Shares of a fourth of BSE500 companies hit their 52-week lows on Friday after a sharp sell-off across the board pulled down the market by 3% during the day’s trade.
As many as 126 companies in the BSE500 universe saw their stocks falling to the lowest level in the last one year. This include marquee names like Maruti Suzuki, Tata Motors, Adani Ports, Hero Motocorp, SBI Life Insurance, Yes Bank, ICICI Prudential Life Insurance, Indiabulls Housing Finance and Zee Entertainment Enterprise.
Companies from automobiles, banks and financial services accounted for nearly a third of those stocks that hit their 52-week lows on Friday.
A massive sell-off in housing finance and banking stocks dragged benchmark indices on Friday with both the Sensex and Nifty50 falling over 3% in intra-day trade.
While shares of Dewan Housing Finance Corporation crashed 59.7% during the day-trade, shares of Indiabulls Housing Finance plummeted as much as 35% on BSE.
Shares of Can Fin Homes dived 5.70%, LIC Housing Finance 5.05% and PNB Housing Finance 4.92%.
Shares of Yes Bank plummeted 28.7% to witness their steepest percentage plunge since listing in July 2005 after the Reserve Bank of India (RBI) curtailed the term of its founding CEO Rana Kapoor, stock of Jet Airways gave up close to 6% to hit its lowest level in nearly four years after the income tax department conducted a search at its premises.
The Nifty Auto Index slid over 1% to close the session at 10,407.40— its lowest level since May 2017. Tata Motors — the worst performer on Nifty50 in 2018 has lost 42% of its value since the beginning of the year.
With Friday’s fall, the BSE500 index has given up this year’s gains and now is down 0.4%. About a third of the index members are trading in the red since the beginning of the year, and 187 stocks have lost more than 25% of their value during the same period.
In absolute terms, Tata Motors and Maruti Suzuki lost the most value as the market capitalisation of automakers have eroded by `58,146 crore and `51,106 crore respectively since the beginning of the year.
The overall breadth of the market was sharply negative on Friday, with 307 gainers against 1,593 decliners on the NSE. On the BSE, 2,162 stocks ended in the red against 542 stocks closing higher.
Of the 19 sectoral indices, all barring BSE Energy and BSE Oil& Gas posted losses on Friday with BSE Realty and Bankex falling 3% each.
The BSE Sensex tumbled about 280 points to close below the 37,000-mark on Friday after investors were jolted by an over 1,000-point plunge in afternoon trade.