Amid a slowdown in FII flows and a strong rally in Chinese stocks, Indian benchmark indices have come down by close to 5% from their highs in a fortnight or so.
After touching a record peak of 28,693.99 on November 28, the Sensex has lost 1,374 points in the last 11 sessions. During this period, the trend in FII purchases, as represented by the five-day moving average of net buying activity, has slowed from a net buying of $166 million to net selling of $50 million as on December 12.
IT majors TCS, Infosys and Wipro have contributed more than a third of the total fall. While Infosys led the decline with 281 points, Reliance Industries and Capital goods major Larsen & Toubro contributed 226 points and 129 points, respectively. ONGC and Tata Motors accounted for another 88 points and 83 points to the Sensex decline. As commodity prices nosedived, metal stocks, including Tata Steel, Hindalco and Sesa Sterlite, were responsible for a 115-point down-move in the 30-share benchmark.
With the retreat, the market value of all listed firms, which touched a record R100 lakh crore in the first week of December, has come off by about R4 lakh crore to R96.44 lakh crore.
Investors of nine Sensex firms, which each contributed a minimum of 50-point decline from the peak collectively, have lost over R2 lakh crore in their market value.
These include Infosys, RIL, TCS, L&T, ONGC, Tata Motors, HDFC, Tata Steel and Bharti Airtel. The total market value of all these firms stood at R21.06 lakh crore at the beginning of this month. While TCS witnessed the highest drop in market cap, having lost R54,903 crore, Reliance and ONGC lost R36,336 crore and R31,313 crore, respectively.
FMCG and auto saw buying interest. ITC, Maruti Suzuki, HUL and Hero MotoCorp bucked the trend with gains of 8% to 0.1%, supporting a 197-point increase for Sensex. Even Coal India, a prominent FY15 divestment candidate, rallied over 6% in the last 11 trading days.