 "Five stocks account for half of Nifty's 800-point fall")
Stocks of five companies have contributed to almost half of CNX Nifty’s around 800-point fall from its recent high.
ITC, ICICI Bank, Housing Development Finance Corporation (HDFC), HDFC Bank and Larsen and Toubro have accounted a combined 395 points or 50% to the 790-points decline in the CNX Nifty. And including these five stocks, top ten companies contributed 72% (566 points) of the benchmark index downfall.
CNX Nifty was down 189 points today at 5,287 tanked 13% from its high of 6,078 touched on July 23 after the rupee hit record low.
The rupee plunged to a record low, below the key psychological 66 per dollar mark closed at 66.19 today, has depreciated by 10.77% during the same period. The rupee was 59.77 per dollar as on July 23.
The main reasons attributed are the rupee’s continued weakness and the Lok Sabha approval of nearly US$20bn plan to provide cheap grains to the poor. Heightened concerns are that India’s fiscal deficit will balloon further.
Commenting on the same, Amar Ambani Head of Research at IIFL said, “The food security programme motivated by populist drives is a serious threat to the fiscal deficit. Already, the economy is reeling under the impact of a cut in Plan expenditure to contain fiscal deficit to the figure of the previous budget. Now any spending on food close to the election time will make matters worse for a fiscal deficit that is already hard to achieve.”
Meanwhile, Fitch Ratings also has warned of a downgrade if the country is unable to meet fiscal deficit target. It said reining in the fiscal deficit at 4.8% of GDP would be a difficult task.
Out of Nifty-50 companies, the market price of half or 25 stocks have declined by more than 15% each and 11 stocks fell between 10-15%.
IDFC, Jaiprakash Associates, Bharat Heavy Electricals Limited (BHEL) and Punjab National Bank have seen market value erosion of more than 30% each, while Axis Bank, Bank of Baroda, DLF, IndusInd Bank and ACC declined in the range of 25-30%.
Information technology companies such as Infosys, Tata Consultancy Services and HCL Technologies however, contributed 84 points rise in benchmark index during the period.
ACC, Axis Bank, HDFC, HDFC Bank, IDFC, NTPC and UltraTech Cement from Nifty-50 companies hit 52-week low today.
ITC, ICICI Bank, Housing Development Finance Corporation (HDFC), HDFC Bank and Larsen and Toubro have accounted a combined 395 points or 50% to the 790-points decline in the CNX Nifty. And including these five stocks, top ten companies contributed 72% (566 points) of the benchmark index downfall.
CNX Nifty was down 189 points today at 5,287 tanked 13% from its high of 6,078 touched on July 23 after the rupee hit record low.
The rupee plunged to a record low, below the key psychological 66 per dollar mark closed at 66.19 today, has depreciated by 10.77% during the same period. The rupee was 59.77 per dollar as on July 23.
The main reasons attributed are the rupee’s continued weakness and the Lok Sabha approval of nearly US$20bn plan to provide cheap grains to the poor. Heightened concerns are that India’s fiscal deficit will balloon further.
Commenting on the same, Amar Ambani Head of Research at IIFL said, “The food security programme motivated by populist drives is a serious threat to the fiscal deficit. Already, the economy is reeling under the impact of a cut in Plan expenditure to contain fiscal deficit to the figure of the previous budget. Now any spending on food close to the election time will make matters worse for a fiscal deficit that is already hard to achieve.”
Meanwhile, Fitch Ratings also has warned of a downgrade if the country is unable to meet fiscal deficit target. It said reining in the fiscal deficit at 4.8% of GDP would be a difficult task.
Out of Nifty-50 companies, the market price of half or 25 stocks have declined by more than 15% each and 11 stocks fell between 10-15%.
IDFC, Jaiprakash Associates, Bharat Heavy Electricals Limited (BHEL) and Punjab National Bank have seen market value erosion of more than 30% each, while Axis Bank, Bank of Baroda, DLF, IndusInd Bank and ACC declined in the range of 25-30%.
Information technology companies such as Infosys, Tata Consultancy Services and HCL Technologies however, contributed 84 points rise in benchmark index during the period.
