Midcap mayhem plunges market into gloom: Udayan
CNBC-TV18 managing editor Udayan Mukherjee explains that Other than a handful of stocks like L&T, ITC, HUL and ONGC which might have kept the index in the green, there was complete panic, mayhem and bloodshed in the mid-cap space.
It was not the Nifty's day today, explains CNBC-TV18 managing editor Udayan Mukherjee. Other than a handful of stocks like L&T, ITC, HUL and ONGC which might have kept the index in the green, there was complete panic, mayhem and bloodshed in the mid-cap space.
But first, a wrap-up of action in the large-cap segment. Tata Motors got off to a big bad on JLR issuing a warning on margins that caused the stock to fall 6 - 7 percent. There was a quite a bit of selling in the pharmaceutical segment and stocks like Cipla and Ranbaxy had a rough time. JP Associates had a bad day as well.
But the day started with unconfirmed reports of the Cabinet considering a hike in gas- prices and ONGC finally closed the day well. Larsen and Toubro’s order-book was in line with expectations or a bit better and that stock closed up about 1.5 percent.
The big bad news was from the mid-caps. The mid-cap index was 3 percent down and the market breadth was just 1:5 on advanced declines.
On Wednesday, HDIL was down 15 percent and despite some clarifications from the management, the stock lost 25 percent today. So it is down 40 percent in just two sessions.
Today a few new stocks joined the list. IVRCL went down 20 percent on reports that raised suspicion regarding the demise of a NHAI inspector involved with supervising an IVRCL project. And that led that stock down 20 percent.
A lot of other infrastructure companies like IRB, Lanco, GMR and Punj Lloyd collapsed 7-10 percent. Reliance Communications, whose earning were a disappointment, lost 9 percent. A huge clutch of bank-stocks fell on announcing disappointing results- Andhra Bank, Karnataka Bank, Oriental Bank of Commerce (OBC), Bank of Baroda (BOB) amongst others. Other stocks like Hexaware, Jain Irrigation, Pantaloon, Manappuram, and Orbit Corporation were taken to the cleaners today.
There were not many winners today except for Ajanta Pharma and Mahindra Satyam. Today was a disastrous session for the broader market even as large caps managed to hold their heads just about above that 6,000-level.