From Adani Group to Tata Motors and banks ⁠— these 17 stocks have already lost over 10% in last one month

From Adani Group to Tata Motors and banks ⁠— these 17 stocks have already lost over 10% in last one month
  • There is a sense of nervousness in the Indian market as some 17 stocks including Adani Green Energy, Dr Reddy’s Lab, Vodafone Idea see more than 10% correction in the last one month.
  • Vodafone Idea crashed more than 20% as the debt-laden company is struggling to raise funds.
  • Nifty 50 stocks -- Tata Motors and Dr Reddy’s Laboratories slipped more than 12% in the last 30 days.
While a big chunk of the Indian stock market is waiting for a correction, some of the large well-known companies ⁠— some are even multibaggers this year ⁠— like Dr Reddy’s, Tata Motors and Adani Group companies saw more than 10% correction in the past 30 days.

Business Insider has curated a list of stocks ⁠— from three indices, Nifty50, Nifty Next 50 and Nifty Midcap 50 ⁠— that have already slid some distance from their recent peaks.

Vodafone Idea is at the pole position among losers as it crashed more than 20%. It is no more news that the company is struggling to make ends meet and is desperately looking for an investor to infuse funds into the company.

Tata Motors is among the top losers on the Nifty this month.

From Adani Group to Tata Motors and banks ⁠— these 17 stocks have already lost over 10% in last one month

Currently, the automobile companies are facing a shortage for semiconductor chips that are used in manufacturing cars and electronics such as computers, televisions, refrigerators, washing machines, personal computers, laptops, mobiles among others. The global semiconductor chip shortage is likely to continue till 2023.

The stock fell almost 13% recently on July 6, as investors were disappointed after the company reported that the sales of its subsidiary, Jaguar Land Rover, will be affected in the next quarter due to chip shortages.

“Tata Motors reported a weak June quarter due to chip shortages. However, we expect the production to ramp up in the second half of FY22 as demand remains encouraging,” said Aditya Makharia, institutional research analyst, HDFC Securities. The stock has lost 6.68% in the last 5 days.

Aside from Vodafone Idea and Tata Motors, there are many other marquee names on the list, ranging from the Adani Group to some of the country’s well known banks.

Fear of scrutiny weighs down Adani Group stocks

Stocks that have lost 10% and more in the last 30 days
Adani Group companiesLast 30 days change
Adani Transmission-18.36%
Adani Green Energy-15.08%
*As of July 28

Two of Adani Group companies are also among the worst hit stocks. Reports of the Securities and Exchange Board of India (SEBI) to investigate the group companies explain the steep fall in stocks.

Mahua Moitra, a Lok Sabha member from West Bengal has written to India’s Finance Minister Nirmala Sitharaman asking to investigate Adani Group companies on foreign portfolio investments (FPIs) owning a substantial interest in these companies.

On July 19, Pankaj Chaudhary, Minister of State (MoS) for finance told India’s parliament that the country’s market regulator and customs authorities are investigating some Adani Group companies for non-compliance of rules.

Government banks dominate the list of losers from the space

Stocks that have lost 10% and more in the last 30 days
Bandhan Bank-14.49%
Punjab National Bank-11.53%
Bank of India-20.57%
Bank of Baroda-11.20%
IDFC First Bank-10.93%
RBL Bank-10.71%
Union Bank-10.05%
*As of July 28

The prospects for Indian banks depleted with that of the economy after second wave of the pandemic that hit India in April and May 2021. Fitch Ratings cuts India economic growth forecast to 10% for the current financial year ending March 2022 from an earlier estimate of 12.8%.

In that report, the global ratings agency said that the recovery of the country's banking sector will not be meaningful without a rebound in broader economic growth. The report also expressed fear that many more small businesses and individual borrowers may find it difficult to repay their dues forcing banks to slow down on fresh loans.

While Nifty Bank has shed 2.3% in the last 30 days, lenders like Bandhan Bank and its government-owned peers like Bank of Baroda and Punjab National Bank, who lend a lot to smaller borrowers, have slipped nearly 15% to 20% in the last one month.

Even top drug makers have seen some profit booking

Stocks that have lost 10% and more in the last 30 days *
Pharmaceutical companies% change
Dr Reddy's Laboratories-12.68%
Glenmark Pharmaceuticals-13.17%
Cadila Healthcare-10.19%
(*data as of July 28)

While Nifty Pharma lost nearly 2% in the last one month, Shares of Dr Reddy’s Laboratories fell more than 12% also because the company posted a 1.5% decline in year-on-year net profit for the June quarter.

A media report suggested shares of pharmaceutical companies fell after Dr Reddy’s Laboratories and Alembic Pharmaceuticals reported a disappointing set of numbers for the quarter ended June 2021. Dr Reddy’s is among the top five companies having the highest share in the healthcare index, shows data by Moneycontrol.

HPCL, GMR Infra and M&M Finance have also lost 10% or more
Stocks that have lost 10% and more in the last 30 days *
Hindustan Petroleum Corp-10.73%
GMR Infrastructure-11.93%
Mahindra & Mahindra Financial Services-10.27%
(* data as of July 28)

Among others, shares of Mahindra & Mahindra Financial Services dragged lower more than 10%, as the company’s June quarter results disappointed investors.

“Mahindra & Mahindra Financial Services disappointed our expectations with a loss of ₹15.3 billion, on account of higher provisions (up 2.3 times year-on-year) at ₹28.2 billion, which was the outcome of an inflated stress pool… Asset quality deteriorated as collections and disbursements were significantly impacted by the second wave, as witnessed across other lenders,” said a report by Krishnan ASV, and Deepak Shinde, institutional research analysts at HDFC Securities.

Meanwhile, shares of GMR Infrastructure have been falling ever since the company announced that its promoter GMR Enterprises has pledged 2.4 crore equity shares in favour of KLJ Plasticizers on June 21.

Further, reports of rising crude oil prices have affected the shares of Hindustan Petroleum Corporation and other oil marketing companies Bharat Petroleum Corporation.

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