The market started declining at the end of September last year. The market witnessed a decline in September 2024. Nifty 50 has lost 17% in this period. We have been witnessing this decline for the last five months. The midcap and smallcap indices have crashed 22% and 26% from their all-time highs of December 2024, respectively.
Many stocks of Nifty 500 fell up to 50%, FIIs’ selling expected to stop
Due to the decline that has been continuing for the last five months, many stocks of Nifty 500 have registered a decline of up to 50%.On this, Dr VK Vijay Kumar, Chief Investment Strategist, Geojit Financial Services, said that the main reason for the continuous selling by foreign institutional investors (FIIs) is the high valuation of the Indian market and the attractive level of US bond yield.
However, he also said that now the valuation of large-cap stocks has come to a reasonable level, due to which they look attractive for investment. Especially the stocks of the financial sector can give good prospects to investors.
Meanwhile, the 10-year US bond yield has come down to 4.21%, due to which it is expected that the selling by FIIs may now be reduced.
(Read exclusive investment updates on TapluMarket.com)
The cyclical recovery in the Indian economy, a buying opportunity for long-term investors in the stock market
Dr. VK Vijayakumar, Chief Investment Strategist, at Geojit Financial Services, says that positive signals are being received regarding the growth of the Indian economy. GDP growth in the third quarter of FY25 was 6.2%, which is more than the 5.6% growth in the second quarter. GDP growth is expected to be more than 7% in the fourth quarter. There is a cyclical recovery in the economy, which is a big positive for the stock market.
Decline:
Golden Opportunity for Long-Term Investors
Dr Vijay Kumar said that the current decline in the market is a golden opportunity for long-term investors. Stocks of good quality companies are currently trading at undervalued levels, from where strong returns are expected.
Great opportunity to invest in the auto and IT sector
The auto sales reports for February have performed better than expected. Companies like Mahindra & Mahindra and Eicher Motors have given excellent results. IT sector stocks are also seen at attractive valuations.
Experts’ opinion:
Investors who stay in the market and avoid panic selling can make good profits in the long term. Investors doing short-term panic selling may incur losses.
(Read exclusive investment updates on TapluMarket.com)
Nifty 500: Biggest fall in these stocks in the last six months, many stocks fell by up to 50%
In the last six months, the shares of many big and midcap companies in the Nifty 500 index have seen a huge fall. Stocks like Data Patterns have fallen by more than 50%. This correction has brought many high-performing stocks to attractive valuations.
Let’s take a look at the stocks that have fallen the most:
Stock LTP(Rs) Half Yr Chg (%)
- Asian Paints 2144.30 -30.63%
- Hindustan Aeronautics 3060.10 -35.76%
- Hero Motocorp 3657.75 -35.40%
- ABB 4905.43 -35.23%
- Avenue Supermarts 3386.06 -32.21%
- KPIT Techonologies 1165.1 -32.09%
- Cyient 1234.6 -38.34%
- Deepak Nitrite 1815.09 -37.23%
- BEML 2380 -36.45%
- Apar Industries 5560.12 -37.08%
- Cera Sanitaryware 5160.02 -43.56%
- Balaji Amines 1231 -44.76%
- Griendwell Norton 1390.02 -43.87%
- Data Patterns 1360.13 -51.43%
Conclusion: The advice or opinions given on Taplumarket are the personal views of the expert, the brokerage firm, the website or management is not responsible for it. Before investing, please consult your financial advisor or certified expert.
