Free fall: Volatile week erodes one-year gains for large-cap schemes

Large-cap schemes that were holding fort among the actively-managed plans have started giving in amid the rise in market volatility.

These schemes have seen most of their one-year returns getting wiped off in the last seven trading sessions. As of September 27, the average returns for these schemes stood at 10.3 per cent. Following last week’s sell-off, the one-year returns have fallen to just about 1.5 per cent, shows the data from Value Research. Experts say selling by foreign institutional investors (FIIs) is hurting large-caps as FIIs investments are largely parked in them.

“Investor sentiment in non-banking financial companies (NBFCs) — several of which are large-cap companies — has got hit as a result of the IL&FS crisis. Even big names like HDFC have not managed to escape the selling pressure seen in the NBFC space. The global headwinds have also hit investor sentiment,” said a fund manager, who wished not to be identified.