The correction in the market has seen sector specific stock movement according to the levels of valuation. Stocks in sectors that were overvalued due to high expectations in earnings growth have seen sharp correction from peak levels witnessed in the month of March 2015.
Banks in particular have seen correction in the range of 10% to 15% from peak Sensex levels of 30,000 in the month of March 2015. Rising NPA levels is the main reason the PSU Banks have corrected sharply according to Q4FY15 and Q3FY15 results.
IT sector has clearly witnessed a slowdown in the earnings growth. The stocks have corrected in the range of 8% to 21% with Wipro correcting 20.83%.
Auto Stocks particularly Hero Motocorp and Tata Motors have corrected sharply. Hero Motocorp quarterly results have been disappointing. Maruti Suzuki Stock has corrected the least since results were above market expectations.
Oil and Gas stocks are the least affected in the recent correction. Stocks have corrected in the range of 0.15% to 12%.
In the pharma space Auro Pharma rose 15.5% while other major stocks corrected in the range of 1% to 18%.
In the Telecom space Idea Cellular rose 8.7% when other stocks gave a sharp correction. Q4FY15 results above market expectations and growth in the data revenues has supported the stock.
Power sector has witnessed correction in the range of 9% to 16% even though valuations do not appear to be expensive.