The domestic equity market had a roller-coaster ride during the week gone by, owing to both global as well as domestic worries. The equity indices finally managed to settle in the green, thanks to significant gains in the week’s final trading session on Friday.
The rupee hit a fresh record low of 74.48 against the dollar during the week, but rebounded smartly to log biggest one-day gain in 29 months to rise 55 paise and close at 73.57 to the dollar.
Globally, stock markets witnessed severe selling pressure on the back of growth worries because of trade tensions and expectation of further liquidity tightness amid rate hike by global central banks.
The International Monetary Fund (IMF) warned last week that sustained trade tensions could slash Asia’s economic growth by up to 0.9 percentage point.
Amid these worries, Dalal Street scripted a smart bounce on Friday. The 30-share BSE Sensex advanced 356.59 points, or 1.04 per cent to 34,733 for the week, while the 50-share NSE Nifty gained 156 points, or 1.51 per cent to settle at 10,472.
Below are top sectors and stocks that hogged limelight through the week:
Nifty’s top gainers
With a rally of 32 per cent, oil marketing company Hindustan Petroleum Corporation (HPCL) emerged as top gainer in the Nifty pack. It was followed by YES Bank (up 20 per cent), Eicher Motors (up 13 per cent), Indian Oil Corporation (up 13 per cent) and Bajaj Finance (up 12 per cent).
Nifty’s top losers
Tata Motors (down 15 per cent) stood as top loser of the week in the Nifty pack. The stock remained under pressure after Jaguar Land Rover (JLR) reported a 12.3 per cent drop in global sales at 57,114 units in September, hit by lower demand in China. The company’s China sales declined 46.2 per cent during September compared with that in the same month last year as ongoing market uncertainty over import levies and continued trade tensions held back consumer demand. JLR also announced a two-week shutdown of its West Midlands plant to cope with weakening global demand for its luxury vehicles. Among others, HCL Technologies dropped 9 per cent, Tata Consultancy Services 8.78 per cent, Vedanta 7.61 per cent and Infosys 5.93 per cent to emerge top index losers in last five sessions.
Q2 earnings: Nothing impressive
Zee Entertainment (ZEEL), Tata Consultancy Services (TCS), Hindustan Unilever and Karnataka Bank announced their financial results for the quarter ended September 2018. TCS reported a 22.6 per cent rise in consolidated net profit at Rs 7,901 crore, buoyed by strong demand for digital services. HUL and Karnataka Bank posted 19.51 per cent and 20 per cent year-on-year rise in net profit. ZEEL posted a 38.23 per cent drop in consolidated profit at Rs 386.10 crore.
New listing: Bad experience
Shares of Garden Reach Shipbuilders & Engineers made a tepid debut on bourses on Wednesday, as it got listed at Rs 102.50 on NSE, a 13.14 per cent discount to the issue price of Rs 118. On BSE, the scrip got listed at Rs 104, down 11.86 per cent. The company’s Rs 345 crore initial public offering was sold from September 24 to October 1, as the issue closure had to be extended because of poor demand. The scrip closed at Rs 102.05 on BSE and at Rs 100.80 on NSE on Friday.
Aviation stock fly high
Shares of airline majors including Jet Airways, SpiceJet and InterGlobe Aviation rallied up to 16 per cent for the week ended October 12 after the government cut excise duty on jet fuel to 11 per cent from 14 per cent to provide some relief to the aviation industry.
Stocks at 52-week low
As many as 216 stocks in the BSE500 index hit their fresh 52-week lows during the week. The list included Central Bank of India, Nilkamal, Dilip Buildcon, Tata Chemicals, Bharat Forge, Inox Leisure, SH Kelkar, TTK Prestige, Gujarat Pipavav, Kalpataru Power Transmission, DB Corp, The South Indian Bank and Birla Corporation.
Sectoral gainers & losers
Barring the BSE Metal (down 0.45 per cent), TECk (down 5.25 per cent) and IT (down 6.57 per cent), all other sectoral indices closed in the green for the week. The BSE Oil & Gas index rallied 9.33 per cent, followed by Bankex (up 4.42 per cent), Power (up 2.50 per cent), Auto (2.23 per cent) and Capital Goods (up 1.31 per cent). Besides a slight fall in crude oil prices, reports that the government may not push oil companies to share increased subsidy burden set the mood for the oil marketing companies.
Bandhan Bank sees respite
Shares of Bandhan Bank rallied nearly 3 per cent during the week gone by. The lender on Wednesday posted a 47.28 per cent increase in net profit to Rs 487.65 crore for the quarter ended September 30, 2018. It had reported a net profit of Rs 331.09 crore in the corresponding quarter a year ago. The private sector bank on Friday also said it got an exemption from market regulator Sebi on the one-year lock-in period for selling shares by promoters.
Kiri Industries settles case
Chemicals firm Kiri Industries and its two promoters have settled a case related to alleged disclosure lapses with markets regulator Sebi after paying nearly Rs 11 lakh towards the settlement. Sebi had initiated adjudication proceedings against the three entities for allegedly violating disclosure norms under its regulations, including PIT (Prohibition of Insider Trading) and SAST (Substantial Acquisition of Shares and Takeover). Shares of Kiri Industries jumped 5 per cent on Friday.
JSW Steel in mood to rally
Shares of JSW Steel rallied nearly 4 per cent during the past five sessions. The company on Thursday said its crude steel output grew 6 per cent to 4.18 million tonne (MT) during the quarter ended September 30, 2018. It had produced 3.94 MT crude steel in July-August 2017.
Source: Economic Times