What are NSE Top Losers?
The NSE top losers are stocks and securities whose value has declined during a specific period, usually a day or a week. These are listed on the National Stock Exchange of India. If the closing price of any stock is less than its opening price on a particular day, that stock will fall into the category of NSE top losers.
Contrarily, those stocks whose closing price is higher than their opening price are recorded as NSE top gainers.
A Glimpse at the Mechanism of NSE Top Losers
In the stock market, the price movements of shares are dynamic and keep fluctuating. Stock prices may either increase or decrease throughout a trading day, owing to certain factors. These may include geopolitical disturbances, changes in government policies, a recession, unstable economic conditions, and disrupted demand and supply in the market.
The top losers entail those stocks which have lost the maximum in terms of percentage value. This list comprises stocks with durations ranging up to a week, a month, three months, six months, and up to one year.
Generally, a loser is considered a security or share whose performance in the stock market has been dissatisfactory. However, the % decline in their value is temporary as the market conditions are not perpetual and witness variations in shorter time frames as well.
Calculation of Top Losers
A stock’s opening and closing prices are compared to determine whether it is a loser. The value derived is measured in percentage through the following formula:
NSE Loss = Current Price – Opening Price / Opening Price * 100
Since the closing price of an NSE loser is less than the opening one, the derived figure would be negative. This validates the fundamental loss value of the stock or securities being assessed.
An Example to Evaluate NSE Loser
Let us consider a scenario in which you purchased twenty shares amounting to INR 1,200 at the beginning of the month. Imagine you are selling off these shares at the end of the month with the present value being INR 1,000. This shows a loss of INR 200 per share. This is because these stocks were sold at a price lower than their purchase one.
Here is how you can calculate the percentage loss using the formula:
Loss = (-Selling Cost) – Buying Cost
Loss = 1,000 – 1,200 = (-200)
Percentage Loss = (-200) /1,200×100 = (-16.66)
Thus, there is a loss of 16.66%
Effect of NSE Losers on the Nifty Index
In NSE, top losers today are evaluated and ranked in the list as per their extent of value. Hence, the stock that has lost the most in terms of value will be on the 1st spot on the list.
The NSE top losers directly influence the stock exchange with changes in their price movements. If the number of losers goes up, it implies a bearish state for the Nifty. On the other hand, if the top gainers are more than losers, it exhibits a bullish state of the stock market. It is also an indication that Nifty is performing well and might appreciate further.
Differentiating between NSE and BSE Losers
The following are two pivotal stock exchanges on which publicly traded stocks or securities are listed:
- National Stock Exchange (NSE): The NSE’s benchmark index is the Nifty 50. It includes the top 50 companies, which account for up to 56% of free-float market capitalisation. Those stocks that have underperformed on the NSE index are known as NSE top losers.
- Bombay Stock Exchange (BSE): It runs on the benchmark index BSE 30, also known as S&P BSE Sensex. This stock exchange consists of 30 stocks from India’s biggest corporations. If the value of any stock on the BSE index dips, it is regarded as a BSE loser.
What Investors Can Comprehend from the NSE Losers List?
The list encompassing today top losers in NSE is as important as the gainers for every investor. It provides an overview of the market conditions, and whether the stocks will appreciate or depreciate in the near future.
The NSE updates its top losers list in real-time, allowing you to track the price movement of shares listed in nifty 50 on-time. As an investor, you can easily predict the performance of these stocks and whether to put your money in them or not. However, the NSE losers are often expressed in terms of loss of shares or rupees.
The following are a few important aspects which can be understood through the list of NSE stock losers today:
- Filter out the NSE losers based on their loss percentage of performance throughout a day, week, or month.
- Conduct a thorough assessment of the pattern, tendencies, and volatilities associated with poor-performing stocks.
- Studying the magnitude of fluctuations in NSE losers to project the reliability and long-term potential of stocks.
The NSE losers help you decode the existing stock market conditions, future trends, and stock-wise performance. All this information is beneficial for the investors in taking informed decisions.