In a highly volatile week the market lost a percent amid weak global and domestic data. Continued selling by foreign institutional investors (FIIs), falling rupee, and rising dollar added to woes. However, above average monsoon and falling crude oil prices provided some support. BSE Sensex shed 721.06 points (1.32 percent) to close at 53,760.78 while the Nifty50 fell 171.4 points (1.05 percent) to end at 16,049.2 in the week gone by.
Bharti Airtel | CMP: Rs 651.80 | The scrip was down over 6 percent following reports that Adani Group may enter the telecom space, which may cause another round of disruption in the market. An Adani Group entity has joined the race to acquire 5G telecom spectrum, which would pit it against Mukesh Ambani's Reliance Jio, Sunil Bharti Mittal's Airtel, and Vodafone-Birla Group joint venture Vi. However, Adani Group in a statement clarified that its intention to acquire 5G spectrum is to provide a private network for airports and its ports business and not to supply mass telecom services. The sirens sounded on Dalal Street as investors feared another deep-pocketed player in the industry may not bode well for existing players. Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
IndusInd Bank | CMP: Rs 815.05 | The stock shed four percent in the week gone by after the private sector lender said the Enforcement Directorate had launched an investigation against certain entities and some bank employees in connection with financial irregularities. A First Information Report (FIR) was filed on July 9 with the Chennai police against some of those entities and a few employees of the bank, the lender said. There is no credit exposure of the bank to these entities, the lender said. The alleged remittance transaction fraud took place between 2011 and 2014.
TCS | CMP: Rs 3265.45 | The share price shed over eight percent after the IT services major said its consolidated net profit for the quarter ended June increased 5.21 percent year on year to Rs 9,478 crore. Sequentially, the profit declined 4.51 percent. Revenue from operations during the quarter came in at Rs 52,758 crore, up 16.17 percent from the year-ago quarter and 4.28 percent from the previous quarter. The company said its constant currency revenue growth was 15.5 percent year-on-year (YoY). Operating margin was 23.1 percent, a contraction of 2.4 percent year on year. Brokerage house Citi has kept a sell rating on the stock with a target of Rs 3,015 and sees downgrades going ahead. Research house Credit Suisse has downgraded the stock to neutral from overweight and cut the target to Rs 3,275 from Rs 4,350.
HCL Tech | CMP: Rs 883.15 | The stock shed over 10 percent after the firm reported a 2.11 percent growth in consolidated profit after tax at Rs 3,281 crore on a year on year basis. Sequentially, the profit declined 8.83 percent. Constant currency revenue came in at $3,024.9 million, up 1.1 percent sequentially and 11.2 percent year on year. The company declared a dividend of Rs 10 per share.
Syngene International | CMP: Rs 613.20 | The scrip rose seven percent in the week gone by. The company signed a 10 year agreement to manufacture a drug substance for Librela, a monoclonal antibody used to treat osteoarthritis in dogs, with US-based animal health company Zoetis.
NHPC | CMP: Rs 34.60 | The share price was up seven percent last week. The government has accorded an investment approval for pre-investment activities for Sawalkot HE project (1,856 megawatt) in the Union Territory of Jammu & Kashmir for an amount of Rs 973 crore at November 2021 price level. NHPC will upscale hydrogen production on a commercial scale to meet the hydrogen needs of the Ladakh region in different sectors like mobility, transportation, heating, and micro-grid, and a subsequent memorandum of understanding will be signed separately.
Hindustan Zinc | CMP: Rs 285.35 | The scrip added over eight percent after the company announced an interim dividend of Rs 21 a share. Hindustan Zinc's board on July 13 approved an interim dividend of Rs 21 per share for the financial year 2022-23, amounting to Rs 8,873.17 crore. The record date for the payment of the dividend will be 21 July 2022.
Star Healthcare | CMP: Rs 619.65 | The share gained over 15 percent after Star Health and Allied Insurance Co Ltd partnered Common Services Centres (CSCs) under the Ministry of Electronics and Information Technology to provide over 5 lakh CSCs access to a select range of Star Health insurance products. These products have been designed to meet the needs of rural customers across tier two and three cities. Earlier Credit Suisse came out with an "outperform" rating for Rakesh Jhunjhunwala-promoted Star Health. It values the company assuming a status quo in the industry structure. “We assign a lower multiple of 33x FY24 expected forward (30 percent discount to fair value multiple) and arrive at a target price of Rs 600. With the stock trading at 27x/22x FY24/25 expected base case earnings, we believe risk-reward is attractive,” the research firm said.
HFCL | CMP: Rs 67.10 | The stock price jumped over 15 percent in the week gone by. The company received a Rs 59.22 crore order from a telecom firm in India. “Purchase orders (have been) issued by a leading telecom operator in the country for their fibre-to-the-home (FTTH) network and long-distance fibre network in various telecom circles,” HFCL said. The order value stands at Rs 59.22 crore, the Delhi-headquartered company said, and HFCL needs to deliver the product and services by July 2023.
Birla Software | CMP: Rs 309.60 | The scrip was down over nine percent after it turned ex-date for share buyback on Thursday. The stock also turned ex-date for final dividend of Rs 3 per share on Friday. The board at a meeting on May 23 had approved buyback of up to 7.8 million shares of Rs 2 each at a price of Rs 500 per share through the tender offer.
