Ahead of expiry and fears of economic slowdown the shares of various companies in the Bombay Stock Exchange (BSE) and National Stock exchange (NSE) tumbles to its 52 weeks low. Shares of TISCO, Reliance Infrastructure Ltd., L&T and Jet Airways touched its 52 weeks low yesterday. More than 100 companies in the BSE have hit their 52 weeks low.
As per CLSA report in July-September 2011 corporate profits will be impacted because of depreciation of rupee to dollar. It means the companies dollar debt will go up in rupee term. The companies which may get hit because of this are Reliance Communication Limited, Tata Steel limited, Bharti Airtel limited , Suzlon Ltd, Jet Airways Ltd. and Tata Motors Ltd.
JSW Steel was in news on concerns of the company shutting down its Vijaynagar unit in Karnataka on concerns of iron ore demand. Various broking houses have downgraded the stock. The stock has plunged around 20 percent in the last seven trading session and yesterday touched its 52 weeks low of Rupees 552.20. Sun TV Network Limited slipped 8 % to hit its 52 weeks low of Rupees 240.60.
This was the steepest fall after July 24, 2009. L&T Ltd also touched its 52 weeks low despite having a strong order book position. It hit its 1 year low of Rupees 1355.10. Analysts are recommending this stock as they don’t see further downside in the company. Indiabulls Power, MTNL, TISCO, DB Realty, Dishman Pharmaceuticals, MOIL, Great Offshore and DB Corp are some of the other stocks which hit their 1 year low in the BSE.
“Bell the Bull says: As most of the fundamentally strong companies have come down from their peaks people can start Value buying in the stocks.”