Five stocks account for half of Nifty's 800-point fall

ITC, ICICI Bank, HDFC, HDFC Bank and L&T have accounted a combined 395 points fall in Nifty from its recent high.

Stocks of five companies have contributed to almost half of CNX Nifty’s around 800-point fall from its recent high.

ITC, ICICI Bank, Housing Development Finance Corporation (HDFC), HDFC Bank and Larsen and Toubro have accounted a combined 395 points or 50% to the 790-points decline in the CNX Nifty. And including these five stocks, top ten companies contributed 72% (566 points) of the benchmark index downfall.

CNX Nifty was down 189 points today at 5,287 tanked 13% from its high of 6,078 touched on July 23 after the rupee hit record low.

The rupee plunged to a record low, below the key psychological 66 per dollar mark closed at 66.19 today, has depreciated by 10.77% during the same period. The rupee was 59.77 per dollar as on July 23.

The main reasons attributed are the rupee’s continued weakness and the Lok Sabha approval of nearly US$20bn plan to provide cheap grains to the poor. Heightened concerns are that India’s fiscal deficit will balloon further.

Commenting on the same, Amar Ambani Head of Research at IIFL said, “The food security programme motivated by populist drives is a serious threat to the fiscal deficit. Already, the economy is reeling under the impact of a cut in Plan expenditure to contain fiscal deficit to the figure of the previous budget. Now any spending on food close to the election time will make matters worse for a fiscal deficit that is already hard to achieve.”

Meanwhile, Fitch Ratings also has warned of a downgrade if the country is unable to meet fiscal deficit target. It said reining in the fiscal deficit at 4.8% of GDP would be a difficult task.

Out of Nifty-50 companies, the market price of half or 25 stocks have declined by more than 15% each and 11 stocks fell between 10-15%.

IDFC, Jaiprakash Associates, Bharat Heavy Electricals Limited (BHEL) and Punjab National Bank have seen market value erosion of more than 30% each, while Axis Bank, Bank of Baroda, DLF, IndusInd Bank and ACC declined in the range of 25-30%.

Information technology companies such as Infosys, Tata Consultancy Services and HCL Technologies however, contributed 84 points rise in benchmark index during the period.

ACC, Axis Bank, HDFC, HDFC Bank, IDFC, NTPC and UltraTech Cement from Nifty-50 companies hit 52-week low today.

	23-Jul-13	27-Aug-13	%chg	Points contribute
NIFTY	6077.80	5287.45	-13.00	-790.35
ITC	375.75	297.90	-20.72	-134.09
HDFC Bank	683.60	561.90	-17.80	-70.23
HDFC	826.80	686.00	-17.03	-68.63
ICICI Bank	989.70	802.60	-18.90	-67.55
Reliance Infra	909.55	803.25	-11.69	-54.70
L&T	901.05	705.65	-21.69	-49.73
HUL	718.85	595.55	-17.15	-32.72
Axis Bank	1202.85	877.65	-27.04	-31.54
ONGC	312.15	259.30	-16.93	-29.32
SBI	1860.90	1520.00	-18.32	-27.52
IDFC	128.60	79.10	-38.49	-19.17
M&M	921.30	789.40	-14.32	-19.02
IndusInd Bank	462.95	345.25	-25.42	-15.59
Kotak Mahindra Bank	730.05	613.55	-15.96	-14.04
Bharti Airtel	330.10	293.90	-10.97	-13.55
Sun Pharma	553.25	496.85	-10.19	-13.34
BHEL	164.95	111.25	-32.56	-13.31
NTPC	143.30	124.45	-13.15	-12.19
Asian Paints	494.10	410.00	-17.02	-11.98
UltraTech Cement	1910.70	1550.70	-18.84	-11.46
Grasim Inds	2796.50	2246.20	-19.68	-10.96
Bajaj Auto	1975.55	1727.75	-12.54	-10.47
Tata Power	94.50	74.45	-21.22	-10.06
Bank of Baroda	620.25	459.65	-25.89	-9.45
PNB	661.30	459.00	-30.59	-9.42
Lupin	881.25	756.95	-14.10	-9.27
ACC	1249.00	942.80	-24.52	-8.96
Ambuja Cements	196.50	159.50	-18.83	-8.82
Maruti Suzuki	1448.65	1260.25	-13.01	-7.80
Dr Reddys Labs	2361.25	2167.45	-8.21	-7.67
Coal India	298.55	260.30	-12.81	-7.55
JP Associates	50.15	32.50	-35.19	-6.77
Power Grid Corp	110.15	95.70	-13.12	-6.42
GAIL	332.25	293.05	-11.80	-5.51
DLF	174.65	130.15	-25.48	-5.49
BPCL	352.75	290.10	-17.76	-5.08
Tata Motors	298.80	290.05	-2.93	-4.82
Reliance Ind	396.40	331.35	-16.41	-2.75
Hindalco	105.15	99.15	-5.71	-2.38
Cipla	409.15	396.65	-3.06	-2.00
Cairn India	310.00	308.75	-0.40	-0.22
NMDC	109.50	112.75	2.97	0.82
Jindal Steel & Power	210.35	230.15	9.41	2.40
Sesa Goa	147.85	168.35	13.87	2.53
Ranbaxy Labs	321.70	377.60	17.38	2.72
Hero MotoCorp	1789.60	1900.80	6.21	3.31
HCL Technologies	900.45	947.70	5.25	3.93
Tata Steel	234.60	272.30	16.07	7.93
TCS	1749.80	1838.80	5.09	14.21
Infosys	2901.95	3056.05	5.31	23.31
Source: Bloomberg
Data complied by BS Research