INSUBCONTINENT EXCLUSIVE:
The Indian stock market plunged sharply on Friday with the Sensex declining 3.64 per cent, its biggest single-day fall since August 24,
2015, on fears that coronavirus outbreak may trigger recession across major economies
Indian benchmark fell 7 per cent in the week
However, about 30 stocks from the BSE500 index have managed to buck the trend.
Stocks such as India Cements, NLC India, Mishra Dhatu Nigam,
Navin Fluorine, Max Financial, TCNS Clothing, Tube Investments of India, Tasty Bite Eatables and Gulf Oil Lubricants among other rallied
between 5 per cent and 30 per cent in the last five trading sessions when there was a huge selloff on broader market
Though the Indian indices would continue to track the overseas markets which are likely to be under stress in the near-term, analysts
believe PE multiple of some of the the beaten-down stocks are attractive
“Even as coronavirus issue drags near-term growth in certain sectors, what lends support is the beaten-down market multiple,” Amar
Ambani, head of research, YES Securities
“Near-term index support level is difficult to call, but time-wise, the market impact should not last long.”
