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News Topical, Digital Desk : Imagine checking your portfolio as soon as the market opens in the morning and discovering that the stock you invested in has suddenly fallen sharply. Something similar happened on the morning of March 10th with a stock of a company worth ₹7000 crore. As soon as the market opened, a fierce sell-off began, and within a short time, the stock reached the lower circuit, even forcing a halt in trading. Interestingly, this same stock has delivered impressive returns to investors over the past few years.
The market opened in the morning and there was a sudden stir in HMT shares.
When the stock market opened on the morning of 10th March, a strange atmosphere started appearing in HMT shares. The previous closing price was Rs 65.75. But as soon as the market opened, the share fell straight to Rs 62.47. That means the beginning was on a downward note. Now think from the point of view of a common investor. You have bought this share and as soon as the market opens in the morning, you see that the price has come down. In such a situation, many investors get scared and quickly decide to sell the shares. The same thing happened with HMT also.
Selling was all about selling.
After the market opened, a large number of people suddenly began selling shares. However, very few buyers were seen. When a stock is sold exclusively and buyers are not found, the price falls rapidly. This is what happened with HMT shares. Due to continuous selling, the stock fell and was locked in a lower circuit at ₹62.47.
A lower circuit means that the stock cannot go any lower that day. In such a situation, the exchange halts trading, meaning further buying and selling ceases that day.
But there is another side to the story.
If an investor makes a decision based solely on today's decline, they might think the stock is weak. However, if we look back a little, the story looks different.
In 2020, HMT shares were only around ₹8. Today, the same stock has reached over ₹60. This means that those who held onto the stock for a long time saw good profits. Return data also tells the same story.
-A gain of approximately 41% in the past month
-A return of approximately 22% in one year -A
return of approximately 140% in three years -This means that despite fluctuations, this stock has generated profits for investors over the long term.
What does HMT do? HMT Limited is an Indian government company. Its full name was formerly Hindustan Machine Tools Limited. The company was founded in 1953 and operates under the Ministry of Heavy Industries. Its headquarters are in Bengaluru. There was a time when HMT watches were a household name in India.
The company's primary business is manufacturing a variety of industrial and engineering products. Machine Tools - The company manufactures CNC machines and special-purpose machine tools. These are used in sectors such as defense, space, and railways. It has units in Bengaluru, Pinjore, Kalamassery, Hyderabad, and Ajmer. Watch Business: HMT brand watches were once extremely popular. Even today, this brand remains popular among the people. The tractor business company also manufactures agricultural tractors, which are produced at its Pinjore unit. Apart from other products, the company also manufactures food processing machinery, bearings, and printing machinery. Between 1960 and 1980, HMT held approximately 40% of the watch market. Fluctuations in the stock market are common. Sometimes stocks rise sharply, and sometimes they fall suddenly. The decline in HMT's stock is also a part of this market fluctuation. The most important thing for an ordinary investor is not to panic just because of a one-day decline, but to und
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