The stock markets have lost one-eighth of the total gains made in the current rally which started on April 25, 2003.
The Bombay Stock Exchange Sensex has lost 240 points in the last three trading sessions, while the market capitalisation of all traded stocks has declined a hefty Rs 55,000 crore (Rs 550 billion) in this period.
The capitalisation of all traded stocks on the BSE fell six per cent [Rs 55,405 crore (Rs 554.05 billion)] in last three trading sessions, from Rs 9,26,988 crore (Rs 9,269.88 billion) on September 10 to Rs 8,71,583 crore (Rs 8,715.83 billion) on September 15.
A group stocks were the biggest losers with a 6.41 per cent fall in market capitalisation.
The capitalisation of B1 stocks declined 3.75 per cent while the B2 group lost 2.83 per cent. In the same period, the Sensex shed 5.42 percent (240.43 points) as a result of which the capitalisation of these 30 stocks fell Rs 20,493 crore (Rs 204.93 billion).
However, of the 2000-plus actively traded stocks, 775 scrips fell more than the benchmark index, losing between 5.5 percent and 48.6 per cent.
Out of the 112 industry sectors, classified by the Business Standard Research Bureau, nearly 97 sectors reported a drop in market capitalisation, aggregating at Rs 55,923 crore (Rs 559.23 billion) while only 15 sectors reported modest gains, adding up to a mere Rs 518 crore (Rs 5.18 billion).
Stocks of public sector undertakings were the worst hit, with an 8.1 per cent [Rs 25,194 crore (Rs 251.94 billion)] erosion in market value.
Stocks in the information technology, diversified, banks, pharmaceutical and fast moving consumer goods sectors too lost heavily in the three-day period.
The market cap of refinery stocks declined 9.7 per cent [Rs 17,483 crore (Rs 174.83 billion)] from Rs 1,80,403 crore (Rs 1,804.03 billion) on September 10 to Rs 1,62,920 crore (Rs 1,629.20 billion) today.
The market capitalisation of IT stocks dropped 9.2 per cent [Rs 8,758 crore (Rs 87.58 billion)] from Rs 95,478 crore (Rs 954.78 billion) to Rs 86,721 crore (Rs 867.21 billion), the capitalisation of diversified companies decreased by Rs 4,840 crore (Rs 48.40 billion), and of banks by Rs 3,490 crore (Rs 34.90 billion).
The list of losing sectors includes pharmaceuticals [Rs 3,233 crore (Rs 32.33 billion)], fast moving consumer goods [Rs 2,614 crore (Rs 26.14 billion)], fertilisers [Rs 1,672 crore (Rs 16.72 billion)], telecommunication [Rs 1,294 crore (Rs 12.94 billion), cigarettes [Rs 1,227 crore (Rs 12.27 billion), power [Rs 1,218 crore (Rs 12.18 billion)], aluminium [Rs 1,211 crore (Rs 12.11 billion)] and steel [Rs 1,127 crore (Rs 11.27 billion)].
In individual stocks, India's most valuable company ONGC suffered the highest erosion in market cap, which declined Rs 13,468 crore (Rs 134.68 billion) from Rs 98,175 crore (Rs 981.75 billion) to Rs 84,707 crore (Rs 847.07 billion).
With a Rs 4,364 crore (Rs 43.64 billion) drop in market cap, Reliance Industries stood on the second place. Its market cap dropped from Rs 60,679 crore ( Rs 606.79 billion) to Rs
56,316 crore (Rs 563.16 billion).
IT major Wipro has seen its market cap fall by Rs 3,674 crore (Rs 36.74 billion) from Rs 29,386 crore (Rs 293.86 billion) to Rs 25,712 crore (Rs 257.12 billion), followed by IOC [drop of Rs 2,581 crore (Rs 25.81 billion)], Hindustan Lever [Rs 2,124 crore (Rs 21.24 billion)], Infosys Technologies [Rs 1,752 crore (Rs 17.52 billion)], HCL Technologies [Rs 1,497 crore (Rs 14.97 billion)], Ranbaxy Laboratories [Rs 1,495 crore (Rs 14.95 billion)], SBI [Rs 1,295 crore (Rs 12.95 billion)], ITC [Rs 1,214 crore (Rs 12.14 billion)] and National Fertilisers [Rs 1,006 crore (Rs 10.06 billion)].
Dealers said there were various factors pulling down various sectors. The refinery sector, for instance, was pulled down due to ambiguity over the financial implications of the freeze in LPG and kerosene prices.