Market Correction Dampens Trading Sentiment, Trades 10-50% Lower

Key Highlights

• The Nifty50 index was corrected 11% from its record high of 18,604, which it touched on 19 October 2021. Currently, the index has recovered 5% from its recent lows.
• Experts feel that this correction was legitimate, especially since there was a one-way run continuing longer than 18 months. It made the market expensive in comparison to global peers.
• Moreover, Omicron’s fears and a growing expectation that the US will hike rates have caused a near reversal in market trends.

There were 65 IPOs in the Indian stock market this year, and 62 have received listing on the various bourses. Unfortunately, many of these stocks that had previously made multi-bagger returns are now trading below their one-time highs. Here are some of the examples of companies that went the IPO way whose stocks are trading below the highs.

• CarTrade Tech and Suryoday Small Finance Bank

The first two in this list are CarTradeTech and Suryoday Small Finance Bank. Each fell around 50% from their highs. Moreover, both stocks are currently trading at 50% less than their issue price.

• Space Technologies and Paras Defence

Next, at a 45% loss from its high point, is Paras Defence and Space Technologies. Yet it remained a mention-worthy multi-bagger, giving returns of 292% from its issue price.

• Windlass Biotech, Indigo Paints, Krsnaa Diagnostics, Antony Waste Handling Cell

These stocks fell more than 40% from their respective highs on the stock markets.

• Laxmi Organic Industries and Nureca

The shares of Laxmi Organic Industries and Nureca fell 37% and 39% from their highs. But all was not lost as the gains these stocks provided are 205% and 253%, respectively, when compared to the issue price. Moreover, data reveals that 33 stocks have fallen more than 20% from their highs.

• Barbeque-Nation Hospitality and Sigachi Industries

These two companies were corrected 35% from their highs. However, they are still up 144% from their issue price respectively.

Stocks Listed in 2021 that Have been Corrected 30-50% from their highs

• Suryoday Small Finance Bank
• CarTrade Tech
• Paras Defence and Space
• Indigo Paints
• Windlas Biotech
• Krsnaa Diagnostics
• Antony Waste Handling
• Nureca
• Railtel Corporation of India
• Sigachi Industries
• Barbeque-Nation Hospitality
• Laxmi Organic Industries
• SJS Enterprises
• AMI Organics
• Latent View Analytic
• Chemplast Sanmar
• PB Fintech
• Fino Payments Bank
• Nazara Technologies
• Heranba Industries
• Tarsons Products

Stocks Listed in 2021 Corrected 1-10% from their highs

• Anupam Rasayan India
• Medplus Health Services
• Krishna Institute of Medical Sciences
• Anand Rathi Wealth
• Brookfield IndiaReal
• Metro Brands
• MTAR Technologies
• RateGain Travel
• CE Info Systems
• Clean Science
• Rolex Rings

Bottom Line

The news clearly shows that IPO investment is a risky business. The ups and downs in stock prices are always subject to market corrections. Hence, it remains to be seen which of these companies will recover from their lows.

Frequently Asked Questions

1. What is meant by the primary market?

Ans. The primary market is where the shares are issued for the first time, such as in an IPO or initial public offering.

2. What do we mean by the secondary market?

Ans. Secondary market refers to the stock market.

3. What are multi-baggers?

Ans. Stocks that give returns several times above their issue or listing price are known as multi-baggers.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.