After the rally, experts expect some consolidation and range-bound action in next week before the resumption of the uptrend. In the absence of domestic cues, all eyes will be on the global cues, including Federal Reserve and its commentary over tapering plans, experts said.
For the week ended September 17, Sensex closed above 59,000-mark for the first time, rising 710.82 points or 1.22 percent to 59,015.89, and the Nifty50 climbed 215.90 points, or 1.24 percent, to 17,585.15. The broader markets also traded in line with the benchmarks. The BSE midcap and smallcap indices gained more than 1.3 percent each. Auto, banks and IT stocks led the rally, whereas realty and metal sectors were under pressure.
Zee Entertainment: The stock surged 40 percent last week. Its two biggest investors sought the ouster of three directors, including CEO Punit Goenka, in a bid to recast the board, a move hailed by analysts. Invesco Developing Markets Fund and OFI Global China Fund LLC’s move to call an extraordinary general meeting seeking the removal of Goenka was a positive development for corporate governance, experts said. Rare Enterprises, a stock trading firm owned by ace investor Rakesh Jhunjhunwala, on September 14 picked half a percent stake while BofA Securities Europe SA also acquired 48,65,513 equity shares in Zee at Rs 236.2 per share.
Vodafone Idea: The share price jumped over 32 percent after the government approved major reforms in the telecom sector. A 100 percent FDI (Foreign Direct Investment) in telecom via the automatic route was approved by the Cabinet. The government aims to boost the proliferation and penetration of broadband and telecom connectivity in the country. Apart from this the government is looking to boost 4G proliferation, infuse liquidity and create an enabling environment for investment in 5G networks with the new set of reform measures.
IRCTC | The scrip was up 17 percent in the week gone by. The Indian Railway Catering and Tourism Corporation (IRCTC) started India’s first indigenous cruise liner from September 18, the railway PSU said. IRCTC is also in the process of signing agreements with all major international cruise liners and will provide their bookings on its web portal as soon as the COVID-19 situation normalises and the international cruises start their operations. On August 12, IRCTC recommended splitting each equity share with a face value of Rs 10 into five shares with a face value of Rs 2 each, subject to approval of the Ministry of Railways and shareholders. The company’s annual general meeting is scheduled on September 29. Experts said the momentum in the IRCTC stock can take it up to Rs 5,000 in six to eight months despite intermittent consolidation or corrections.
Interglobe Aviation: The stock price added over 14 percent after regulatory data showed that passenger growth jumped 136.6% last month as the government started to ease COVID-related travel restrictions. The company is planning to operate at full capacity from December 2021, a report said on September 10. The carrier is also reportedly aiming to cover two-thirds of the international routes it operated in the pre-pandemic period. Also, the Ministry of Civil Aviation said in a circular issued on September 18 that domestic carriers can now operate flights at 85 percent of pre-Covid levels, up from 72.5 percent at present.
Sunteck Realty: The share price gained over 12 percent as the firm plans to invest Rs 2,500 to Rs 3,000 crore over a period of seven to eight years during the lifecycle of an integrated luxury residential township it intends developing on a 50-acre land parcel in Mumbai under the asset light joint development agreement model, Kamal Khetan, chairman and managing director, Sunteck Realty told Moneycontrol. Shitij Gandhi of SMC Global Securities said traders can accumulate the stock in the range of Rs 410-414 for the upside target of Rs 480 with a stop loss below Rs 370.
eClerx Services: The scrip was up 9 percent after the board of directors of the company fixed September 30 as the record date for the buyback programme. The buyback offer has a floor price of Rs 2,850 per equity share aggregating to Rs 303 crore. The total number of shares that will be bought back is 1,063,157 shares representing 3.05 percent of the total number of equity shares in the total paid-up equity share capital of the Company, it said.
ITC: The stock added over 8 percent in the week gone by. Attractive valuations, expected improvement in business outlook, lower lockdown impact on the FMCG and cigarette segments, a strong portfolio of FMCG brands, and the potential of value unlocking could be driving the stock, experts said. They advised investors to hold the stock for a couple of years, given the expected returns along with good dividend yield.
M&M Financial Services: The stock price gained 7 percent last week. The firm forayed into the vehicle leasing and subscription business. The new vertical would operate under the brand name ‘Quiklyz’, denoting the changing mindset on mobility, it said. According to the company, with the process of owing a vehicle at an inflection point, consumers now want to access vehicles earlier in their life and upgrade their vehicles faster than ever before, it said in an exchange filing. The company said it reported disbursement of over Rs 2,000 crore for the second month in a row in August 2021. The total disbursement stood at about Rs 2,150 crore, recording a 57% YoY growth, albeit on a lower base of August 2020.
BPCL: The share shed over 11 percent in the week gone by. The company announced that the board approved a final dividend of Rs 58 per share, which includes a one-time special dividend of Rs 35 per equity share. The company declared its dividend ex-date resulting in the stock falling on ex-dividend basis.
Tata Steel: The stock slipped over 4 percent last week. In its investors’ presentation on September 6, the company said it intends to reduce its gross debt by more than $ 2 billion, while prioritising off-shore debt pre-payment in FY22. It is also planning a capital expenditure of Rs 10,000-12,000 crore in the current financial year. Moody’s Investors Service upgraded the corporate family rating of Tata Steel Ltd to Ba1 from Ba2 with the rating outlook remaining stable.
Sandip Das
