Markets

The week in 10 stocks: DHFL cracks 25%, but these 23 stocks hit fresh highs

Domestic equity investors took money off the table for the week ended June 7, sending benchmark equity indices down for the first time in four weeks. BSE Sensex and NSE Nifty kicked off the truncated week on a positive note after Goods and Services Tax (GST) collections touched Rs 1 lakh crore in May 2019 as compared to Rs 94,016 crore in the year-ago period.

Markets participants ignored CSO data which showed that economic growth slowed to a 5-year low of 5.8 per cent in the fourth quarter of 2018-19, pushing India behind China, due to a poor showing by agriculture and manufacturing sectors.

However, sentiments got dampened after a private weather forecaster Skymet Weather said the pre-monsoon rainfall in the country was the second lowest in 65 years. Also, lack of a comment from RBI on the on-going NBFC crisis overshadowed the 25 bps rate cut and change in stance.

However, some buying on Friday capped the downside.

Vinod Nair, Head of Research at Geojit Financial Services said, “Markets started the holiday trimmed week on a positive note. The momentum was triggered by weakness in crude oil prices and hopes of RBI cutting rates in the bi-monthly policy. But the momentum was short-lived and markets traded lower after RBI cut repo rates by 25 bps and changed stance to accommodative from neutral that came mostly in expected lines. No further comments by RBI regarding the on-going NBFC funding crisis was taken as a surprise by the market that added to the negativity.”

As a result, the BSE Sensex closed 98.30 points, or 0.25 per cent down at 39,615.90 on June 7 against 39714.20 on May 31. Likewise, the NSE Nifty index closed 52.15 points, or 0.44 per cent, lower at 11,870.65.

Below are the top stocks and sectors that buzzed through the whole week.

Dewan Housing Finance Corporation (DHFL)

Shares of the company declined over 25 per cent to Rs 83.50 for the week ended June 7. DHFL, the third-largest pure-play mortgage lender, during the week received a rating downgrade on its Rs 850 crore worth commercial papers (CPs) to default grade by Crisil and Icra due to delay in meeting its obligations. The mortgage lender had defaulted on bond repayments on June 4.

Stocks that rallied up to 13%

As many as 13 stocks on the BSE500 index managed to deliver over 5 per cent returns to investors during the week gone by. The list included stocks such as Info Edge (up 13.36 per cent), Apollo Hospitals (12.70 per cent), Himadri Speciality Chemical (8.90 per cent), Caplin Point Laboratories (8.70 per cent) and Power Finance Corporation (8 per cent).

Scrips that cracked over 10%

As many as 17 stocks in the BSE 500 index declined in double digits during the past four trading sessions. Reliance Infrastructure tumbled the most 28.64 per cent, followed by DHFL (25.21 per cent), PC Jeweller (19.12 per cent), Manpasand Beverages (18 per cent) and Reliance Capital (17 per cent). Reliance Power, Dilip Buildcon, Jet Airways and Jain Irrigation also declined over 10 per cent during the week.

Top Nifty Gainers:

Coal India: Shares of mining major Coal India rallied 4.75 per cent to Rs 265.60 on June 7 from Rs 253.50 on May 31. The scrip got traction after the company posted over four-fold rise in its consolidated net profit at Rs 6,024.13 crore for the quarter ended March 2019 against Rs 1,302.63 crore in the corresponding quarter last year.

Bharti Infratel: Shares of the company rallied nearly 4 per cent to Rs 279.70 for the week ended June 7. The National Company Law Tribunal during the week approved the planned merger of the company with Indus Towers, according to a regulatory filing.

Top Nifty Losers

GAIL: GAIL India emerged as a topRead More – Source
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