Indian equity market ended Friday’s volatile session marginally lower, recouping most of the intraday losses. The benchmark indices BSE Sensex declined 111.01 points, or 0.21%, to close at 52,907.93, and the NSE Nifty50 index closed 28.20 points, or 0.18%, lower at 15,752.05.
Broader markets outperformed the frontline indices as the Nifty Midcap100 rose 0.51% and the Nifty Smallcap100 gained 0.38%. Nifty Bank also gained over 0.3% for the day. Among sectors, Nifty Oil & Gas plunged over 4%, while the remaining indices ended higher, with Nifty FMCG, Nifty Realty, Nifty Pharma, Nifty Metals and Nifty Financial Services indices gaining the most.
For the week ended July 1, both Sensex and Nifty gained 0.34% each, supported by gains in FMCG, metals and realty stocks. The week was marked by the bounce back in crude oil prices, deteriorating rupee, expiry of the Nifty June F&O series and release of automobile sales data. Nifty also ended around 5% lower in the month of June and is still down more than 9% YTD.
The global macro and geopolitical fears continue to loom along with rising interest rates to tame the soaring inflation.
Moreover, the outflow of foreign institutional investors (FII) from Indian markets remained abated this week. The FIIs sold Indian equities worth over Rs 4,500 crore during the week. In the month of June, the total outflow from the cash market stood at more than Rs 58,100 crore. On the contrary, domestic institutional investors (DII) pumped in nearly Rs 46,600 crore into the markets last month.
Depreciating local currency also remains another worry for the market. Fears of global recession prompted heaving selling in emerging markets securities dragging rupee below the levels of 79 per US dollar. The rupee ended the week at 79.05 a dollar.
Check out the top gainers among Nifty constituents for the week:
Shares of ITC Ltd staged a strong rally of nearly 7% for the week to close at Rs 284.75 apiece, just after hitting a 52-week high of Rs 285 on the NSE. ITC stock has outperformed the markets with over 30% YTD gains as against over 9% fall on the Nifty.
Cigarette maker ITC’s financial performance in FY22 remained robust across segments. In Q4FY22, ITC’s net profit was Rs 4,259.68 crore and consolidated revenue was at Rs 18,252.64 crore.
Hindalco Industries gained over 5% this week to end at Rs 341.80 apiece on the NSE. The stock is down over 40% in the last three months and more than 28% YTD.
Earlier this week, the Aditya Birla Group company Hindalco Industries announced an investment of Rs 71.5 lakh for 26% stake in renewable energy generation company Cleanwin Energy SIX. As per the company, the proposed deal is part of its avenues in reducing the energy cost through open access to renewable energy generators.
Larsen & Toubro
Engineering and construction major Larsen & Toubro gained over 5% for the week to close at Rs 1,571.80. L&T stock has fallen over 12% in three months.
L&T announced that it has fixed July 22, 2022, as the record date for the members entitled to receive the proposed dividend of 1100% or Rs 22 for the year ended March 31, 2022. The dividend, if declared at the AGM, will be paid on or before August 08, 2022, it added.
Shares of UltraTech Cement closed over 4% higher for the week ended July 1 at Rs 5,690.00 on the NSE. The market capitalisation of the company swelled to Rs 164,253 crore.
The shares of the country’s largest producer bounced back from its 52-week low of Rs 5,157.05 hit on June 17, 2022. The stock is down over 25% YTD and more than 14% in three months.
Shares of Coal India Ltd (CIL), the largest coal producer in the world, gained 3.8% this week to close at Rs 183.20 apiece on the NSE. The stock has risen by over 25% YTD.
The state-owned miner said its coal production increased by 29% to a record 159.8 million tonne (MT) in April-June this fiscal from 124 MT coal in the year-ago period.
Here are the top Nifty losers for the week.
Two and three-wheeler manufacturer Bajaj Auto shares declined nearly 5% this week. The stock ended at Rs 3,621.70 apiece on Friday after the company reported its auto sales numbers for the month of June. Bajaj Auto share price has gained over 11% YTD.
The company’s total sales in June remained almost flat at 3,47,004 units as compared to 3,46,136 units in the same month last year. Domestic two-wheeler and commercial vehicle sales declined 15% to 1,38,351 units last month from 1,61,836 units in June 2021. However, the company’s exports rose 13% to 2,08,653 units from 1,84,300 vehicles, YoY.
Titan Company share price fell more than 4% during the week ended July 1. The stock closed at Rs 1,944.75 apiece on the NSE.
The shares of jewellery and watchmaker Titan Company came under pressure after the government announced an increase in import taxes on gold to 12.5% from 7.5%. High gold prices and weak jewellery demand at the end of the marriage season are likely to have impacted the stock price of Titan Company.
Oil & Natural Gas Corporation Ltd (ONGC)
Shares of Oil & Natural Gas Corporation Ltd (ONGC) declined by over 4% for the week. In fact, the stock cracked 13.30% on Friday to end at Rs 131.40 apiece. In the last three months, ONGC shares have fallen by nearly 22%.
The sharp plunge in the stock price comes after the government announced imposition of special excise duties or windfall gains tax on the oil and gas industry. The government imposed special additional excise duty of Rs 23,250 per tonne on domestically produced crude oil. The move is likely to severely hurt the benefits from elevated global crude oil prices to earnings of companies like ONGC.
Shares of Reliance Industries fell more than 3 for the week. The stock of the energy-to-telecom conglomerate tanked 7.31% on Friday, witnessing its biggest decline in about 18 months, to end at Rs 2,406.00 apiece.
The government also announced a hike in taxes on the export of petrol, diesel, and aviation turbine fuel (ATF). It levied a Rs 6 per litre tax on exports of petrol and ATF and Rs 13 per litre on exports of diesel. The government further mandated exporters to meet the requirements of the domestic market first.
The announcements triggered massive selling in the oil & gas industry shares.
Eicher Motors’ share price declined 3.30 for the week to close at Rs 2,789.00 on the NSE. The stock is up over 12% in three months and more than 7% YTD.
In June 2022, Eicher Motors’ unlisted subsidiary, VE Commercial Vehicles (VECV) sold 6,307 units of commercial vehicles (CV), registering a growth of 158.7% from 2,438 units sold in June 2021. June sales were also 11.89% higher than 5,637 units sold in May 2022. The jump in sales was driven by robust domestic demand.