Investors lose Rs 1,15,000 cr in 6 days

Over the last seven trading days of the new year, Rs 1,15,000 crore of shareholder wealth was wiped out as investors booked profits in banks, infotech, refineries, pharmaceuticals and power stocks.

Two of every three stocks traded since January 3, 2005, have made it to the losers' list. Of the 111 sectors tracked by Business Standard Research Bureau, all except seven were losers.

Banks stocks topped the list, wiping out Rs 15,917 crore of shareholder wealth. Software stocks met with profit booking ahead of Infosys Technologies third-quarter results on January 12, wiping out Rs 15,346 crore of investors' fortunes.

Refinery scrips were unable to sustain their higher levels following the decline in crude prices. The stocks saw a Rs 13,350 crore erosion in market cap.

Pharmaceuticals stocks were under selling pressure for the second consecutive day following a change in the tax structure. The sector saw a erosion of Rs 11,162 crore.

The excise duty syndrome halted pharmaceutical stocks run abruptly as companies will have to levy excise duty on the maximum retail price against the previous method of calculating excise on the factory price.

As a result, pharma companies will have to pay more tax. Sun Pharma declined 14.6 per cent to Rs 474.40, Cipla declined 16 per cent to Rs 267.89, Nicholas Pharma down 19.8 per cent to Rs 253.55.

Power stocks were fifth biggest losers in absolute terms, posting a decline of Rs 8,388 crore worth of market capitalistion. Aluminium stocks were the biggest losers in percentage terms, posting a decline of 14.50 per cent on account of weak prices on the London Metal Exchange.

Hindalco declined 13.2 per cent to Rs 1252.40 on Tuesday from January 3 close of Rs 1442.85. Nalco declined 16.1 per cent to Rs 172.45.

Telecom stocks were also at the receiving end with the Telecom Regulatory Authority of India cutting the access deficit charge. Bharti Tele-Ventures declined 12.3 per cent to Rs 199.90, while MTNL dipped 16.3 per cent to Rs 139.40.