A few months ago there was a huge wave of enthusiasm among investors in government stocks, but now their happiness has disappeared somewhere. This is because most of the government stocks included in his portfolio have fallen 40 percent from their 52-week high and their earnings have also fallen. In fact, the selling in the stock market shows no signs of stopping, especially the selling of government stocks is even more intense.
These PSU stocks have provided huge returns to their investors in the last 2 years. Many even gave returns for multiple bags. But now it seems that his bad days have begun. In such a situation, the question arises whether after Diwali good luck will return for investors or good days will come for these government stocks; Now we have to see when these stocks will rise again.
There was a huge drop in these government stocks.
12 stocks like Cochin Shipyard, HUDCO and Bharat Dynamics have fallen at least 40% from their 52-week highs after delivering multi-bagger returns in the last one year. A study of all BSE-listed stocks with a market capitalization of at least Rs 1,000 crore reveals a list of 115 stocks that have fallen at least 40% from the peak. Among them, there are at least 12 recent multibaggers who are now falling on hard times.
This stock fell 54 percent from the 52-week high.
PSU Cochin Shipyard defense stock, whose shares have fallen 54% from the peak, is still up 176% in the last one year. Waari Renewable Technologies, which was recently in the spotlight due to the IPO of its group company Waari Energies on Monday, has lost around 53% of its value. Solar Play has accumulated four in the last 12 months.
The list also includes PSU stocks like HUDCO, Bharat Dynamics and IFCI and private companies like Unitech, Cupid, Lotus Chocolate and Dolphin Offshore Enterprises.
when the good days will come
Retail investors who bought these stocks in the fall are now nursing their wounds, as there is little chance of improvement ahead. Siddharth Khemka, head of wealth management research at Motilal Oswal Financial Services, told The Economic Times that while it is difficult to predict the final outcome, he believes the sector will continue to strengthen for some time as valuations get ahead of fundamentals. At the same time, sentiments may improve as budget discussion increases in January of next year.
He suggests that investors should review their portfolio and see that at least 50% is in large-cap companies and then about 30% in mid- and small-cap companies, and about 20% in bonds or fixed income.
