Penny stocks survive mkt crash

Small stocks in the Z and TS groups withstood the market correction of April 11 and 12 in which investors lost around Rs 1,00,000 crore. The stocks traded under the Z group appreciated around 7 per cent while those under TS group fell by 2 per cent.

Large caps, including the Sensex stocks, with the exception of three Sensex stocks, Dr Reddy's Laboratories, NTPC and Reliance Industries, received a hammering. Cipla (-10 per cent), Grasim (-9 per cent) and Satyam Computer (-7.6 per cent) were among the prominent Sensex losers.

The erosion in market capitalisation was triggered by hefty selling by foreign institutional investors (FIIs). Three in every four stocks traded on the BSE and the NSE lost ground with FIIs turning net sellers to the tune of Rs 6,600 crore in index and stocks futures in the derivatives segment and Rs 2,400 crore in the cash segment.

Large cap stocks, including the frontline A-group stocks, accounted for 82 per cent (Rs 84,361 crore) of the wealth erosion in two days.

The B1 group stocks eroded shareholders' wealth by four per cent (Rs 17,803 crore), S group by three per cent (Rs 2,017 crore) and T group stocks by two per cent (Rs 654 crore).

Except non-ferrous metals, cables and mining, all other 110 sectors tracked by the Business Standard Research Bureau declined between 1-12 per cent in two days.

Information technology and capital goods stocks were the major losers, down over five per cent each in the two trading days. The Sensex fell by 3.65 per cent from 11662.55 on Monday (April 10) to 11237.23 on Thursda(April 13).

The market value of scrips of electrical equipment, switchgear, transmission lines and engines sectors fell by over seven per cent each and that of breweries, sponge iron, textiles texturising and electronics fell by 6-7 per cent each.

Telecommunications, pharmaceuticals, oil exploration, cigarettes, refineries, steels and non-banking finance companies (NBFC) each lost over Rs 3,000 crore market value in the two days.

VSNL, Hinduja TMT, IndusInd Bank, Corporation Bank and Geometric Software among the A group stocks and State Bank of Mysore, Godrej Industries, Pokarna, Tata Sponge, and Sesa Goa among the non-A group stocks declined over 10 per cent each during the period.