourite of many retail investors in the recent bull run, has dropped 40% from its 52-week high, while Hindustan Zinc, Macrotech, Adani Power, and Punjab National Bank have declined between 30% and 40%. In the mid-cap segment, Vodafone Idea, Cochin Shipyard, and MRPL have fallen over 50% from their yearly highs.
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