Majority of the laggards have been hit by rich valuations, muted earnings, abysmal corporate governance and destitute fundamentals, whereas scanty consumer demand has the others.
Getty ImagesMarket experts said that a mix of global and domestic factors has dampened the markets sentiments, particularly in the second half of fiscal year ended on March 31, 2022.
New Delhi: Ever since the Covid-19 pandemic began, follow-up buying has turned equity markets into multibagger minting machines for many. However, not everything was hunky dory for the investors, particularly in FY22.
A few names burnt investors' wealth with around 280 stocks failing to deliver positive returns to investors.
According to the data from AceEquity, 25 stocks have tumbled more than 40 per cent in the financial year 2021-22, with top dozen names eroding more than half of the investors wealth.
Majority of the laggards have been hit by rich valuations, muted earnings, abysmal corporate governance and destitute fundamentals, whereas scanty consumer demand has the others.
Market experts said that a mix of global and domestic factors has dampened the markets sentiments, particularly in the second half of fiscal year ended on March 31, 2022.
Massive FII selling, rising global inflation, boil in crude prices, Fed's hawkish commentary, interest rate hike, rich valuations and sharp selloff in the new tech based platforms dented the market sentiments in FY22, said Sonam Srivastava, Founder at Wright Research, Sebi Registered Investment Advisor.
The list of laggards is topped by Suryoday Small Finance Bank which plunged as much as 68 per cent during FY22. The private lender dropped to Rs 87.7 on March 31, 2022 from Rs 273 on the same date a year ago.
Strides Pharma Science also tumbled about 60 per cent during the year. Shares of the drug maker dropped to Rs 346.55 from Rs Rs 844.5 during the period under review.
Vijay Singhania, Chairman, TradeSmart said that the uncertainties in the Middle east, rate hikes and inflation worries led to rampant exodus of the foreign investors, who pulled about Rs 2 lakh crore from the domestic equities.
Dilip Buildcon, Sadbhav Engineering, Sadbhav Infrastructure, Yaari Digital, Solara Active Pharma, Ujjivan Financial Services, Ujjivan Small Finance Bank, Vaibhav Global, Neuland Laboratories, Ramco Systems are other stocks to decline more than 50 per cent in FY22.
SORIL Infra Resources, Repco Home Finance, GE Power India, Huhtamaki India, Capacit'e Infraprojects, Spandana Sphoorty Financial, Lumax Industries dropped in the range of 45-50 per cent in the recently concluded fiscal.
Vikram Kasat, Head - Advisory at Prabhudas Lilladher, said that the recent rebound has seen indices send a number of positive signals to investors. Markets have become less sensitive to headlines.
Sequent Scientific, Indiamart Intermesh, Jubilant Pharmova, General Insurance Corporation of India, Gulf Oil Lubricants India and Ceat also dropped more than 40 per cent each.
For the upcoming financial year, market participants are positive on equity markets, but expect the volatility to continue, at least for the first quarter of the new fiscal year.
"With more attractive valuations, bearish positioning by investors and a lot of central bank tightening already priced in, the road ahead remains constructive in our view, though short-term wobbles are to be expected," Kasat said.
"We look for relief from the crisis in the next financial year," Sonam Srivastava from Wright Research added. "IT, Pharma, Energy, and Metals are likely to remain strong while consumer and auto sectors might struggle."
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