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That the infrastructure stocks are the favourite whipping boys of the investors is now a well known fact. Rising interest rates, policy inertia on the part of the Central Government and lack of investment in infrastructure projects have all been touted as the reasons as to why the infra stocks have been on a downward spiral for nearly a year.
Fleeing investors
A further proof of that was available on Wednesday when, after the disappointing inflation numbers were re- leased that made investors sceptical of any reversal in the approach of the RBI over its hard monetary policy to tame inflation, the infra stocks were pounded by the investors so much that 19 of the 25 stocks constituting the CNX Infra index ended in the red at close.
That four of them touched their 52-week lows and two barely managed to escape touching their yearly lows indicated the extent to which these stocks had to bear the investor fury. That the CNX Infra index, which touched its 52-week low on Tuesday, has lost 33 per cent of its value in the past one year bears ample testimony to investors fleeing these stocks.
Lanco Infratech Ltd (LITL), Tata Power, Reliance Infra and Punj Lloyd all hit their 52-week lows, while L&T and NHPC just missed it. LITL dipped to Rs 10.20, its 52-week low, before closing marginally higher at Rs 10.30. Lanco, whose 52-week high is Rs 66.35, has lost 83 per cent (NSE data) in the past 365 days. The counter witnessed a trading volume of 1.24 crore shares on the NSE.
Tata Power touched Rs 86.20 (face value Re 1), which is its 52-week low compared to the 52-week high price of Rs 1411 (at pre-stock split face value of Rs 10).
Reliance Infra has found that share buy back has not been of help in shoring its share price and the stock was down to Rs 361, its 52-week low, before inching higher to Rs 361.55 at the close. From its yearly high of Rs 895, the stock has lost 55 per cent. Punj Lloyd was the other infra stock to touch 52-week low, slipping to Rs 42.10 its lowest in one year. The counter has lost 60.47 per cent in a year.
L&T, which has been under severe selling pressure (the stock has lost about 40 per cent in the past one year) closed today at Rs 1,161.05 after touching a low of Rs 1,156, which was a mere Rs 2 higher than its 52 week-low of Rs 1,154. Its 52-week high on the NSE is Rs 2,020.
NHPC was another case of lucky escape, the stock closed at Rs 20.30, just 10 paise more than its 52-week low price of Rs 20.20. The stock has lost 25 per cent in one year.
Some Bright spots
There were some bright spots, though, among the infra stocks. Tata Communications closed at Rs 196, a gain of Rs 5.10. Adani Power was up by Rs 1.70 to end the day at Rs 73.85. Idea Cellular, Mundra Port, Bharti Airtel and JP Associates closed in the green but only marginally.
That Idea and Bharti are the only two CNX Infra stocks to show positive performance in the past one year, and Power Grid failed to make to the list by just a whisker, showing a negative change of 1.84 per cent. But, the rest of the 22 CNX Infra stocks have shown a substantial negative return in a year reflecting the sector's poor show in the bourses.
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