Experts largely feel the nervousness is expected to continue in the coming week as well, with more focus on severity of new COVID-19 variant, monthly auto sales numbers, Q2 GDP data, and FII flow.
The market succumbed to panic selling pressure, falling to nearly three-month low on Friday and as a result the benchmark indices lost more than 4 percent in the week ended November 26, continuing the downtrend for a second consecutive week. The Nifty50 plunged 738.35 points or 4.16 percent to 17,026.45, the lowest closing level since August 30 this year, while the BSE Sensex was down 2,528.86 points or 4.24 percent at 57,107.15 as the selling was seen across sectors.
Vedanta | The share price added over 14 percent after its holding companies raised $ 800 million (about Rs 6,000 crore) by pledging shares in the company, according to a stock exchange filing. Promoter group firms pledged 242.26 crore or 65.18 percent shareholding in Vedanta Ltd in three facility agreements to raise the money, a Vedanta Ltd’s filing showed. In the first financing deal, Twin Star Holdings Ltd entered into an agreement with Standard Chartered Bank, London to avail of an aggregate amount of USD 400 million. In the second, Vedanta Netherlands Investments BV secured $ 150 million from Standard Chartered Bank, London.
One97 Communications (Paytm) | The share was up over 14 percent in the week gone by. One 97 Communications which operates Paytm, on November 27, said its losses had inched up at Rs 474 crore during the quarter ended in September against the same period of the previous financial year. The loss during the year-ago period stood at Rs 437 crore. However, revenue from operations grew by 64 percent YoY to Rs 1,090 crore in the second quarter of FY22. BlackRock and Canada Pension Plan Investment Board bought more Paytm shares last week, a Bloomberg report said, quoting unnamed sources. However, the quantum of the stake increase was unknown.
Indiabulls Housing Finance | The stock price gained 14 percent despite foreign portfolio investors BNP Paribas Arbitrage and Societe Generale offloaded 1.1 percent equity stake in Indiabulls Housing through open market transactions on November 25. BNP Paribas Arbitrage sold 23,59,500 equity shares in Indiabulls Housing Finance at Rs 221.75 apiece and Societe Generale offloaded 27,40,400 equity shares in the company at Rs 221.34 each on the NSE, the bulk deals data showed. Brickwork Ratings India earlier revised its outlook to ‘stable’ from ‘negative’ and has reaffirmed its long-term rating at ‘BWR AA+’. The housing finance company’s perpetual debt rating has also been reaffirmed at ‘BWR AA’.
Vodafone Idea | The scrip rose 9 percent as the telecom firm decided to hike tariffs. Vodafone Idea (Vi) will hike its tariff plans for prepaid users by 20-25 percent and the increased rates would be effective November 25, the company said in an exchange filing. “The new plans will start the process of ARPU (Average Revenue Per User) improvement and help address financial stress faced by the industry,” the release said.
Indian Overseas Bank | The share was up over 4 percent after a news report suggests the government has proposed Banking Amendments for Winter Session of Parliament to enable PSB privatisation. The government plans to privatise Indian Overseas Bank and Central Bank of India. The government has proposed banking amendments for winter session to enable PSB privatisation, reported CNBC-TV18 quoting sources.
PVR | The share price tumbled over 17 percent amid the new Covid scare. A new strain of coronavirus ‘Omicron’ injected fear of fresh restrictions that spooked investors. Vikas Jain of Reliance Securities believes it gives a good opportunity to accumulate in declines for a higher target of Rs 2,100 as the longer term trend remains bullish on monthly charts. We advised holding the stock.
Maruti Suzuki | The stock price shed over 11 percent as equity markets were battered amid new virus scare and fresh restrictions. The National Company Law Appellate Tribunal today stayed the order of the Competition Commission of India that imposed a penalty of Rs 200 crore rupees on automaker Maruti Suzuki earlier this year. In an interim relief granted to the carmaker, the NCLAT has also agreed to hear Maruti Suzuki’s appeal against CCI’s decision to impose the penalty. Until further orders from the appellate tribunal, CCI’s order for penalty will remain. The auto major has ruled out getting back into the diesel segment as it believes sales of such vehicles would further come down with the onset of the next phase of emission norms in 2023, according to a senior company official. The country’s largest carmaker believes the next phase of emission norms would jack up the cost of diesel vehicles, thus further impacting their sales in the market which for the last few years has seen a gradual shift towards petrol cars.
Siemens | The scrip was down over 9 percent in the week gone by. The company reported a 2.6 percent YoY decline in consolidated net profit in the July-September quarter to Rs 321.6 crore primarily on account of a rise in costs of raw materials and logistics, it said. For 2020-21, Siemens reported an increase of 32.4 percent in new orders, 33.1 per cent in revenue and 40.3 percent in profit after tax from operations continuing over the previous financial year.
Pidilite Industries | The share price shed 8 percent last week. The firm announced that Madhumala Ventures (Madhumala), a wholly owned subsidiary of the Company, has agreed to make an investment of Rs. 1.56 crore in Constrobot Robotics (the Investee Company) which is engaged in the business of research, development, manufacturing and trading of robotic equipment and related software to be used in construction activities. The investment would be done through primary and secondary purchase of shares to acquire 19.51 percent of the issued and paid-up share capital of the Investee Company on a fully diluted basis.
UPL | The scrip was down 5 percent in the week gone by. Promoter Uniphos Enterprises acquired 1.37 lakh shares in the agrochemical company through open market transactions, increasing its shareholding to 5.17 percent from 5.15 percent. Global research firm Jefferies has a “buy” call on the stock with the target at Rs 945 a share, an upside of 30 percent from the current market price. The research firm estimates UPL to clock sales/profit CAGR of 9 percent/ 25 percent over FY21-24 and estimates net debt-to-EBITDA for FY22 at 1.7x. The brokerage firm views the company’s focus on margin-accretive solutions, robust pricing and new platforms as key catalysts.
Sandip Das