The rally was more broad-based this week as mid and small-caps bounced back after several weeks of underperformance. The BSE Midcap index was up 2.54 percent and Smallcap index gained 2.04 percent during the week.
Benchmark indices, Sensex and Nifty touched their fresh record high levels of 56,198.13 (on August 25) and 16,722.05 (on August 27), respectively. For the week BSE Sensex added 795.4 points (1.43 percent) to close at 56124.72, while the Nifty50 rose 254.7 points (1.54 percent) to end at 16705.2 levels. These 10 stocks were in focus in the week gone by:
Adani Gas | The stock price jumped over 23 percent last week. Adani Total Gas Ltd – the city gas joint venture of Adani Group and TotalEnergies of France has acquired 50 percent stake in a company that manufactures gas meters to aid its gas retailing business. The firm bought 50 percent in Smartmeters Technologies Pvt Ltd(SMTPL) for Rs 1 crore, according to a company’s filing to stock exchanges.
Hindustan Aeronautics | The share was up over 22 percent in the week gone by. The stock has been in focus after the state-run aerospace company said it placed a Rs 5,375-crore order for 99 F404-GE-IN20 engines and support services with GE Aviation, US to power the Tejas Light Combat Aircraft. “The share price of HAL has been an underperformer since 2018. Currently, after five months of higher base formation, the stock is resolving above multiyear highs indicating structural turnaround, thus offering a fresh entry opportunity,” an ICICI Direct research report said.
Bajaj Finserv | The stock price was up over 8 percent. Market regulator Securities and Exchange Board of India (SEBI) had given it an in-principle approval for sponsoring a mutual fund. “The company has received in-principle approval from SEBI on August 23, 2021, for sponsoring a mutual fund. Accordingly, the company would be setting up an asset management company and the trustee company, directly or indirectly ie, itself or through its subsidiary,” Bajaj Finserv said in a BSE filing on August 24.
Zomato | The stock price was down over 10 percent. Zomato’s shares have been witnessing profit-booking as the lock-in period for anchor investors ended. As many market participants have been pointing fingers towards the rich valuation of the stock, some selling was expected. Santosh Meena, Head of Research, Swastika Investmart, pointed out that some selling pressure is seen for 1-2 days in most of the newly-listed counters after the lock-in period ends.
Affle India | The stock was up over 8 percent as the company board approved sub-division of its equity shares. The company board approved stock split (sub-division of equity shares) of the company’s 1 equity share of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each, subject to the approval of shareholders and other approvals as may be required and post approval of the shareholders for the stock split, record date for the same shall be October 8, 2021, as per the company release.
Mindtree | The stock price gained over 8 percent last week. The company’s net profit jumped 61 percent annually to Rs 343.3 crore driven by growth in revenues and various operational efficiency parameters and increased utilization, for the quarter ending June. Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities is of the view that as long as the stock is trading above Rs 3,140, the uptrend texture is likely to continue up to Rs 3,300-3,350. On the flip side, dismissal of Rs 3,140 can possibly trigger quick short-term correction up to Rs 31,00-3,050.
SBI Cards | The scrip added 9 percent as the firm raised Rs 500 crore by issuing bonds on a private placement basis. The stakeholders’ relationship and customer experience committee of the company has approved the allotment of 5,000 fixed rate, redeemable non-convertible debentures (NCDs) of face value of Rs 10 lakh each aggregating to Rs 500 crore on private placement basis, SBI Card said in a regulatory filing.
Escorts | The share price gained over 12 percent last week. The recent price action suggests that momentum could slowly be building in this tractor maker. The tractor maker, with a market-capitalisation of nearly Rs 18,000 crore, hit a 52-week high of Rs 1,468 on February 9. Since then, it has seen a steep fall. The stock took support near Rs 1,100 in May 2021, before bouncing back. “The stock has maintained a good base near the Rs 1,100 level, and it is picking up momentum after a good consolidation phase to improve the bias,” Vaishali Parekh, Assistant Vice President, Technical Research at Prabhudas Lilladher Pvt Ltd, said.
Adani Transmission | The stock was up over 27 percent in the week gone by. The company reported a 22 percent rise in its consolidated net profit for the April-June quarter at Rs 433.34 crore. Its total income during the period under review was Rs 2,935.72 crore, higher by 15.45 per cent from Rs 2,542.84 crore earned during the first quarter of FY21. India Ratings and Research (Ind-Ra) has affirmed Adani Transmission’s subsidiary Adani Electricity Mumbai Limited’s (AEML) Long-Term Issuer Rating at ‘IND AA+’ with stable outlook.
Magma Fincorp | The scrip shed 5 percent in the week gone by. CARE Ratings upgraded its rating and outlook on Poonawalla Fincorp Limited instruments. The credit rating agency has upgraded the rating of various long-term bank facilities/instruments of Poonawalla Fincorp Limited [PFL; erstwhile Magma Fincorp Limited), to ‘CARE AA+; Stable’ from ‘CARE AA- (under credit watch with developing implications)’ and reaffirmed the short-term rating at ‘CARE A1+’.
Sandip Das
