Sucheta Dalal :Many stocks still down 70-80% below their peak despite huge market rally
Sucheta Dalal

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Many stocks still down 70-80% below their peak despite huge market rally  

October 6, 2009


While the Sensex has still quite a bit to travel before it retakes its all-time high of 21,000, some stocks have already found their way to new peaks and even higher. The 30-share BSE Sensex is trying to retake its previous high at a breakneck speed. On October 1, it hit 17,195, an astounding 123% surge from its lowest point in October 2008 when it hit 7,697, though it is still 23% below its all-time high. Several stocks which had hit all-time highs at a time when the Sensex was soaring at 21,000 levels or even earlier, have since created new highs. Take Hero Honda, for instance. It had hit an
all-time high in March 2006 when it touched Rs888. As on 5 October 2009, the stock was trading at Rs1,644, up a phenomenal 85% over its previous high and 193% above its low of Rs561 it hit in January 2008. Maruti Suzuki India is currently trading 35% above its October 2007 high of Rs1,188. Similarly, Nestle India and Sesa Goa, which had created highs in May 2008, are up 30% and 24% respectively as on 5 October 2009. Jindal Steel & Power Ltd, Punjab National Bank and Asian Paints have also beaten previous highs and reached new lifetime highs.
While these stocks have gone on to reach new glorious peaks, there are others which are trading at a considerable discount to their earlier peaks. Indiabulls Financial Services finds itself trading at 80% below its January 2008 high of Rs913. Suzlon Energy (-78%) and Unitech (-79%) are also at a significantly lower level than their January 2008 highs even as they jumped manifold from their depressed levels earlier this year. Stocks like MTNL, Aban Offshore and Glenmark Pharmaceuticals are down 73%, 69% and 68% respectively. Sanket Dhanorkar [email protected]

-- Sucheta Dalal