Tracking weakness in global markets, Indian indices witnessed a knee-jerk reaction which took benchmark indices to over four-month low. The BSE Sensex suffered a biggest single-day loss (in absolute terms) since August 24, 2015.
The Sensex plunged 1,448.37 points or 3.64 percent to 38,297.29, the lowest level since October 14, 2019, while the Nifty50 shed 431.50 points or 3.71 percent to 11,201.80, the lowest level since October 7, 2019.
Experts favour waiting for some consolidation before initiating long positions and say if the index breaks the next crucial support of 11,111, then it could slip past the psychologically important 11,000-mark.
"The Nifty is approaching certain critical long-term averages on longer time-frame charts from where it took to support and staged a rally after major corrections in the past. Hence, in the near term, crucial support to watch out will be 11,111, which should not be violated at least on a weekly closing basis. The next logical support of the entire rally from the lows of 10,670–12,430 is placed around 11,022 levels," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.
For the week, the S&P BSE Sensex witnessed a fall of about 7 percent while the Nifty50 was down by 7.3 percent. Investors lost more than Rs 11 lakh crore in terms of market capitalisation during the week.
Foreign institutional investors (FIIs) have turned negative on Indian markets, pulling out more than Rs 11,000 crore as of February 27 so far in the month of February.
Let's look at the top 10 stocks which moved the most this week:
India Cements, up 27%
India Cements share price rose over 27 percent for the week after billionaire Radhakishan Shivkishan Damani and his brother Gopikishan Damani increased their stake in the company for the second consecutive day. Radhakishan Damani bought 27,25,468 equity shares of the cement company at Rs 104.16 per share, while its brother Gopikishan purchased 83,71,516 shares at Rs 98.42 per share on the NSE and Rs 15,92,130 shares at Rs 98.59 per share on the BSE, as per the bulk deal data available on exchanges.
In total, both acquired 12,689,114 shares (representing 4.09 percent of total paid-up equity) in the company, taking their shareholding in the company to 11.58 percent on February 26, up from 7.48 percent in the previous session. Radhakishan bought first a 1.3 percent stake in India Cements in the quarter that ended in September 2019, another 3.43 percent in the December quarter of 2019, and yet another 2.75 percent on February 25.
Mishra Dhatu Nigam, up 8%
The share price of Mishra Dhatu Nigam gained over 8 percent this week on expectation of higher growth in the coming quarter amid a strong order book. Sentiment for the stock also improved after the Union Budget raised its allocation for space research. The Budget allocated Rs 13,479.47 crore for fiscal 2021 for new projects planned by the Indian Space Research Organisation (ISRO).
"Increase in Indian space expenditure budget has been one of the key tailwinds for MIDHANI. Significant expenditure budget CAGR towards space (15.8 percent CAGR over the past six years), joint product development with Indian Space Research Organisation (ISRO) for strategically important materials, relatively small scale of operations, all tilt the risk-reward in favour of MIDHANI," said ICICI Securities which expects the stock to touch a target price of Rs 242, implying 55.5 percent potential upside from current levels.
Adani Gas, down 27%
Share price of Adani Gas tanked over 27 percent for the week after the Supreme Court has upheld an award for piped gas distribution network in Chennai and Tiruvallur districts in Tamil Nadu to a Gujarat-based firm by the Petroleum and Natural Gas Regulatory Board (PNGRB).
A bench of Justices DY Chandrachud and Hemant Gupta dismissed the appeal filed by Adani Gas Limited and others and justified the action of PNGRB saying that calling the bidders with the highest composite scores cannot be faulted. The Board had granted the award for piped gas distribution network in Puducherry to AG & P LNG, in Chennai and Tiruvallur districts to Torrent Gas and to SKN Haryana in Kanchipuram district in 2018.
The Adani family-owned Adani Gas has secured a nod from oil regulator for its demerger from its parent and the subsequent sale of a stake in the company to French energy giant Total SA after it made a formal application for the same, sources said. The Petroleum and Natural Gas Regulatory Board (PNGRB) had threatened to cancel the 13 city gas distribution licences Adani Gas had won in the 9th bid round in 2018 for allegedly perpetrating a "fraud" by not disclosing material facts of the demerger.
