Blue chip scrips bleed amid slowdown

A DH analysis of the data available with the National Stock Exchange reveals that 34 out of 50 companies have shown negative returns.

Heavy negative returns have been marked at top Indian companies in the past one year amid weak fundamentals and weak macros, with almost two out of five companies listed on Nifty-50 index showing a decline of more than 25% in their share prices.

A DH analysis of the data available with the National Stock Exchange reveals that 34 out of 50 companies have shown negative returns. Among them, four companies have shown a depletion in their stock prices in excess of 50%. Despite the index touching an all-time high and crossing the 12,000-mark, in anticipation of Prime Minister Narendra Modi's re-election earlier this year, the broad sentiment remained negative. The index has declined by 5.5% in the past year.

The worst-hit stock on the index has been the crisis-ridden YES Bank, that has seen its share value erode by a staggering 83.4% in the past one year. One of the largest public sector banks, YES Bank has been impacted by the weak fundamentals -- rising bad loans and depleting CASA ratio. The shares of YES Bank closed the day's trade at Rs 65.05 per scrip, a mere shadow of Rs 391 per scrip a year ago.

Other companies which have shown a decline in excess of 50% in NIFTY include GAIL (67.74%), Indiabulls (63.37%), Tata Motors (58.53%).

The situation is no different in the 30-share sensitive index of the Bombay Stock Exchange (BSE). The 30-share index has seen 10 of the 30 companies listed on it witnessing a decline of more than 25% in their share value. Also, half of the companies listed on the BSE Sensex have shown a negative return in the past year. The rout on the Sensex was again led by YES Bank, that has seen over 83% depletion in its share prices, followed by Tata Motors (58.6%) and Mahindra and Mahindra (45.6%).

The pattern in indices shows that banking, auto, steel, and pharma stocks have been worst hit in the past year, owing to the negative economic environment prevailing in the country. “These sectors are an indicator of generally weak sentiment with regards to economic growth,” Anubhav Shrivastava, Partner, Infinity Alternatives said.

The trigger for the market rout went off when ticking time-bomb of huge debt in IL&FS exploded last September.

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