Retail investors face a reality check. Top Q4 picks down up to 47% in 2022

NEW DELHI: Gung-ho retail investors are having a tough time on Dalal Street, with their top picks of March quarter falling up to 47 per cent so far this calendar.

Out of 17 BSE500 stocks, where the retail category hiked stake by over 200 basis points in Q4, 14 have underperformed while just one has delivered positive return in 2022 so far. Buy on dips strategy isn't working for them, it seems, as the market sentiment turned sour over concerns related to fragile global economic outlook and aggressive Fed rate hikes.

Shares of Dilip Buildcon have plunged 47 per cent so far this calendar. In the one last month alone, the scrip has fallen 23 per cent. Data showed retail investors, as suggested by individuals holding up to Rs 2 lakh worth shares, hiked stake in the company by 316 basis points in March quarter to 7.57 per cent from 4.41 per cent in the December quarter.

Zensar Technologies saw retail holding rising to 13.75 per cent from 10.89 per cent sequentially. This scrip is down 22 per cent in the last one month and 42 per cent year-to-date.

Metropolis Healthcare is down 16 per cent in the last one month and 37 per cent YTD. Retail holding in this stock climbed to 8.7 per cent by March end from 6.06 per cent at the end of December quarter, up 2.64 per cent.

HEG, Brightcom Group and Manappuram Finance fell 33-36 per cent so far this year. Retail individuals increased 5.43 per cent stake in Brightcom Group sequentially. They hiked stake in Manappuram Finance by 381 basis points and HEG by 353 basis points.

Indiabulls Housing Finance, Indiamart Intermesh, Jubilant FoodWorks, Indian Energy Exchange, MCX, PTC India, Bajaj Consumer Care and KPIT Technologies are some other companies where retail investors hiked stakes by up to 5.82 per cent in March quarter. The scrips have fallen 11-32 per cent so far this year. The BSE500 index has fallen 8 per cent during the same period.

Praj Industries was an exception with a 13.22 per cent rise. Retail holding in this stock rose to 28.54 per cent from 25.97 per cent, up 2.57 per cent.