BSE Midcap dips 68% YTD vs 52% for Sensex

The decline for the BSE Midcap index from a high to low was 72% vs 60% decline for Sensex. However, the year-to-date decline was better at 68% vs 52%. Lower investor interest for midcaps was seen. A heavy sell-off by FIIs/DIIs first took place here. The liquidity provided by domestic routes also remains a concern. Affecting their balance sheet was the higher interest rate regime resulting in higher interest costs. Corporate governance remains an issue with many mid-cap companies.

Infrastructure and real estate stocks decimated the most. They were highly leveraged companies and were forced to sell off many of their properties. At one point, their average market cap was down over 90%. As of now, it still is down 80-85%. HDIL is down 85%; JP Associates is down 80% and Indiabulls Real Estate down 83%.

Auto companies were impacted by demand destruction. The average fall for auto companies was 70-75%. However, Hero Honda has been the best performer. Ashok Leyland is down 71%; TVS Motor is down 70%.

Capital goods companies are all victims of global slowdown. The average fall is 75%. Punj Lloyd is down 74% while Praj Ind is down 74%.

In metals, Sesa Goa was slightly more resilient and fared better with a fall of 56%. Bhushan Steel is down a whopping 80%.

Banks and IT had a general sell-off. IFCI is down 77%. ISPAT down 86% while TTML is down 66%.

Defensives stood out in the year 2008. In the FMCG, consumers segment still remains strong. Godrej Consumers is up 6%; P&G is down 4% while Britannia is down 13%.