Experts expect the volatility to remain high in the coming week as well, with the market first on Monday reacting to US inflation data that came in at 40-year high and industrial output data for April, both of which were released later on Friday. Bears seem to be more active than bulls in coming week with all eyes on Fed interest rate decision and CPI inflation data, experts said.
The BSE Sensex during the week declined 1,466 points, or 2.63 percent, to 54,303, and the Nifty50 plunged 382.5 points, or 2.3 percent, to 16,202, while the Nifty Midcap 100 index fell 0.8 percent and Smallcap 100 index declined 1.1 percent.
Bajaj Auto: The stock was up over 5 percent in the week gone by after the company said its board will consider buyback proposal on June 14, 2022. “The meeting of board of directors of the company is scheduled to be held on Tuesday, 14 June 2022, inter-alia to consider a proposal for buyback of fully paid-up equity shares of the company,” Bajaj Auto said after market hours on Thursday. The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better price to earnings (P/E) multiple.
MRPL: The share price surged 39 percent last week. The rise in the Singapore gross refining margin (GRM) to a record high of $ 25.2 a barrel bodes well for Indian refiners as they process raw crude into refined products. MRPL reported standalone net profit of Rs 3,008 crore in Q4 as against profit of Rs 268 crore in Q4FY21, supported by higher crude output and better gross refining margins. Malay Thakkar of GEPL Capital advises traders and investors to continue holding the stock expecting upside towards Rs 97 followed by Rs 102 levels, while Rs 85 level on the downside would act as a strong support for the stock.
PNB Housing Finance: The stock price gained over 12 percent last week. The board of Punjab National Bank has approved an investment of upto Rs 500 crore by participating in the rights issue of PNB Housing Finance. The public sector bank’s board has approved the bank’s participation in the proposed rights issue of PNB Housing Finance (PNBHFL) for an amount upto Rs 500 crore, in order to retain bank’s shareholding at 30% or below but above 26%, and to retain its status as promoter. PNB Housing Finance board will meet on June 14, 2022 to consider and approve issuance of non-convertible debentures aggregating up to Rs 2,000 crore on private placement basis.
TVS Motor: The scrip added 4 percent as the company has kick-started a process to raise around $ 300 million to $ 350 million for its electric mobility business, multiple industry sources with knowledge of the development told Moneycontrol. Moneycontrol was the first to report the firm’s capital mop-up plans for its carved-out electric mobility business on November 9, 2021. If plans fructify, TVS Motor Company would become the third listed company to raise funds for an electric vehicle subsidiary, post Tata Motors and Greaves Cotton. “The fund raise process was launched last week and feelers have been sent to top private equity funds as well as sovereign wealth funds and pension funds. The funds with a sustainability pool may be particularly interested,” said one of the persons cited above. JP Morgan which expects a recovery in domestic 2W volumes and expects TVS to outperform growth shared the following details in an update dated May 6, 2022 – “TVS will be launching 2W and 3W EVs with battery pack sizes of 5-25kWh over the next eight quarters. Current production levels for the iQube are 1.7K/month and there is an order book of 12K units. TVS is currently selling its EVs across 33 cities and plans to raise monthly production to 10K/unit by end of 1QFY23.”
RBL Bank: The scrip added 7 percent. The bank has appointed veteran banker R Subramaniakumar as its new managing director and chief executive officer. The appointment has been made for a period of three years, the private lender informed the stock exchanges. “The board of directors has approved the appointment of R Subramaniakumar as Managing Director & CEO of the bank for a period of three years with effect from date of his taking charge, under Section 35B of the Banking Regulation Act 1949,” it said. Jatin Gohil of Reliance Securities is of the view that as per the current set-up, the stock may witness further up-move, which could lead the scrip towards Rs 136. On the lower side, the stock will find support tad below the psychological level of Rs 100.
Adani Transmission: The stock price gained almost 5 percent in the week gone by amid weak market sentiments. The company said that it has signed a share purchase agreement with Essar Power to acquire a 100 percent stake in Essar Power Transmission Company. “The acquisition of Essar’s transmission asset will consolidate ATL’s presence in central India. With this acquisition, ATL is well on the path to achieve its 20,000 ckt km target before time. We continue to remain at the forefront of grid stability and provide sustainable, reliable, and affordable energy solutions while creating long term sustainable value for our stakeholders,” said ATL MD & CEO Anil Sardana as per a PTI report.
LIC: The stock shed over 11 percent as investors remain jittery over further selling pressure on the counter ahead of the end of the lock-in period for anchor investors in the company’s initial public offering. The lock-in period for anchor investors is expected to end on June 13, which will allow such investors to sell their existing shares in the market. Overall, sentiment for the company has turned adverse with some brokerages suggesting that the company will continue to languish as the company faces challenges to scale-up its non-participatory policy business and its ongoing market volatility hurts its embedded value. “Inherent volatility in Embedded Value (EV) is another big challenge given a substantial portion of EV constitutes marked-to-market (MTM) unrealised equity gains,” brokerage firm Macquarie Capital India said in a recent note.
Delta Corp : The scrip slipped over 7 percent last week. Ace investor Rakesh Jhunjhunwala sold 25 lakh equity shares, representing 0.93 percent of the stakeholding, in the last few days of May. Jhunjhunwala’s stake has now been reduced to 6.16 percent from 7.1 percent. In a November 18, 2016 note, he said he held 2.37 crore equity shares (10.27 percent) in Delta Corp. Delta Corp recorded a 16.7 percent declined in its Q4FY22 net profit at Rs 48.1 crore, dented by muted topline growth and weak operating performance. Revenue grew 3.3 percent to Rs 218.3 crore from the the year-ago period.
Shree Cement: The share was down 7 percent as most of the cement companies have mentioned that their variable cost/ton is likely to increase by 10-15 percent sequentially in April-June quarter (Q1FY23). In current times of weak demand, high fuel costs and entry of a new player (Adani group), any significant capacity announcement may be viewed negatively by the market, analysts said.
NLC India: The stock slipped over 5 percent in the week gone by. The company’s consolidated net profit declined 54.5% to Rs 328.02 crore despite of an 8.7% rise in revenue from operations to Rs 3,085.89 crore in Q4 FY22 over Q4 FY21. During the financial year, NLC India’s consolidated net profit declined 14.8% to Rs 1,092.57 crore despite of a 21.3% rise in revenue from operations to Rs 11,947.94 crore in FY 2022 over FY 2021. The firm is working on a pilot project for production of 1,200 tonne a day (400,000 lakh tonne a year) of methanol using 2.5 million tonnes of lignite. The project is expected to be implemented by an overseas technology supplier, yet to be selected, on a lumpsum turnkey basis. Engineers India Ltd is likely to be awarded the project management contract.
Sandip Das
