The threat of a weak monsoon and lingering doubts about an economic recovery this year have made investors nervous.
Nearly half the constituents of the Sensex are trading at lower levels than a year ago. This malaise is not restricted to a few industries, but is spread across banking, packaged consumer goods, infrastructure, auto and oil. State Bank of India, Tata Motors Ltd, Tata Steel Ltd, Reliance Industries Ltd and Larsen and Toubro Ltd are a few examples of stocks that have been hit. Among the stocks that have yielded positive returns, a bunch of defensives such as pharma companies, HDFC group stocks and Hindustan Unilever Ltd dominate. They don’t exactly hold out the promise of great economic growth.