Jindal Steel & Power, down 20%
Jindal Steel & Power share price fell over 20 percent for the week and was one of the top metal losers amid a rise in global coronavirus cases which has made a dent to global steel demand. JSPL is preparing to sell dollar-denominated bonds to refinance debt held by its overseas units, media sources said. “They have a debt of around $750 million in their overseas business. They might do a single bond or tranches, which will be used to refinance the debt. They are in advanced stages of appointing a banker syndicate to work on these bonds," sources said.
Tata Motors, down 18%
Share price of auto major Tata Motors shed over 18 percent for the week after reports said that the Competition Commission of India (CCI) is examining allegations that the company and two finance firms of its USD 100 billion parent group abused their market position while selling commercial vehicles. Besides, heavy selling was seen at the counter as concerns on China-originated coronavirus becoming a pandemic soured sentiment. China is one of Tata Motors' most significant markets in terms of volume and profit.
The automobile company allegedly dictated terms around the quantity and type of vehicles its former dealer in northern India - Varanasi Auto Sales - should stock, news agency Reuters reported. The latest complaint, filed last year by a family member of the dealer, alleged Tata Motors broke rules by working in concert with Tata Motors Finance and Tata Capital Financial Services while advancing dealer credit, the report said.
Linde India, down 16%
The share price of Linde India fell over 16 percent for the week after the company reported a sharp fall in revenue, though operating income and margin remained strong. The company reported a profit after tax at Rs 634.5 crore in the quarter ended December 2019, against Rs 15.42 crore in the same period last year.
Aurobindo Pharma, down 15%
The share price of Aurobindo Pharma shed over 15 percent after the company received an establishment inspection report from the US health regulator with Voluntary Action Initiated status for its Unit VIII manufacturing facility in Hyderabad. "Further to our intimation dated November 6, 2019, with regard to the USFDA inspection of Unit VIII, API manufacturing facility at Gaddapotharam, Hyderabad, we would like to inform that the company has received the Establishment Inspection Report with VAl status from the US FDA," the drug firm said in a filing to BSE.
"This is probably the first time we have seen any such action from the regulator and comes as a negative surprise. The action implies that the inspection conducted by the USFDA at Unit IV in November 2019 is still open and under review and will be classified at a later point of time," said Emkay Global, which maintained a hold rating on the stock with a target of Rs 530.
Vodafone Idea, down 12%
The share price of Vodafone Idea fell over 12 percent this week and has been in the news after the Supreme Court ordered the telecom company to pay USD 4 billion as AGR dues. The company said it was unable to pay the full amount and instead sought urgent state support to survive the crisis. Vodafone Idea's lenders met DoT officials over the weekend, cautioning that invoking bank guarantees of the operator against statutory dues will lead to defaults since the telco is in no position to repay the banks. They urged the Department of Telecommunications (DoT) to come up with a solution to retain a three-player telecom market.
GAIL India, down 12%
Gail India share price shed over 12 percent after the DoT has sought Rs7,608 crore in dues from GAIL India for 2017-18 as the department appeared to be not pressing for immediate payment of Rs1.83 lakh crore in past dues it had previously assessed from the state-owned gas utility. The DoT sent a notice to GAIL soon after the February 14 hearing in the Supreme Court on dues owned by telecom companies such as Bharti Airtel, Vodafone Idea, sources privy to the development said. The dues now being sought from GAIL include a penalty for late payment, they said.
Interglobe Aviation, down 11%
Share price of Interglobe Aviation was down over 11 percent for the week after market regulator SEBI found prima-facie violations of corporate governance and listing disclosure norms in certain related party transactions involving the firm.
However, the management said, "We would like to state that the news item published in some media reports is factually incorrect and the company has not received any communication from SEBI in this regard."
Also,aviation stocks plunged in sync with the broader market sentiment, as concerns over rising cases of coronavirus wiped out the risk appetite of investors. The epidemic has made the sky gloomier of aviation players. As per rating agency ICRA, the outlook for India's aviation industry remains "negative" in the wake of viral outbreak.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.