The Hindu Business Line : Banking, ADAG stocks recover sharply from low

Early January saw the Sensex touching its highest-ever figure of 21000 and just ten days later it plummeted by 2000 points and by July 16, 2008, it was down to 12500 points.

During this period, many stocks across the board recorded their new lows. Since then, while some of these stocks have managed to recover from their lows; some have even managed to record new highs.

Zandu Pharmaceuticals is up 70 per cent from the beginning of the year and now is quoting at Rs 23,964.75, which is also the highest the stock has reached.

The stock has been moving up since the Emami group bought shares in off market deals from one of the two promoter families, said market men.

Reform prospects

Other stocks that saw such jumps in their share prices in the last seven months are Bosh Chassis Systems (107 per cent), IL&FS Investsmart (104 per cent) and Orchid Chemicals and Pharmaceuticals (141 per cent).

A lot of banking stocks and ADAG group stocks have recovered from their yearly lows.

The banking stocks had a run-up in the last one week, as reform prospects for the sector was expected to get a fillip after the Government won the vote of confidence.

As for the Reliance ADAG pack, investors are expecting things to be easier for the group after the Government won the vote of confidence.

SBI closed up 47 per cent from its yearly low that it touched at the beginning of the month. Bank of India, Punjab National Bank, ICICI Bank and HDFC Bank all are up more than 40 per cent from their lows that they recorded at the beginning of the month.

Mundra SEZ, Ranbaxy, Areva, Bajaj Auto and BHEL were among the other stocks that recovered .

Still negative

On the other hand, some stocks, after recording their highs, have fallen to new lows in the last seven months. Stocks that fall into this category are mainly broking company stocks.

Prime Securities is down 94 per cent as of today from its 52-week high in January. Motilal Oswal is down 77 per cent from its high of Rs 2,270 at the beginning of the year.

Emkay Global Financial Services, Indiabulls Securities, Edelweiss, Geojit, Future Capital, JM Financial and Religare are all down between 78 per cent and 46 per cent from their yearly-high that they recorded in 2008.

As the bull run petered out and the volumes dry, investors turned away from broking stocks, said the head of research at a stock broking firm.

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