Tata Motors, ONGC, Adani Ports and a few other stocks were the major losers among the Nifty 50 today.
Benchmark indices Nifty and the Sensex ended the day on August 5, 2024 about 2.68 per cent and 2.74 per cent lower, at 24,055 and 78,759, respectively, following a global market downturn fuelled by the twin effects of a rate cut by the Bank of Japan and the slowdown in the US economy.
As the market is expected to remain bearish for the week, it’s important to assess which stocks will face more selling pressure. Experts recommend adjusting asset allocation in favour of large-cap stocks and consider selling off small-cap and mid-cap stocks if the investment horizon is not very long.
However, shifting allocation towards large-caps requires identifying which large-caps were the most affected by the global market sell-off.
If we look at heavyweight stocks in India, the 50 stocks with the largest market capitalisation in the Nifty 50 index, the following stocks were the ones that experienced significant losses today.
1] Tata Motors, India’s largest auto manufacturer, was the biggest laggard of the day among the Nifty 50, down by 7.31 per cent. A single scrip of Tata Motors saw Rs 80.20 wiped off its value. Nifty Auto was down 3.92 per cent down today.
2] In line with oil and gas, which was one of the biggest sectoral losers, ONGC, India’s largest oil and gas exploration and production company became the second biggest loser, down by 6.01 per cent.
3] Adani Ports, India’s largest commercial port operator, was down by Rs 94, or 5.93 per cent, today.
4] Nifty Metal, down by 4.85 per cent, was among the biggest sectoral losers today. Tata Steel, India’s largest private steel manufacturer, plummeted 5.31 per cent.
5] Hindalco, a subsidiary of the Aditya Birla Group, and a major player in the metals and mining sector also saw the wrath of market downturn, which wiped off 5.21 per cent of its value. The scrip was down by Rs 33 to Rs 614.
6] Power Grid Corp, a major player in the power sector, and a state-owned electric utility company also saw its market value plummet by 4.31 per cent.
7] SBI, the largest bank and also the largest public sector bank in India, ended up being the only company in the largest 10 companies to become the biggest heavyweight loser. The global market crash wiped off 4.21 per cent of the scrip’s market value.
8] Maruti Suzuki, India’s largest carmaker, ended the day 4.13 per cent down.
The largest listed company in India, Reliance Industries, which represents 10.50 per cent of the Nifty 50, dropped Rs 104 today, or 3.47 per cent. The next biggest company by market capitalisation, HDFC Bank, dipped 2.62 per cent, while Infosys, the third biggest company in India, was down by 3.81 per cent.
Britannia Industries gained 0.90 per cent today. HDFC Life Insurance, which gained 0.49 per cent, and Tata Consumer, which gained 0.48 per cent were the only other Nifty 50 companies that ended in the green today.
Says Sandeep Bagla, CEO, Trust MF, “The Indian economy is likely to be more resilient to the global market downturn than other smaller economies, and hence, investors could look to add at market corrections. The pace of market performance has been unreal and is unlikely to sustain. Only invest if you have a long investment horizon to handle volatility. Consider investing systematically in areas where valuations are not stretched over next weeks.”
Jay Shah, founder and CEO of Finwisor, suggests reallocating portfolios heavily invested in small- and mid-caps to large-caps during ongoing market correction, adding that those who have been withholding money from equities can start investing.