 "One out of five stocks in BSE at four-year low")
The recent turmoil in the markets has cost investors dearly with the last eight sessions seeing investor wealth erode nearly Rs 5-lakh crore in past eight trading sessions. One out of five stocks from the BSE 500 has hit its respective four-year low.
The total investor wealth, measured in terms of market capitalisation of all the listed companies together, dipped to about Rs 61.36-lakh crore on August 2, as against close to Rs 66.35-lakh crore on July 23 when the benchmark S&P BSE Sensex touched its recent high before embarking on a southward journey.
The Bombay Stock Exchange (BSE) S&P BSE Sensex has fallen 1,138 points since then to close at 19,164 points, while the National Stock Exchange CNX Nifty shed nearly 400 points or 7 per cent to close at 5,677.90 on Friday.
“The market fears downgrade from S&P after Reserve Bank of India failed to contain the rupee's fall. This led to huge sell off. Also, the Financial Technologies issue has damaged the sentiment with investors' pegged at over Rs 800 crore. The next support level for the Nifty is 5650,” said Kishor P. Ostwal, CMD, CNI Research.
Points out Dipen Shah, Head – PCG Research at Kotak Securities: “The fall in the markets during the week has come about despite good gains in global markets, indicating the pre-dominance of domestic concerns. The consistent weakness in the rupee, despite RBI’s and Government’s efforts, has impacted sentiment.”
Hit hard
The total investor wealth, measured in terms of market capitalisation of all the listed companies together, dipped to about Rs 61.36-lakh crore on August 2, as against close to Rs 66.35-lakh crore on July 23 when the benchmark S&P BSE Sensex touched its recent high before embarking on a southward journey.
The Bombay Stock Exchange (BSE) S&P BSE Sensex has fallen 1,138 points since then to close at 19,164 points, while the National Stock Exchange CNX Nifty shed nearly 400 points or 7 per cent to close at 5,677.90 on Friday.
“The market fears downgrade from S&P after Reserve Bank of India failed to contain the rupee's fall. This led to huge sell off. Also, the Financial Technologies issue has damaged the sentiment with investors' pegged at over Rs 800 crore. The next support level for the Nifty is 5650,” said Kishor P. Ostwal, CMD, CNI Research.
Points out Dipen Shah, Head – PCG Research at Kotak Securities: “The fall in the markets during the week has come about despite good gains in global markets, indicating the pre-dominance of domestic concerns. The consistent weakness in the rupee, despite RBI’s and Government’s efforts, has impacted sentiment.”
Hit hard
Among individual stocks, ITC was the largest loser in absolute terms that witnessed its market capitalisation fall by Rs 33,890 crore to Rs 263,171 crore at the end of trading on Friday from Rs 297,060 crore on July 23.
ONGC, Coal India and Hindustan Unilever (HUL) have seen m-cap of erosion between Rs 20,000 crore and Rs 30,000 crore.
The m-cap of Tata Motors, Reliance Industries, HDFC Bank, State Bank of India, ICICI Bank and NTPC has declined by over Rs 10,000 each during the period.
In the dollar terms, the loss has been even bigger as rupee has also depreciated sharply against the US currency.
The cumulative market capitalisation of Indian companies that stood at $1.06 trillion on July 23, came down to around $952 billion dollars on Friday as rupee fell from 59.77/dollar to near 61-level today.
Four-year lows
Meanwhile, one out of five stocks from the BSE 500 was trading at their four-year lows after the bear onslaught continued for the eight consecutive trading sessions.
As many as 126 stocks from BSE A and B group have touched their lowest level since July 2009. Of these 33 stocks hit lifetime lows on BSE after getting hammered by the traders.
Coal India, Tata Steel, BHEL and NTPC from S&P BSE Sensex were trading at their lowest level since July 2009.
Stocks that have large debt on books, were singled out by the bears for selling on concerns of rising interest rates may dampened their net profit growth further.
DLF, HDIL, Hindustan Construction Company, IRB Infrastructure Development, IVRCL, Jaypee Infratech, Lanco Infratech and Suzlon Energy are among few that fall into this category.
Around 15 public sector undertaking banks in the list after the central bank adopted aggressive measures to curtail the rupee’s slide such as tinkering with the daily borrowing limits by banks, reducing the liquidity adjustment facility (LAF), raising the marginal standing facility (MSF) rate, etc.
Meanwhile, the downside in the broader markets -midcap and smallcap stocks -- was much more severe than the benchmark indices, with both the indices have touched their respective 52-week low on BSE.
| TOP LOSERS - BSE500 STOCKS | |||
| Name | July 23,13 | Aug 2,13 | %chg |
| Financial Technologies | 635.00 | 151.25 | -76.18 |
| Wockhardt | 826.10 | 422.45 | -48.86 |
| MCX | 723.40 | 409.65 | -43.37 |
| Jaiprakash Assoc | 50.15 | 29.7 | -40.78 |
| Sintex Ind | 35.54 | 22.75 | -35.99 |
| Geometric | 109.55 | 70.2 | -35.92 |
| Techno Electric | 110.10 | 71.85 | -34.74 |
| Indian Bank | 106.25 | 70.4 | -33.74 |
| Dishman Pharma | 58.65 | 38.9 | -33.67 |
| IRB Infrastructure | 92.70 | 61.6 | -33.55 |
| Gitanjali Gems | 99.20 | 65.95 | -33.52 |
| Syndicate Bank | 112.95 | 75.15 | -33.47 |
| Jaypee Infratech | 23.10 | 15.55 | -32.68 |
| JP Power Ventures | 15.05 | 10.2 | -32.23 |
| Orient Paper | 7.00 | 4.76 | -32.00 |
| Educomp Solutions | 32.79 | 22.55 | -31.23 |
| Dena Bank | 67.65 | 46.65 | -31.04 |
| BGR Energy Sys | 115.90 | 80 | -30.97 |
| MMTC | 55.80 | 38.65 | -30.73 |
| Advanta | 127.35 | 88.65 | -30.39 |
| GMR Infra | 17.20 | 11.98 | -30.35 |
| National Fertilisers | 31.50 | 22 | -30.16 |
| Kolte Patil Developers | 79.15 | 55.3 | -30.13 |
| Karnataka Bank | 104.40 | 73.1 | -29.98 |
| Yes Bank | 438.75 | 308.45 | -29.70 |
| Essar Oil | 68.25 | 48.6 | -28.79 |
| Power Finance | 136.35 | 98.1 | -28.05 |
| Opto Circuits | 28.70 | 20.65 | -28.05 |
| Vakrangee Software | 79.80 | 57.45 | -28.01 |
| Price in Rs, on BSE | |||
| Data complied by BS Research | |||