Market Report: 40% companies lose more than 50% in value; only 16% give positive return

Market Report: 40% companies lose more than 50% in value; only 16% give positive return

FPJ Web DeskUpdated: Tuesday, November 19, 2019, 11:23 AM IST
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Financial markets are subject to long periods of polarized behavior, such as bull-market or bear-market phases, in which the vast majority of market participants seem to almost exclusively choose one action (between buying or selling) over the other. So inshort, market polarisation is a a situation where a market is concentrated round a few suppliers or traders.

Here's a look at Performance of 1046 Companies between Jan 2018 to Oct 2019

Total market cap of all above companies almost remained flat during last 22 months

Whopping ~84% of them have lost value and mere 16% have given positive returns

~40% have lost more than 50% of value while only 4% have gained more than 50%

Severity of losses decreased as we move from Micro Caps to Large Caps (Bar 2 to Bar 5)

Total market cap loss in last 22 months was paltry Rs 0.3 Tn (From Rs 148.4 Tn to Rs 148.1 Tn) for the 1046 companies

The net gains of large caps (~Rs 9.6 Tn) compensated for net losses of mid, small & micro (~Rs 9.9 Tn)

There were winners across all the categories

Average Positive performance was not distinguished as per the size

Average negative returns were more severe as you go lower from large caps to micro caps

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