Z group stocks lose the most

Mumbai, March 24 | Updated: Mar 25 2005, 05:30am hrs
A few weeks ago, Z group was the cynosure of all eyes. The market capitalisation (M-Cap) of stocks in the group rocketed by over 300% in less than two months since January. Some of these stocks rose 200% during the bull run. Now that the equity markets are in correction mode, the Z group has witnessed the highest fall in M-cap terms compared with other groups.

On March 10, the Sensex closed above the 6,900-mark at 6,907.65 for the first time ever in history.

The total M-Cap on The Stock Exchange, Mumbai (BSE) on March 10 was Rs 17,47,418.5 crore. On March 24, the index closed at 6,442.87, posting a fall of 464.8 points. The BSE M-cap, in the period between March 10 and March 24, eroded by a whopping Rs 1,67,213.5 crore, or 9.6%.

The Z group took the worst beating in terms of M-Cap among all groups. It declined by almost 76% at Rs 5,168.87 crore as on March 24, as against Rs 21,429.11 crore on March 10.

Analysts have always advised investors to be cautious before going for Z group stocks which do not follow the listing norms of the Securities and Exchange Board of India (Sebi).

According to Kashyap Pujara, associate vice president (portfolio management) at Sushil Finance, There were some stocks in the Z group that were doing well. However, the increase doesnt seem to be across the board. Investors should be cautious while investing in the Z group.

Z group is followed by S group that comprises stocks listed on the regional bourses. The M-Cap of S group dipped by 13.51% between March 10 and March 24. T group and B1 group witnessed a fall in their M-Cap by 9.87% and 9.19%, respectively. The M-Cap of T group fell from Rs 22,978.06 crore on March 10 to Rs 20,709.96 crore on March 24.

Similarly, the M-Cap of B1 group fell from Rs 1,92,913.98 crore to Rs 1,75,190.87 crore in the same period. The A group M-Cap also fell from Rs 14,29,239.88 crore on March 24 to Rs 13,36,834.74 crore on March 10, a fall of 6.47%.