MUMBAI:
Retail investors' bullish bets on select mid- and small-cap counters have backfired as many of the stocks they invested during the December quarter have fallen by 10-70% so far this year. Worse still, much of the money was raised by these investors after pruning their holdings in bluechip stocks, most of which have risen this year.
The number of retail shareholders has risen in companies like Kingfisher Airlines, Opto CircuitsBSE 2.41 %, Zylog SystemsBSE 4.98 %, Tulip TelecomBSE -2.36 %, Glodyne TechnoserveBSE 2.48 %, GTL InfrastructureBSE 0.93 %, GeodesicBSE 3.73 % and Pradip OverseasBSE 1.16 % during October-December from the preceding quarter. On the other hand, retail holding has declined in large-caps like RILBSE 2.03 %, Axis BankBSE 0.42 % and State Bank of IndiaBSE 0.13 %.
Opto Circuit, which declined 17% during the December quarter, attracted over 9,953 small investors. However, the stock plunged a further 44% since the beginning of the year.
Kingfisher AirlinesBSE 4.94 % added 16,857 new retail investors but its share price has declined by almost 35% this year.
The same story has played out in counters like Arshiya InternationalBSE 2.73 % and Commercial Engineers & Body Builders, whose stock has lost more than half of its value since January. Small investors are bottom-fishing in these counters, hoping a news-driven event could turn their fortunes, said market experts.
"A majority of retail investors continued to stay away from the market while a few chased companies trading at a low price, without bothering to analyse why these counters had lost value," said Rahul Rege, business head - retail, Emkay Global Financial ServicesBSE -7.20 %.
Even on a sectoral basis, mid-caps and small-caps have lagged their larger peers. The BSE Midcap index has declined 7% this year and the BSE Small-cap index fell 11.37% against a 0.21% gain in the Sensex.
ETdata also reveals that retail shareholding in Nifty stocks fell to its lowest in the December 2012 quarter while FIIs shareholding in Nifty companies rose to an all-time high.
Retail investors' bullish bets on select mid- and small-cap counters have backfired as many of the stocks they invested during the December quarter have fallen by 10-70% so far this year. Worse still, much of the money was raised by these investors after pruning their holdings in bluechip stocks, most of which have risen this year.
The number of retail shareholders has risen in companies like Kingfisher Airlines, Opto CircuitsBSE 2.41 %, Zylog SystemsBSE 4.98 %, Tulip TelecomBSE -2.36 %, Glodyne TechnoserveBSE 2.48 %, GTL InfrastructureBSE 0.93 %, GeodesicBSE 3.73 % and Pradip OverseasBSE 1.16 % during October-December from the preceding quarter. On the other hand, retail holding has declined in large-caps like RILBSE 2.03 %, Axis BankBSE 0.42 % and State Bank of IndiaBSE 0.13 %.
Opto Circuit, which declined 17% during the December quarter, attracted over 9,953 small investors. However, the stock plunged a further 44% since the beginning of the year.
Kingfisher AirlinesBSE 4.94 % added 16,857 new retail investors but its share price has declined by almost 35% this year.
The same story has played out in counters like Arshiya InternationalBSE 2.73 % and Commercial Engineers & Body Builders, whose stock has lost more than half of its value since January. Small investors are bottom-fishing in these counters, hoping a news-driven event could turn their fortunes, said market experts.
"A majority of retail investors continued to stay away from the market while a few chased companies trading at a low price, without bothering to analyse why these counters had lost value," said Rahul Rege, business head - retail, Emkay Global Financial ServicesBSE -7.20 %.
Even on a sectoral basis, mid-caps and small-caps have lagged their larger peers. The BSE Midcap index has declined 7% this year and the BSE Small-cap index fell 11.37% against a 0.21% gain in the Sensex.
ETdata also reveals that retail shareholding in Nifty stocks fell to its lowest in the December 2012 quarter while FIIs shareholding in Nifty companies rose to an all-time high.
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