These Blue Chip Shares Have Crashed; Should You Buy?

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It is almost impossible to get good quality shares at low prices, especially when the markets are at a near 1-year high. However, there are some blue chip stocks that have crashed in the last few weeks and are available at attractive prices. Take a look at some such stocks.


Shares in Infosys a day ahead of its results on July 14, was quoting at Rs 1,175. The stock is almost 20 per cent lower than its 52-week high price of Rs 1279 hit only in June 2016.

The results of most IT companies for the quarter ending June 30, 2015 were a disaster. Infosys also had a contract cancelled by the Royal Bank of Scotland, which further led to selling pressure on the stock. 

At Rs 1030, the stock is close to a 52-week low of Rs 1009.


Welspun India

This is one of the major suppliers of towels and textiles to reputed global chains including Walmart, J C Penney and Target. It is a highly profitable and solid dividend paying company.

In the last two-days, the stock has crashed 36% after Target Corporation said that it was severing ties with the company and pulling out Welspun products from its stores and its website. This is because the company substituted bedhshets and pillow cases with non Egyptian Cotton. Analysts are worried that other companies like Walmart may follow, which could be bad for the stock.

Shares were down 36% in 2 days and there could be a further fall.


Aditya Birla Nouvo

This is another stock that has crashed in the recent weeks. The stock which was quoting at a comfortable levels of Rs 1650 in early Aug,  has now fallen to Rs 1255, after a merger was announced into Grasim.

Analysts did not like the scheme of merger and sold heavily into the stock.

The share price has now stabilized at the Rs 1250 levels.

State Bank of Mysore

This share came crashing down after the merger ratio was decided by State Bank of India. It turned out to be unfavorable to State Bank of Mysore.

The stock has fallen 12 per cent since Aug 8.

Just Dial

This stock has been consistently falling, not over the last few weeks, but, certainly over the last few months.

Analysts are worried over the growth momentum at the company. The stock had a 5-week high of Rs 1076 and has now halved to Rs 470.


From a high of Rs 1750 in early Aug, Lupin shares are down to Rs 1530.

Pharma shares in general have crashed as worries over US FDA approvals continue.

Lupin's growth has left investors worried as the share already commands a high p/e multiple.


The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and do not accept culpability for losses and/or damages arising based on information in this article.

Read more about: welspun, infosys, spicejet
Story first published: Wednesday, August 24, 2016, 6:29 [IST]
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