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These stocks lost ground despite over five-day 1,600-point Sensex rally

It has been a volatile ride for the equity market investors over the past 10 days given the uncertainty ahead of the outcome of the general elections back home and fears of an escalation in trade war between the United States (US) and China.

Earlier this week, however, the markets recorded their best single-day gain in a decade with the S&P BSE Sensex surging a massive 1,422 points as exit polls showed the incumbent Narendra Modi – led National Democratic Alliance (NDA) return to power for the second consecutive five-year term.

Despite the euphoria, there are still a number of stocks that have seen a price erosion at the bourses. A quick analysis of the stocks listed on the BSE showed 46 stocks that have slipped as much as 31 per cent since May 14, 2019, data from ACE Equity shows. The S&P BSE Sensex, on the other hand, has gained nearly 4.5 per cent during this period.

While most analysts agree that the markets are pricing in a victory for the NDA, they caution against volatility over the next few sessions. The road ahead for the markets post the election outcome, they say, will be guided more by fundamental factors such as a recovery in corporate earnings, health of the economy and other global factors.

“Notwithstanding the near-term rally, we expect the markets to consolidate post the election outcome (even if favourable), as focus would shift back to fundamentals (corporate earnings) and global cues (trade tensions between US – China). Further, movement in crude oil prices, which has been gaining momentum post US ended Iran sanction waiver and currency, will also provide direction,” says Jayant Manglik, president – retail distribution at Religare Broking.

As regards corporate earnings, of the 19 Nifty companies that announced their March 2019 quarter (Q4FY19) earnings till May 08, 15 have either met or exceeded estimates of analysts at Motilal Oswal on both the profit after tax (PAT) and earnings before, interest, taxes, depreciation and amortisation (EBITDA) front. 

"The earnings upgrade/downgrade ratio is < 1, with 14 MOFSL Universe companies witnessing upgrades of 3%+ and 26 witnessing downgrades of more than 3%, indicating the continued weak underlying earnings momentum. Among the Nifty constituents, ICICI Bank, Yes Bank, Indiabulls Housing Finance and Bharti Airtel missed our PAT estimates, while Maruti Suzuki, UltraTech Cement, Vedanta and Reliance Industries exceeded our estimates," said Gautam Duggad, head of institutional research at Motilal Oswal Financial Services in a recent report.

  ON A SLIPPERY SLOPE
  Company Name Date Close Price (Rs) Change (%)
  Jinaams Dress  21-May-19 36.15 -31.21
  Vivanta Industries  21-May-19 4.44 -22.24
  Nidhi Granites  21-May-19 22.55 -22.11
  Contil India  21-May-19 5.59 -21.82
  MT Educare  21-May-19 68.35 -21.71
  BGIL Films & Technologies  21-May-19 1.88 -21.67
  Parab Infra  21-May-19 1.61 -21.46
  Five Core Exim  21-May-19 1.14 -21.38
  Vikas WSP  21-May-19 14.70 -21.18
  Mangalam Organics  21-May-19 416.05 -21.10
  LEEL Electricals  21-May-19 8.60 -20.37
  Sampre Nutritions  21-May-19 17.15 -18.33
  Kisan Mouldings  21-May-19 32.55 -18.11
  Kushal  21-May-19 14.00 -17.89
  Bartronics India  21-May-19 5.76 -16.88
  Lumax Industries  21-May-19 1358.15 -16.69
  ECS Biztech  21-May-19 2.95 -16.43
  Orient Tradelink  21-May-19 7.50 -15.73
  Jaypee Infratech  21-May-19 1.77 -11.94
  Aditya Ispat  21-May-19 6.50 -10.34
  Sadhana Nitro Chem  21-May-19 229.10 -9.57
  Pro Fin Capital Services  21-May-19 45.10 -9.35
  Atlas Jewellery India  21-May-19 42.75 -9.33
  Cybele Industries  21-May-19 9.45 -9.31
  Premier Synthetics  21-May-19 8.12 -9.27
  VB Industries  21-May-19 3.48 -9.14
  Sheetal Diamonds  21-May-19 1.50 -9.09
  Vikas Proppant & Granite  21-May-19 14.50 -9.09
  Future Enterprises  21-May-19 29.90 -8.70
  Lesha Industries  21-May-19 1.59 -8.62
  Primuss Pipes & Tubes  21-May-19 13.30 -8.59
  Virgo Global  21-May-19 1.63 -8.43
  Richa Industries  21-May-19 1.63 -8.43
  Newgen Software Technologies  21-May-19 307.85 -8.16
  Artech Power & Trading  21-May-19 1.72 -8.02
  Brijlaxmi Leasing & Finance  21-May-19 1.75 -7.89
  Nyssa Corporation  21-May-19 1.42 -7.79
  Ishan Dyes & Chemicals  21-May-19 28.05 -6.50
  PBM Polytex  21-May-19 73.25 -5.42
  Alps Motor Finance   21-May-19 0.94 -5.05
  Geetanjali Credit and Capital  21-May-19 1.72 -4.97
  Shivalik Rasayan  21-May-19 271.75 -4.53
  Ajanta Pharma  21-May-19 1014.70 -3.74
  Fortis Healthcare  21-May-19 125.60 -3.09
  Rajesh Exports  21-May-19 659.70 -2.58
  Tech Mahindra  21-May-19 773.45 -2.23
  * Change since May 14, 2019      
  Data source: ACE Equity