Stocks
Sensex Rally: Winners and Losers as the index challenges the high of 2010

As the BSE Sensex nears its highest levels since December 2010, we look at what has gone up and down among the 30 Sensex stocks?

 
As the BSE Sensex crosses its highest level since December 2010, we looked at which of BSE Sensex stocks have contributed to the rally and which have dragged the index down. Out of the 30 BSE Sensex stocks, 16 stocks are actually down since 30 December 2010 while the remaining are up. The average gain of the 14 stocks is 38% while the average decline for the 16 that is 31%. In other words, it is not that ‘broad-based’ a rally. The uptick in BSE Sensex is explained by less than half of its constituents. 
 
Some of the biggest causalities of the index were commodity stocks such as Sterlite Industries (down 48%), Tata Steel (down 53%), Hindalco Industries (down 55%), Jindal Steel & Power (down 57%) and GAIL India (down 34%). In fact, five out of the bottom six performers are these stocks. Even though commodity prices are down over the last few years, the demand is not high enough to offset low prices. 
 
The biggest gainer in the index has been Sun Pharmaceuticals, which recorded a 100% gain between 30 December 2010 and 17 May 2013. This was helped by the stellar performance of one of its subsidiaries, Taro Pharma. Incidentally, the company has been faced the wrath of the minority shareholders of Taro for undervaluing the stock at time of purchase. 
 
On the other end of the spectrum is Bharat Heavy Electricals (BHEL), down 57% during the same time period, thanks to government policy inaction, a flailing power sector and bankrupt state electricity boards. While the order pipeline remains strong, it is the cash flow which is a big problem for BHEL, a capital-intensive company. It isn’t that only BHEL is doing badly. Even Tata Power, Coal India and NTPC are down too as power woes continue to drag on without any concrete policy decisions by the government.
 
Consumer-products companies like ITC and Hindustan Unilever have done extremely well during this period. ITC continues to deliver steady performances even as the hospitality and tobacco industries go through tough times. The share price is up 92% since December 2010, mainly because its consumer products business is now making money. Similarly, Hindustan Unilever is up 90% in the same time period, due to improved profitability but also the late surge on the news of its parent company, Unilever’s decision to hike its stake in the company. Both ITC and Hindustan Unilever have reported good 4th quarter results.
 
Surprisingly, barring Hero MotoCorp, the automotive sector has also done well too even though auto sales are stagnant. Mahindra & Mahindra, Bajaj Auto, Maruti Suzuki and Tata Motors were up. 
 
With the exception of State Bank of India (down 12%), finance companies have done well. HDFC Bank, HDFC and ICICI Bank were up 56%, 24% and 8% respectively. 
 
TCS, the index heavyweight, is up 26%. It reported decent results for the last quarter ended March 2013. Infosys, on the other hand, has been struggling as it tackles leadership and scaling issues. The share price is down 32% over the last two and half years. 
 

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COMMENTS

MDSharma

4 years ago

The equity market is very ruthless and manipulate the best way is to play safe,keep well updated on company working,best information available through reliable sources Stay away from greed and scrupulous advisers.
MangalDuttaSharma

Suiketu Shah

4 years ago

The equity market is very manipulated and it is best to stay away from midcap and small caps if you donot have precise knowledge.

Donot employ fraud wealth management companies who wl make you buy "good stocks"(as if the stock owners are yr relatives) at a high price for them to earn illegal cash commission.

REPLY

CA PRADEEP AGARWAL

In Reply to Suiketu Shah 4 years ago

Do agree to it, see the Sensex steeply rising one day w/o basis and falling in the same way. Better stay put it is another T20.

Ramesh Poapt

4 years ago

Broadly, fundamentals of the company/industry has reflected in the above table. 2010 was euphoria of lesser intensity den 2007.Global/national factors has weighed in the above table. Not strictly as Ca Pr Ag opined.

REPLY

CA PRADEEP AGARWAL

In Reply to Ramesh Poapt 4 years ago

I did not want to opine like that, but what I am seeing is greed..greed everywhere, though I might gain one rupee only but the other looses 100 rupees is the order of the day. due to these fundamentals going in the market without any basis and with money bags culture better stay out.

CA PRADEEP AGARWAL

4 years ago

My Dear MLF Team,

This market does not belong to true people all crabs and crooks who can sway the market with brute force-result they want money by hook and crook.

Why re-examine the Gadgil Committee report on Western Ghats?

