Bluechip stocks continue to be beaten down by investors, as worries mount that the coronavirus infections could impact profitability. Stocks like Maruti, SBI Cards, SBI and HDFC are now very close to their 52-week lows.
Stocks that are a just a few per centage points from 52-week lows
|Scrip||Last traded price||Per cent from 52-week low|
|SBI Cards||Rs 588||2.44%|
Is there is a further downside risk?
Some of these stocks are bluechip names, and apart from the covid-19 infections, nothing has changed fundamentally for these companies. It is highly possible, once corona virus infections abate, it could be business as usual for some of these companies.
However, at the moment one is not certain when the infections would abate and when it would be back to normal. For the auto sector, it is likely to take a lot of time for business to be back to normal and hence companies like Maruti may continue to see some pressure.
On the other hand, banks like State Bank of India could see rising level of non performing assets in the next two quarters at least, especially from the retail side.