Nifty Next 50 index hits 52-week low; SAIL, Vedanta down 27% in a month


Nifty Next 50 index hit a 52-week low of 36,533 points on the National Stock Exchange (NSE) after a sharp sell-off in stocks like Steel Authority of India (SAIL), Vedanta, Mindtree, Info Edge (India), Zomato, NMDC, Berger Paints, Lupine, L&T Infotech and FSN e-Commerce Ventures (the parent company of beauty e-tailer Nykaa).

In the past one month, these stocks were down in the range of 20 per cent to 28 per cent, as compared to 14 per cent decline in the Nifty Next 50 index. In comparison, the benchmark index was down 7 per cent during the same period.

The Nifty Next 50 index traded at its lowest level since May 17, 2021.

and Adani Transmission were down 30 per cent and 29 per cent, respectively, in the past one month.

The Nifty Next 50 index represents 50 companies from Nifty 100 after excluding the companies. Nifty Next 50 index is capturing the performance of ‘Next 50’ blue-chip companies in large cap universe.

Five stocks – Berger Paints, Dabur India, Info Edge (India), NMDC and SAIL – from the Nifty Next 50 index hit their respective 52-week lows in intra-day trade today.


That apart, analysts believe the government’s export curbs and persistent foreign outflows impacted market sentiments. “The Government announced various steps to control inflation like restriction on various export related products which negatively impacted sentiments. Also consistent foreign institutional investors (FIIs) selling, VIX above 25 levels and uncertain global environment is putting pressure on market,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Last week, the government levied export duty on 11 iron and steel intermediates and key steel products. The government levied export duty of 15 per cent on almost all the major steel products (including stainless steel).

Given this, steel stocks have almost corrected between 20-40 per cent from their 52-week highs due to rising coal prices, falling demand and weak international prices. In the past one month, Vedanta and SAIL tanked 27 per cent each.


Besides this, hit a fresh 52-week low of Rs 543.85, slipped 23 per cent ahead of its March quarter results today. In past three days, the stock was down 13 pre cent after Grasim Industries doubled the capital expenditure (capex) for its foray into the paints business to Rs 10,000 crore.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard,

Digital Editor

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *