M&M, L&T, Hindalco and 3 other Nifty50 stocks hit 52-week lows

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Shares of six Nifty50 companies, GAIL (India), Hindalco Industries, ITC, Oil and Natural Gas Corporation (ONGC), Larsen & Toubro (L&T), and Mahindra & Mahindra (M&M) hit their respective 52-week lows on the NSE on Wednesday after more than 3 per cent fall in the benchmark Nifty50 index in the past four days.

A total of 40 stocks from the Nifty500 index touched 52-week lows today. The list includes Oil India, Sobha, Punjab National Bank, LIC Housing Finance, Tata Power Company, Bank of India, Bajaj Consumer, DCB Bank, Dish TV, and Hindustan Zinc.

At 11:05 am, Nifty50 index was down 0.87 per cent at 11,696. The index has fallen 3.5 per cent in the past week and was trading at its lowest level since Budget day i.e. February 1, 2020.

“Indian equity markets correct for the fourth day running even as macro data showed January was an excellent month for growth in manufacturing sector with growth back in momentum. The fear of supply chain disruption and spread of Coronavirus gets priced into stocks as markets fear global growth estimates to be cut sharply if problem continues. Nifty large caps under pressure as foreign investors sell against collateral risk globally,” IIFL Securities said in a note.

Among individual stocks, Hindalco Industries was the top loser in the list, down 17 per cent in the past one month on concerns of a possible weak March quarter earnings due to weaker prices and demand for the company's products.

ITC slipped 16 per cent during the period, on concerns of earnings growth due to demand slowdown. According to analysts, the tax increase in the Union Budget comes as a negative surprise and is likely to affect earnings growth in the near term. The deceleration in cigarette earnings before interest and tax (EBIT) growth along with the tax hike and continuing demand slowdown reduce the near-term growth visibility.

GAIL (India) has slid 15 per cent in the past one month, as weak crude and spot liquefied natural gas (LNG) prices remain an overhang on the company's earnings.

Analysts at JP Morgan cut the company’s FY20-21 EBITDA (Earnings before interest, tax, depreciation, and amortisation)  estimates by 6 per cent. "While consensus EBITDA estimates for GAIL have seen around 25 per cent cut in the last 12 months, in our view there is still material risk to the downside, especially in a low crude, low spot LNG price environment," the brokerage firm said in a note with ‘neutral’ rating on the stock.

Additionally, on the government plans to split the company, media reports have talked about a cabinet note being moved to separate the pipeline business into a subsidiary. Overall, the operating and regulatory environment are uncertain for GAIL at this point and hence valuations while being attractive (v/s historical averages) alone do not make a compelling case, in our view, it said.

COMPANY LATEST 52 WK LOW PREV LOW PREV DATE
B H E L 33.40 33.10 33.40 18-Feb-20
BAJAJ CONSUMER 186.25 184.00 188.20 17-Feb-20
BALMER LAWRIE 107.15 106.65 107.00 19-Feb-20
BANK OF INDIA 57.45 57.20 57.45 09-Oct-19
BASF INDIA 858.10 809.15 821.50 25-Feb-20
CANARA BANK 161.35 160.20 162.35 25-Feb-20
D B CORP 116.15 115.00 117.25 25-Feb-20
DCB BANK 161.00 159.40 160.50 25-Feb-20
DISH TV 10.15 9.80 10.00 25-Feb-20
ELGI EQUIPMENT 216.05 215.90 216.45 24-Feb-20
FUTURE CONSUMER 17.00 16.80 17.50 25-Feb-20
G M D C 54.60 54.20 54.50 11-Dec-19
G S F C 66.50 65.55 65.85 25-Feb-20
GAIL (INDIA) 110.10 109.30 110.45 10-Dec-19
GAYATRI PROJECTS 21.75 21.75 22.85 25-Feb-20
GE T&D INDIA 128.55 126.05 130.00 25-Feb-20
GILLETTE INDIA 5837.00 5800.50 5809.00 25-Feb-20
GRAPHITE INDIA 261.50 253.20 254.00 25-Feb-20
H P C L 208.10 207.15 207.80 25-Feb-20
HIND.ZINC 173.05 171.30 175.00 25-Feb-20
HINDALCO INDS. 169.60 169.10 171.10 26-Aug-19
IFB INDS. 499.95 499.00 500.10 24-Feb-20
IFCI 5.65 5.60 5.60 12-Feb-20
INTELLECT DESIGN 128.50 128.10 132.20 25-Feb-20
ITC 200.35 199.30 200.50 18-Feb-20
JAIN IRRIGATION 5.90 5.75 6.00 25-Feb-20
KARUR VYSYA BANK 44.25 43.80 45.00 25-Feb-20
LARSEN & TOUBRO 1227.00 1222.05 1240.15 25-Feb-20
LIC HOUSING FIN. 353.95 344.65 345.20 25-Feb-20
M & M 505.25 501.50 502.55 14-Aug-19
M R P L 39.80 39.50 39.60 18-Feb-20
NATL. ALUMINIUM 36.10 35.90 36.50 25-Feb-20
O N G C 97.05 96.55 96.55 18-Feb-20
OIL INDIA 116.85 116.00 117.45 25-Feb-20
PUNJAB NATL.BANK 49.65 49.20 49.75 25-Feb-20
SADBHAV ENGG. 78.50 67.00 76.00 19-Feb-20
SOBHA 315.95 307.20 317.00 24-Feb-20
SOUTH IND.BANK 9.50 9.45 9.50 25-Feb-20
TATA POWER CO. 49.70 48.90 50.35 21-Aug-19
ZENSAR TECH. 137.30 137.10 138.05 18-Feb-20



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