Fundamentals of the stock market
All investors, experts or beginners, must follow the basic indices in the stock market before investing. The top lists to observe are the top gainers, top losers, the 52-week low/high, etc. The top indices are Nifty 50, India VIX, Nifty Bank, S&P 500, and so on. These key indices and lists along with the various charts are the basics for any investor to follow. The ups and downs in the stock market are dependent on various factors. A seasoned investor takes a cue from each of these indicators to assess the potential of the market to maximise his earnings.
What are 52-week low stocks?
52 week low stocks are the ones that are trading at the lowest price in 52-weeks period. There can be various reasons for a stock to reach a 52-week low.
- Some recent events related to the sector, or the company might have a widespread impact creating fear in investors’ mind.
- The company might be going through weak fundamentals, making losses, or decreasing revenue
- The company might face stiff competition and is trying to cope with the changed environment
- Market sentiment or misleading information might trigger other investors to sell stocks of a company continuously showing a downward trend
Is investing in 52-week stocks beneficial?
However, it does not mean that 52-week low stocks are not good options to invest in. Often these stocks fight back once the market corrects itself and show a bullish trend just after it reaches a 52-week low. Both expert and new investors can invest in these stocks when they are trading at a lower rate to gain more profits by selling them at higher prices in the bullish market.
Top 10 Losers NSE
Top losers NSE are the stocks whose prices dropped the most in a single trading day. The top 10 losers as on 19thMay 2023 areDivislab, Britannia, ONGC, NTPC, Hero Motocorp, HDFC Life, UPL, Asian Paints, Powergrid, and Dr Reddys. Thus, we can see the top losers nse belong to various sectors but are mostly concentrated in the Oil & Energy and Pharma domains. The same factors trigger the Nifty Energy index to underperform. There can be multiple factors at the national or at the global front that might impact the power stocks in India. Fall in crude oil price, shortage of supply, war or political unrest and recessionis among the key factors to look out for. The investor must know about the current trends that might impact the stock prices adversely to hedge risks.
To invest or not to invest?
Financial experts or equity analysts suggest selling energy stocks as the commodity prices are higher. These two indices inversely impact each other based on historical data and trends. However, when the fundamentals are strong for a company, this downward trend can be temporary without affecting your investment value much. Also, these stocks can be a good bet in the long term once the sector performs well and the prices increase in the near future.