It was the worst October since 2009 as 18 stocks of 20-60% falls in just one month. After witnessing a fall of nearly 1,800 points, or 4.93%, on the Sensex and 544 points on the Nifty50.
The S&P BSE Sensex fell the most in 2008 when it fell 25% in a single month, followed by 7.2 % dip in the year 2009.
Due to fluctuations in weak currency, hike in crude oil prices, trade war woes have affected investors sentiment.
The positive take away from the month of October is that market might have made a short-term bottom around 10,000 on the Nifty and 33,700 on the Sensex.
Investors lost more than Rs 6 lakh crore in terms of market capitalization on the BSE-listed companies in October. Them-cap of companies on BSE stood at Rs 144.86 lakh crore on September 28 and on October 31, it was Rs 138.45 lakh crore.
On estimating nearly 60 %, or 298 companies, of the S&P BSE, 500 gave negative returns and out of those, including 8K Miles, Kwality, Infibeam Avenues, Bombay Dyeing, Dilip Buildcon, Bandhan Bank, Persistent Systems, Tata Motors.
However, analyst advice investors to not take the stress and use dips to accumulate quality stocks. Selective mid & small-cap stocks could turn out to be wealth creating ideas in the near future.
According to the analysts, “Over the next 2-3 years, wealth will be created in select small and mid-cap stocks. Stocks with high weight in Sensex and Nifty will find it challenging to eke our earnings growth due to high base effect and downturn in the industry cycles they are present in”.
The S&P BSE smallcap index fell 1.59% while the S&P BSE midcap index fell just 1.02%.
In the S&P BSE smallcap index, as many as 40 stocks fell 20-75% including Ashapura Intimates, Mcnally Bharat, J Kumar Infraproject, Indosolar, Dish TV India, Orchid Pharma, and Hexaware Technologies.
In the S&P BSE midcap index, as many as 13 companies fell 10-20% including Bayer CropScience, United Breweries, Reliance Capital, Mphasis, Crisil, Emami and Central Bank of India.
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