Midyear Wrap: 4 out of every 5 BSE500 stocks settle with deep cuts

The first six months of 2022 have proved volatile for domestic equity markets. Benchmarks Sensex and Nifty have registered double-digit cuts, while indices used to track second rung counters are down up to 17 per cent so far this year.

According to the data from AceEquity, 392 stocks out of the BSE 500 index have delivered negative returns between January to June 2022. It means that four out of every five stocks are down on a year-to-date (YTD) basis as of June 29.

About 210 stocks have dropped more than 20 per cent in the first half of 2022, while 40 stocks have tanked between 40-72 per cent, highlighting painful six months for investors.

Factors including intense FII selling, rising inflationary pressure, geopolitical worries, rate hikes from central banks, freefall in rupee, supply chain crisis and poor performance from India Inc have dented the appeal for equity space.

Neha Khanna, Director, Valpro said sectors were impacted by rising crude prices, monetary policy tightening, muted growth outlook and intense FII selling.

Brightcom Group topped the list of wealth destroyers as the stock plunged 72 per cent to Rs 30.15 on June 29, 2022, from its close of Rs 107.43 on December 31, 2021.

It is followed by , , Zomato, Dilip Buildcon, , Hikal, Welspun India and Lux Industries which have plunged between 50-60 per cent each.

Stocks like Vaibhav Global, , , Jindal Stainless, , , Tanla Platforms, ICICI Securities, Wockhardt, L&T Technology Services and SpiceJet have also fallen over 45 per cent.

Larsen & Toubro Infotech, Vodafone Idea, HEG, HLE Glascoat,

, Dr. Lal Pathlabs, Tech Mahindra, , and have also plunged between 40-45 per cent.

Wipro, Jindal Stainless (Hisar), Vardhman Textiles, Jubilant Pharmova,

, Tata Teleservices (Maharashtra), , Clean Science And Technology, and have dropped over 40 per cent.

One has to be careful while going bargain hunting and should be aware of broken businesses or bad balance sheets or both, cautioned Atanuu Agarrwal of Upside AI.

A few experts believe that markets will see a recovery in select pockets in the second half of 2022. They advised investors to stick with fundamentals to create long-term value with their investments.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)