Experts expect the consolidation to continue in coming week too, with the market keeping a watch on new variant of Covid-19 and macroeconomic data along with monsoon progress, while the stock specific action could continue with the beginning of June quarter earnings season.
The BSE Sensex fell 98.48 points to 52,386.19, while the Nifty50 declined 32.40 points during the week to close at 15,689.80. Metals, realty, telecom, select banks and capital goods stocks witnessed buying interest, whereas auto, IT, oil & gas, and select pharma stocks saw selling pressure.
Sobha | The share price gained over 19 percent after the Bengaluru-based realty firm’s sales bookings rose by 40 percent to Rs 682.9 crore during the first quarter of this fiscal on better demand for its properties despite the second wave of COVID-19. The company had clocked sales bookings of Rs 487.7 crore in the year-ago period. “Achieved total sales volume of 895,539 square feet of super built-up area valued at Rs 6.83 billion,” Sobha said in an operational update for the April-June quarter of FY’22. In terms of volume, sales bookings rose to 8,95,539 sq ft in the first quarter of this fiscal, from 6,50,400 sq ft in the corresponding period of the previous year. Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities feels that for the breakout traders, Rs 525 should be the sacrosanct level, trading above the same we can expect an uptrend continuation wave up to Rs 585-600.
KPR Mill | The stock added 16 percent after the company said it will consider a stock split proposal at the next board meeting. The current face value of the equity shares of KPR is Rs 5. A stock split is usually done by companies to increase the stock’s liquidity and making it more affordable for small investors. A meeting of the board of directors of the company is scheduled to be held on July 27, 2021, to consider the unaudited financial results for the quarter ended June 30.
AU Small Finance Bank | The scrip was up 15 percent in the week gone by. Morgan Stanley maintained its “overweight” call on the stock with the target at Rs 1,150 a share. It is of the view that GNPLs was flat sequentially but the bank restructured 2 percent of the loans in the first quarter, with total impaired loans now at 8.2 percent, a CNBC-TV18 report said. Shitij Gandhi of SMC Global Securities has abuy on the stock with target of Rs 1,350 per share. “Rising volumes along with rising prices suggest strength in the current breakout, which can push the stock much higher. Traders can accumulate the stock in the Rs 1,105-1,115 range for an upside target of Rs 1,350,” he said.
PNB Housing Finance | The stock price gained over 9 percent after Punjab National Bank asked its housing finance arm to restructure Rs 4,000-crore capital infusion deal with Carlyle. PNB Housing Finance on Wednesday said its promoter Punjab National Bank has asked it to consider restructuring the proposed Rs 4,000 crore capital infusion deal led by US-based Carlyle group. The housing financier also said it will await the Securities Appellate Tribunal’s order on the issue before taking a final decision.
Tata Steel | The scrip added 9 percent last week. CARE upgraded the rating on the company to AA+ from AA and the outlook to stable from negative. “The revision in rating and outlook assigned to the instruments of Tata Steel factors in the improvement in performance witnessed during FY21, sequentially from Q2-FY21 onwards, particularly in Indian operations, on the back of revival in demand and increased steel prices leading to substantial cash flow generation and sizeable deleveraging at the end of FY21 resulting in improvement in debt coverage indicators,” according to an exchange filing. ICICI Direct has a buy on the stock with target of Rs 1,500 per share.
Godrej Consumer Products | The stock price was up over 8 percent after the company reported double-digit sales growth on a consolidated basis for the June 2021 quarter, compared to a decline of 1 percent in the year-ago quarter and 27 percent growth in the preceding quarter. Brokerage firm Sharekhan has a buy on the stock with target of Rs 1,115 per share. “Revamped growth strategies under a new leadership and improved earnings visibility are key re-rating factors. We maintain a buy on the stock with a revised target of Rs 1,115,” he said.
Tata Motors | The stock shed over 11 percent after the company said that shortage of semiconductors may see Jaguar Land Rover report 50 percent lower wholesale volumes by the end of the September 2021 quarter coupled with a negative EBIT margin. The company expects the situation to start improving only in the second half of the financial year.
Natco Pharma | The share was down over 6 percent after the Delhi High Court allowed the application by FMC Corporation on Chlorantraniliprole (CTPR). The generic drug maker was engaged in a legal battle with California-based agriculture sciences company FMC over the use of an insecticide CTPR that is used in several crops. “The Hon’ble High Court of Delhi has today orally pronounced judgment in the interim injunction application filed by FMC Corporation on CTPR. The Hon’ble Court said that it has allowed the application of FMC Corporation,” Natco Pharma said in an exchange filing.
Biocon | The stock price fell over 4 percent in the week gone by. Biocon has been in focus for the wrong reason as market regulator Sebi has restrained an official of Biocon Ltd from accessing the securities market for three months and also levied monetary penalty for contravening insider trading norms. Global research firm CLSA has maintained sell on the stock with target at Rs 260 per share. It is of the view that cash flow remained negative for an eighth consecutive year in FY21 with operating cash flow falling 24 percent YoY and capex intensity remaining high, according to a CNBC-TV18 report.
Equitas Small Finance Bank | The stock was up over 11 percent after the company received the Reserve Bank of India’s permission to apply for scheme of amalgamation, it said in a regulatory filing. Apart from this, RBI has also conveyed that any ‘no objection’, if and when given on the Scheme of Amalgamation, would be without prejudice to the powers of RBI to initiate action if licensing guidelines are violated.
Sandip Das
