P-notes shock dents 75% stocks

Selling spree wipes out Rs 472,000 cr in m-cap since Wednesday; IT, healthcare buck the downtrend.

The selling spree after the market regulator's proposal on restricting the use of participatory notes (P-notes) by foreign institutional investors (FIIs) has wiped out Rs 472,000 crore in market capitalisation (m-cap) on the Bombay Stock Exchange (BSE).

The Sebi had announced its proposal last Tuesday night (October 16).

The sell-off was triggered by FIIs, which net sold equity worth Rs 4,893 crore in the cash segment of the BSE and the NSE and created short positions worth Rs 7,903 crore in the derivatives segment of the NSE. 
 

Share price in Rs
	Oct 22, 07	%chg*
Sensex Gainers
Wipro	494.60	1.72
Infosys Tech	1886.70	0.99
TCS	1074.40	0.59
HDFC	2572.55	0.04
Sensex Losers
Reliance Energy	1370.00	-28.06
ACC	1018.20	-19.61
Bharti Airtel	927.65	-16.41
BHEL	2056.85	-14.14
NTPC	199.70	-13.64
Maruti Suzuki	1053.80	-11.21
*Over Oct 17

This means FIIs, which were buyers to the tune of over Rs 20,000 crore in the cash markets since the Fed rate cut on September 18, turned out to be net sellers after the announcement on P-notes.

The proprietors were net sellers on the BSE and the NSE to the tune of Rs 1,276 crore. However, domestic institutional investors and their high net-worth clients grabbed the opportunity to buy shares, which were available at 8-10 per cent lower than its high levels. While domestic institutions bought shares worth Rs 567 crore, their clients were net buyers to the tune of Rs 4,884 crore.

Almost three-fourths of the 2,931 actively traded stocks reported a drop in their market value. Eighty four per cent of the 2,188 losers underperformed the Sensex, registering a decline of over 7.54 per cent.

Frontline stocks from the A-group were hit hard with 90.6 per cent (193 stocks) of the 213 stocks registering a decline. Of the 193 stocks that registered a decline in the market value, 81 underperformed the Sensex.

The non-A group (including B, B1 and S groups) more or less showed the same trend. Over 78 per cent of the 1,964 stocks in this category registered declines.

The trade-to-trade group, however, showed some resistance, with only 59.2 per cent of these stocks reporting a decline in market value.

Four sectoral indices on the BSE "� metals, capital goods, Bankex and the oil & gas "� underperformed the Sensex and declined between 8.32 per cent and 10.7 per cent. Only the information technology (IT) and the healthcare index bucked the trend and ended flat.