1 in 3 Nifty500 stocks are down 25% YTD; 15 have halved their 2022 gains

The current calendar year of 2022 has turned out to be a challenging year for investors, especially traders, as days of easy money making seem to be over. The benchmark BSE Sensex and Nifty 50 indices have tumbled over 16 per cent each from their all-time highs, and are down 12 per cent year to date. This comes after a 24-per cent rally in the frontline indices in 2021.

In 2021, as many as 90 stocks from the Nifty500 universe doubled investors' wealth, while 30 stocks rallied three times. Altogether, 434 stocks in the Nifty500 index generated significant returns last year, and suggested more gains ahead. 

Sectorally, fertiliser, chemical, and sugar sectors recorded whopping gains in 2021. They have, however, corrected the most this year, becoming top sectoral laggards. Chambal Fertilizers & Chemicals, for instance, has lost 23 per cent this year after rallying 100 per cent in 2021. 

Moreover, stocks like Navin Fluorine International has tanked around 30 per cent after soaring 221 per cent last year. In the sugar space, Balrampur Chini Mills has tumbled 30 per cent from its historic peak of Rs 525, touched in eaarly 2022.

Overall, 184 stocks, or over 36 per cent of the Nifty500 stocks, have plunged 25 per cent YTD. Within these, 54 stocks have sunk over 40 per cent. A total of four stocks -- Dhani Services, Brightcom Group, Indiabulls Real Estate and Solara Active Pharma Sciences -- have been butchered more than 60 per cent.

Further, 15 stocks, including Indiabulls Housing Finance, Jindal Stainless, Metropolis Healthcare, One 97 Communications and Zomato, have trimmed half of their 2021 gains to date.

The present scenario in the equity market exhibits an uncertain trend on technical charts. Given this, market participants may prefer to stay on the sidelines and wait for the turbulence to settle down.
 

Souce: spidersoftware