Brightcom Group, YES Bank, Suzlon Energy shares: Every 2nd retail favourite stock in bear grip this year

While the NSE barometer Nifty has fallen 6 per cent in 2023 so far, every third stock that traded on NSE this calendar is in the bear grip. Small retail investors have been hit hard, as nearly half of retail favourite stocks including YES Bank, Suzlon Energy and Brightcom Group have fallen over 20 per cent.

In total, 741 stocks or 38 per cent of 1,938 active NSE-listed stocks have fallen over 20 per cent this calendar. Against 544 stocks, where retail holding is 20 per cent or above, 292 stocks have seen a fall of over 20 per cent.

Rolta India, where retail holding stood at 60.68 per cent as of December quarter, has plunged 58 per cent in 2023 so far. Future Consumer (down 70 per cent), Future Enterprises (down 70 per cent), Suumaya Industries (down 67 per cent) and Hybrid Financial Services (down 65 per cent) and Sumeet Industries (down 56 per cent) have been among worst-hit tail favourite stocks.

Brightcom Group, which has seasoned investor Shankar Sharma as investor, has fallen 55 per cent to Rs 13.30 this year from Rs 29.40 level as on December 31, 2022. Last year, Sebi ordered a forensic audit into the financial statements of Brightcom group for the period between FY15 and FY20.

ZEE Learn plunged 53 per cent this calendar. The NCLAT last month set aside an NCLT order allowing insolvency proceedings against the Essel group firm and directed the Mumbai bench of NCLT to pass a fresh order. NCLT had earlier admitted the plea filed against Zee Learn by its financial creditor Yes Bank and directed to initiate insolvency proceedings against it.

Shares of YES Bank have fallen 27 per cent to Rs 14.95 from Rs 20.60 amid fears of selling by key shareholders following the expiry of three-year lock-in period. No investor bank so far has cut stake in the private lender. Retail investors owned 22.34 per cent stake in the private lender at December quarter end.

Suzlon Energy, where retail ownership stood at 26.67 per cent, has fallen 25 per cent this calendar. HDIL (down 46 per cent), City Union Bank (down 32 per cent), Tanla Platforms (down 26 per cent), Deepak Fertilisers (down 25 per cent), HFCL (down 20 per cent), CDSL (down 20 per cent).

Also read: Vedanta, Reliance Industries, NTPC, South Indian Bank, other stocks to watch today

An recent ASSOCHAM report suggested that the market share of individual investors rose to 45 per cent in FY21, making up for nearly half of the market turnover at NSE. This was accompanied by a decline in the shares of corporates, domestic and foreign institutional investors. In FY22, the share of individual investors at 41 per cent was above the pre-pandemic 5-year average of 37 per cent, but it declined from the peak of FY21.

The fall continued in FY23 acoompained by a rising share of FIIs, the report suggested.

"Retail investors are highly sentiment driven and tend to engage in more speculative trading rather than in long-run buy-and-hold investment strategies. This could amplify market downturns and upturns. Therefore, there is a need for market regulators to ensure that the participation is informed and educate," it suggested.

Also read: Angel One, Crisil, IGL and Dwarikesh Sugar shares to go ex-dividend today

Also Read: This Tata Group stock is down 45% from its 52-week high; should you buy, sell or hold?