ITC, HDFC Bank, Paytm among 300 BSE 500 stocks that are over 10% below their 52-week highs. Time to cut equity exposure?
One 97 Communications are the top losers in the index as they are down nearly 67 per cent from their 52-week high. Stocks such as SPARC, Zee Entertainment, Rajesh Exports and Delta Corp are down 54-56 per cent from their 52-week highs. Stocks such as Vodafone Idea (down 33 per cent), PVR Inox (down 30 per cent), YES Bank (down 30 per cent), Adani Total Gas (down 28 per cent), LTIMindtree (down 27 per cent), HCL Technologies (down 22 per cent), MRF (down 18 per cent), Bajaj Finance (down 16 per cent), Wipro (down 15 per cent), HDFC Bank (down 14 per cent) and ITC (down 12 per cent) have fallen more than 10 per cent from their 52-week highs.
Multiple factors are weighing on domestic market sentiment. Rich valuation of the market looks unsustainable amid unimpressive March quarter earnings. Besides, the market has discounted several positives to a fair extent and lacks fresh triggers to move ahead.
Feeble expectations of rate cuts this year are another factor keeping the sentiment sombre. As the Lok Sabha election outcome draws near, the market is displaying signs of apprehension regarding the potential for the incumbent government to secure a two-thirds majority. Such an outcome would bolster confidence in the continuation of policy reforms.
"The pressure on the market now is due to the uncertainty regarding the election outcome. There is lots of speculation in the media regarding this, which has added to the uncertainty in the market," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Also Read: Investors take cover ahead of election outcome "The India VIX spiking 72 per cent from the April lows indicates that high volatility will persist for some more time.
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