More and more stocks of frontline companies are on a free fall on the bourses as the panic-stricken investors are fleeing the market by liquidating their positions. The stock price of real state major DLF Ltd slipped further lower than its issue price on Monday. The stock closed on National Stock Exchange on Monday at Rs 480.90, while its issue price was Rs 525 per share. The stock had a yearly-high of Rs 1,225.
According to analysts, this trend suggests an overall weakness of the market across the spectrum and sectors and even the oil companies had to bear the brunt despite the government hiking the oil and gas prices. “Both liquid and illiquid stocks have been breaking their 52-week low on a daily basis clearly indicating that the panic investors are liquidating their positions. Even frontline stocks like DLF, Tata Motors, IOC, BPCL and Siemens are looking weak. This selling is partly from institutional investors and triggered by margin calls as well,” said Alex K Mathew, head, research, Geojit Financial Services. Monday’s major losers were Unitech Ltd, Akruti City, ONGC Corporation Ltd, DLF Ltd, Moser Baer, Axis Bank, BGR Energy, Castrol India, Phoenix Mill, Hindustan Petroleum Corporation Ltd, Bharat Petroleum Corporation Ltd, State Bank of India, Infosys Technologies Limited and L&T.
According to a Mumbai-based analyst, the advance-decline ratio is looking weak suggesting further fall of market in the coming trading days in the near-term.
“While on BSE, 474 stocks gained grounds, 2170 stocks saw their prices tumbling on selling pressure. There were only 49 stocks, which remain unchanged. This clearly is an indication of the general weakness of the market. Though fourth quarter earnings of many of these companies were good, investors are worried about other macro economic factors such as inflation, etc. Institutional investors had also joined the exodus,? he said.
