The pre-budget rally being seen in several sectors is likely to expand to other segments as the Union Budget, which is to be presented on February 1, draws close, say experts.
In the week gone by, the market, which has gained 7.5 percent in the last four weeks, was supported by positive earnings as well as commentary from IT majors along with favourable global cues. The BSE Sensex closed above the 61,000, rising 1,478.38 points during the week to 61,223, while the Nifty settled at 18,255.75, up 443 points for the week ended January 14. Broader markets also joined the party. The BSE midcap and smallcap indices gained 2.4 percent and 3 percent, respectively.
Wipro | The stock price fell over 10 percent after the company’s lower-than-expected revenue growth performance for the quarter ended December was categorised as a “minor hiccup” by analysts and not as a sign of an impending slowdown in the information technology major’s earnings growth trajectory. The Bengaluru-based company reported a 3 percent sequential growth in revenues for the quarter ended December in constant currency terms post-market hours on Wednesday. Wipro also guided for 2-4 percent sequential growth in sales for the quarter ending March, which was in line with analysts’ expectations.
One97 Communications | The stock was down over 9 percent last week. Macquarie Securities India suggested that the company’s future earnings growth may be worse than it had earlier forecast. The brokerage firm slashed its price target for the stock by 25 percent to Rs 900 from Rs 1,200 earlier, implying a further downside of 28 percent from the January 7 closing. Macquarie retained its ‘underperform’ rating on the stock. Macquarie’s pessimism for the company comes when the stock has already fallen more than 38 percent from its high of Rs 1,955 on November 18, which followed a disastrous debut on Dalal Street.
Greaves Cotton | The share price surged over 30 percent in the week gone by. The company’s e-mobility arm, Greaves Electric Mobility, said it has sold over 10,000 units in December 2021, with the e-three-wheelers clocking a 101 percent growth in sales from a year ago. According to Greaves Electric, Ampere scooters reported record growth in revenue of almost six times in December 2021 compared to the same month last year and E-3W business saw 101 per cent growth in volume terms.
Adani Green | The stock price gained 19 percent after the company announced a provisional operational update for the third quarter ended December 2021 (Q3FY22). In Q3, AGEL said sale of energy increased by 97 per cent year on year (YoY) at 2,504 million units in Q3FY22, backed by robust performance in both Solar and Wind portfolios. In Q3FY21, sale of energy stood 1,273 million units. Total operational capacity increases by 84 per cent YoY to 5,410 MW. Solar portfolio capacity utilization factor (CUF) at 21.9 percent with 110 bps improvement YoY backed by around 100 percent plant availability, while wind portfolio CUF at 18.6 percent with 10 bps improvement YoY backed by around 97 per cent plant availability, AGEL said.
RBL Bank | The scrip was up over 15 percent in the week gone by. RBL Bank has inducted NARCL Chairman Pradip Shah as an external expert to assist its search panel in finding a full-time MD and CEO, after the removal of Vishwavir Ahuja from the post last month. Global headhunting firm EgonZehnder has also been roped in for the exercise. The bank also announced it had extended the partnership with Bajaj Finance for co-branded credit cards for a period of 5 years till December 2026.
Sunteck Realty | The stock gained over 11 percent after the firm reported a 29 percent sequential jump in pre-sales worth Rs 352 crore for the quarter ended September. It reported 23 percent YoY growth in nine months’ pre-sales at Rs 800 crore. Collections jumped 30 percent during the quarter to Rs 270 crore and grew 41 percent to Rs 649 crore for the nine months ended December, the company said in a regulatory filing.
Hinduja Global | The share price rose over 10 percent last week. The board of NXTDIGITAL Limited (NDL) has given in-principle approval for its digital and media businesses comprising broadband, HITS, digital cable television, content syndication and teleshopping to be acquired by Hinduja Global Solutions Limited. Hinduja Global announced a share buyback worth up to Rs 1,000 crore. The board approved a repurchase of up to 25 percent of the paid-up capital, and reserves and surplus allowed under the regulations, according to the company’s statement to exchanges.
KEC International | The stock gained 10 percent last week. The engineering, procurement and construction major bagged new orders worth Rs 1,025 crore across its various businesses. The company’s transmission and distribution business has secured orders for projects in India and the Middle East, the RPG Group firm said in a filing to the BSE. Its civil business has also secured an order for infrastructure works in the metals and mining segment in India, it said. The outlook for order inflows in FY23 remains strong with an expected rise in ordering from railways and civil projects, it said.
JBM Auto | The scrip was up over 6 percent in the week gone by. The company acquired the majority stake in JBM Green Energy Systems Private Limited and JBM EV Industries Private Limited through a subsidiary JBM Electric Vehicles Private Limited, the company said in a statement. JBM Green Energy Systems Private Limited and JBM EV Industries Private Limited have now become indirect subsidiary companies of JBM Auto Limited, it said.
Delta Corp | The share gained over 6 percent after the company reported quarterly net profit at Rs. 70.38 crore in December 2021 up 5398.44 percent from Rs. 1.28 crore in December 2020. EBITDA stands at Rs 112.17 crore in December 2021 up 465.09 percent from Rs. 19.85 crore in December 2020. It reported net sales at Rs 247.22 crore in December 2021 up 104.62 percent from Rs. 120.82 crore in December 2020.
Sandip Das
