Nearly 700 stocks hit 52 week lows as market sell off deepens

The broad based weakness in Indian equities intensified on Monday with hundreds of stocks sliding to fresh yearly lows as risk aversion spread across Dalal Street.

Exchange data showed that close to 700 stocks touched their 52 week lows during the trading session, underlining the depth of the correction in the market. The sharp fall came as investors reacted to rising global crude oil prices and escalating geopolitical tensions in West Asia.

The advance decline ratio on the NSE reflected the extent of the selling pressure. For every stock that advanced, nearly ten declined, indicating that losses were spread widely across sectors and market capitalisation segments.

Mid cap and small cap stocks also witnessed heavy selling as investors moved to cut exposure in riskier segments of the market. Several companies across industrials, real estate, consumer discretionary and financial services sectors slipped to their lowest levels in a year.

Market volatility rose sharply during the session with traders increasing hedge positions amid the uncertain global backdrop. The spike in crude oil prices has raised concerns about inflationary pressures and the possible impact on corporate earnings.

Analysts said the current market mood reflects a mix of global worries and profit booking after the strong rally seen in recent months. Investors are expected to remain cautious in the near term while closely tracking developments in global commodity prices and geopolitical tensions.