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What are Top Losers?

A share whose price decreases during the course of a single market trading day is called a ‘Losing Share’ or simply ‘Loser’. Top Losers are those shares that have the highest percentage of decrease in price, or the highest percentage of loss, compared to their previous closing price.

In other words, a Loser share has a lower price at the closing of the share market than it did at the time it opened, or during the previous trading day’s closing time. When the share market indices fall, it is likely that there will be more losers than gainers in the market.

The shares listed under the National Stock Exchange (NSE) that undergo a maximum decrease in their price on a trading day are referred to as the NSE Top Losers Today (or any particular day that is being discussed) in the share market. Similarly, those shares that have the highest decrease in a single market day at the Bombay Stock Exchange (BSE) are listed in the BSE Top Losers Today.

Top losers today are highlighted on various financial news websites, stock market platforms, and trading apps. The NSE and the BSE provide real-time updates on NSE top losers today and BSE top losers, allowing investors to monitor which stocks are experiencing substantial declines. These lists can be valuable for traders looking for potential buying opportunities, as they highlight stocks that might be undervalued or experiencing temporary market corrections.

Monitoring today's top loser shares helps investors understand market sentiment and sector performance, offering a snapshot of stocks that are experiencing the most significant declines. This information can be quite useful for making informed trading decisions, and identifying potential buying opportunities or avoiding further losses.

How do Top Losers Help in Buying Stock?

Top losers can be instrumental in identifying potential buying opportunities in the stock market. When stocks appear on the top losers list today, they might be experiencing temporary setbacks, market corrections, or broader market trends affecting their prices. Here’s how top losers can help in buying stock:

  • Identifying Undervalued Stocks: Stocks on the NSE top losers today or the BSE top losers today list might be undervalued due to short-term issues. Well-informed investors can identify these opportunities to buy shares at lower prices, anticipating a rebound.
  • Market Sentiment Analysis: Observing today's top loser shares provides insights into market sentiment and sectors under pressure. This information can guide investors on broader market trends.
  • Technical Analysis Opportunities: Top losers often show patterns that technical analysts can use to their advantage. By examining the price movements, investors can predict potential reversals and make informed buying decisions.

However, while top loser shares lists can highlight potential opportunities, it’s crucial to conduct thorough research and analysis to understand the underlying reasons for the price drops before making investment decisions.

How are the Top Losers Calculated in the Share Market?

The calculation of top losers in the share market is straightforward and involves assessing the percentage change in the stock prices over a specific period, typically within a single trading day. Here’s how it’s done:

  • Percentage Decline: The primary metric for ranking top losers is the percentage decline in the stock price from the previous trading session’s close to the current session’s close. This is derived by subtracting the current (or closing) price of the day from the opening price (or previous day’s closing price). The formula is:
    [current (or closing) price of the day - opening price (or previous day’s closing price) / opening price (or previous day’s closing price)] x 100
  • Ranking: Stocks are then ranked based on this percentage decline, with the highest declines appearing at the top of the list. Platforms like NSE top losers and BSE top losers provide these rankings.
  • Inclusion Criteria: For a stock to be included in the top losers today list, it must meet specific criteria such as minimum trading volume and being listed on the exchange.

For example, if a stock was priced at Rs. 100 at the previous close and drops to Rs. 90 today, it would have a 10% decline, potentially placing it on the NSE top losers today list. Such calculations are updated continuously during trading hours to reflect real-time market movements.

Is it Good to Invest in the Top Losers of the Stock Market?

Investing in top losers can be a high-risk or a high-reward strategy, depending on the context and underlying factors causing the price drop. Here are some considerations:

  • Potential for Recovery: Stocks on the top losers list might be temporarily undervalued, presenting opportunities for gains if the issues causing the decline are resolved.
  • Fundamental Analysis: Thoroughly analyse the company’s fundamentals. If the loser share is fundamentally strong but experiencing temporary setbacks, it might be a good buying opportunity.
  • Market Trends: Understand broader market trends affecting the losers today. Sometimes, sector-wide issues might cause stocks to drop, but they can recover when the market stabilises.

However, it’s essential to be cautious. Not all top losers are good investments; some might be declining due to fundamental weaknesses or long-term issues. Therefore, combine this strategy with comprehensive research and analysis.

Top Losers FAQ's

The price of top losers’ shares can change on a daily, weekly, or monthly basis. Stock prices are influenced by various factors such as market conditions, company performance, economic indicators, and investor sentiment, leading to frequent fluctuations. Stock exchanges and trading platforms provide daily updates, reflecting the most significant price declines within that trading session.

Buying top losers can be a good strategy if the stock’s decline is due to temporary factors and not any fundamental weaknesses. You should conduct thorough research to understand the reasons behind the drop in the stock’s price. If the underlying company has strong fundamentals and growth prospects, buying at a low price might offer significant returns when the stock recovers.

Tracking top loser stocks provides several benefits. You can find potentially undervalued stocks with the possibility of long-term gains. You get market insights and the understanding of which sectors or companies are underperforming. Moreover, you get the ability to make informed decisions based on market trends and price movements.

To identify top losers, you can use financial news websites, stock market platforms, or apps like Motilal Oswal that provide real-time updates. Look for sections labelled top losers today, NSE top losers, or BSE top losers. These platforms rank stocks based on their percentage price decline from the previous trading session, offering a clear view of which stocks are experiencing the most significant drops.