 "5 stocks account for 50% of nearly 1,800-point Sensex fall")
These five stocks have collectively contributed 880 points, or 49%, to the Sensex's 1,791 point decline in the past nine days till 1103am on Monday.
Including Reliance Industries (RIL), HDFC Bank, Tata Motors, Wipro and Axis Bank, total 10 stocks contributed 1,310 point, or 73%, of the total fall in the S&P BSE Sensex, which has slipped 6.2% from its recent high level of 29,044 on April 13, 2015 to 27,253 levels - the lowest level since January 7, 2015.
Among sectors, the S&P BSE Healthcare index has lost 13%, while the S&P BSE information technology index dipped 10% and the S&P BSE Bankex has slipped 5% from their April 13, 2015 levels.
Analysts attribute this fall to a variety of reasons that include profit booking, currency headwinds and status quo on interest rates by the Reserve Bank of India (RBI). For Sun Pharma, stake sale by Daiichi Sankyo at a discount saw the stock slip nearly 11% in intra-day deals on 21 April.
G. Chokkalingam, founder & managing director, Equinomics Research & Advisory, says: "Investors started booking profit in the banking sector given the overall weakness in the markets. The RBI, too, kept interest rates unchanged in the last policy review, which also dampened sentiment. Adding to the worries in the latest prediction regarding below par monsoon by the weather forecasters. Priority sector lending norms to the small and marginal farmers also dealt a severe blow to the sector at a time when the monsoon is expected to be sub-par. Lending to the farmers from a social standpoint is good but banks will face the pressure on margins."
"Having said that, I don't think that the selling pressure in banking stocks will continue for long. Most of the stocks have seen a healthy correction from their peak levels. For those who wish to take fresh exposure to the sector from a medium- to-long term perspective can start to bottom fish," he says.
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As regards the IT pack, Infosys has contributed 321 points, or nearly 18% of the total fall in the S&P BSE Sensex during the period. The company reported 4.7% quarter-on-quarter fall in its consolidated net profit at Rs 3,097 crore in March 2015 quarter.
"Typically, the fourth quarter is weak for IT companies. This time, however, the problem got compounded as the companies got caught in cross - currency headwinds, which was evident in the Q4 results. Besides Infosys, we have a buy rating on TCS and an accumulate rating on HCL Tech and Wipro," said Shashi Bhusan, an analyst tracking the sector at Prabhudas Lilladher.