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Sensex Rally: Winners and Losers as the index challenges the high of 2010
Moneylife Digital Team 20 May 2013

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.
Comments
MDSharma
1 decade 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
Reply
Suiketu Shah
1 decade 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
Replied to Suiketu Shah comment 1 decade 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.
Reply
Ramesh Poapt
1 decade 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
Replied to Ramesh Poapt comment 1 decade 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.
Reply
CA PRADEEP AGARWAL
1 decade 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.
Reply
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