Stock market crash: LIC, Tata Steel along with 2 other stocks hit 52-week low; here’s why

As many as 295 securities hit their 52-week low levels on the National Stock Exchange of India (NSE) on Monday, January 13, as the broader markets continued to trade under pressure.

At 1:00 pm, the NIFTY 50 index traded at 23,183, down 248 points, or 1.06%. The BSE SENSEX, meanwhile, was trading at 76,651, down 717 points or 0.93%.

The volatility index, or India VIX, surged 5.8% to 15.79. All the sectoral indices were trading in the red, with the NIFTY Realty and NIFTY Consumer Durables Indices being the biggest losers.

Life Insurance Corporation (52-week low: ₹823.7)

Falling for a fourth consecutive session, Life Insurance Corporation of India (LIC) shares declined 1.8% on Monday to hit their 52-week low of ₹823.7 apiece on the NSE. The stock is down 11.5% in the past month and 3.5% in the last one year.

The public sector insurer’s new business premium (NBP) dropped 41.15% year-on-year to ₹13,523.87 crore in December, while other private sector insurers reported 7% YoY growth in NBP to ₹16,694.85 crore as the industry absorbs the impact of the revised surrender value norms.

Overall, life insurance companies saw a 21.7% YoY drop in NBP amid a decline in business for the industry.

A significant decline in group single premium business, a non-linked, non-participating term insurance plan, impacted the LIC’s overall NBP. Group single premium business declined by over 53% YoY to ₹8,191.29 in December.

Adani Wilmar (52-week low: ₹267.1)

Shares of Adani Wilmar nosedived as much as 8.2% on Monday to hit their 52-week low of ₹267.1 apiece. The stock had lost 10% in the previous session as well and is down for four consecutive sessions.

The stock's decline was triggered after the Adani Group sold 13.5% of its stake in Adani Wilmar for about ₹4,850 crore on Friday as part of a strategy to exit non-core activities and focus on the main infrastructure business. Adani Commodities LLP, a subsidiary of Adani Enterprises Ltd, completed the offer-for-sale (OFS) in Adani Wilmar to non-retail investors on Friday. The OFS included an option to sell up to 8.44 crore shares, or 6.5% equity.

Olectra Greentech (52-week low: ₹1,268.1)

Shares of Olectra Greentech Ltd fell as much as 4.4% on Monday to hit their 52-week low of ₹1,268.1 apiece on the NSE. The stock has lost 18% in the last one month and almost 22% in the past year. Olectra Greentech is the largest manufacturer of electric buses and insulators in India.

The company is in focus after state-run Convergence Energy Services Ltd (CESL) floated a tender for 4,588 electric buses under the Pradhan Mantri e-Bus Sewa Scheme, valued at ₹8,000 crore.

Tata Steel (52-week low: ₹124.18)

Shares of Tata Steel dropped 2.5% on Monday to hit their 52-week low of ₹124.18 apiece on the NSE. The stock is down 16.5% in the past month.

According to Bloomberg data, Tata Steel’s cash and cash equivalents fell by 45% between FY22 and FY24. The company’s cash reserve stood at ₹8,677.7 crore in FY24. According to experts, the decline in cash reserve comes amid higher competition from Chinese steelmakers, who are dumping low-priced steel in Indian markets and eating into the profits of domestic players.

The rapidly depleting cash reserves of India’s top steelmaker over the past three years could raise concerns about its ability to service existing debt or raise fresh debt to fulfil capex commitments.