Sensex fell for the second consecutive day on November 22 on losses led by IT and bank heavyweights such as Infosys, HDFC Bank and TCS.
The market remained in the lower terrain throughout the session even as global cues remained broadly positive after China said it wanted to work out a trade deal with the United States.
The index closed below 11,950 levels and formed the 'Bearish Belt Hold' pattern on daily charts while, for the week, there was a Doji kind of pattern formation on the weekly scale for the third consecutive week. It gained 0.16 percent during the week.
Broadly, the index remained in a range of 11,800-12,050 levels for another week and continued to hold its 13-day exponential moving average, placed at 11,899, if it breaks the same, there could be selling pressure in coming days. But, overall, it could be another week of consolidation, experts feel.
Here's the list of top 10 stocks which moved the most this week:
Vodafone Idea: up 79%
Share price of telecom major Vodafone Idea zoomed 79 percent for the week after the company said it will raise mobile services rates from December 1 in the wake of the ongoing financial stress. It further said that it is seeking about Rs 7,000 crore in tax refunds for past years even as it faces fresh statutory dues liability - running into thousands of crore - that has put the income tax department in a bind, PTI reported.
Vodafone Idea reported a consolidated loss of Rs 50,921 crore, the highest ever loss posted by any domestic company for the quarter ended September 30.
Jefferies maintained its hold rating for Vodafone Idea and slashed target price to Rs 2.40 from Rs 8 as company would still lose a majority of high ARPU subscribers to Bharti Airtel.
UCO Bank: up 43%
UCO Bank jumped 43 percent for the week. The bank said the Supreme Court’s 'landmark' judgement on the supremacy of financial lenders above operational creditors will help bleeding banks recover thousands of crore rupees from defaulting companies in the coming quarters. This should help shore up the battered balance sheets of these banks, mostly state-owned.
In an exclusive interview to CNBC Awaaz, UCO Bank CMD Atul Kumar Goel, said FY20 “will be a turnaround year” for the bank and that the next year would be a “golden year.”
India’s top court’s ruling in the Essar Steel vs Arcelor Mittal case favoured financial creditors above operational lenders in case a company went under the bankruptcy code. UCO Bank had lent Rs 400 crore to Essar Steel. Goel said the lender had made a provision of Rs 360 crore out of this amount and will write back this entirely to its quarterly profit. Goel expects about RS 1,500 crore worth of bad loans to turn good and the entire amount being added back to his annual profits.
Zee Entertainment: up 24%
Zee Entertainment shares gained 24 percent for the week after Essel group said it was planning to sell 16.5 percent stake in Zee Entertainment Enterprises (ZEEL) to financial investors in order to repay loan obligations to certain lenders of the group.
After the transaction, Essel's holding will come down to five percent in the company, out of which encumbered holding will be 1.1 percent. The stake sale will be to clear loan obligations to certain lenders of the group.
According to Macquarie, the stake sale is a big step in company's efforts to reduce debt. 16.5% stake sale will lower promoter debt by 58-65% to Rs 2,400-2,900 crore. Assuming stake sale at CMP, Essel could repay 70% of loans and focus would shift to the sale of non-media assets to repay balance Rs 2,100 crore, said CLSA.
Glenmark Pharma: up 14%
Glenmark Pharma added 14 percent for the week after global brokerage firm CLSA upgraded the stock to 'buy' from 'Sell', citing attractive valuation. Glenmark’s Q2 FY20 results were ahead of estimates while all geographies witnessed YoY growth for the first time in over three years, the firm said.
Glenmark Pharma reported a consolidated net profit to Rs 255.54 crore for the second quarter ended in September. The company posted a net profit of Rs 414 crore in the July-September quarter a year ago, Glenmark Pharmaceuticals said in a BSE filing. The net sales of the company stood at Rs 2,763.73 crore, up 8.81 percent, during the period under review as against Rs 2,539.85 crore of the corresponding quarter previous fiscal.
RBL Bank: up 13%
Share price of RBL Bank rose 13 percent this week as Chola Securities feels the stock could be a market performer, especially after its strong earnings growth, barring weak asset quality, in Q2 FY20.
