3 stocks account for one-third of 2,200-point Sensex fall in one week

HDFC, Infosys, L&T have collectively contributed 721 points to the Sensex's 2,217-point decline in the past one week

Housing Development Finance Corporation (HDFC), Infosys and Larsen & Toubro (L&T) have contributed one-third of an over 2,200 points fall in the benchmark index, S&P BSE Sensex, in past one week.

These three stocks collectively contributed 721 points or 33% of the total 2,217 points or 7.9% fall in the benchmark index from 27,932 on August 19, 2015. The S&P BSE Sensex closed at 25,715 on Wednesday.

Including these three, Reliance Industries and ICICI Bank, the total five stocks have contributed 49% of the total benchmark index fall in past five trading sessions, the Bloomberg data shows.

The financials including HDFC, ICICI Bank, HDFC Bank, State Bank of India (SBI) and Axis Bank combined accounted 816 points of the benchmark index during the period.

Among the individual stocks, HDFC, which dipped nearly 4% on Wednesday, have contributed 277 point of the total Sensex’s fall. Infosys accounted 241 point followed by L&T (204 point), Reliance Industries (186) and ICICI Bank (168 point).

Meanwhile, three stocks – ITC, Lupin and Coal India – have bucked the trend, contributed 13 points and gained marginally during the period.

“Concern over China’s economy continues to impact the investors’ confidence across the globe. Due to continued decrease in foreign institutional investors (FIIs) confidence, flows to India continue to be weak,” said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services.

The mutual funds are adding their exposure viewing this chaos as an opportunity which is led by global factors. The immediate movement will depend on Indian rupee trend for which Reserve Bank of India will have to provide additional support to the Rupee. FIIs will come back to the Indian market once the consolidation of global markets end, as we are the best class amongst the emerging markets, adds Vinod Nair.

According to Aashish Somaiyaa, CEO, Motilal Oswal AMC, “any extraneous development which gives an opportunity to enter India's long term secular bull market should be lapped up. The market fall has been due to global macroeconomic concerns but when the dust settles India is most likely to stand out as an investment opportunity.”

We have seen this in the past and this time case for India is even better with good macros, reformist government and likely benefits to corporate numbers from cyclical upturn as well as initiatives like GST yet to roll out, added Aashish Somaiyaa.

	Price on BSE in Rs
Name	19 Aug,15	26 Aug,15	%chg
Vedanta	102.60	85.55	-16.6
GAIL	330.25	282.10	-14.6
ONGC	260.89	224.95	-13.8
Tata Steel	249.90	215.50	-13.8
HDFC	1257.00	1102.45	-12.3
Larsen & Toubro	1811.25	1592.50	-12.1
Bajaj Auto	2541.25	2244.15	-11.7
SBI	278.05	245.80	-11.6
Bharti Airtel	383.10	339.75	-11.3
Hero MotoCorp	2690.00	2391.95	-11.1
Mahindra & Mahindra	1366.60	1215.30	-11.1
Axis Bank	554.60	496.00	-10.6
Reliance Ind	952.70	853.45	-10.4
Maruti Suzuki	4671.14	4204.20	-10.0
Infosys	1175.05	1065.35	-9.3
Cipla	695.90	636.05	-8.6
ICICI Bank	303.85	278.45	-8.4
BHEL	262.00	240.20	-8.3
Hindalco	86.30	80.70	-6.5
HDFC Bank	1080.90	1014.45	-6.1
Sun Pharma	927.25	873.00	-5.9
Wipro	583.60	549.75	-5.8
TCS	2731.40	2576.75	-5.7
NTPC	126.10	119.75	-5.0
Dr Reddys Labs	4231.85	4050.60	-4.3
Tata Motors	351.10	336.80	-4.1
Hindustan Unilever	875.70	858.40	-2.0
ITC	316.64	317.65	0.3
Coal India	356.90	358.20	0.4
Lupin	1795.35	1811.80	0.9
S&P BSE Sensex	27931.64	25714.66	-7.94