From HDFC Bank to L&T, most Nifty stocks deep in the red since the Budget

Only nine of the 50 Nifty stocks have managed to gain since the Union Budget. Even after the recent rebound, the index of blue-chip companies is down 807 points, or 6.7 per cent, since July 4. HDFC Bank and Reliance Industries alone have contributed to a fourth of the decline. Besides, Axis Bank, State Bank of India (SBI) and Larsen and Toubro (L&T) have been a big drag on the index performers. On the other hand, shares of Infosys, Asian Paints and Kotak Mahindra Bank are among the stocks that have gained the most since the Budget, making a 100-point positive contribution to the Nifty. An unprecedented 17 Nifty stocks have dropped by more than 15 per cent during this period. In percentage terms, Tata Steel, Indiabulls Housing, Tata Motors and SBI have declined the most — over 20 per cent each. 

“The economy is slowing and some sectors are facing stress. The Budget didn’t address some of the key problems faced by the economy. The government showed resolve to maintain fiscal discipline and turned to the RBI to do the heavy lifting,” says a note by Quantum Mutual Fund Managers. 

 

However, experts say long term investors should consider some of the large caps that have declined. “Over the long term, we remain optimistic on Indian equities. There has been a correction recently and investors should use this to allocate to equities,” the note adds.