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Blue chip stocks dip below top 500 list

Mumbai, July17 (): The last quarter ending June showed that one of three blue chip stocks which forms part of the BSE sensex, slipped to the bottom of the performance chart. These companies logged a 6.3% to 13.8% losses. Worst hit were automobile, metals and mining companies which yielded considerable ground during the quarter.

Reasons like euro zone crisis and policy changes are cited. BSE 500 blue chip companies show that 300 of them have dropped below the level to be ranked as blue chip. Big losers were Jindal Steel and Power, Maruti Suzuki and Tata Motors, whose losses range from 13.8%, 13.2% and 12.2%, respectively.

Other blue chip companies like Infosys, BHEL and Bharti Airtel too slipped lower. In this quarter when just one sensex stock ( ITC) made it to the top-50 list, only seven managed to be in the top-100 stocks.

Investment bankers say that these stocks are hit if the sector they deal with it are facing problems and also that investor mood is to sell and wait till the investment climate improves. However some stocks like aviation which is facing losses has defied the logic.

Ranked 7th, SpiceJet stock gained 42%  while Jet Airways’ stocks advanced 17.3%. The only loser in the aviation sector was Kingfisher, which is showing huge losses and piling up debts at 27.1% to be at bottom of the list.

Almost all the stocks of real estate firms continued with their losing streak. Big companies like DLF, Indiabulls Real Estate and Unitech finished the quarter in a loss. The worst loser was Unitech stock, which dived to 23.3%.

Banking sector witnessed an average performance adding some value since investors were hopeful of RBI easing interest rate cut and improvement in credit off-take. Here too the blue chip SBI and ICICI in the private sector could not match the performance of less fancied banks for investment.