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Sowmya Sundar

Stocks that relatively outperformed

If you expected defensive plays to be the least affected in the latest round of market mayhem, you are in for a surprise. Traditionally stocks from sectors such as pharma, FMCG or software have shown greater resilience in a meltdown. But this time around, stocks such as Hero Honda, Bajaj Auto, M&M, HDFC and HDFC Bank figure at the top of the list of relative out performers, having experienced relatively lower downside since the market touched its all time high on May 10.

Companies such as Hero Honda and Bajaj Auto managed to record lower declines than the broad markets. This is despite being sensitive to fuel prices and interest rate hikes. The firming up of interest rates and the impending hike in petrol prices could have an impact on the offtake of vehicles. Bajaj Auto had, towards the end of last week, come out with better than expected results with post tax earnings for the fourth quarter growing by 69 per cent and 47 per cent for the fiscal 2005-06. The stock had borne most of the brunt during the previous week and managed to contain the loss to just 2.6 per cent on Black Monday.

Contrast this to Tata Motors' lower than expected earnings numbers for the fourth quarter further fuelled the fall on Monday. The stock that had lost 12 per cent till last Friday, fell by another 10 per cent during the day's trade.

Stocks such as Tata Power, Tata Consultancy Services, Satyam and Bharti Airtel also relatively outperformed the markets. These stocks, however, were relative under performers during the last leg of the recent rally, when the Sensex climbed from 10,000 to 12,600.

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