INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The billion-dollar universe of Indian market shrank 15 per cent in 2018 in the worst-ever year for midcaps since 2011
Market capitalisations (m-cap) of at least 39 stocks slipped below the $1 billion (or roughly Rs 7,000 crore) mark amid the market mayhem
Analysts are still split in their outlook for the midcaps in the event-heavy year ahead.
Data compiled from BSE showed 228 companies had
market capitalisations of over Rs 7,000 crore, compared with 267 companies with the same feat at the end of 2017 and 195 companies at the
The list included only those stocks, which have a trading history of eight years and more
Many midcaps on the list have turned smallcaps after up to 90 per cent plunge in their market value year-to-date
Vakrangee, which had a m-cap of Rs 44,000 crore ($6.28 billion at current exchange rate of 70 a dollar) at the end of 2017, was the worst
hit as the scrip lost 91 per cent of its market value this calendar
A recent Sebi investigation into the trading activities of certain entities of the company found no instance of stock manipulation by
promoter or promoter group entities.
Reliance Capital has lost 80 per cent of market value this year
Factoring in the sharp drop in consolidated net worth, the brokerage revised the stock valuation downwards to Rs 233 per share, factoring
in Rs 280 per share cut towards group exposures
It also cut valuations of its mutual fund, home finance and consumer finance businesses considering the weak environment for NBFCs in the
Reliance Capital has a market cap of Rs 5,500 crore today, compared with Rs 14,600 crore (or $2.08 billion) as of Dec 29, 2017.
Jet Airways
was another company which has left the billion dollar club, after a 70 per cent drop in market value
The airline reported losses for three consecutive quarters on rising crude oil prices
And now the country's largest bank SBI has ordered a forensic audit of the Naresh Goyal-promoted airline from April 1, 2014 to March 31,
2018.
Among others, Rain Industries, Sun Pharma Advanced Research Company and KRBL, Indiabulls Real Estate and Avanti Feeds have witnessed
up to 70 per cent slide in their market-caps in 2018
They all quoted market-caps above Rs 7,000 crore at the end of 2017.
Analysts said some of them were trading at a huge premium to their
At the beginning of January 2018, you had the midcap index trading at 60 per cent premium to the largecap index, which that has shrunken to
just about 10 per cent now
You are getting a lot of interesting bottom-up opportunities across the space," said Gautam Duggad, Head of Research at MOSL.
Data showed
the combined market capitalisation of BSE-listed companies has fallen by Rs 8.56 lakh crore this calendar to Rs 143.17 lakh crore at the end
of December 27, 2018, from Rs 151.73 lakh crore at the end of 2017
This despite a 5.3 per cent jump in market value for the 30 Sensex stocks during this period.
Gaurang Shah, Senior VP at Geojit Financial
Services, said there has been too much of pain for midcaps and smallcaps throughout 2018
believes there may be more pain left
club, compared with 313 in 2017.
