Markets

The week that was: Gitanjali loses sheen on PNB fraud, Vakrangee stages a comeback

NEW DELHI: Domestic stocks consolidated in the week gone by as they failed to capitalise on a relief rally in US and European markets. Indecisive investors took profit at every interval, leading to a flat close for benchmark indices for the week.
On a weekly basis, the BSE Sensex inched up 0.01 per cent to 34,010.76 and the NSE Nifty fell 0.03 per cent to 10,452.30. This was against a jump of 4.25 per cent in US Dow Jones, 1.58 per cent in Japan's Nikkei and 2.9 per cent in German and UK indices.

Crude prices (NYMEX) went up 4.19 per cent to $61.68 a barrel. The rupee ended the week at 63.91 against the dollar over the previous week's closing of 64.37.

Coming to stocks, PSU banking and gems and jewellery counters were the worst hit, chiefly because of an alleged fraud of Rs 11,400 crore in Punjab National Bank, the second-largest state-owned lender. Automobiles stocks traded lower.

Here's a list of stocks that were in limelight all through the consolidating week.

PNB: The stock crashed 19.86 per cent during the week after the bank reported a $1.77 billion fraud at a Mumbai branch involving companies related to jewellery makers Nirav Modi and Mehul Choksi. The RBI, meanwhile, has denied reports suggesting it asked the bank to pay counterparty lenders against the letters of undertaking (LoUs).

Gitanjali Gems: Shares of Mehul Choksi-led companies plunged 36 per cent during the week. The investigating agency CBI conducted searches at 20 locations of Gitanjali Group companies across five states on Friday . PNB has filed a second FIR related to instruments worth of Rs 4,887 crore issued to Gitanjali Group units Gitanjali Gems, Gili India and Nakshatra.

Vakrangee: After a big fall in the previous week, shares of Vakrangee surged 21 per cent this week after the company's board approved a one-time capital allocation policy, which suggests that the company intends to utilise two-thirds of its free cash flows towards dividend payout and share buyback.

MT Educare: The stock jumped 10 per cent for the week after after Zee Learn bought a controlling 44.5 per cent stake in the Mumbai-based company for about Rs 200 crore. The move triggered an open offer by Zee Learn to the shareholders of MT Educare for up to 1,86,64,096 share buy at a price of Rs 72.76, payable in cash.

Bhushan Steel: The scrip tumbled 15.3 per cent for the week. There are reports that Tata Steel trumped JSW with an aggressive all-cash bid for 5 million tonne Bhushan Steel and Power, one of the largest non-performing assets in the Indian banking system. The company’s promoter Neeraj Singal has meanwhile questioned the whole process of auctioning off defaulting steel companies through NCLT (National Company Law Tribunal).

Nestle India: The shares rallied 9 per cent for the week after the FMCG major reported nearly 60 per cent spike in its fourth-quarter net profit, driven by a strong volume growth that also pushed its 2017 revenue beyond the Rs 10,000-crore mark. The Indian arm of Switzerland-based Nestle, which makes the Maggi instant noodles and KitKat chocolates, posted a profit of Rs 312 crore for the quarter ended December 2017, compared to Rs 195 crore a year earlier.

GVK Power: This firm fell 12 per cent for the week. There were reports that the company will raise up to $1 billion by issuing dollar bonds to fund greenfield projects and refinance existing debt. Besides, the company told the BSE that it entered into an agreement with Anagha Constructions and Visakha Constructions to sell and transfer the entire equity stake in three of its smaller subsidiaries.

Fortis Healthcare: It took a beating following the Supreme Court ruling that allowed lenders of the company to sell shares pledged with them by promoters Malvinder and Shivinder Singh. Five lenders – Yes Bank, Axis Bank, RBL, ECL Finance and Indiabulls Housing Finance – hold such pledged shares. The stock was down 7.3 per cent for the week.

GMR Infra: This stock tanked 6.7 per cent for the week after the company reported a consolidated net loss of Rs 565.94 crore for the quarter ended December 2017. The company had clocked a net profit of Rs 643.44 crore in the same quarter of 2016-17, it said in a BSE filing.

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