The aggregate market capitalisation of 86 sectors has dipped by Rs 3,801 crore or 0.81 per cent to Rs 4,65,726 crore in the last 32 months.
According to a study of 112 sectors by the Business Standard Research Bureau, 86 segments reported a drop in market capitalisation out of which 30 witnessed more than a 50 per cent slump.
Old economy sectors such as engineering, electrical equipment, fertilisers, automobile and telecommunications witnessed substantial erosion in market capitalisation. The market capitalisation of the engineering sector has more than halved to Rs 1,396 crore from Rs 3,687 crore during the 32-month period, while the automobile sector was down 39.5 per cent to Rs 11,785 crore.
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The fertiliser sector has suffered a 51 per cent erosion in market capitalisation to Rs 2,626 crore, while steel companies saw a 30.6 per cent drop in market capitalisation to Rs 6,904 crore.
Stagnant topline numbers of domestic appliance majors, owing to demand slowdown, were also reflected in the market valuation for domestic appliances firms. The sector's market capitalisation dipped 63 per cent to Rs 1,325 crore.
Among new economy stocks, telecommunication companies' market capitalisation was down 28.2 per cent and media firms were down 1.3 per cent.
The drop in market capitalisation could have been much severe had it not been supported by the gains achieved by sectors such as petrochemicals, pharmaceuticals, banks and information technology.
The petrochemicals sector returned a whopping 116 per cent rise in market capitalisation to Rs 34,153 crore. Riding on better valuation for domestic pharmaceutical companies, the sector as a whole notched a 33.4 per cent increase in market capitalisation to Rs 39,328 crore.
The market capitalisation of the banking sector surged 30 per cent to Rs 26,103 crore due to better valuations for private sector banks which have been reporting better-than-expected performance in the last two years.
Despite the global meltdown in information technology stocks, the market capitalisation of domestic infotech firms has improved during the 32-month period. The market capitalisation of the infotech sector was up 18.8 per cent to Rs 74,493 crore. Improved price realisations saw the cement sector's market capitalisation jumping 14.76 per cent to Rs 9,178 crore.