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    Biggest gainers of 6 months are worst losers of 6-day fall on D-St

    Synopsis

    The BSE Sensex has been falling for six days now but the magnitude of the index fall is lower at 6 per cent when compared with up to 30 per cent fall in some of top performers of BSE500 since March lows.

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    The hope of possible economic revival has been dampened by reports of a likely lockdown in Europe and delays in stimulus in the US, leading to reality checks.

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    NEW DELHI: As the selloff in domestic stocks entered the sixth day on Thursday, many of the stocks that logged hefty gains in the recent rally are at the receiving end.

    The hope of possible economic revival has been dampened by reports of a likely lockdown in Europe and delays in stimulus in the US, leading to reality checks.

    The BSE Sensex has been falling for six sessions now, but the magnitude of the fall in the index has been much lower at 6 per cent compared with up to 30 per cent drop seen in some of top performers of BSE500 since March lows.

    GMM Pfaudler, the stock in news, has plunged 30 per cent in these six sessions. Thursday, in fact, marked the seventh day of fall for the MNC stock, which had rallied 176 per cent between March 24 and September 16. The stock has been falling amid concerns over high valuation and the promoters' decision to offer a 33 per cent discount on an offer for sale.

    Alok Industries, which had zoomed 528 per cent between March 24 and September 16 to become the top performer of BSE500 from March lows -- is dowm 26 per cent in last six sessions. For Alok, which was bought by Reliance Industries in a consortium with JM Financial Asset Reconstruction Company through the insolvency process, was on Thursday locked in the lower circuit limit for the seventh day in a row.

    Edelweiss Financial Services, a stock where ace investor Rakesh Jhunjhunwala holds 1.19 per cent stake, fell 4 per cent to hit a low of Rs 56.35 on Thursday, taking its total fall since September 16 to 24.10 per cent .

    Vodafone Idea had spurted 243 per cent since March lows, but has lost 22 per cent of its value since September 16. Heightening competition and reports that the company needs to pay 10 per cent of AGR dues by March 31 are weighing on the stock.

    Indiabulls Housing Finance, which doubled investor money since March lows, has fallen 18 per cent in the last six days. Dishman Carbogen Amcis, where Jhunjhunwala holds 3.18 per cent, is down 18 per cent in the six-day market fall. Jhunjhunwala made a first-time investment in this stock in the June quarter. This stock had rallied 228 per cent in the March 24-September 16 period.

    Essel Propack, VA Tech Wabag, Dish TV India, Jindal Steel & Power, Tata Motors, Adani Green Energy and Aegis Logistics are some other stocks which have fallen in double digits in the recent fall after rallying 100-380 per cent in the previous six months.

    In a note, BofA-ML Securities said its latest survey has shown that the Covid-19 outbreak is progressing from a supply shock to a demand shock as incomes and jobs shrink. "Only 16 per cent reported that they saw no change in income and employment since lockdown, while 19 per cent have lost jobs. This, in turn, is leading to postponement of discretionary consumption demand: jewellery (by 53.5 per cent), TVs/washing machines/fridges/ACs (47 per cent), 2-wheelers (40 per cent), cars (37.6 per cent) and painting homes (30 per cent). 33.7 per cent respondents are also delaying house purchases," Bofa-ML noted.

    Can the September quarter at least be as good as the March quarter, which had just 10 days of a lockdown vis-a-vis September quarter when there was no national lockdown, asked Nilesh Shah of Envision Capital.

    "If that is the case, the Street would take that in a positive perspective. But if that does not happen, it will act as a very strong headwind for the market. So far, the market is betting on a post September period for a very strong recovery in terms of individual businesses," Shah told ET NOW.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

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    4 Comments on this Story

    Amey Ghag27 days ago
    No one force you to invest, better to keep in bank and be happy...
    Binu Pillai27 days ago
    Well said. The bubble was bursting. It took away the cheer if thousands of newbie Investors.. They all came to know the reality of following TV advises and Fake Analysts.. & Modi's 20 Lakh Crore FAKE STIMULUS..
    Anurag Kahane27 days ago
    hahaha
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