Financials, capital goods push Sensex 5,000 points lower since Jan 2015

Financial and capital goods stocks contributed more than half to the benchmark Sensex 5,000 points drop in the past one year.

Five financials — ICICI Bank, Housing Development Finance Corporation (HDFC), HDFC Bank, Axis Bank and State Bank of India (SBI) —  and two capital goods stocks – Larsen & Toubro (L&T) and Bharat Heavy Electricals Limited (BHEL) - collectively contributed 2,804 points to the Sensex fall since January 29, 2015, data showed.

The Sensex, which ended at 24,682 on Tuesday, fell nearly 17% or 5,000 points, compared with 29,682 on January 29, 2015, the day when the benchmark index ended at an all-time high.

The foreign institutional investors (FIIs) sold net amount of Rs 18,195 crore ($2.5 billion) equities from the secondary market, the Sebi data shows.

Most of the banks are trading at their multi-year lows on concerns that the stress on banks’ asset quality to remain high, especially for corporate lenders and public sector banks (PSBs), while capital goods companies has been hit by a slowdown in order inflows.

ICICI Bank, the largest contributor to the 30-share Sensex, has accounted nearly 20% or 957 points in the index fall. L&T, the largest capital goods manufacturer in the country, contributed 501 points fall to the overall benchmark index.

SBI has contributed 452 points followed by Axis Bank (371 points), HDFC (280 points), BHEL (142 points) and HDFC Bank (101 points).

Tata Motors (508 points), ITC (355 points) and Oil & Natural Gas Corporation (269 points) are non-financials and capital goods stocks contributed more than 250 points each to the Sensex downfall.

Reliance Industries, the private refinery major and Maruti Suzuki India, the automobiles giant have bucked the weak trend and outperformed the market by gaining more than 10% during the period.

Shares of the country’s second largest most valued company Reliance Industries (RIL) rallied 13% during the period, contributed 217 points rise in the Sensex. Maruti Suzuki India contributed 90 points after recording a gain of 16% since January 29, 2015.

Name 29 Jan,2015 12 Jan,2016 % chg Points
ICICI Bank 379.95 236.85 -37.7 -957
Tata Motors 591.17 355.05 -39.9 -508
Larsen & Toubro 1719.30 1179.60 -31.4 -501
SBI 326.75 199.85 -38.8 -452
Axis Bank 599.20 406.10 -32.2 -371
ITC 369.70 315.45 -14.7 -355
HDFC 1309.55 1154.10 -11.9 -280
ONGC 351.85 221.50 -37.0 -269
Maruti Suzuki 3687.20 4269.65 15.8 90
Reliance Inds. 927.90 1045.10 12.6 217
S&P BSE Sensex 29681.77 24682.03 -16.8 -5000


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