Only 5 stocks rose by mkt value in H1
Weakness in the markets during the last six months turned out to be a broader phenomenon, with every five out of six Sensex stocks witnessing a fall in their share price and market capitalisation.business Updated: Jul 05, 2011 01:58 IST
Weakness in the markets during the last six months turned out to be a broader phenomenon, with every five out of six Sensex stocks witnessing a fall in their share price and market capitalisation.
The benchmark Sensex of the Bombay Stock Exchange lost 8.3% between January and June. The fall has been led by heavyweights such as Reliance Industries Ltd (RIL), Oil and Natural Gas Corp (ONGC), Infosys and State Bank of India that lost a combined market capitalisation of Rs 150,757 crore. RIL has been the biggest loser with a Rs 51,154-crore drop in market value.
However, a few have bucked the trend as well. ITC led the pack of winners with a gain of Rs 22,306 crore in market capitalisation during the same period. Other winners include Bharti Airtel, HDFC Bank, Hindustan Unilever and TCS.
"The FMCG basket has been holding on. Also there is flight towards quality, into companies that are likely to hold on to their profit growth in an environment where a slowdown is expected for the quarter ended June 2011," said Aseem Dhru, CEO, HDFC Securities.According to experts, while retail investors are going out of the market, the foreign institutional investors and domestic institutional investors are coming in selectively and rebalancing their portfolio.
"Portfolio realignment is happening and investments at this time are very stock-specific," said Dhru.
ITC, with a market capitalisation of Rs 156,658 crore (as on Thursday) is now the fifth-most valued company in the Sensex.
Beyond the Sensex, the biggest gainer has been Coal India, which saw its market capitalisation jump by Rs 47,372 crore. The trend in the BSE 500 companies, however, remains similar as out of the 500 companies in the list, only 138 rose in terms of prices and market capitalisation during the period, while 362 of them dropped.