"Despite a healthy loan growth trajectory, stable margin and a rapidly growing fee income, asset quality concerns paint a muted outlook for the bank. We rate the stock as a market performer, with a target price of Rs 356, valuing it at 1.8 times estimated FY2 P/ABV," the brokerage said.
The management expects FY20 PAT to be around 70 percent of FY19 PAT. In addition, the bank clarified in its post Q2 earnings conference call that it will absorb all credit challenges this fiscal, predominantly in Q3 itself.
Sun Pharma: up 9%
Sun Pharma gained 9 percent for the week on the back of Taro's buyback news. According to analysts, the main trigger for the rally is the current buyback offer from Taro Pharmaceutical Industries, which could lift Sun Pharma’s holding in the company. Currently, Sun Pharma holds 76.5 per cent stake in the company.
Taro Pharmaceutical Industries on November 14 launched its modified Dutch auction tender offer to repurchase up to USD 225 million in value of its ordinary shares at a price not greater than $92 a share or less than USD 80/share. The offer will expire on December 16. If the offer is fully subscribed, the number of shares to be purchased in the offer represents approximately 6.3-7.3 percent of Taro’s currently issued and outstanding shares depending on the purchase price payable for those shares pursuant to the offer, Taro said in the offer document.
Bharti Airtel: up 7%
Share price of Bharti Airtel gained 7 percent this week after the telecom major decided to increase tariffs. Most of the brokerages maintained a bullish stance on strong operating performance in September quarter (Q2FY20).
"We understand that TRAI is likely to initiate a consultation for bringing rationality in pricing in the Indian mobile sector which has been operating at prices that have been eroding the viability of the sector," BHarti Airtel said in a statement.
PAGE Industries: down 8%
PAGE Industries share price declined as much as 8 percent for the week after Macquarie remained bearish on the stock on weak margin performance. Macquarie has maintained its underperform rating on the stock, though it raised the target price by 24 percent to Rs 19,852 from Rs 16,000, implying 15.4 percent potential downside from current levels.
"The strong recovery in sales growth is positive, but sustaining this will be key. The Q2 was driven by early festivals & higher retail incentives, but there was margin pressure on higher retail incentives & inflation in operating cost," said the brokerage. It cut FY19-22 EBITDA estimates by 1-4 percent on account of lower margin, but increased FY19-22 EPS estimates by 3-9 percent on lower tax rate.
Mahindra & Mahindra: down 6%
Mahindra & Mahindra share price shed 6 percent for the week.The company reported a 26.5 percent drop in quarterly net profit as the company struggled to sell cars, trucks and tractors amid a slowdown in Asia's third-largest economy.
Unit sales at the maker of popular sports utility vehicles like Scorpio and Thar dropped 21 percent for the quarter, with the industry facing issues of credit crunch, higher insurance costs and a shift towards ride-hailing services. Net profit after tax for Mahindra came in at USD 170.36 million for the quarter ended September 30, compared with 16.49 billion rupees during the same period last year, the Mumbai-based company said.
YES Bank: down 5%
Share price of YES Bank declined 5 percent for the week as investors remained bearish on the stock in wake of recent negative developments. Lack of any fresh development on capital front also weighed on investor sentiment.
Investors got fresh jolt after the lender said the Reserve Bank of India found under-reporting of bad loans to the tune of Rs 3,277 crore during the financial year 2018-19.
Siemens: down 5%
Share price of Siemens was down 5 percent for the week after Yes Securities and Emkay downgraded the stock after recent rally. "We downgrade the stock’s rating to sell after the strong run-up in recent months as near-term growth outlook remains weak due to a lack of private capex and expensive valuations. We remain underweight on Siemens in sector Emkay Alpha Portfolio," Emkay said.
Yes Securities also downgraded the stock to “reduce”, rating with a target price of Rs 1,491 based on 40x FY21E earnings. "We downgrade FY21 EPS estimates by 5 percent to factor in lower revenue visibility and profitability assumptions. We expect SIEM to post revenue/EBITDA/PAT CAGR of 6/6/10 percent over FY19-21E, respectively. Post 35 percent stock rally in last three months, Siemens is currently trading at 44x/41x to FY20E/FY21E earnings, implying rich valuations," it said.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.