No Takers For Diversity

With most businesses of conglomerates not doing well, the stocks are being shunned by the market. A look at what went wrong and whether these scrips will make a comeback.

It is happening, but nobody seems to be talking about it. Over the last one year, and particularly in the last six months, conglomerate stocks are being given the short shrift by the market.

A year or two ago, well-diversified was a term used to shower praises on these very companies. Economies of scale, exposure to several key sectors in one stock, strong project ma-nagement skills were some of the adjectives used to recommend them as good bets.

Today, buying interest in these scrips has ebbed considerably. Though hard data is not available, market sources confirm that delivery buying in these scrips has thinned significantly. Says Alok Vajpeyi, head of equities, BZW, Over the past six months, all the key conglomerates