It’s a case of ‘the most punished stocks’ turning into outperformers post election results. Among the BSE 500 companies, as many as 458 companies outperformed the Sensex between May 18, 2009 and June 4, 2009, a SundayET analysis has revealed. Surprisingly, the outperformers are not those fundamentally strong or defensive companies, which investors were chasing, during the last one year but those which were major underperformers mainly because of dearth of funds.
According to Aseem Dhru, MD & CEO of HDFC Securities, when market sentiments move from extreme pessimism to cautious optimism, the most punished stocks, which investors in the past have mercilessly offloaded, always gain the most. “When the equity market fell during 2000-2002, even Infosys Technologies
lost almost half of its market price but the stock was one the outperformers in the following bull-run,” he said.
According to the analysis, the sensex gave a return of around 5% during the above mentioned period, whereas more than 90% of the companies on the BSE 500 index have given relatively higher returns. Companies such as Unitech, DLF, Suzlon Energy, Sobha Developers
, Tata Steel, Jaiprakash Hydro Power, Parsvnath Developers, Kingfisher Airlines, Future Capital Holdings and Gammon India are the prominent gainers. In fact, Unitech and Kingfisher Airlines gained more than 50%.
Stock prices of companies such as Sobha Developers and Jaiprakash Hydro Power, meanwhile almost doubled.
This has happened on the back of easing liquidity position and revival in demand.
According to Aseem Dhru, MD & CEO of HDFC Securities, when market sentiments move from extreme pessimism to cautious optimism, the most punished stocks, which investors in the past have mercilessly offloaded, always gain the most. “When the equity market fell during 2000-2002, even Infosys Technologies
lost almost half of its market price but the stock was one the outperformers in the following bull-run,” he said.
According to the analysis, the sensex gave a return of around 5% during the above mentioned period, whereas more than 90% of the companies on the BSE 500 index have given relatively higher returns. Companies such as Unitech, DLF, Suzlon Energy, Sobha Developers
, Tata Steel, Jaiprakash Hydro Power, Parsvnath Developers, Kingfisher Airlines, Future Capital Holdings and Gammon India are the prominent gainers. In fact, Unitech and Kingfisher Airlines gained more than 50%.
Stock prices of companies such as Sobha Developers and Jaiprakash Hydro Power, meanwhile almost doubled.
This has happened on the back of easing liquidity position and revival in demand.
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