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Last Updated : Apr 01, 2020 04:04 PM IST | Source: Moneycontrol.com

Nifty falls the most in FY20 since 2008 crisis; 5 stocks buck the trend

Investors lost Rs 37.59 lakh crore of wealth during the financial year 2020, most of which was in March

Sunil Shankar Matkar
Image: Reuters
Image: Reuters
 
 
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Equity benchmark indices posted the biggest ever yearly loss in absolute terms during the financial year 2019-20 as bears tightened their grip over Dalal Street in the last one-and-half-month.

Benchmark indices rose to record highs in January (12,430 on the Nifty) backed by the corporate tax rate cut, hopes of earnings recovery and easing US-China trade deal. The rally hit a major roadblock on the news of coronavirus outbreak across the globe.

The BSE Sensex plunged 9,204.42 points (or 23.80 percent) to 29,468.49, and the Nifty50 crashed 3,026.15 points (or 26.03 percent) to 8,597.75 in the financial year 2020.

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Both indices registered the highest yearly loss in FY20 in percentage terms since March-ending financial year 2008-09 (the period of the global financial crisis when the Sensex was down 38 percent and the Nifty 36 percent).

Investors lost Rs 37.59 lakh crore of wealth during the financial year 2020, most of which was in March.

FII outflow in March was the highest ever in a single month which raised the total selling to Rs 90,043 crore (nearly $12 billion) in FY20, but domestic institutional investors came to rescue as they net bought Rs 1,28,208 crore (nearly $17 billion) in FY20.

Among Nifty, 45 stocks registered losses on a yearly basis. Out of which, 42 fell in double digits.

The 10 stocks that fell the most included IndusInd Bank, Zee Entertainment, Vedanta and Tata Motors.

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Most of these stocks were hit hard amid the sharp fall in global commodities prices due to COVID-19 crisis.

Meanwhile, five stocks bucked the trend during the year - Nestle India (up 49 percent), Bharti Airtel (44 percent), Hindustan Unilever (35 percent), Dr Reddy's Laboratories (12 percent) and Asian Paints (12 percent).

The broader market corrected more than equity benchmarks as the BSE Midcap index slumped 32 percent and Smallcap index declined 36 percent.

On the sectoral front, BSE Metal, Auto and Capital Goods registered biggest loss among others, down 40-50 percent followed by Bank, Oil & Gas and Realty which were down around 35 percent.

"Valuations had touched 2000 and 2008 lows on a P/B basis earlier this week, albeit that the return on equity (RoE) levels are lower now than before. So, we could say it did touch close to the lows but a sustainable recovery is only possible if the number of COVID cases peak globally first and then, in India," Suhas Harinarayanan- Head, Institutional Equity Research at JM Financial Institution Securities told Moneycontrol.

Coronavirus infected more than 8 lakh people with over 40,000 deaths worldwide, while the deaths in Italy, Spain and the United States were higher than China where the first infected case was found.

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First Published on Apr 1, 2020 04:04 pm
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