Last fortnight, 206 companies from the BSE-500 hit 52-week lows as investors sold heavily in counters with dimmed prospects.
However, 15 companies in the BSE 500 hit 52-week highs as foreign investors shifted their focus to companies with better growth prospects.
Around 42 per cent of the stocks that are near their their 52-week lows are from sectors such as banks and finance, realty, power, capital goods and infrastructure sectors. Banking and finance stocks are among the worst performers, comprising nearly 16 per cent of the worst performers.
Stocks of heavily-indebted companies were also among the ones beaten.
Says Motilal Oswal, chairman and managing director, Motilal Oswal Securities: “Investors are clearly avoiding stocks that are heavily-leveraged or where there are political or other corporate governance issues.”
The performance of these 206 companies have also been a cause of worry for investors as their revenues slumped eight percent and profits dipped 9 per cent in FY13.
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