As many as 90 stocks in the BSE 500 index managed to keep their neck above water last week despite heavy selling in the domestic equity markets. The BSE barometer Sensex tanked 1,290.87 points, or 2.10 per cent, to 59,330.90 on January 27 from 60,621.77 on January 20, 2023. Likewise, the 50-share NSE Nifty index retreated 423.30 points, or 2.35 per cent, to 17,604.35 during the same period.
Top gainers
With a rally of 10.70 per cent, Sona BLW Precision Forgings jumped to Rs 451.60 for the week ended January 27. It was followed by Tata Motors (up 10.50 per cent) and Bajaj Auto (up 10.20 per cent).
Shares of these companies hogged the limelight after their financial results for the quarter ended December 31, 2022. Auto components maker Sona BLW Precision Forgings on January 24 reported a 24 per cent growth in its consolidated net profit at Rs 107 crore in Q3FY23 as against Rs 86 crore in the same quarter last year. On the other hand, Tata Motors on January 25 posted a consolidated net profit of Rs 2,957.71 crore against a loss of Rs 1,516.14 crore in Q3FY22.
Shares of Bajaj Auto rallied nearly 6 per cent on Friday after the auto major posted around 23 per cent year-on-year increase in net profit for the quarter ended December to Rs 1,491.42 crore.
TVS Motor Company, PVR, Supreme Industries, AIA Engineering, Persistent Systems, Bajaj Holdings & Investment, JB Chemicals & Pharmaceuticals, Coforge, Tata Elxsi and Kajaria Ceramics also gained somewhere between 4 per cent and 9 per cent in the truncated week. Domestic equity markets were closed on January 26 on account of the Republic Day.
Endurance Technologies, Max Healthcare Institute, Aavas Financiers, Can Fin Homes, KEI Industries, Ashok Leyland, Emami, Maruti Suzuki India, Chalet Hotels, ITC, Carborundum Universal, Home First Finance Company India, Sonata Software and Esab India also advanced somewhere between 3 per cent and 4 per cent last week.
Top Losers
Shares of Adani Group of companies fell sharply following the Hindenburg report accusing the group of serious irregularities. As a result, Adani Transmission declined 26.60 per cent last week. Other Adani Group firms including Ambuja Cements, Adani Total Gas, Adani Green Energy, Adani Ports and Adani Enterprises also lost over 20 per cent. Dixon Technologies, Indus Tower, ACC, Infibeam Avenues, Minda Corporation, Bank of India and IRB Infrastructure also slipped somewhere between 12 per cent and 23 per cent.
Vinod Nair, Head of Research, Geojit Financial Services said: “Despite the optimistic result announced by the blue chips, this week’s market sentiment suddenly got dampened by the unfavourable research report on Asia’s richest promoter group companies. The same is obnoxiously affecting banking stocks, despite its positive results owing to high group lending; with PSU banks being the most impacted due to high exposure.”
“Overall, the market appeared to be uneasy ahead of the upcoming Union Budget and Fed meeting, and FII were selling as funds are being shifted to other EMs because of attractive valuations,” Nair said.
What to expect from Budget week?
The Union Budget and FOMC are both scheduled for release on February 1, 2023, and the market will take cues from the outcomes next week. Market watchers believe that any increase in funding towards capital expenditure and rural areas within the constraints of the fiscal deficit controls will be favourable, while any unfavourable proposals, such as an increase in LTCG rates/ duration or populist measures due to the pre-election budget, could add to the bearish mood in the short-term.
On the other hand, there are expectations that the FOMC may raise rates by 50 basis points at the upcoming meeting, and any decrease from this level will be considered positive.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One, said: “This time, the fiasco in the last two days has dampened overall sentiments and certainly disrupted prices across the board. From an optimist’s point of view, it is good that the market is approaching this event (Union Budget) on a lighter note and that any favourable outcome, would lift the markets higher. However, a slight disappointment would lead to further aberration in the market.”
