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Most of the BSE100 companies' stocks down by 26-35%; GMR, Unitech among the biggest losers

Former favourites such as Sun Pharma, ITC, IDFC, TCS, HUL, HDFC and Lupin have prevented benchmarks Sensex and Nifty from being pulled down.

, ET Bureau|
Last Updated: Aug 01, 2014, 09.32 AM IST|Original: Aug 01, 2014, 09.30 AM IST
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Former favourites such as Sun Pharma, ITC, IDFC, TCS, HUL, HDFC and Lupin have prevented benchmarks Sensex and Nifty from being pulled down.
Former favourites such as Sun Pharma, ITC, IDFC, TCS, HUL, HDFC and Lupin have prevented benchmarks Sensex and Nifty from being pulled down.
Although benchmark indices Sensex and Nifty are hovering close to their all time highs, 60 out of BSE100 companies have corrected by at least 10% from their recent highs.

The biggest losers include companies such as Jaiprakash Associates, Unitech, M&M Financial Services, GMR, Union Bank of India and Adani Enterprises. The leaders of the election rally have not been able to sustain their gains.

These stocks are down 26-35% from the highs they scaled two months ago (see chart).

Former favourites such as Sun Pharma, ITC, IDFC, TCS, HUL, HDFC and Lupin have prevented benchmarks Sensex and Nifty from being pulled down. "The rally in some of the cyclical stocks was not warranted by the fundamentals. At the same time, some of the defensives which were delivering good numbers were available at reasonable valuations," said Harsh Upadhyaya, fund manager at Kotak Mutual Fund, which led him to reduce exposure to cyclical stocks and go overweight on defensives, post elections.

Stressed balance sheets was the common factor that hit the the cyclicals in the recent corrections. Going forward, investors should prefer cyclical companies with better balance sheets, say analysts.

Most of the BSE100 companies' stocks down by 26-35%; GMR, Unitech among the biggest losers
Most of the BSE100 companies' stocks down by 26-35%; GMR, Unitech among the biggest losers
Most of the BSE100 companies' stocks down by 26-35%; GMR, Unitech among the biggest losers

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