The markets have lost over Rs 12 lakh crore in the last 60 days and those expecting a shift in the market momentum during the second term of the Narendra Modi government are likely to be even more disappointed.
Only a few of the companies holding the NIFTY close to the all-time high are companies such as HDFC, HDFC Bank, Infosys, ICICI, Reliance, SBI, the power grid, Kotak Bank and Adani ports.
But, companies such as Mahindra & Mahindra, Tata Motors, Tata Steel, JSW steel, Hero Moto corp, Reliance Capital, Idea, Reliance Infra, Bajaj Electric, DHFL, Yes Bank, SUN TV, Maruti, Reliance Communications, TVC, ONGC are either at a 52-week low or an all-time low.
“Investors who invested in relatively high-yield mutual funds are sitting on losses and those who invested only in the top companies are doing fine,” said a trader who did not want to be identified.
People who invest in smaller companies expect more gains than people who have invested in bigger companies. But the smaller companies have fallen and the bigger companies have gained. The situation is likely to worsen over the next few weeks as well.
“The index is hardly 5-7% lower than the all-time high and people don’t expect to be in losses when the index is booming. But, they are. And if the index dips a little more, these stocks will go even lower. Hence, the worry in the market. In fact, the markets are likely to drop further,” observed another trader.