BSE investors lose Rs 3 lakh cr since Jan 1

Written by Pradip Kumar Dey | Mumbai | Updated: Jan 15 2009, 04:32am hrs
Wealth
Investors have lost Rs 3.03 lakh crore in stocks listed the on the BSE during the past eight trading sessions this month. Riding on the back of the global economic downturn and the Satyam fraud, bears seized control of the market. The Sensex declined by 832.1 points (8.4%) to 9,071.36 points on Tuesday from the January 1 level of 9,903.46 points.

The decline from the January 8, 2008 level, when the Sensex reached an all-time high, is 56.55%; the Sensex had closed at 20,873.33 points then, and has shed 11,801.97 points in the interim period.

Investors of the 98 companies that are audited by PriceWaterhouse have lost Rs 24,342 crore since January 1, 2009. Significant among them are Lanco Infratech (-32.3%), NDTV (-28.3%) and Glenmark Pharma (-25.1%), apart from Satyam Computer (-82.8%).

Among key industry segments, construction, telecommunication, media, food-processing, trading, paper, steel, electronics, entertainments, retailing witnessed significant decrease. NBFC, IT, automobiles, cement and products, chemicals and tea slipped marginally.

The aggregate market cap on the Sensex declined by a whopping Rs 3.03 lakh crore, or 9.5%, in eight trading days; it was Rs 31.94 lakh crore as on January 1 and dropped to Rs 28.91 lakh crore on Tuesday (January 13).

Dinesh Thakkar, chairman and managing director, Angel Broking, said, "We are expecting a slowdown in corporate earnings in the third quarter of this fiscal. The results will be declared this month. In anticipation of this, investors are booking profit. The Satyam episode has only exaggerated the downfall."

He, however, noted that he is not expecting the markets to tank substantially. "We feel bad news is already factored in the current stock prices. The fundamental value will protect further downfall," he noted.

DR Dogra, deputy managing director, CARE, opined, "Though industry experts have termed the Satyam episode as a one-off incident, FIIs have become cautious with companies suspected of having weak corporate governance, leading to a huge sell-off in the market."

The market capitalisation of BSE A group also dropped by 9.48% (Rs 2.60 lakh crore) in eight trading days, from Rs 27.47 lakh crore to Rs 24.87 lakh crore.

Among the A group shares, significant decline was noticed in the case of Reliance Communication (-31.5%), DLF (-29.7%), NMDC (-24.2%), MMTC (-16.5%) and Bharti Airtel (-15.6%). Reliance Industries, the top-ranked company in terms of market capitalization, lost Rs 25,118 crore during the past eight trading sessions. Its market cap was Rs 1.57 lakh crore on January 13, down from Rs 1.82 lakh crore on January 1, 2009.