Even as the deadline for inviting comments on the report of Dr Kasturirangan-led HLWG ended today, former secretary EAS Sarma had questioned the motive in re-evaluation of the Gadgil Committee report on Western Ghats

 
EAS Sarma, former secretary of the Government of India (GoI), has questioned the appointment of another committee, a high-level working group (HLWG) under the chairmanship of Dr Kasturirangan to evaluate the Western Ghats Ecology Expert Panel Report (WGEEP) submitted by the Prof Madhav Gadgil Committee.
 
In a letter written to Jayanthi Natarjan, minister of state for environment and forest, the former secretary has questioned the motive behind the constitution of new committee to revaluate the exhaustive report of the Gadgil Committee. “Many of us felt distressed and distraught when your ministry had constituted yet another committee, this time under the chairmanship of Dr Kasturirangan, member of Planning Commission, to re-evaluate the Gadgil Committee report. How is that committee more qualified to question Gadgil Committee’s studies? Did it not result in wasting the tax payer's money?” he said.
 
Mr Sarma said, “In fact, on the same lines as HLWG, I had earlier requested you to set up a similar expert committee to evaluate the threats to the Eastern Ghats. Perhaps, sensing opposition from your colleagues who are clearly in league with the crony capitalist promoters of industry, you have preferred not responding to my appeal,” Mr Sarma said in the letter.
 
After orders from the Central Information Commission and the Delhi High Court, the ministry of environment & forests (MoEF) in May 2012 published the WGEEP report on its website. The reluctance of the ministry was obvious.
 
The WGEEP report submitted by the 13-member panel headed by noted Pune-based ecological expert Prof Gadgil has damned the construction of big dams; the ongoing mining activities; the devastation of chemical industries on the fragile environment of the Western Ghats that comprise 1.29 lakh odd km stretching over six states (Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat).
 
What was hurting to the powerful developmental lobbies were the stringent recommendations made by the WGEEP in terms of making all the 142 talukas that come under the Western Ghats, into Environmental Sensitive Zones (ESZs) of three categories—ESZ I, ESZ II and ESZ III as per order of fragility. 
 
Here is the letter sent by Mr Sarma...
 
To
Smt. Jayanthi Natarajan
Minister of State (Environment & Forests)
Govt. of India
 
Dear Smt. Natarajan,
 
Subject:- Why re-examine the Gadgil Committee report on Western Ghats? How is the new Committee competent to undertake such a re-examination?
 
I refer to the comprehensive report submitted by the Committee constituted under the chairmanship of Prof Madhav Gadgil (HLWG report) and the report of yet another committee under the chairmanship of Dr. Kasturirangan to re-evaluate the HLWG report.
 
Having interacted with Prof Madhav Gadgil in one session while he was in the process of formulating his views on Western Ghats a couple of years ago, I thought that there could be no better person than him to evaluate the ecology of the Western Ghats and recommend measures to protect it. The Committee under his chairmanship had gone about in a systematic and professional manner and come up with suggestions that would save the Western Ghats and its resources for the posterity. I felt disturbed when MOEF had displayed inexplicable hesitation in releasing that report. It was under intense public pressure that your Ministry had to place the report in the public domain.
 
Western Ghats are rich in biodiversity and the health and the well being of their ecology will determine the future of that region for centuries to come. As a result of indiscriminately set up industrial and mining projects, the ecology of that region has already come under a serious threat.  The region cannot bear any additional stress. If at all, the stress that already exists may have to be reduced.
 
In fact, on the same lines as HLWG, I had earlier requested you to set up a similar expert committee to evaluate the threats to the Eastern Ghats. Perhaps, sensing opposition from your colleagues who are clearly in league with the crony capitalist promoters of industry, you have preferred not responding to my appeal.
 
Many of us felt distressed and distraught when your ministry had constituted yet another committee, this time under the chairmanship of Dr. Kasturirangan, Member of Planning Commission to re-evaluate the Gadgil Committee report. How is that committee more qualified to question Gadgil Committee's studies? Did it not result in wasting the tax payer's money?  Apparently, the Gadgil Committee report would hurt the interests of several corporates and, therefore, is unpalatable to the rulers of UPA! The way the HLWG report has so far been handled by the Prime Minister, the Planning Commission and MOEF confirms my strong feeling that most decisions of UPA are dictated these days by crony capitalists who seem to permeate the system like never before!
 
What worries me most in the latest report (Kasturirangan's) is that it contemptuously dismisses the role of the people at the grass-roots in economic decision making. The authors of the latest report seem to be oblivious of the fact that the Indian Constitution begins with the words, “We, the people of India...” Ours is a democratic system. The authority that is implicit in the Constitution emanates from the people. The Gram Sabhas are a Constitutionally created entity. The real wisdom and the knowledge about the ecology of any region rest in the local communities. To think that the ultimate wisdom rests with the Planning Commission, or the South Block, or Paryavaran Bhavan, is to delude oneself.
 
