In addition to Omicron’s concerns and the central bank’s austerity measures, higher valuations or higher prices than the underlying issue not only led to a market collapse, but also to stocks.
Within the strength of the secondary market, 2021 has been a great year for the primary market, but the decline seen over the last two months has dampened sentiment and many listed stocks are trading 10-50 percent below their highs.
Nifty50 lost more than 11 percent from its record high of 18,604 (October 19 level) before recovering from the recent low of 5 percent. After running for more than 18 months, the global market needed to be bearish due to its high cost. Omicron’s fears and expectations of a rate hike in the United States have also changed the market trend.
This year, 65 IPOs have been launched and 62 of them have been listed on the stock exchange so far. Many of them have given multibagger returns this year, but now everyone is trading below their heights.
Which stocks have suffered the most?
Sunrise Small Finance Bank and Car Trade Tech proved to be the biggest losers, trading at around 50 per cent from their highs to lows. Also, both stocks are about 50 percent lower than their issue price.
Paras Defense and Space Technologies has slashed its maximum by more than 45 percent, but continues to be the top multibagger among all IPOs with a 292 percent return on issue price. Indigo Paints, Windless Biotech, Krishna Diagnostics and Anthony West Handling Cell have broken more than 40 percent of their height.
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33 stocks lost 20% more than their maximum
The data indicates that 33 stocks have broken more than 20 percent from their highs. Nureka and Lakshmi Organic Industries, the second and third largest multibaggers on the list, lost 39 per cent and 37 per cent, respectively. However, both stocks remained 253 per cent and 205 per cent stronger than the issue price, respectively.
Sikaji Industries and Barbecue-Nation Hospitality also fell more than 35 percent, but both were 144 percent higher than the issue price.
In addition to Omicron’s concerns and the central bank’s austerity measures, higher valuations or higher prices than fundamental issues have kept stocks low, not just the market.
Let’s take a look at the 10 biggest IPOs of 2021, which were in the headlines
Risky assets are weakening
Sonam Srivastava, founder, Wright Research, said, “We need to understand that investing in IPOs is risky and most companies are entering the market with high valuations. There is uncertainty from the market due to the rise in Omicron and rates around the world. Risky assets are weakening and IPOs are one such asset. “
Experts widely believe that companies with strong fundamentals and fair valuations will see good growth going forward, while others will remain below issue price.
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Sonam Srivastava said, “We expect the stock to bounce back quickly, interestingly in both valuation and growth. Paras Defense, Zomato, Nyka are some of the stocks that investors may consider buying. ”
On the other hand, Anupam Rasayan India, MedPlus Health Services, Krishna Institute of Medical Sciences, Ananda Rathi Wealth, Brookfield India REIT, Metro Brands, MTAR Technologies, Ratgain Travel Technologies, CE Infosynsex and RoseInSymens (MS). The year 2021 has come to an end. It did well in the listed IPOs, which broke just 1-10 percent from their high. However, the Metro brand and the rating issue are above the price.
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