The coming week is going to be crucial for the market as quarterly numbers will start flowing in with the announcement of IT biggies earnings initially, along with that all eyes will be on economic data and Covid situation globally, experts feel.
The BSE Sensex rallied 1,490.83 points to 59,744.65, and the Nifty50 jumped 458.65 points to 17,812.70 during the week ended January 7, continuing uptrend for the third consecutive week. The moves were supported largely by banking & financials, though IT and Pharma underperformed during the week.
Bajaj Finance | The scrip added 10 percent after the company reported healthy customer acquisition with 2.6 million new customers added during the October-December quarter (Q3FY22). Customer franchise, as on Q3FY22, stood at 55.4 million, as compared to 46.3 million at the end of Q3FY21. The company said it has not witnessed any adverse impact on its NPA position due to transition to a new method of NPA recognition as clarified by the Reserve Bank of India (RBI) in November 2021.
HFCL | The share price gained over 9 percent in the week gone by. The telecom company announced a partnership with Aprecomm, a leading AI-powered wi-fi analytics technology provider. “HFCL has announced powering its network offerings with artificial intelligence (AI) based analytics, partnering with Aprecomm,” the company said in its press release. HFCL plans to offer this AI solution to its existing customer for over 100K existing deployments and plans to make it available for all its new customers by default.
Eicher Motors | The stock was up 9 percent last week. The company’s Royal Enfield brand reported 43 percent rise in month-on-month sales of 73,739 units in the month of December 2021. On YoY basis, the Royal Enfield sales grew 7 percent from 68,995 units in December 2020. According to ICICI Securities, the key highlight for the month was robust volume prints at Royal Enfield, sustenance of which could subside growth concerns at Eicher Motors.
Persistent Systems | The stock was down over 7 percent in the week gone by. Persistent Systems said its investigation into allegations about the IT company’s involvement in Tek Fog, an app used for manipulating trends on social media, reveals no interaction with either the development of the app, or ShareChat’s parent Mohalla Tech. This comes a day after online publication, the Wire, published an article about how the ruling party BJP used the app Tek Fog to automate hate and manipulate trends on social media. The article said that two companies, Persistent Systems and ShareChat, were involved in the process. Both the companies had denied the involvement in a statement to Moneycontrol.
IIIFL Wealth Management | The stock was up over 6 percent after a special committee of the company approved raising Rs 120 crore through non-convertible debentures. The resource raising committee of IIFL Wealth Management has approved the allotment of 1,200 rated secured redeemable principal protected market linked non-convertible debentures (NCDs) of face value Rs 10 lakh each, aggregating to Rs 120 crore, on a private placement basis. The NCDs hold tenor of 1,235 days.
KPIT Technologies | The stock price rose 16 percent after Goldman Sachs initiated coverage on the automotive software services firm with buy rating with a 12-month target market price of Rs 1,040 per share. KPIT Tech raised outlook for revenue and profit for the financial year 2021-22 (FY22). The company said, for FY22, revenue growth outlook has been increased to 18 to 20 percent, while earnings before interest, tax, depreciation and amortization (EBITDA) margin outlook have been revised to 17.5+ percent.
AU SMall Finance Bank | The share added 18 percent after the private sector lender reported a sequential growth of 10.6 percent and 26.5 percent YoY in total assets under management (AUM) to Rs 42,027 crore in October-December quarter (Q3FY22). Global research and broking firm Morgan Stanley has an ‘overweight’ call on the stock with a target at Rs 1,500 per share. Domestic research and broking firm Motilal Oswal has retained a ‘buy’ call on the stock with a target of Rs 1,400 per share.
India Cements | The scrip was up over 24 percent in the week gone by. Billionaire investor Radhakishan Damani has increased his stake in India Cements to 22.76 percent, up from 21.14 percent at the end of September 2021 quarter, a regulatory filing showed on December 21. RK Damani has been marginally increasing his stake in the cement giant since last year. He held 19.89 percent shares in the company in March quarter of 2020, followed by a marginal increase to 20.4 percent in July 2020.
JBM Auto | The stock jumped over 26 percent after JBM Electric Vehicles Private Limited, a wholly-owned subsidiary of JBM Auto fully incorporated three wholly-owned subsidiaries, JBM Electric Technologies Private Limited, JBM Green Technologies Private Limited, and JBM Eco Tech Private Limited. The paid-up capital of each incorporated company is Rs 50,000/- (5,000 equity shares of Rs10 each. “The companies have been incorporated to carry on the business in the automotive sector and yet to commence its business operations,” the company said in a filing.
Hinduja Global | The share price was down over 13 percent after the company hinted it may offer additional loans to the promoters after giving a Rs 500-crore loan to them, according to media sources. The company had sold its health care business to Baring’s private equity fund in August last year for $ 1.2 billion (Rs 8,000 crore) and its shareholders were expecting a large dividend from the company. But its minority shareholders were left disappointed after the company announced on Thursday that it was offering only 150 percent as special dividend to celebrate the deal, leading to a crash in its share price. Investors were also disappointed on lower-than-expected dividend.
Sandip Das
