Rs 2.82 lakh cr gone in a week

Written by Pradip Kumar Dey | Mumbai, May 10 | Updated: May 11 2008, 07:03am hrs
Just six trading sessions into May and investors have lost around Rs 2,82,202 crore on the BSE. The total BSE M-Cap declined to Rs 58,23,116 crore on May 9, 2008 from Rs 61,05,317 crore on May 2. Major reasons behind the fall were concerns over inflation and its impact on corporate profitability. A ruling by US stock market regulator Securities Exchange Commission making reporting norms stricter for companies and bringing more transparency to derivative losses also added to the woe.

Higher inflation and input costs took its toll on construction, cement and equipment manufacturers. A significant decline in market capitalisation on May 9 was seen in stocks of constructions (-9.66%), engineering (-6.83%), electric equipment (-6.72%), banks (-6.59%), NBFC (-6.23%), fertilisers (-6.32%), trading (-6.14%), cement & products (-5.67%),telecom-munications (-5.09% ) and media (-5.04%) companies.

The Sensex steadily declined 863.05 points (4.91%) to 16,737.07 on May 9, 2008 from 17,600.12 on May 2, 2008. The Nifty also declined 245.60 points (4.70%) to 4982.60 from 5228.20 during the same period.

The market capitalisation of BSE A group (199) also dropped 4.89% (Rs 2,36,645 crore) in six sessions from Rs 48,42,729 crore to Rs 46,06,084 crore on May 9, 2008.

Market capitalisation of construction stocks registered a sharp decline. DLF lost a whopping Rs 15,300 crore from its M-Cap, a decline of 12.46% to Rs 1,07,470 crore over its May 2, level of Rs 1,22,771 crore. Jaiprakash Associates registered a decline of 12.42% to Rs 29,402 crore in its M-Cap on May 9.

The bearish trend was witnessed in stocks of other companies like Reliance Energy, Jindal Steel & Power, Larsen & Toubro, Bharti Airtel, Bharat Heavy Electricals, Neyveli Lignite Corporation, Bank Of India, Indian Oil and Sesa Goa too. Reliance Energy declined 12.55% to Rs 31,385 crore while Larsen & Toubro declined 9.73% to Rs 82,828 crore.

Conversely, some of the biggest increases in M-Cap were observed in the case of United Breweries Holdings (19.28%), GVK Power & Infrastructure (11.95%), United Phosphorus (10.48%), Essar Shipping and Tata Steel (5.88%). The M-Cap of Essar Shipping increased from Rs 6,470 crore to Rs 7,107 crore on May 9, 2008.