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.