The US-Iraq tug-of-war and the receding prospects of sops for investors in forthcoming Budget have taken their toll on the bourses. The market capitalisation of listed companies has eroded by Rs 27,000 crore since January 1, 2003.
While the losing sectors have lost an aggregate market capitalisation of Rs 34,347 crore, gainers have reported an appreciation of Rs 7,501 crore between January 1 and February 14.
The aggregate market capitalisation has declined from Rs 5,98,923 crore on January 1 to Rs 5,72,077 crore on February 14, a drop of Rs 26,846 crore, or 4.5 per cent. There was an all-round fall in the value of shares, as 92 of the 111 sectors studied by Business Standard Research Bureau showed a decline in market capitalisation during the period.
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The information technology, fast-moving consumer goods, pharmaceuticals, entertainment and cement sectors were the worst hit. The market capitalisation of information technology stocks declined 15 per cent (Rs 15,803 crore) from Rs 1,05,214 crore to Rs 89,411 crore between January 1 and February 14.
In the FMCG sector, the market capitalisation dropped 9.4 per cent (Rs 4,490 crore) from Rs 47,652 crore to Rs 43,161 crore, while the pharmaceuticals sector