Blue chip stocks trade lower than their highs

The Sensex may be at an all-time high, closing above the 28,000-mark for the first time ever on Wednesday but blue chip stocks including a majority of sensex constituents, are trading much below their previous highs. In fact, only three out of the 30 sensex stocks touched their 52-week highs on Wednesday.

Despite the huge jump in key indices over the past few months, the stock price of NTPC, the country's largest power producer, is quoting at less than half its all-time high price hit in January 2008. The scrip has fallen 15.5% since touching its 52-week high of Rs 169 on June 6. Similarly, power equipment behemoth BHEL's stock is available now at less than half its all-time high price. Index heavyweight Reliance Industries' scrip is ruling 40% lower than its all-time high of Rs 1,626 scaled in January 2008. The stock (adjusted price) has declined 14.8% ever since hitting its yearly high on May 16.

Similarly, telecom major Bharti Airtel's stock is down 33% from its all-time high. Sesa Sterlite, Tata Steel and Tata Power were among the biggest losers in the sensex pack in the last five months.



"These companies are a direct play on the industrial economy. Since the industrial stagnation is still continuing, they have not done well," says G Chokkalingam, founder and MD, Equinomics Research and Advisory. "The initial euphoria took their stocks up. But their (earnings) performance in June and September quarters didn't reflect the optimism," he says.

With the fall in commodity prices, oil and gas firms and firms engaged in mining or producing natural resources have seen a huge fall in their stock prices. While Aditya Birla Group flagship Hindalco's scrip has nosedived 24% since touching its yearly high in July, the Coal India stock has fallen 18% from the high hit in June. Public sector oil behemoth ONGC and gas transmission and marketing major GAIL India's scrips have retreated 16.6% and 12% since touching their yearly highs.