Benchmark indices reversed some previous day’s gains on July 12 as traders turned cautious ahead of Infosys’ earnings and economic data.
The BSE Sensex was down 86.88 points at 38,736.23 and the Nifty50 fell 35.20 points to 11,547.70.
The broader markets outperformed frontliners with the Nifty Midcap and Smallcap indices rising 0.46 percent and 0.33 percent respectively.
In terms of sectors, the S&P BSE Metal index rose 0.91 percent, followed by the S&PBSE Realty index which was up 0.55 percent, and the S&P BSE Healthcare index that rose 0.5 percent.
Earnings and macros will dictate the trend for markets in the coming week. On the global front, the movement of crude oil prices, as well as geopolitical tensions, will be watched. Crucial support for Nifty index is placed at 11,400-11,460 levels.
Here is the list of top stock movers for the week:
Sun Pharma, up 8.69 percent
The share price of Sun Pharma gained as much as 8 percent for the week with the stock adding over 4 percent in the last three days. CLSA said it expects the stock to return 35 percent on its strong India positioning.
“We maintain buy rating on the stock with a price target at Rs 520 as the stock remains attractive due to its strong India positioning and improving US outlook that will aid profitability,” the research firm said, adding India profitability improved over FY15-18.
Quess Corp, up 8.22 percent
Shares of business service provider Quess Corp jumped over 8 percent in the week with the scrip zooming over 14 percent on July 12 itself after the company said its board had approved the preferential issue of 7.54 lakh equity shares to Amazon.com NV Investment Holdings LLC.
The company will hold an extraordinary general meeting (EGM) on August 8 for seeking approval of the members for the aforementioned preferential issue.
“The Board has approved issue of 7,54,437 equity shares of the company having a face value of Rs 10 per equity share to Amazon.com NV Investment Holdings LLC, a category Ill Foreign Portfolio Investor for an aggregate amount of Rs 50.99 crore at an issue price of Rs 676 by way of a preferential allotment in accordance with applicable law, and subject to such regulatory/statutory approval as may be required, including approval of the shareholders of the Company,” the company informed the exchanges.
YES Bank, up 6.75 percent
The share price of private banking firm YES Bank added over 6 percent even as global investment firm Jefferies turned bearish on the stock, citing liquidity concerns. The brokerage has “underperform” rating on the stock and it has slashed target price by nearly half to Rs 80 from Rs 155 earlier, implying 12 percent downside from current levels.
It also cut EPS estimates by 82 percent, 24 percent & 22 percent and book-value by 30 percent, 20 percent and 15 percent for FY20-22.
Glenmark Pharma, up 4.47 percent
Pharma compant Glenmark Pharma was up 4 percent in the week gone by. The company received approval from US health regulator for anti-anginal drug. The US Food and Drug Administration has granted its approval for Ranolazine extended-release tablets, which will be available in 500 mg and 1,000 mg strengths.
Also, global research firm Nomura sees 92 percent potential upside from current levels after company’s partnership with Torrent. “We maintain buy call on the stock with a target price at Rs 867 as we expect company to tie up with more companies in due course,” the research house said.
Forming partnership with other large Indian companies for a novel drug is a solid strategy, Nomura said adding upfront payment through partnership would rec over a substantial portion of the development cost.
Jindal Steel & Power, up 3.73 percent
Steel major Jindal Steel & Power was up over 3 percent for the week with the stocmk gaining over 5 percent in the last three days. The production of steel by JSPL rose 16 percent to 1.57 million tonne (MT) during April-June period of the ongoing fiscal. The company had produced 1.35 MT steel in the year- ago period, JSPL said in a BSE filing.
“The quarterly production and sales of steel and related by-products stood at 1.35 MT and 1.30 MT respectively in Q1FY’19,” it said. A part of the USD 22 billion diversified O P Jindal Group, JSPL has a significant presence in core infrastructure sectors including steel, power, mining and infrastructure.
Mindtree, down 15.31 percent
The share price of Mindtree plunged over 15 percent in the week gone by with the stock price down as much as 22 percent in the last three months. The stock fell 14 percent on July 8 as leaders in management resigned after Larsen & Toubro acquired a controlling stake in the company.
“Krishnakumar Natarajan, Executive Chairman, N S Parthasarathy, Executive Vice Chairman and Chief Operating Officer and Rostow Ravanan, CEO and Managing Director have submitted their resignations as members of the board of directors and as employees of the company,” the technology services and digital transformation company said in its BSE filing on July 5.
Dewan Housing Finance, down 14.6 percent
Housing finance company DHFL shed over 14 percent last week with the scrip tanking as much as 88 percent in the last one year. The company lenders have reportedly granted the housing finance company seven days to come up with a resolution plan (RP) for over Rs 1-lakh crore of loans under stress.
Two major credit rating agencies – ICRA and Crisil earlier this month categorised DHFL’s commercial paper at default levels for missing bond payments.
Titan Company, down 13.81 percent
Jewellery maker Titan Company was down over 13 percent last week. Morgan Stanley downgraded the stock to the equal-weight from overweight. The slump was in reaction to the company’s report that indicated a slowdown in the jewellery business, coupled with triple rating downgrades from global brokerage firms Morgan Stanley, HSBC and Credit Suisse.
Morgan Stanley downgraded the firm to equalweight from overweight with a target of Rs 1,300 per share. Meanwhile, Credit Suisse downgraded the stock to neutral from outperform with target unchanged at Rs 1,250 per share. HSBC downgraded it to hold from buy, maintaining the target price at Rs 1,300.
Interglobe Aviation, down 13.04 percent
Airline company Interglobe Aviation shed over 13 percent in the week gone by after the rift between promoters reaches the Securities and Exchange Board of India (SEBI), involving two promoters – Rahul Bhatia and Rakesh Gangwal. SEBI on July 9 asked the Board of Directors of InterGlobe Aviation to respond to a letter written by Rakesh Gangwal, which sought regulatory intervention on his alleged grievances. The board has time till July 19 to respond to Gangwal’s letter.
Bajaj Finance, down 9.18 percent
Bajaj Finance reported lost of over 9 percent last week as Morgan Stanley said it saw 18 percent downside from current levels despite strong loan growth in Q1. The brokerage has “equalweight” rating on the stock with a target price at Rs 2,950 per share after the company reported AUM growth of 41 percent YoY in Q1, the same as the last quarter.
“Bajaj Finance marked moderation in customer acquisition driven largely by B2B business. Q1 & Q3 are seasonally strongest quarters for B2B business,” the research house said.
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