7 Good Quality Small & Midcap Stocks That Dropped To 52-week Lows

Benchmark indices ended the day higher as the RBI held interest rates steady. Here are a few stocks that hit 52-week lows in trade despite a rally in the markets.

7 small and midcap stocks at 52-week lows

Aditya Birla Fashion Retail, Orient Electric, Punjab Chemical, SEL Manufacturing Company, Shipping Corporation, V-Mart Retail and Shipping Corporation are the stocks that hit 52-week lows. Some of these stocks have been falling for the last few days, which has resulted in them continuing to sink. A few stocks, which have hit 52-week lows have now recovered. We suggest that investors do not look only at stocks dropping, but, also study their fundamentals before investing. Some of these stocks have also breached the 200-days moving averages.

Rate pause by RBI sees markets scale higher

Domestic indices welcomed RBI's decision to keep interest rate unchanged. Nifty gained strength after policy outcome and remained in positive territory throughout the session to close with gains of 42 points at 17599 levels. Except FMCG, IT and Consumer Durables, all sectors ended in green. Volatility index, India VIX fell further to 11.8, giving some comfort to traders. Additionally, FIIs have been continuous buyers for last five days to the tune of Rs4263cr and their F&O short positions have reduced from 92% to 83%, providing strength to the market. After six consecutive hikes, RBI kept rate unchanged at 6.5%.

"The decision came in as surprise after majority of the central banks around the world continued to increase rates in an effort to tame stubbornly high inflation. Rate pause and encouraging domestic economic data continues to provide positive undertone to the market. However, given the backdrop of global uncertainties and fear of US recession, we might see range bound movement in the near term," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Disclaimer

Please note that this article is for information purposes only. We have only highlighted stocks that hit 52-week lows and please do not construe this as a buy", "sell" or hold from our end. Neither Greynium Information Technologies nor the author should be held responsible for losses based on a decision from the article. Investors should seek professional help.