Shillong, September 2: In the month of August, Brightcom Group emerged as the poorest-performing stock within the NSE 500, recording a significant 32% decrease in its stock value.
As per a report in IANS, a research conducted by BOB Economics Research highlighted several other notable downturns. Tanla Platforms saw an 18.5% decrease, Vedanta experienced a 15.8% drop, and Medplus Health Services fell by 15.4%.
Joining the list of underperformers, TCNS Clothing registered a 13.3% loss, Cummins India dipped by 13.2%, Radico Khaitan slid by 13%, and both Redington and Borosil Renewables witnessed declines of 13%. Additionally, Hindustan Petroleum faced a 12% drop, Bombay Burmah saw an 11.8% reduction, and Macrotech Developers and TCI Express both experienced 11.7% and 11.6% losses, respectively. Apollo Tyres rounded off the list with a 10.3% decrease.
On a brighter note, some stocks outshone the market in August. RattanIndia Enterprises surged by 52%, Kalyan Jewellers gained 41%, and Swan Energy saw a substantial increase of 38%. Indiabulls Housing Finance and Cochin Shipyard also posted gains of 38% and 35%, respectively. Gland Pharma, Apar Industries, and Indian Railway Finance Corporation showed strong performances with gains of 33%, 32%, and 31%, respectively. The BSE gained 31%, Suzlon Energy rose by 29.6%, and Archean Chemical increased by 28.8%. Vaibhav Global and Solar Industries both reported gains of 28% and 27%, respectively.
However, the Nifty50 remained relatively in line with global indices in August but continued to lag behind year-to-date. Most major global indices faced pressure, with Chinese indices among the poorest performers. Hang Seng and Shenzhen experienced declines of 8% and 6.5%, respectively. S&P500 saw a 1.6% decrease, while Nifty50 dropped by 2.5%. Nevertheless, this correction brought the one-year forward PE multiple for Nifty50 in line with its five-year average, indicating fair valuation. Despite a 6.3% year-to-date increase, Nifty50 fell behind other major indices with double-digit returns.
Mid and small caps maintained momentum, but most sectoral indices were in the red. Nifty mid and small cap indices rose by 4% in August. Notably, Nifty IT exhibited a 3% recovery, hinting at a potential bottoming out of the sector. The pharma sector also saw a modest recovery due to expectations of reduced pricing pressure in generic medicines in the USA.
The weakening INR played a role in these sectoral recoveries. However, most other major sectors experienced negative returns during the month. The report also highlighted that mid and small cap funds continued to attract disproportionately higher inflows, creating a cycle of outperformance and increased investment.