Over 65 per cent of stocks on the Bombay Stock Exchange are currently trading below their May 10, 2006, level, when the Sensex closed at an all-time high of 2,612.38.
The benchmark index closed at 13,315.60 on September 18, after touching 12,558.14, below its May 2006-level. Interestingly, small-cap and mid-cap indices fell by over 15 per cent each, despite the Sensex and Nifty gaining 6 per cent since then.
The market capitalisation of losers' stocks is lower by almost Rs 700,000 crore (Rs 7,000 billion), indicating that the majority of the shareholders have not benefited from the Sensex's rise since May 2006.
However, large-cap stocks show an increase of Rs 7.34 lakh crore in market-cap compared to May 2006. Except for the indices of capital goods, oil & gas and banking, all the other BSE sectoral indices are currently below their levels on May 10, 2006. Automobile, IT, consumer durables, metal, FMCG and healthcare have declined more than 5 per cent each from their May 2006 peaks.
However, there are big losers in the Nifty 50 too. About 26 Nifty components, including Infosys Technologies, TCS, ITC, ICICI Bank, Wipro, Hindustan Lever, Tata Steel, Satyam Computer Services and Maruti Suzuki, are currently trading below their May 2006 prices.
Overall, as many as 79 stocks from the A group, 1,068 from the B group, 334 from the S group, 94 from the T group and 54 from the Z group are available at their two-year lows. Of these, 185 stocks are from the textile sector, 135 from IT, 99 from NBFCs, 98 from pharmaceuticals, 57 from auto-ancillaries and 50 from the construction sector.
Bajaj Hindustan, Gammon India, MTNL, Balrampur Chini, Tata Motors, Jet Airways, Hindustan Zinc, BEML and Patni Computer are among the stocks that are trading 50 per cent lower than their May 2006 levels.
