Indian banks and new-age internet companies are among the 24 stocks that have been trading significantly below their all-time highs as of Wednesday. This group includes Yes Bank, grappling with corporate governance issues related to promoter Rana Kapoor, along with Adani Total Gas, Bank Of India, Vodafone (NASDAQ:VOD) Idea, Adani Energy Solutions, Indian Overseas Bank, Punjab National Bank (PNB), NMDC, SAIL and Adani Green Energy. These companies have all been impacted by allegations from US short seller Hindenburg Research.
State-run lenders such as Canara Bank, PNB, Union Bank of India and metal counters have also seen substantial declines from their peak values. Avinash Gorakshakar from ProfitMart Securities noted in a Business Today TV interview on Wednesday that the correction in these public sector lenders has been particularly severe due to slow credit growth and asset quality concerns.
Despite these challenges, Gorakshakar remains optimistic about the prospects of these lenders along with SAIL and NMDC over the next 12 months. He also expressed a positive outlook for Paytm (One97 Communications) and PolicyBazaar (PB Fintech), both of which have experienced significant drops since November 2021.
Hemang Jani, an independent market expert, also sees potential in Paytm. In addition to this new-age internet company, Jani singled out PNB and Union Bank of India as promising picks from the banking sector. These recommendations indicate a belief among some market experts that these stocks may rebound despite their recent struggles.
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