Movers & Shakers | 10 stocks that moved the most last week Nifty managed to hold on to the level of 16,200 on a closing basis. The overall structure shows that the Nifty is trading near multiple support parameters and it can witness recovery as long as it stays above 16,200 -16,100 on a closing basis, said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.
March 06, 2022 / 11:12 AM IST
Markets fell 2.5 percent and extended the losing streak for the fourth consecutive week ended March 4 amid rising geopolitical tensions between Russia and Ukraine. In the truncated week, with high volatility, the market started on a positive note but lost the momentum as the week progressed. The BSE Sensex fell 1,524.71 points (2.72 percent) to end at 54,333.81, while the Nifty50 shed 413 points (2.47 percent) to end at 16,245.4 levels last week.
Coal India | The stock price jumped over 20 percent in the week gone by. The state-owned firm produced 64.3 million tonnes of coal in February, registering a growth of nearly 4 percent compared to the year-ago period. Coal India Ltd had produced 61.9 MT of coal in the corresponding month of previous fiscal. In a statement on Tuesday, the company said that stepping up its output tempo, it produced 64.3 MT of coal in February. On a month-on-month basis, CIL’s average production increased to 2.3 MT per day in February. The gain in absolute terms was 6.2 MT. Till February of the current fiscal, CIL’s total off-take was nearly 600 MT.
Bharat Electronics | The share was up over 14 percent as defence stocks got a boost amid ongoing Russia Ukraine conflict. India, for its part, is considered to be in a geopolitical hotspot due to its border tensions with China in the north and fraught relationships with Pakistan in the west. Overall, India’s military expenditure had seen a sharp rise to 2.88 percent of GDP in 2020 due to its escalating tensions with China. Analysts have been bullish on the prospects of home-grown defence manufacturers such as Bharat Electronics, Hindustan Aeronautics, Bharat Dynamics and others given that their order books are likely to swell in the coming years.
UPL | The scrip gained over 12 percent last week. UPL's founding Shroff family is exploring a merger with at least two American firms—CF Industries Holdings Inc. and FMC Corp.—as part of the family’s plan to ensure a fair distribution of businesses and assets among its members, according to a Mint report. The promoters of UPL are considering several options but leaning towards a merger because it may fetch much better value for their 28.24 percent stake and public shareholders, sources said. “A merger at this stage is likely to fetch at least a 15 percent premium to UPL’s current worth, which translates to around $8.9 billion or Rs 63,000 crore—the largest deal in the agrochemicals space in Asia, if formalised."
Vedanta | The stock added 10 percent in the week gone by. The board declared an interim dividend of Rs 13 per share. "The board of Vedanta through a resolution passed by circulation on March 2 has approved the third interim dividend of Rs 13 per share, that is, 1300 percent on face value of Re 1 per share for the financial year 2021-22 amounting to Rs 4,832 crore," the press release said. The record date for the purpose of payment of dividend is March 10, the release added. On the other hand, Societe Generale sold shares in the billionaire Anil Agarwal-owned company via open market transactions. The France-based financial services company sold 2.24 crore shares amounting to 0.6 percent of metal major Vedanta at an average price of Rs 391.74 for nearly Rs 880 crore.
Apollo Hospitals | The share rose 8 percent last week. The National Stock Exchange (NSE) had announced that the stock would be included in the benchmark Nifty 50 index effective from March 31. Apollo Hospitals will become the first ever healthcare services company to become part of the benchmark index and will replace Indian Oil Corporation. Brokerage firm Edelweiss Securities expects the inclusion of Apollo Hospitals into Nifty 50 to result in inflows of $143 million from exchange-traded funds that mirror the index. Dealers said that the stock could see buying from traders ahead of the inclusion in the index in the hope of selling the shares to exchange-traded funds after the inclusion.
Vodafone Idea | The stock price added over 7 percent. The cash-strapped telco firm said its board has approved raising Rs 4,500 crore via issuing shares to its promoters Vodafone Inc and Aditya Birla group entities on a preferential basis. The firm will issue up to 3.39 billion shares at Rs 13.30 a share, 20% premium to its current market price, to Euro Pacific Securities Ltd, Prime Metals Ltd and Oriana Investments Pte Ltd on preference basis. Euro Pacific Securities Ltd and Prime Metals Ltd are Vodafone Group firms while Oriana Investments Pte is Aditya Birla Group company. Vodafone Group and the Aditya Birla Group (ABG) own 44.39% and 27.66%, respectively in Vodafone Idea as its co-promoters.
Asian Paints | The scrip was down 10 percent in the week gone by. The impact of the Russia-Ukraine conflict can be felt far and wide across sectors and asset classes. However, the major impact is on prices of crude oil, which has a bearing on almost everything else. Sectors directly dependent on crude oil and its derivatives will be the biggest losers and the paint industry is one of them. Asian Paints, India’s largest paint company, had highlighted during its third quarter earnings call that the current input cost inflation was unprecedented in 40 years. The current crisis will further aggravate the situation. Experts had hoped for a demand revival in the paint segment in Q1 of FY23 but in the wake of the current scenario and impending price hikes, that estimate might get pushed further. The duration of the conflict and the impact of sanctions on Russia and its crude oil supply will play a crucial role in the turnaround for the paint industry.
Bajaj Auto | The share price shed over 6 percent after the company reported a 16 percent drop in its total sales to 3,16,020 units in February. The company had sold 3,75,017 units in February 2021. Domestic sales last month stood at 1,12,747 units as against 1,64,811 units, down 32 percent, Bajaj Auto said in a regulatory filing. Total two-wheeler sales declined 16 percent to 2,79,337 units compared to 3,32,563 units in February last year. Total commercial vehicle sales slipped 14 per cent to 36,683 units against 42,454 units in the same month last year, the company said. Exports last month also witnessed a decline of 3 per cent to 2,03,273 units from 2,10,206 units in the corresponding month last year, it added.
Adani Ports | The stock added 7 percent last week. The company said that during the month of February 2022, its portfolio of ports handled cargo volume of 24.15 MMT registering a growth of 14.4% on a YoY basis. During the eleven months of FY22, Adani Port's portfolio of ports handled total cargo volume of 283 MMT thus registering a growth of 28% on YoY basis. It achieved the distinction of handling highest ever container volume in a year. During the eleven months of FY22, its portfolio of ports handled 7.5 mn TEUs of container volume thus surpassing 7.2 mn TEU's handled in FY21.
ONGC | The stock price added 5 percent as global crude oil prices continued their ascent to hit their highest level in eight years. Brent crude oil futures soared past the $118-mark and were up nearly 3 percent as the ongoing invasion of Ukraine by Russia showed no signs of easing. The sanctions imposed on the Russian economy by members of the North Atlantic Treaty Organisation have led to concerns of the country’s oil exports being cut-off. Besides oil, ONGC also benefits from the rise in global natural gas prices given that a large share of the company’s revenues are generated through sale of gas. Analysts expect the surge in global natural gas prices to result in a more than doubling of domestic prices when the rates are rejigged in April.