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These stocks lost ground despite over five-day 1,600-point Sensex rally

Earlier this week, the markets recorded their best single-day gain in a decade with the Sensex surging 1,422 points as exit polls showed the incumbent Narendra Modi - led NDA is set to return to power

Puneet Wadhwa  |  New Delhi 

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It has been a volatile ride for the equity market investors over the past 10 days given the uncertainty ahead of the outcome of the back home and fears of an escalation in trade war between the United States (US) and China.

Earlier this week, however, the recorded their best single-day gain in a decade with the S&P BSE surging a massive 1,422 points as exit polls showed the incumbent Narendra Modi – led National Democratic Alliance (NDA) return to power for the second consecutive five-year term.

Despite the euphoria, there are still a number of that have seen a price erosion at the bourses. A quick analysis of the listed on the BSE showed 46 that have slipped as much as 31 per cent since May 14, 2019, data from ACE Equity shows. The S&P BSE Sensex, on the other hand, has gained nearly 4.5 per cent during this period.

MT Educare, Vikas WSP, Mangalam Organics, Jinaams Dress, Bartronics India, Lumax Industries, Jaypee Infratech, Newgen Software, Ajanta Pharma, Rajesh Exports and Tech Mahindra are some of the stocks that lost ground in an overall volatile, but rising market.

While most analysts agree that the are pricing in a victory for the NDA, they caution against volatility over the next few sessions. The road ahead for the post the election outcome, they say, will be guided more by fundamental factors such as a recovery in corporate earnings, health of the economy and other global factors.

“Notwithstanding the near-term rally, we expect the markets to consolidate post the election outcome (even if favourable), as focus would shift back to fundamentals (corporate earnings) and global cues (trade tensions between US – China). Further, movement in crude oil prices, which has been gaining momentum post US ended Iran sanction waiver and currency, will also provide direction,” says Jayant Manglik, president – retail distribution at Religare Broking.

As regards corporate earnings, of the 19 companies that announced their March 2019 quarter (Q4FY19) earnings till May 08, 15 have either met or exceeded estimates of analysts at Motilal Oswal on both the profit after tax (PAT) and earnings before, interest, taxes, depreciation and amortisation (EBITDA) front.

"The earnings upgrade/downgrade ratio is < 1, with 14 MOFSL Universe companies witnessing upgrades of 3%+ and 26 witnessing downgrades of more than 3%, indicating the continued weak underlying earnings momentum. Among the constituents, ICICI Bank, Yes Bank, Indiabulls Housing Finance and Bharti Airtel missed our PAT estimates, while Maruti Suzuki, UltraTech Cement, Vedanta and Reliance Industries exceeded our estimates," said Gautam Duggad, head of institutional research at Motilal Oswal Financial Services in a recent report.

ON A SLIPPERY SLOPE
Company Name Date Close Price (Rs) Change (%)
Jinaams Dress 21-May-19 36.15 -31.21
Vivanta Industries 21-May-19 4.44 -22.24
Nidhi Granites 21-May-19 22.55 -22.11
Contil India 21-May-19 5.59 -21.82
MT Educare 21-May-19 68.35 -21.71
BGIL Films & Technologies 21-May-19 1.88 -21.67
Parab Infra 21-May-19 1.61 -21.46
Five Core Exim 21-May-19 1.14 -21.38
Vikas WSP 21-May-19 14.70 -21.18
Mangalam Organics 21-May-19 416.05 -21.10
LEEL Electricals 21-May-19 8.60 -20.37
Sampre Nutritions 21-May-19 17.15 -18.33
Kisan Mouldings 21-May-19 32.55 -18.11
Kushal 21-May-19 14.00 -17.89
Bartronics India 21-May-19 5.76 -16.88
Lumax Industries 21-May-19 1358.15 -16.69
ECS Biztech 21-May-19 2.95 -16.43
Orient Tradelink 21-May-19 7.50 -15.73
Jaypee Infratech 21-May-19 1.77 -11.94
Aditya Ispat 21-May-19 6.50 -10.34
Sadhana Nitro Chem 21-May-19 229.10 -9.57
Pro Fin Capital Services 21-May-19 45.10 -9.35
Atlas Jewellery India 21-May-19 42.75 -9.33
Cybele Industries 21-May-19 9.45 -9.31
Premier Synthetics 21-May-19 8.12 -9.27
VB Industries 21-May-19 3.48 -9.14
Sheetal Diamonds 21-May-19 1.50 -9.09
Vikas Proppant & Granite 21-May-19 14.50 -9.09
Future Enterprises 21-May-19 29.90 -8.70
Lesha Industries 21-May-19 1.59 -8.62
Primuss Pipes & Tubes 21-May-19 13.30 -8.59
Virgo Global 21-May-19 1.63 -8.43
Richa Industries 21-May-19 1.63 -8.43
Newgen Software Technologies 21-May-19 307.85 -8.16
Artech Power & Trading 21-May-19 1.72 -8.02
Brijlaxmi Leasing & Finance 21-May-19 1.75 -7.89
Nyssa Corporation 21-May-19 1.42 -7.79
Ishan Dyes & Chemicals 21-May-19 28.05 -6.50
PBM Polytex 21-May-19 73.25 -5.42
Alps Motor Finance 21-May-19 0.94 -5.05
Geetanjali Credit and Capital 21-May-19 1.72 -4.97
Shivalik Rasayan 21-May-19 271.75 -4.53
Ajanta Pharma 21-May-19 1014.70 -3.74
Fortis Healthcare 21-May-19 125.60 -3.09
Rajesh Exports 21-May-19 659.70 -2.58
Tech Mahindra 21-May-19 773.45 -2.23
* Change since May 14, 2019
Data source: ACE Equity

First Published: Wed, May 22 2019. 11:18 IST
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