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

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

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

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

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