These 30 stocks sank up to 20% since Russia-Ukraine war outbreak

The sharp rise in the crude oil and energy prices, added to the global uncertainties, has led to more than 4 per cent fall in the benchmark indices – BSE Sensex and Nifty50.

The pain in specific stocks has been more intense, with about 30 stocks from BSE500 index plunging more than 10 per cent since the war broke out on Thursday, February 24.

As many as 320 stocks have delivered negative returns in the last five trading sessions from Thursday as Indian stock markets observed a holiday on Monday on the occasion of Mahashivratri.

BSE500 index constitutes about 95 per cent of the total marketcap of BSE listed companies. During the last five trading sessions, marketcap of BSE500 index has dropped by nearly 4.8 lakh crore.

The floor tile manufacturer, Kajaria Ceramics, has dropped the most since the war broke out, dropping about 20 per cent. The stock price tumbled to Rs 961.4 on March 3 from the close of Rs 1190 on February 23.

It was followed by a 18 per cent fall in Brightcom Group and a 16 per cent decline in Indus Towers. Interglobe Aviation and Gujarat Gas tumbled 15 per cent each.

Despite the rising crude oil prices, global brokerage firm Morgan Stanley maintained an ‘overweight’ rating on InterGlobe Aviation and a target price of Rs 2,795. On the other hand, Yes Securities has a ‘buy’ call on Gujarat Gas with a target price of Rs 710.

“I am not worried about seven rate hikes not for a while because now the central bankers are scared because of the war and that is one reason that I suspect we are going to have a big rally before too much longer,” says Jim Rogers, the renowned US Investor, who expects a strong rally in equities after the war is over.

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Biocon, Rain Industries, Dalmia Bharat, Responsive Industries, Varroc Engineering, Maruti Suzuki, Tata Teleservices (Maharashtra), Ambuja Cements and Ultratech Cement have slumped between 12-15 per cent during the week.

Morgan Stanley has maintained an ‘overweight’ rating on Biocon with a target price of Rs 465. “Value accretion for shareholders of Biocon’s subsidiary will depend on the execution of biosimilar business,” said the global brokerage firm.

Domestic Brokerage firm Emkay Global has buy call on Maruti Suzuki, the largest car maker in India, with a target price of Rs 9850 in the next one year.

Dr. Reddy’s Labs, Asian Paints, Strides Pharma, Apollo Tyres, Ashok Leyland, Endurance Tech, Eicher Motors, Mahindra & Mahindra, The Ramco Cement, TVS Motors, Carborundum Universal, Grasim, Bandhan Bank, Rajesh Exports and Hero MotoCorp were other stocks which dropped more than 10 per cent during the period under review.

The list includes a number of auto manufacturers, which reported tepid sales during the month of February and rising input cost may hurt the sentiments further.

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Maybe it is time to just be a little cautious. If one has some cash in the portfolio, just preserve it, says Dipan Mehta, Director, Elixir Equities.

“I am not sure how many investors are sitting on too much cash per se, but from a tactical point of view, it is better to have a safer strategy and just wait and watch and see how all this plays out,” he cautioned.

However, the recent turmoil in the world has aided a few companies. About 15 companies have delivered double digit returns during the period, particularly the metal and energy players.

Hitachi Energy India (21 per cent up) and Coal India (19 per cent) have topped the listed followed by Hindalco Industries, Tata Steel, GAIL, Adani Transmission, Advanced Enzymes, Tata Metaliks, Vedanta and Oil India, among others.

Brokerage firm JM Financial has a ‘buy’ on Coal India with a target price of Rs 203 per share, whereas Axis Securities has suggested to ‘buy’ Hindalco Industries with a target price of Rs 660.

Recently, global brokerage firm Jefferies has upgraded GAIL to buy with a target price of Rs 170, whereas Citigroup maintained its bullish view on Vedanta with a target price of Rs 435 apiece.