The market capitalisation of stocks traded on Indian bourses declined by Rs 60,255 crore (Rs 602.55 billion) from the four-month high of Rs 5,96,728 crore (Rs 5,967.28 billion) on December 27, 2002, to Rs 5,36,473 crore (Rs 5364.73 billion) on April 25, 2003.
The market had begun to look up after the United States and its allies were successful in Iraq and companies turned in good results for the January-March 2003 quarter.
However, Infosys' profit warning, the truckers' strike and the prediction of below normal rainfall brought rising share prices to heel.
Infotech stocks led the drop in market capitalisation, accounting for 62.2 per cent of the total loss. The market capitalisation of infotech stocks declined by 36.1 per cent, or Rs 37,420 crore (Rs 374.20 billion), to Rs 66,287 crore (Rs 662.87 billion) on April 25, 2003.
The subdued growth prospects of personal care companies saw the market capitalisation of their shares decline by Rs 10, 217 crore (Rs 102.17 billion), accounting for 17 per cent of the total loss.
The shares of diversified companies shed Rs 4,323 crore (Rs 43.23 billion), and those of entertainment firms Rs 2,357 crore (Rs 23.57 billion). The stocks of two and three-wheeler firms lost Rs 2,083 crore (Rs 20.83 billion), pharmaceutical stocks lost Rs 1,852 crore (Rs 18.52 billion) and steel stocks Rs 1,561 crore (Rs 15.61 billion) in market capitalisation.
While most blue-chip stocks lost market value after April 10, the market capitalisation of bank stocks went up by Rs 5,082 crore (Rs 50.82 billion) to Rs 55,991 crore (Rs 559.91 billion), electrical equipment stocks by Rs 1,381 crore (Rs 13.81 billion) and power company stocks by Rs 945 crore (Rs 9.45 billion).
The top five scrips--Wipro, Infosys Technologies, Hindustan Lever, Reliance Industries and Satyam Computer--were the biggest losers, accounting for 78.4
Wipro's market capitalisation loss of Rs 16,778 crore (Rs 167.78 billion) was the biggest. Infosys Technologies came next with Rs 12,261 crore (Rs 122.61 billion), followed by Hindustan Lever (Rs 10,246 crore or Rs 102.46 billion), Reliance Industries (Rs 4,203 crore or Rs 42.03 billion) and Satyam Computer (Rs 3,738 crore or Rs 37.38 billion).
Hero Honda continued its losing streak with a market capitalisation loss of Rs 1,472 crore (Rs 14.72 billion). Zee Telefilms lost Rs 1,211 crore (Rs 12.11 billion), Cipla Rs 1,154 crore (Rs 11.54 billion) and Hindustan Petroleum Corporation Ltd Rs 1,128 crore (Rs 11.28 billion).
Losers outnumbered gainers (1,156 losers, 423 gainers), and Bharti Tele-Ventures topped the gainers' list.
With the company posting a profit in the fourth quarter ended March 2003, its share price moved up from Rs 22.50 four months ago to Rs 31.45 on April 25. This increased investors' wealth by Rs 1,659 crore (Rs 16.59 billion).
Canara Bank was second in the list of gainers, with its market capitalisation rising Rs 1,417 crore (Rs 14.17 billion), followed by Bharat Heavy Electricals Ltd (Rs 1,369 crore or Rs 13.69 billion), Ranbaxy Laboratories (Rs 1,235 crore or Rs 12.35 billion) and Punjab National Bank (Rs 1,101 crore or Rs 11.01 billion).
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