Mumbai: Only four of the 30 stocks that make up the Bombay Stock Exchange’s (BSE) benchmark Sensex have bucked the falling trend in the markets this year—Ranbaxy Laboratories Ltd, Satyam Computer Services Ltd, Infosys Technologies Ltd and Hindustan Unilever Ltd.
The Sensex has shed 26.6% since January this year. This has led to a flight of investors to safe sectors such as pharmaceuticals, information technology (IT) and consumer goods.
Ranbaxy has gained as much as 31.7%, followed by the country’s largest consumer goods firm Hindustan Unilever, rising by 9.6%. The two other stocks that have posted positive returns this year are IT firms Satyam at 6.4% and Infosys at 4.6%.
However, the rise in these stocks barely helped in stemming the fall of the broader market. These stocks have added only Rs11,373.84 crore in the free-float market capitalization. The Sensex, however, has lost as much as Rs3.69 trillion worth of free-float market capitalization this year. Free-float market capitalization refers to the cost of shares of a listed firm that are available to the investing public.
However, not all stocks in these sectors have enjoyed similar fortunes. While the BSE Health Care index has managed to remain flat this year, the FMCG index has lost 1.9% and the IT index has fallen 5.4%. Still, investors in these sectors have been much better off than the rest of the market.
At the other end of the spectrum, there are three stocks that have fallen twice as much as the Sensex. Jaiprakash Associates Ltd is down 58.42%, DLF Ltd 55.31% and Reliance Infrastructure Ltd 52.61%.
Still, these stocks are not solely responsible for pulling down the bellwether index. ICICI Bank Ltd, Reliance Industries Ltd and Larsen and Toubro Ltd together accounted for 40% of the decline in the Sensex this year.
While the index’s free-float market capitalization has dropped by Rs3.69 trillion, the free-float value of these three stocks has dropped by Rs1.47 trillion.
In terms of sectoral indices, the worst performers are the realty index, which fell 55.8%, followed by power at 42.7%, and capital goods at 41.2%. Investors in these sectors have been hit the most during the current downturn.
Two stocks that have fallen in line with the Sensex are India’s mortgage major Housing Development Finance Corp. Ltd and Reliance Communications Ltd.
Cipla Ltd, the country’s second largest drug maker by revenue, has remained virtually flat since the beginning of the year, while ITC Ltd has lost 4% and Wipro Ltd has managed to contain the fall to single-digit till now.
Overall, 16 stocks have fallen more than the Sensex and 10 have fallen less, while four have outperformed the index.
In the case of the broader 50-stock S&P CNX Nifty index on the National Stock Exchange (NSE), the division is almost identical, with 26 stocks falling more than the index and 16 falling less, while eight outperforming the Nifty. All Sensex stocks, except DLF, are also part of the Nifty, an indicator of all the major companies on NSE.