Indian as well as global stocks marked their worst week since May 2020 on fears that rising interest rates and withdrawal of pandemic-era liquidity measures by central banks could push the world economy into a recession
The Sensex and the Nifty tanked nearly 6 percent each this week as foreign investors continued their selling spree and concerns mounted over a possible slowdown. In the broader market, Nifty smallcap 100 and midcap 100 indices plummeted 7.9 percent and 6.2 percent, respectively.
Paytm | The share price gained 5 percent after the fintech major reported strong operating performance for two months ended in May. Paytm said its lending business continued to be strong from the previous quarter as loan disbursements jumped 471 percent on-year in April-May to 5.5 million. The disbursement in value terms stood at Rs 3,576 crore in the first two months of this quarter, representing a growth of 829 percent over last year. “We are also seeing increases in the average ticket size due to a scale-up of the personal loans business in particular,” Paytm said. The company’s Managing Director Vijay Shekhar Sharma purchased 1.7 lakh shares of the company worth Rs 11 crore, according to a regulatory filing. The disclosures from the company show that Sharma bought the shares on May 30-31.
RBL Bank | The scrip crashed more than 28 percent during the week after the private sector lender named a new managing director (MD) and chief executive officer (CEO). It told the exchanges on June 11 that the Reserve Bank of India had approved the appointment of R Subramaniakumar as the MD and CEO for three years. Subramaniakumar is a former MD & CEO of Indian Overseas Bank. To calm jittery investors, the bank’s management also said there was no leadership crisis at RBL Bank and Subramaniakumar, who was the administrator of Dewan Housing Finance Corporation that achieved resolution, would use his expertise to build RBL Bank 2.0.
Rajesh Exports | The stock added over 7 percent in the week gone by. The jewellery exporter-owned entity Elest signed an agreement with Telangana to set up a display fab facility involving Rs 24,000 crore of capital outlay as part of India’s $ 10-billion Semicon India scheme, the country’s first such manufacturing unit. Elest would set up the fab with technology inputs from some of the most advanced research centres across the globe, it said. Telangana Industries Minister KT Rama Rao and Rajesh Exports’ Chairman Rajesh Mehta said the Generation 6 AMOLED display fab facility will manufacture displays for smartphones, tablet computers, and laptops among others.
GR Infra | The stock shed 14 percent after the firm said in an exchange filing on June 13 that some of its employees at a project site were arrested by the Central Bureau of Investigation (CBI). GR Infra said that a team of CBI sleuths searched the residence of the company’s chairman Vijay Kumar Agarwal and also the corporate office in Gurugram on June 13. GR Infraprojects is an integrated road engineering, procurement, and construction company largely focused on the road sector. It was responding to exchange queries on media reports of CBI arresting NHAI, GR Infra officials amid alleged irregularities in a highway project.
Apollo Tyres | The stock price slipped over 12 percent last week. Kotak Institutional Equities cut its targets on some of the key stocks in the tyre sector including Apolo Tyres and downgraded a couple of them, saying this was not the time to bottom fish. “We believe escalating raw material (RM) prices along with subdued demand in the replacement segment will continue to put pressure on profitability,” said Rishi Vora of Kotak Institutional Equities. The tyre industry is heavily dependent on crude oil as raw material and surging fuel prices are not helping. Over the past two quarters, dated Brent crude prices have almost doubled amid the Russia-Ukraine war.
Vodafone Idea | The share price fell 10 percent last week. According to the data released by the Telecom Regulatory Authority of India (TRAI), Reliance Jio gained 16.8 lakh mobile subscribers, Airtel gained 8.1 lakh subscribers, whereas Vodafone Idea lost around 15.7 lakh subscribers in April 2022. The stock was in focus after The Ken reported that e-commerce giant Amazon is in the running to invest up to Rs 20,000 crore in the struggling telecom operator. Moneycontrol could not independently verify the report. Vodafone Idea has been in search for investors to raise fresh capital to pay down its debt and invest in its network after returning from the brink of bankruptcy following help from the government.
SBI Cards | The share price shed 11 percent in the week gone by. The company said its board has approved a proposal to raise Rs 2,500 crore by issuing non-convertible debentures (NCDs) to fund business growth. The fund would be raised in one or more tranches, SBI Card said in a regulatory filing.
Interglobe Aviation | The stock slipped over 9 percent after ATF prices were raised to a record high. The increase in jet fuel price will raise the operating cost for airlines. ATF makes up to 40 percent of an airline’s operating cost.
LIC | The scrip shed over 7 percent in the week gone by. The stock of Life Insurance Corporation of India (LIC) hit a fresh low after the lock-in period for anchor investors in the company’s IPO came to an end on June 13. The government earlier said it is “concerned” about the temporary blip in LIC scrip and the insurer’s management would look into these aspects and raise shareholders’ value. “We are very concerned about the temporary blip in LIC share price. People will take time to understand (the fundamentals of) LIC. LIC management will look into all these aspects and will raise the shareholders’ value,” DIPAM secretary Tuhin Kanta Pandey said.
BLS International | The share price added over 7 percent during the week. The company acquired Zero Mass Private Ltd for Rs 120 crore. With this all-cash acquisition from the company’s internal accruals, BLS international has now become the largest business correspondent (BC) network in India. “BLS International has agreed to acquire 100 percent equity shares of ZMPL for an equity consideration of Rs 120 crore, including the entire equity stake of 63.94 percent held by Mr. Anurag Gupta (main promoter). Pursuant to the transactions already completed, BLS International now owns an 88.26 percent equity stake in ZMPL. State Bank of India continues to hold a 6.83 percent equity stake in ZMPL,” BLS International said in its press release.
Sandip Das
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