In the coming week, the market will first react to October industrial output data that grew further to 3.2 percent against 3.1 percent in September. The positive momentum amid volatility is likely to continue, but still Federal Reserve commentary, November inflation and the data on Omicron are going to be critical factors for the market direction next week, experts feel.
The BSE Sensex rallied 1,090.21 points or 1.89 percent to 58,786.67, and the Nifty50 jumped 314.60 points or 1.83 percent to 17,511.30, backed by rate sensitive, infra, FMCG and metals stocks. The broader markets also joined the bulls’ party with the BSE Midcap and Smallcap indices rising 2 percent and 3 percent respectively.
Shree Renuka Sugars | The stock jumped over 28 percent on the back of rising global prices of the commodity. Experts believe that there is a scope for upside in these stocks due to several factors. The industry has seen a significant reduction in sugar inventory over the past one year, even as more sugarcane is being diverted towards ethanol blending, pushing the sugar prices higher. Analysts believe that the domestic sugar prices will remain firm above Rs 36 per kg for the rest of FY22.
Trident | The share price was up over 22 percent after the firm announced a satifactory production update for November 2021. In the home textile division, production of bath linen rose 6.47 percent to 4,902 metric tonnes in November 2021 as against 4,604 MT in November 2020. Production of bed linen gained 2.40 percent to 3.40 million metric in November 2021 from 3.32 MM in November 2020. Production of yarn jumped 18.55 percent to 10,894 MT in November 2021 over 9,189 MT in November 2020. In the paper & chemicals division, production of paper rose 5.60 percent to 12,962 MT in November 2021 as compared with 12,274 MT in November 2020. Production of chemicals climbed 8.68 percent to 8,877 MT in November 2021 as against 8,168 MT in November 2020.
HFCL | The scrip gained 22 percent in the week gone by. According to media reports, Reliance Industries has increased its stake in the company to 5 percent by investing Rs 138 crore in the QIP. The Mukesh Ambani-led conglomerate, through its subsidiary Reliance Strategic Business Ventures, held 3.76 percent stake in the company as of September 30. “he Fund Raising Committee of Directors at its meeting approved the issue and allotment of 8,72,72,727 equity shares to 21 qualified institutional buyers at the issue price of Rs 68.75 per equity share (including a premium of Rs 67.75 per Equity Share), aggregating to Rs 600 crore (approx.), pursuant to the Issue,” the company said in a filing with the exchange.
Vodafone Idea | The share price was up over 13 percent last week. The firm has increased tariffs across plans by up to 25 percent. Analysts believe it is a positive move for the sector which could boost their operating profits by at least 40 percent. This, coupled with a moratorium on government dues, will help Vodafone Idea invest more aggressively into 5G technology. The company is set to disburse interest on its bonds in time by December 13 as it managed to raise funds for the repayment, bankers told Business Standard.
Siemens | The scrip added 12 percent on the back of strong growth outlook. For the financial year ended September 2021, Siemens had reported an increase of 32.4 percent in new orders, 33.1 percent in revenue and 40.3 percent in profit after tax from continuing operations over the previous financial year.
Jindal Steel & Power | The stock gained 10 percent last week. Domestic research and broking firm Motilal Oswal has maintained a “buy” call on the stock, with a target of Rs 478 a share, an upside of around 34 percent. The company is undergoing a structural change in its ? EBITDA margin, Motilal Oswal analysts said in a recent report. A sustainable EBITDA margin, which is a performance metric that measures a company’s profitability from operations, would likely improve by Rs 2,000–2,500 a tonne over the previous cycle average, the report said. “Over the near term, the steel market remains weak. However, considering the long-term growth plan already under implementation (funded largely through internal accruals), the target to turn net debt zero by March 2023 at the latest, and the mix towards flats improving the blended NSR substantially, we are positive on the stock and maintain a buy rating,” the brokerage said.
Bajaj Electricals | The stock price was up 8 percent after the company announced that it is going to review corporate structure. The Board of Directors of the Company, at its meeting held on December 9, 2021, has authorised some of the directors and officials of the Company to review the corporate structure of the Company to unlock growth and value creation for all business segments, Bajaj Electricals said in a regulatory filing.
ITC | The FMCG stock gained over 6 percent after the cigarette-to-hotel conglomerate announced that it will hold its first analysts’ meet on December 14. “We write to advise, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that the company will hold its ‘Institutional Investors and Financial Analysts Day’ on Tuesday,” the company said in a regulatory filing. According to a CNBC-TV18 report, investors are keen on unlocking value for such a diversified company. They are also looking for clarity on demerger and separate listing of verticals like FMCG, technology and agri-businesses.
Policy Bazaar | The scrip shed over 6 percent last week. The recently launched share has come under pressure as anchor investors are allowed to sell their shareholdings. Most shares listed at significant premium to their respective issue prices in November amid a robust IPO market. But anchor investor lock-ins in ten such stocks are set to open in December after a 30-day period.
IIFL Finance | The share was down over 5 percent after Canadian billionaire Prem Watsa-backed Fairfax Group divested a 4.27 percent stake, amounting to shares worth Rs 490 crore, in IIFL Finance Ltd, CNBC TV 18 reported citing regulatory disclosures on December 10. The shares were offloaded by Fairfax Group through its affiliate Hamblin Watsa Investment Counsel (HWIC) Asia Fund. HWIC Asia Fund sold 57 lakh shares at a price of Rs 312.65 each on December 8 via a bulk deal, the news channel reported, adding that the remaining 1.04 crore shares were offloaded at a price of Rs 300.17 each on December 9.
Sandip Das
