Some stocks at their 12k valuation, is it time to buy?

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Some stocks at their 12k valuation, is it time to buy?

Stocks have seen vicious cuts since the Jan 22 correction and since then, markets have been in a massive downtrend. The biggest space that’s seen a major selloff has been the brokerage space. Stocks have corrected anywhere between 60-70% from their 52-week highs. The power space is another badly battered sector with stocks down between 55-60%.

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By  Anichya Shah , CNBC-TV18

Stocks have seen vicious cuts since the January 22 correction and ever since then, markets have been in a massive downtrend. The biggest space that has seen a major selloff has been the brokerage space where stocks have corrected anywhere between 60-70% from their 52-week highs. The power space has been another badly battered sector with stocks down between 55-60%. The real estate space is down between 58-65% from its 52-week highs. Meanwhile, the IT space which is already looking weak has seen further weakness accentuated by the sell-off. These stocks are down anywhere between 60-80%.

Among the stocks that are off their 52-week highs and down by about 60-70% are Motilal Oswal Financial , JP Hydro , Geojit Financial , JM Financial and India Infoline . Meanwhile, stocks like Jaiprakash Hydra Power, Torrent Power and Reliance Energy are off their 52-week highs and down by 55-61%.

Stocks including Parsvnath , BSEL Infra , IVR Prime and HDIL are down about 58-65% and stocks like Hexaware , Sasken Comm , I -Flex Solutions , Polaris , Patni Computers , Aptech and Moser Baer India are down between 60-80%.

Some stocks are even below their 12000 level lows. Hence, investors who had invested in them when the market was at 12000 would still be in the red after this sell-off. These include Tata Motors which 30% below its 12000 level, Hero Honda is 15% below, Cipla and Dr Reddy's are below by about 25%, Wipro , HCL , TCS and Infosys are anywhere between about 11-28% below their 12000 levels.

There are also some stocks which are trading below the levels of April 25 2003, the time the bull run started. These include HPCL which is down 1%, TVS Motors , LML and Polaris are also at levels below the beginning of the bull run.