It turned out to be the second straight week of losses for domestic equities.
Flagships BSE Sensex and NSE Nifty lost over half a per cent in the holiday-shortened week. That’s chiefly because of renewed concerns over trade equations between the US and China, along with losses in the rupee that plumbed a record low.
It’s a different story that the currency has made a smart pullback on the government’s pep talk.
The 30-share Sensex tumbled 299 points, or 0.78 per cent, to 38,091 for the week to September 14. The 50-share Nifty gave up 73.90 points, or 0.64 per cent, to end at 11,515 during the same period.
Which stocks made the maximum news in the week gone by? Let’s see.
A ‘sweet’ deal
Sugar stocks rallied up to 20 per cent on Friday as the government raised ethanol prices by 25 per cent for its blending in petrol. The government on Wednesday approved an over 25 per cent hike in the price of ethanol produced directly from sugarcane juice for such blending in a bid to cut surplus sugar production and reduce oil imports.
The Cabinet Committee on Economic Affairs raised the procurement price of ethanol derived from 100 per cent sugarcane juice to Rs 59.13 per litre, from the current Rs 47.13.
@fresh all-time high
Mindtree, ICICI Lombard General Insurance, L&T Infotech, Axis Bank, Sanofi India, Abbott India, Whirlpool of India and JSW Steel were among top stocks on the BSE500 index that hit new lifetime highs during the week.
@fresh all-time low
Laurus Labs, IL&FS Transportation Network, Navkar Corporation and Chochin Shipyard slumped to their fresh record lows on the BSE500 index.
Cabinet gives push to fertilisers
Shares of fertiliser companies were in the spotlight on Friday after the Cabinet approved Rs 15,053 crore new procurement policy to ensure remunerative prices for farmers. FACT, RCF, Nagarjuna Fertilizers and Chemicals and National Fertilizers gained up to 12 per cent on September 14.
IL&FS group in trouble
Shares of IL&FS group companies dropped up to 21 per cent this week after Moody’s affiliate ICRA downgraded parent IL&FS for the second time in a month. Shares of IL&FS Transportation fell 21 per cent to Rs 23.75 on September 14, from Rs 30.10 on September 7. Another group stock IL&FS Investment Managers declined 13.87 per cent to Rs 9.87, from Rs 11.46 during the same period. IL&FS Engineering also lost 21.13 per cent to Rs 13.25.
MACD’s ‘buy’ signal for 67 stocks
Momentum indicator Moving Average Convergence Divergence, or MACD, signalled upward crossover on as many as 67 counters on the NSE. The list included Vedanta, Hindalco, Tata Steel, Tata Global Beverages, MTNL, Castrol India, Uflex, Vadilal Industries and Bajaj Corporation.
ICICI shareholders up the ante
Shareholders of ICICI Bank at the company’s 24th annual general meeting (AGM) on Wednesday questioned the veracity of allegations of quid pro quo by CEO Chanda Kochhar and her family members and conflict of interest with respect to loan extended to certain entities, including the Videocon group. Kochhar, who is on leave till the completion of an external enquiry into an alleged conflict of interest, did not attend the AGM. Shares of ICICI Bank closed 2 per cent down at Rs 328.15 for the week ended September 14.
The government-owned Ircon International is all set to hit capital markets on September 17 with an initial public offering (IPO) of 9,905,157 shares at Rs 10 each in the price band Rs 470-475 per share. The issue will close on September 19.
Tide turning for Axis Bank?
Shares of the private lender Axis Bank hit a 52-week high of Rs 676.90 on the BSE, but settled the week at Rs 636.25, down 1.38 per cent against Rs 645.15 on September 7. Shares of the lender hogged limelight after Amitabh Chaudhry of HDFC Life was named its new CEO and MD, who will take office from January 1 next year. Analysts see the development as a game changer as the appointment could reverse weakening of Axis Bank’s brand image.
Source: Economic Times