Your stocks are much lower than you think

Ahmedabad: This would come as a crude shock for many investors who still believe that their stocks are trading at 13,000 level. The reality is that the value of many stocks has eroded so much that they are trading at levels which were seen when the benchmark sensex was at 8,800 two years ago.
    Though the worries over rising crude oil prices weighed on shares and shaved off 570 points from sensex on Thursday, as many as 23 stocks - 73% of sensex-30 pack - ended much below than the level of 13,094 points on Thursday.
    Out of 30 sensex stocks, 15 are trading at a value that was seen when the market had touched 12,600 level on May 11, 2006. Shares of seven companies are also trading at a value that it had already achieved when sensex was at 8,800 level on June 14, 2006.
    Not only sensex stocks, but 63% of the total stocks listed on BSE are already lower than what they were when the index was on 12,600 mark. And around 36% of the stocks are quoting lower than levels seen when the benchmark index was at 8,800 level.
    There are more than 4,500 listed companies on BSE, while actively traded scrips are around 2,700.
    The devaluation is mainly due to high crude oil prices, increasing inflation and rising interest rates. Shares of realty, banking, auto and capital goods companies have mainly taken a beating. Mid-cap and small-cap stocks have suffered more than some of the frontline stocks, as the fund houses and large investors have lost their interest in these.
    "This indicates that there are enough opportunities available in the markets, which are not reflected in the sensex values. Investors must bear in mind that merely because the stocks have come off their recent highs, it does not mean that they will rush back to those levels again. One needs to review their fundamentals in the changed environment and take a decision,'' said VK Sharma, research head, Anagram Securities.
    Experts say crude prices will decide the course of market. "Considering the prevailing sentiment, market could slip further, if crude oil price is not stabilized,'' said Motilal Oswal of Motilal Oswal Securities.