Stock Market Crash – Why, Where & How

The stock market has recently witnessed the introduction of five companies—IREDA Ltd., Tata Technologies Ltd., IIFL Finance Ltd., Patanjali Foods Ltd., and Titagarh Rail Ltd.—into the Futures & Options (F&O) segment at the commencement of the March series. These companies joined the F&O market following the exclusion of 16 stocks at the conclusion of the February series.

An analysis of the performance of these new entrants reveals a challenging start, particularly for IREDA, whose shares fell by 6% on their debut as an F&O stock, marking a significant decline of 50% from its post-listing peak of ₹310 achieved in July 2024. IREDA has experienced negative returns in six of the past seven months.

Patanjali Foods has emerged as one of the poorest performers among the new F&O stocks, with its shares plummeting over 8.5%, even reaching a decline of 10% at one point. While most of the new entrants have seen corrections ranging from 40% to 60% from their respective peaks, Titagarh’s shares experienced a more modest decline of 9% prior to Friday’s trading.

The Tata Group’s first IPO in two decades is also facing a downturn, with its stock price dropping over 4% on Friday, resulting in a cumulative decline of 41% from its post-listing high of ₹1,147. Titagarh has been particularly hard hit, with its shares falling over 60% from their peak before Friday’s session, and a further 3% drop has widened the gap from its record high to nearly 63%. Meanwhile, IIFL Finance has shown a relatively muted response to its entry into the F&O market, currently trading 1.5% lower, although it has seen a substantial correction of 49% from its peak.