The Nifty 50 index has dropped by almost 1,500 points since reaching its highest point on September 27 at 26,277. On Monday, the index closed below the 24,800 mark after declining for the sixth session in a row.
47 Nifty components have dropped during the past six days, with losses ranging from 1% to 10% for major index players like Reliance Industries and Axis Bank.
26 During the index’s six-day slump, Nifty members have dropped by more than 5%.
Only three stocks, meanwhile, have been able to withstand this wave of selling and still post gains over the course of the last six days. JSW Steel is the third stock, and Infosys and Tech Mahindra are the two that are in the IT sector.
The other two companies that have held onto their gains during this market sell-off are Infosys and Tech Mahindra. The shares of Tech Mahindra have increased 0.7% during this time, compared to slightly over 1% for Infosys.
The other two companies that have held onto their gains during this market sell-off are Infosys and Tech Mahindra. The shares of Tech Mahindra have increased 0.7% during this time, compared to slightly over 1% for Infosys.
Despite losing ground in four of the last six trading sessions, JSW Steel’s shares have managed to maintain gains of 1.7% over that time. One of the main catalysts for the current surge in metal stocks has been the expectation of significant stimulus measures being unveiled in China.
The stock of JSW Steel has increased by 9% in the past month. According to Gautam Shah of Goldilocks Premium Research, one industry that may serve as a hiding place during the present market turbulence is the metals sector.
Since the street is expecting an increase in Infosys’ sales growth guidance when it reports its earnings on October 17, the company has been under the spotlight. There is potential for the same, as sales growth was 3.6% in the June quarter and 3% this quarter.
Shah suggested this other area as a secure haven amongst the current market turbulence. He suggested that big names like Tech Mahindra, Infosys, TCS, and HCLTech be included in the theme.
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