Over 700 BSE Stocks Reach 52-Week Lows Amid Market Downturn

Indian Stock Market Plunges on Global Risks and Economic Concerns

On March 4, the Indian stock market experienced a significant decline, with the Sensex plummeting 1,123 points (1.40%) to close at 79,116. The Nifty 50 also fell, dropping 385 points (1.55%) to end at 24,480.50.

The market's downturn can be attributed to several global and domestic factors, including ongoing tensions in the Middle East, the closure of the Strait of Hormuz, and the potential for higher Current Account Deficit (CAD). The weakening of the Indian Rupee (INR) against the US dollar has also contributed to investor apprehension. Furthermore, the impact of inflation and foreign capital outflows has led to increased volatility in the market.

In response to the market's fragile state, Vinod Nair, Head of Research at Geojit Investments Limited, advises investors to adopt a disciplined, long-term perspective and exercise patience over the next several weeks. According to Nair, current price levels may offer a strategic entry point for the medium to long term.

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The market's weakness was evident in the number of stocks that hit their 52-week lows, with 719 stocks reaching this milestone, including Swiggy, SBI Cards and Payment Services, and Shree Cement. In contrast, 53 stocks reached their 52-week highs, including Sai Life Sciences and Acutaas Chemicals.

The top gainers in the Sensex index were Bharti Airtel (up 1.78%), Infosys (up 1.50%), and Tech Mahindra (up 0.51%). On the other hand, Tata Steel (down 6.76%), Larsen and Toubro (down 4.53%), and Bajaj Finance (down 3.36%) were the top losers.