In the absence of any major domestic cues, the market is expected to focus on global developments for direction and may see some volatility as September futures & options contracts expire during the week, experts say
The market continued its uptrend for the fifth successive week. The BSE Sensex rose 1,032.58 points, or 1.75 percent, to 60,048.47, and the Nifty50 jumped 268.05 points, or 1.52 percent, to 17,853.20 in the week ended September 25, taking the five-week gains to 8.5 percent in each index.
Zee Entertainment | The share price surged over 24 percent after the company signed a merger deal with Sony Pictures India. After the merger, 47.07 percent stake will be held by shareholders of Zee Entertainment, while Sony Pictures Networks will hold a 52.93 percent stake in the merged entity. Gaurav Sharma, AVP Research at Globe Capital Markets, said as the stock moved up sharply, the possibility of some profit-taking cannot be ruled out but that should be considered a buying opportunity.
Indus Towers | The scrip gained 18 percent last week. Foreign research house CLSA maintained a buy rating on the stock and raised the target price to Rs 330 from Rs 310 a share. The company is in the top 40 companies on ESG among India coverage of 130 companies and it already has 74,353 green sites (40 percent of its total), said CLSA. Indus’ ESG rating is 8-17% higher than the country and sector average scores and the latest sector relief package is a big positive for the company, said CLSA.
Godrej Properties | The stock jumped over 34 percent in the week gone by. The company achieved sales of Rs 575 crore in a single day at the launch of the second phase of its Godrej Woods projects in Noida. Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory at Chartviewindia.in, said investors can hold while fresh buying should be considered on dips but with a stop below Rs 1,650.
KPIT Tech | The stock price was up 16 percent after the company said it will acquire Future Mobility Solutions GmbH (FMS) for up to 15.6 million euros (about Rs 135 crore). “The Board of Directors of the company, at its meeting, has approved the acquisition of initial 25 percent shareholding in FMS. Over a period of three years, KPIT will acquire the balance shareholding,” KPIT Technologies said in a regulatory filing.” The Vanguard Group Inc A/C Vanguard Total International Stock Index Fund (P8) & Vanguard Emerging Markets Stock Index Fund A Series of V I E I F together purchased 45,83,295 equity shares in IT firm KPIT Technologies at Rs 319.77 per share on the NSE.
United Spirits | The stock added over 11 percent last week. Liquor stocks have been in focus after the tax sops announced by some state governments and grain prices remaining steady, expecting a reduction in debt of liquor companies. Shrikant Chouhan, Head-Equity Research (Retail), Kotak Securities, is of the view that technically, on daily and weekly charts, the stock has formed breakout continuation formation which is broadly positive for the United Spirits. For the trend following traders, Rs 800 would be the key support level. A breakout can take the stock to Rs 880-925 but if it slips below Rs 800, it can slip to Rs 750-710 in the short term.
Dilip Buildcon | The scrip gained over 10 percent after the Supreme Court confirmed the appointment of the company and VPR Mining Infrastructure as mine developer and operator for the Pachwara Central Coal Block mine. The contract value of the tender is Rs 32,156.04 crore.
HCL Tech | The stock added over 7 percent in the week gone by. The shares of HCL Tech crossed the 50 billion dollar mark on September 24. The stock registered a market capitalisation of Rs 3,68, 420 crore on BSE on September 24. The IT firm said it expanded its partnership with Finastra, a software vendor working in the financial services industry, to drive digital transformation in South Korea and Taiwan.
Tata Steel | The share price was down over 8 percent. Global brokerage CLSA said the recent weakness in the Chinese property market may be an overhang on demand for steel in the near term, with supply cuts and higher costs likely to keep the alloy’s prices resilient, the brokerage said. The risk-reward ratio appears to be favourable for Tata Steel, CLSA said. Sameet Chavan of Angel Broking suggests selling the stock as the scrip has confirmed a trendline breakdown from its key support of Rs 1,390 on a closing basis. Traders can look to short this counter on a small bounce for a short-term target of Rs 1,330. The stop loss can be placed at Rs 1,442.
SBI Cards | The stock price slipped over 6 percent last week after Carlyle entity CA Rover Holdings sold 3.4 a percent equity stake in SBI Cards and Payment Services via open market transactions. CA Rover offloaded 1.6 crore shares in SBI Card at Rs 1,021.25 a share and 1.6 crore equity shares at Rs 1,021.01 a share on the NSE, the bulk deals data showed. It held 6.5 percent shareholding in the payment solutions provider as of June 2021.
eClerx Services | The scrip was down over 5 percent. The company’s Board of Directors fixed September 30 as the record date for a buyback programme. According to the regulatory filing, the buyback offer has a floor price of Rs 2,850 a share aggregating to Rs 303 crore. The total number of shares that will be bought back is 1,063,157, representing 3.05 percent of the total shares in the paid-up share capital of the company.
Sandip Das
