The S&P BSE Sensex has given a negative return of 2.8% since the last Muhurat trading, leaving investors poor.
According to an analysis of stock exchange data on sectoral indices by broking firm Samco Securities, BSE Capital Goods was the biggest gainer of 12.5 per cent, followed by BSE FMCG and BSE Auto, with gains of 11.4% and 11%, respectively.
BSE Bankex saw a marginal gain of 1.2%.
On the other hand, BSE Smallcap index is down 1.2% while BSE Oil & Gas is down 2.8%. BSE Midcap declined 4.7 per cent in the same period. The BSE IPO index topped the list in terms of losses, with the segment falling 28.6% due to the weak performance of the new-age IPOs in the market.
BSE Realty gave a negative return of 23.7%. BSE IT has done well during the last three years, registering a decline of 17.6 per cent.
BSE Metals and BSE Healthcare have lost 9.7% and 7.9%, respectively, since the last Muhurta.
Commenting on the outlook and impact of selling in the market by Foreign Portfolio Investors (FPOs), Apoorva Sheth, Head of Research, Samco Securities said, “Steady inflows in the form of SIPs, in the range of ₹13-14,000 crore. The US is giving good support against the erratic behavior of FPIs in view of the hike in interest rates.
“DIIs are also providing good support to the market, separating it from regular selling by FPIs,” he added.
On the poor performance seen in the IPO index, he said, “IPOs have always been priced aggressively in the Indian markets. The IPO market has always been a market for traders who bet on listing gains. Serious investors who have invested in IPOs have taken this into account.” Have started developing a feeling of being trapped,” he said.
“New-age IPOs entered markets during a low interest rate regime, when interest rates in the US and elsewhere in the world were sub-zero or close to that level,” he said.
“This brought in sufficient liquidity in the system and almost all the offerings in the domestic market, irrespective of their pricing, were absorbed. However, with the gradual increase in interest rates, equilibrium came into play and aggressively priced papers started their journey at realistic levels,” he said.