Sensex, Nifty post biggest loss since October 2018; 20 stocks lost 10-20% in 5 days

Analyst advise investors to keep their shopping list ready as volatility could increase, they suggest that investors should avoid high beta names.

The market remained in the bear grip throughout the week and pushed the Nifty 50 below crucial support levels on closing basis. The Nifty 50 plunged 3.7 percent while the S&P BSE Sensex was down by 3.8 percent to post their biggest loss since October 2018 for the week ended May 10.

Trade tensions between the US and China muted corporate earnings from India Inc, election uncertainty and persistent selling by foreign institutional investors (FIIs) led to the fall in Indian markets.

FIIs have pulled out nearly Rs 4000 crore for Indian equity markets so far in the month of May after pouring by about Rs 60,000 crore in the first four months of 2019.

"The Nifty has posted the biggest loss on a weekly basis since the last October as the sell-off in global in the domestic market has further extended. Weak global sentiments, Trade war escalation between US-China and heightened VIX overshadowed bullish undertone for the entire week," Mustafa Nadeem, CEO, Epic Research.

The broader market outperformed slightly compared to benchmark indices in the week gone by. The S&P BSE Midcap index was down 2.67 percent while the S&P BSE Smallcap index saw a dip of 3.05 percent in the same period compared to about 4 percent fall in the benchmark indices.

The real carnage was seen in individual stocks. As many as 17 stocks in the S&P BSE 500 index lost 10-20 percent in five trading sessions which include names like Reliance Industries (RIL), Tata Motors, Indiabulls Ventures, Indiabulls Real Estate, Dewan Housing Finance, and Eveready Industries, etc. among others.

As many as 35 stocks in the S&P BSE 500 index dropped to their fresh 52-week low which includes names like Apollo Tyres, Graphite India, IDBI Bank, Bosch, Cadila Healthcare, Biocon, Sterlite Technologies, Alkem Laboratories, etc. among others.

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