Mild blow in unlisted space as bears wipe out Rs 30 lakh cr on D-Street -03.04.2020

It is a 15 days old news, but we are sharing here to explain to you guys how Unlisted space is weathering the selling pressure of Dalal Street. Our Co-founder Mr.Dinesh Gupta has also shared his view in the article.

New Delhi: The domestic stock market has taken a hard knock as fears about the rapidly spreading coronavirus gripped financial markets the world over.

While the domestic market for listed shares has virtually perished as the bears ran amok, the impact has not been so severe in the unlisted space, said traders from the unlisted market.

The selloff in domestic stocks has eroded about Rs 31 lakh crore worth of equity investors’ wealth so far from the all-time high level that BSE Sensex scaled on January 20. Market capitalization of BSE-listed firms fell to Rs 128 lakh crore from around Rs 159 lakh crore during the period.

Concerns over coronavirus, fears of a global recession, a price war in the oil market, the crisis at YES BankNSE 0.84 % and a slide in domestic GDP growth rate have ensured the bear grip on domestic stocks.

“The rout in the listed market has affected the unlisted market as well, but the impact has been limited. There is a lesser number of buyers in this space as of now, in spite of the correction in share prices,” said Sandip Ginodia of Abhishek Securities.

Dealers in the unofficial market said some shares have plunged. Hero Fincorp has fallen to Rs 1,000-1,025 levels from Rs 1,100-1,125 in last two months. HDFC Securities has lost up to 5 percent value to trade in the Rs 8,300-8,400 range.

HDB Financial and UTI AMC – two of the hottest stocks in the unlisted space – have tanked up to 10 percent. HDB Financial now is available at Rs 1,025-1,050 against Rs 1,150-1,200 three weeks back and UTI AMC at Rs 975 against Rs 1,050 earlier.

B9 Beverages, the maker of Bira Beers, has tanked up to 25 percent. The stock, which traded at Rs 1,200 in December, is now valued at Rs 900. Shares of Reliance Retail have traded flat post cancellation of the share swap RIL has earlier proposed.

UnlistedZone View

All hell broke loose in the listed market. Though there is a fall in unlisted space too, the intensity has not been as strong,” said Dinesh Gupta of InvestorZone, which trades in unlisted shares.

He advised investors to be cautious”

Going against the wind, shares of Religare Health Insurance have surged over 20 percent in the last one month and they now trade at Rs 52-55. This scrip has doubled investor wealth in the last one year.

Suryodaya Small Finance Bank is another stock that has gained over 10 percent despite the recent selloff. The scrip surged to Rs 340-350 from Rs 310-320 amid an IPO buzz.

Tamilnadu Mercantile Bank has also gained traction in the unlisted space. The stock has crossed Rs 400 mark against a Rs 350-360 range earlier, as the lender readies to hit the primary market later this calendar.

Brew maker Mohan Meakin has delivered over 15 percent return in the last couple of months, surging to Rs 600-610 from Rs 510-520.

“The unlisted space is not for intraday trade. Investors hold their investment for a long period to gain more. So, panic does not bother much. Also, the minimum investment amount restricts the entry to only patient investors,” said Abhishek Chaturvedi of Ultimate Wealthowl.

Source: Economics Times