A rising tide lifts all boats. Or does it? From 20,873 on January 8, 2008 — its peak before the global financial crisis — the Sensex fell to 8,160 in March 2009. Since then, it has made an impressive comeback.

At 28,879 last Friday, it has surged more than 38 per cent over its 2008 peak. The BSE 500 index too is up about 30 per cent.

Yet, as many as 166 stocks in the BSE 500 trade below their January 2008 levels even now. The list includes behemoths such as Reliance Industries and NTPC, which are down nearly 41 per cent from their 2008 peaks. BHEL has slipped 53 per cent.

Worse off are 15 other stocks in the BSE 500, which are trading more than 90 per cent below their bull-market peak recorded six years ago (see table).

Why the poor show

A variety of reasons has kept these stocks in the doghouse. Falling output and regulatory troubles have taken a toll on RIL and NTPC, while BHEL has suffered due to low order flows following the economic slowdown. Financial Technologies was routed by the scam at subsidiary NSEL. Debt troubles have been a drag on Reliance Communications and Suzlon Energy.

Government-controlled minerals trader MMTC’s low floating stock, at less than 1 per cent, made it zoom irrationally in the days prior to the global financial crisis. But it began trading at more realistic levels when the government divested stake. Of course, poor financial performance did not help the stock. Unitech was felled by its promoters getting embroiled in the 2G scam, weak realty sales and high debt.

Sector laggards Banks, most of them government-controlled, form the largest group of laggards, with 21 stocks trading below their January 2008 levels. Loan quality concerns and margin pressures have squeezed the stocks of these public sector banks. With 13 stocks, real estate forms the next largest group of stragglers. High interest rates, poor project execution and debt concerns were among the reasons for realty stocks taking a knock.

Metal and mining stocks such as NMDC, SAIL and Tata Steel suffered due to weak commodity prices and a downturn in the steel sector. Regulatory interference such as the mining ban did not help either. Many infra and energy stocks are yet to reach their previous bull-market highs.

The worst of them all Of the 166 stocks trading below their January 2008 highs, 33 (or nearly a fifth of the set) have been hit so badly that they are languishing even below the market lows of March 2009. This list includes MMTC, Unitech, Reliance Communications, Financial Technologies, MTNL, Hindustan Copper, IVRCL and Bajaj Hindusthan Sugar.

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