I feel pained to read the letter written by Prof Madhav Gadgil to Dr. Kasturirangan on the latter's report. I have enclosed a copy of that letter for your ready reference. I am sure that several persons among the civil society have also written to you, expressing their concerns.
 
I realise that MOEF has fixed a ‘deadline’ for submitting comments on the report and it so happens that today is that deadline! When the ecology of the country comes under the threat of crony capitalism of the worst kind, these deadlines have no relevance.
 
I fully endorse what Prof Madhav Gadgil has said in his letter to Dr. Kasturirangan. I wish Dr. Kasturirangan and his colleagues in his committee had the courage and conviction to tell MOEF that they would not re-evaluate Prof Gadgil's report.
 
I request MOEF to reject Dr. Kasturirangan Committee report and, instead, accept HLWG report without any hesitation. The sooner that MOEF does this, the greater will be its credibility as a body obligated under Article 48A of the Constitution to protect the environment of this country.
 
I am confident that you will accede to this appeal unhesitatingly.
 
I have marked copy of this letter to the Prime Minister and Deputy Chairman of Planning Commission, hoping that they would introspect on what I have said here..
 
Regards,
Yours sincerely,
 
 
EAS Sarma
Former Secretary to GOI
Visakhapatnam
 
Separately, Prof Gadgil in an open letter to Dr Kasturirangan pointed out that out that the WGEEP report has advocated a graded approach with major role for grassroots level inputs to safeguard the Western Ghats. On the other hand, the HLWG rejected the framework and advocated partitioning of the natural and cultural landscapes. 
 
Prof Gadgil said, “This is like trying to maintain oases of diversity in a desert of ecological devastation. Such fragmentation would lead, sooner rather than later, to the desert overwhelming the oases. It is vital to think of maintenance of habitat continuity, and of an ecologically and socially friendly matrix to ensure long-term conservation of biodiversity-rich areas, and this is what we had proposed”. 

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Sensex, Nifty may give up gains: Monday Closing Report

The indices may trend lower unless the Nifty manages to again close above day’s high

 
The market snapped its four-day winning streak and ended lower today on pressure from the pharmaceutical sector on concerns about the new drug price order. The indices may trend lower unless the Nifty manages to again close above day’s high. The National Stock Exchange (NSE) recorded a turnover of 59.63 crore advance-decline ratio of 596:818.
 
The market opened mixed despite support from its Asian peers which were in the positive in morning trade on firm economic indicators from the US over the weekend. US consumer sentiment rose to its best in nearly six years in early May and a gauge of future economic activity rose to a near five-year high in April.
 
Back home, the Nifty opened 11 points higher at 6,198 and the Sensex started the week at 20,278, a fall of eight points from its previous close. Buying in metal, auto and fast moving consumer goods stocks led the market higher in early trade.
 
While the Nifty hit its intraday high in the first half hour of trade with the index touching 6,229, the Sensex’s high came in at around 10.55am with the benchmark climbing to 20,444.
 
Profit booking at the highs saw the indices paring part of their gains on selling pressure from consumer durables and healthcare sectors. The selling intensified in the post-noon session sending the market into the negative terrain.
 
The market touched the lows of the day in the last half of trade. The Nifty went back to 6,146 and the Sensex fell to 20,186 at their respective lows. However, the benchmarks settled off the lows but in the red, snapping their four-day winning streak.
 
The Nifty closed 30 points (0.49%) lower at 6,157 and the Sensex settled 62 points (0.31% down at 20,224.
 
Markets in Asia, with the exception of the Seoul Composite, settled in the positive with the Nikkei 225 settling 1.47% higher as prime minister Shinzo Abe last week asserted to increase private investment to the pre-crisis level and triple infrastructure exports in a bid to overcome deflation. Real estate stocks in China extended gains as new home prices in April rose at their fastest pace in two years.
 
The Shanghai Composite gained 0.75%; the Hang Seng surged 1.78%; the Jakarta Composite climbed 1.35%; the KLSE Composite advanced 0.45%; the Nikkei 225 surged 1.47%; the Straits Times rose 0.14% and the Taiwan Weighted settled 0.11% higher. Bucking the trend, the Seoul Composite lost 0.22%.
 
At the time of writing, key markets in Europe were in the green while the US stock futures were marginally in the red.
 
Back home, foreign institutional investors were net buyers of shares aggregating Rs867.93 crore on Friday. On the other hand, domestic institutional investors were net sellers of equities amounting to Rs716.69 crore.

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