Last week, BSE Sensex fell 438.51 points or 0.87 percent to finish at 49,591.32 and while the Nifty50 shed 32.45 points or 0.21 percent to close at 14,834.9 levels.
The market ended lower in the week ended April 9 amid high volatility on the back of mixed cues including rising bond yield, RBI policy, rising Covid cases in India, and reports of vaccine supply crunch also added to the investors’ worries. Last week, BSE Sensex fell 438.51 points or 0.87 percent to finish at 49,591.32 and while the Nifty50 shed 32.45 points or 0.21 percent to close at 14,834.9 levels.
HEG | The stock price surged over 55 percent last week on strong growth outlook as the pick-up in steel production globally is expected to drive demand for electrodes in near term. Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in is of the view that this counter appears to have registered a consolidation breakout with a 6-week range-bound move in the zone of Rs 1685 – 1408 levels. This itself is giving a range target around Rs 1962 levels. Fresh buying is also advisable by adopting a multi-pronged strategy of buying now at the market and accumulating on a dip if any into the zone of Rs 1665 – 1587 by placing a stop below Rs 1530.
JSW Steel | The scrip gained over 32 percent in the week gone by after the company achieved crude steel production of 4.19 million tonne in January-March quarter of the financial year 2020-21 (4QFY21), registering a growth of 2 percent sequentially and 6 percent on year on year (YoY). Brokerage firm Motilal Oswal raised its FY22-23E EPS for the stock by 42-48 percent to factor in improved steel price outlook and accretion from the acquired assets of Bhushan Power and Steel. It reiterated a buy on JSW Steel as the best play on volume growth in the Indian steel sector. “Even though the average capacity utilisation improved from 66 percent in Q1 (April-June) to 93 percent in Q4 (January March), the crude steel production for FY 2020-21 was lower by 6 percent mainly due to disruption in production caused by the outbreak of COVID-19 in Q1 2020-21,” the company said.
Hindustan Copper | The share price added 20 percent for the week ending April 9. The state-owned company launched its qualified institutional placement (QIP) of shares on April 7, 2021 at a floor price of Rs 125.79. The board is scheduled to meet on April 12, 2021, to consider and approve the issue size and price. The company may offer a discount of not more than 5 percent on the floor price so calculated for the issue. As part of its disinvestment plans via stake sale in public enterprises during this fiscal, government will sell 15 percent of its shareholding in Hindustan Copper Ltd, Parliament was informed on April 9.
Sobha | The stock price was up 18 percent last week. The company said new sales in Q4FY21 increased to 13,37,707 square feet compared to 9,05,710 square feet in the year-ago period. Total sales value stood at Rs 1,072 crore in Q4FY21, up from Rs 694.5 crore in Q4FY20, however, full-year sale declined to 40,13,381 square feet from 40,71,704 square feet in FY20. Global research firm Morgan Stanley has maintained its “overweight” rating on the stock, with the target at Rs 573 a share. The research firm said valuations were attractive at the current level. The fourth-quarter details underlined the theme of a revival in India’s housing market, the company’s readiness to benefit from this demand and improving B/S was the reason for “overweight” rating, a CNBC-TV18 report said.
Cadila Healthcare | The scrip added over 16 percent last week. The pharma company received the US drug regulator’s approval for Ibrutinib capsules that are used in cancer treatment. Zydus Cadila has received the final approval from the US Food and Drug Administration (FDA) to market Ibrutinib capsules, 70 mg and 140 mg, the company said in a release to the exchange. The company has also received nod to market Macitentan tablets, used to treat high blood pressure, in the American market.
Tata Steel | The share price added 10 percent last week. The company achieved its highest-ever quarterly crude steel production of 4.75 million tonnes. The steel major achieved its highest-ever quarterly crude steel production of 4.75 million tonnes with a 3 percent QoQ growth in Q4FY21. Full-year FY21 production was lower by 7 percent YoY primarily due to the disruption caused by the COVID-19 pandemic in 1HFY21, said the company in its BSE filing. During the quarter, steel production at Tata Steel Europe increased to 2.65 million tonnes and steel sales volume rose by 18 percent QoQ and 4 percent YoY, it added. S&P Global Ratings has upgraded its long-term rating on the company to BB- from B+ and maintained the outlook at stable, according to a Mint report.
KPIT Tech | The stock added over 9 percent last week. Kishor Parshuram Patil, the promoter of KPIT Technologies sold 6.05 million equity shares (2.21 percent of the total equity capital of the company) worth Rs 94 crore of the company via the open market on the NSE and BSE on March 10. Patil sold 1.96 million equity shares in the company at Rs 156.05 per share on the NSE and 4.10 million shares at Rs 155.01 per share on the BSE via block deals, the exchanges data shows. Ruchit Jain, CMT – Technical and Derivatives at Angel Broking suggests holding the stock. The ‘RSI oscillator’ hints at a positive momentum and hence, traders should continue to ride this trend. The support for the stocks is placed around Rs 170. Since the stock is in uncharted territory, one should follow a trailing stop loss method and continue to hold.
Wipro | The scrip was up 8 percent in the week gone by. The IT services major said it will acquire Ampion, an Australia-based provider of cyber security, DevOps and quality engineering services for USD 117 million (about Rs 857 crore). The acquisition of Ampion is an important step for Wipro in this direction, and strengthens the commitment towards clients and stakeholders in Australia and New Zealand (ANZ), Wipro said in a regulatory filing. The firm is expected to declare its Q4 results on April 15. Motilal Oswal expects Wipro to report net profit at Rs. 2,810 crore down 6.3% quarter-on-quarter (up 19.7% year-on-year).
WABCO | The share was down 5 percent last week as one of its promoters plans to sell the entire stake in the auto parts and equipment company. Promoter ZF International UK will offload 18.10 percent stake (Base Issue: 9.05 percent + Oversubscription Issue: 9.05 percent) through an offer of sale. The sale is being undertaken by the seller for achieving the minimum public shareholding requirement in the company, Wabco India said in an exchange filing.
PVR | The stock price shed over 6 percent after the Maharashtra government ordered shutting down cinema halls, theatres and multiplexes for public access until further notice to bring the spread of Covid-19 under control. The Maharashtra government decided to impose a complete lockdown on weekends and a night curfew in the state to control the spread of the novel coronavirus.
Sandip Das
