L&T, Bharti Airtel, BHEL, ONGC, Adani Ports hit 52-week low

Five companies – Larsen & Toubro (L&T), Oil Natural Gas Corporation (ONGC), Bharti Airtel, Bharat Heavy Electricals Limited (BHEL) and Adani Ports & Special Economic Zone – from the Nifty 50 index touched their respective 52-week low on the National Stock Exchange (NSE) in intra-day deals today.

ONGC dipped 4% to Rs 214 levels, after crude oil tumbled to its lowest level in nearly seven years. BHEL (down 3% at Rs 164) and L&T (down 2% at Rs 1,314) from the capital goods sector have touched fresh 52-week lows.

Analysts at Prabhudas Lilladher in a report dated November 18 said that most of the companies from capital goods sector acknowledged that pace of recovery is slow and on ground challenges to execution remain. Weak oil prices and commodity prices led to most companies’ uncertain outlook on export market.

Bharti Airtel hit low of Rs 316, extending its 6% decline in past six trading sessions after the company announced Rs 60,000 crore investments on a comprehensive network transformation program – "Project Leap”.

Analysts believe that significant step-up in capex clearly reflects fear of disruption by Reliance-Jio (R-Jio) and it would keep the balance sheet stretched.

Meanwhile, Bank of India, Allahabad Bank, Canara Bank, Corporation Bank, DCB Bank, Jammu & Kashmir Bank, Gujarat Pipavav Port, NMDC, Rallis India and ABG Shipyard are among the BSE500 stocks that hit their respective 52-week lows today.

Since May 2015, the foreign institutional investors have sold equities net amount of Rs 31,737 crore ($4.8 billion), the Securities and Exchange Board of India data shows. Mutual funds however, bought net of Rs 50,422 crore during the period.

 


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