ACC, Axis Bank, HDFC, HDFC Bank, IDFC, NTPC and UltraTech Cement from Nifty-50 companies hit 52-week low today.
| 23-Jul-13 | 27-Aug-13 | %chg | Points contribute | |
| NIFTY | 6077.80 | 5287.45 | -13.00 | -790.35 |
| ITC | 375.75 | 297.90 | -20.72 | -134.09 |
| HDFC Bank | 683.60 | 561.90 | -17.80 | -70.23 |
| HDFC | 826.80 | 686.00 | -17.03 | -68.63 |
| ICICI Bank | 989.70 | 802.60 | -18.90 | -67.55 |
| Reliance Infra | 909.55 | 803.25 | -11.69 | -54.70 |
| L&T | 901.05 | 705.65 | -21.69 | -49.73 |
| HUL | 718.85 | 595.55 | -17.15 | -32.72 |
| Axis Bank | 1202.85 | 877.65 | -27.04 | -31.54 |
| ONGC | 312.15 | 259.30 | -16.93 | -29.32 |
| SBI | 1860.90 | 1520.00 | -18.32 | -27.52 |
| IDFC | 128.60 | 79.10 | -38.49 | -19.17 |
| M&M | 921.30 | 789.40 | -14.32 | -19.02 |
| IndusInd Bank | 462.95 | 345.25 | -25.42 | -15.59 |
| Kotak Mahindra Bank | 730.05 | 613.55 | -15.96 | -14.04 |
| Bharti Airtel | 330.10 | 293.90 | -10.97 | -13.55 |
| Sun Pharma | 553.25 | 496.85 | -10.19 | -13.34 |
| BHEL | 164.95 | 111.25 | -32.56 | -13.31 |
| NTPC | 143.30 | 124.45 | -13.15 | -12.19 |
| Asian Paints | 494.10 | 410.00 | -17.02 | -11.98 |
| UltraTech Cement | 1910.70 | 1550.70 | -18.84 | -11.46 |
| Grasim Inds | 2796.50 | 2246.20 | -19.68 | -10.96 |
| Bajaj Auto | 1975.55 | 1727.75 | -12.54 | -10.47 |
| Tata Power | 94.50 | 74.45 | -21.22 | -10.06 |
| Bank of Baroda | 620.25 | 459.65 | -25.89 | -9.45 |
| PNB | 661.30 | 459.00 | -30.59 | -9.42 |
| Lupin | 881.25 | 756.95 | -14.10 | -9.27 |
| ACC | 1249.00 | 942.80 | -24.52 | -8.96 |
| Ambuja Cements | 196.50 | 159.50 | -18.83 | -8.82 |
| Maruti Suzuki | 1448.65 | 1260.25 | -13.01 | -7.80 |
| Dr Reddys Labs | 2361.25 | 2167.45 | -8.21 | -7.67 |
| Coal India | 298.55 | 260.30 | -12.81 | -7.55 |
| JP Associates | 50.15 | 32.50 | -35.19 | -6.77 |
| Power Grid Corp | 110.15 | 95.70 | -13.12 | -6.42 |
| GAIL | 332.25 | 293.05 | -11.80 | -5.51 |
| DLF | 174.65 | 130.15 | -25.48 | -5.49 |
| BPCL | 352.75 | 290.10 | -17.76 | -5.08 |
| Tata Motors | 298.80 | 290.05 | -2.93 | -4.82 |
| Reliance Ind | 396.40 | 331.35 | -16.41 | -2.75 |
| Hindalco | 105.15 | 99.15 | -5.71 | -2.38 |
| Cipla | 409.15 | 396.65 | -3.06 | -2.00 |
| Cairn India | 310.00 | 308.75 | -0.40 | -0.22 |
| NMDC | 109.50 | 112.75 | 2.97 | 0.82 |
| Jindal Steel & Power | 210.35 | 230.15 | 9.41 | 2.40 |
| Sesa Goa | 147.85 | 168.35 | 13.87 | 2.53 |
| Ranbaxy Labs | 321.70 | 377.60 | 17.38 | 2.72 |
| Hero MotoCorp | 1789.60 | 1900.80 | 6.21 | 3.31 |
| HCL Technologies | 900.45 | 947.70 | 5.25 | 3.93 |
| Tata Steel | 234.60 | 272.30 | 16.07 | 7.93 |
| TCS | 1749.80 | 1838.80 | 5.09 | 14.21 |
| Infosys | 2901.95 | 3056.05 | 5.31 | 23.31 |
| Source: Bloomberg | ||||
| Data complied by BS Research | ||||