Investors avoid stocks outside A group over regulatory tightening

Market players say investor interest in non-A group scrips has waned, on account of consistent regulatory tightening

Regulatory tightening and concerns over governance have put companies that fall outside the so-called ‘A group’ in a tough spot. Stocks in the A group now account for nearly 93 per cent of the country’s total market capitalisation (m-cap). Those in the B group account for less than 5 per cent, while all the remaining categories represent just 1 per cent.

The dominance of A group stocks has been consistently rising since two decades. In 2001, they accounted for 74 per cent of the total m-cap, while in 2011 the same increased to 85 per cent.

The BSE puts stocks in various