Power, infrastructure share prices slip most in 3 years

By: | Published: July 29, 2016 6:35 AM

Power and infrastructure firms have reported the highest decline in share prices in the last three years, data complied from Capital Line showed.

Anil Ambani led Reliance Communications saw its share fall by more than 60% during the period making it the worst performing stock among the listed telecom companies.Anil Ambani led Reliance Communications saw its share fall by more than 60% during the period making it the worst performing stock among the listed telecom companies.

Anil Ambani led Reliance Communications saw its share fall by more than 60% during the period making it the worst performing stock among the listed telecom companies.

Power and infrastructure firms have reported the highest decline in share prices in the last three years, data complied from Capital Line showed. The Sensex went up by 41.9% during the period. As many as seven companies in these sectors have lost more than one-third of their market cap during this period.

Shares of Jaiprakash (JP) Associates slumped close to 70% during the period — the biggest fall in the BSE 500 index. Another JP Group company, JP Power Ventures saw its shares decline by 52.80%. Shares of realty firms, Unitech and Jaypee Infratech declined by around 60% each during the period.

Anil Ambani led Reliance Communications saw its share fall by more than 60% during the period making it the worst performing stock among the listed telecom companies. A research report published by HSBC cites the sale of tower assets in the near term, the ability to unlock value in undersea cable assets and the ability to protect market share as the key upside risks for Reliance Communications. Another telecom stock, Idea Cellular fell a little more than 35% during the period.

Issue like risen non performing assets (NPAs) and asset quality deterioration has led to a sharp decline in the share prices of various banks and financial institutions. A study of the data showed that as many as 10 banks have lost more than 1/3rd of their market cap during the period. Jammu and Kashmir (J&K) Bank and Indian Overseas Bank (IOB) are the biggest losers among the bank stocks as their shares fell close to 40% each. In FY16, the gross NPA of J&K Bank and IOB stood at 8.32% and 17.40% of their total advances, respectively. Other banks like Bank of

India (BOI), Dena Bank, UCO Bank, Corporation Bank, Bank of Maharashtra and Oriental Bank fell between 25% and 40%.

In the BSE 500 index, other worst performing companies included, Adani Enterprises, Jindal Steel, Den

Networks, KSK Energy Ventures, Videocon Industries and Hathway Cable whose shares declined between 40% and 60%, respectively.

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