Bulls took a charge of Dalal Street on May 27, as the domestic benchmark equity indices surged over a percent each with the market entering a new monthly futures & options series amid positive cues from the global markets.
The Sensex rallied 632.13 points, or 1.17%, to close at 54,884.66, and the 50-share index Nifty ended 182.30 points, or 1.13%, higher at 16,352.45. The Nifty Midcap 100 and Nifty Smallcap 100 also gained more than 1.3% each.
Barring Nifty Oil & Gas and Nifty Metals, all other sectoral indices moved well in the green, with the Nifty IT, Nifty Media, Nifty Private Bank, Nifty Auto and Nifty Financial Services being the biggest gainers.
Both the benchmark indices posted gained for the second week in a row. The Sensex added 1.03% while the Nifty rose 0.53% during the volatile week ended May 27. Nifty Bank also gained for the second week in a row helped by HDFC Bank and Kotak Mahindra Bank rallying over 5% each for the week.
Sentiment on Dalal Street improved amid positive global cues as investors drew comfort from US Federal Reserve policy minutes and favourable US retail earnings. Investors now await the last leg of March quarter corporate earnings from India Inc for fresh triggers.
Meanwhile, Nifty began the June Futures & Options (F&O) series on Friday. The index had ended the May series with a loss of 1,075 points, its worst performance since March 2020. Nifty’s May-June rollovers are at 78.9% as compared to a 3-month average of 79%.
The relentless selling by foreign institutional investors (FII) in the domestic market continued for another week. In the week ended May 27, the FIIs dumped over Rs 9,600 crore of domestic equities. In the month of May so far, FII selling in the cash segment crossed Rs 53,700 crore.
Here are the top gainers for the week:
HDFC Life Insurance Company 9.80%
The HDFC group stock was the biggest gainer for the week among Nifty constituents. HDFC Life Insurance Company rallied 9.8% for the week with its market capitalization rising over Rs 1,26,404 crore.
The shares of HDFC Life closed 3.36% higher on Friday at Rs 597.50 apiece on the NSE. It hit a 52-week high of Rs 775.65 on September 2, 2021, and a 52-week low of Rs 497.05 on March 8, 2022.
Kotak Mahindra Bank 6.40%
Kotak Mahindra Bank was the second top Nifty performer and the top performer among Nifty Bank for the week with a gain of 6.4%.
The veteran banker Uday Kotak-led Kotak Mahindra Bank posted a standalone net profit of Rs 2,767 crore for the fourth quarter of FY2022, witnessing a jump of 64.5% from Rs 1,682 crore in the same quarter of the previous fiscal.
Net interest income (NII) in Q4FY22 increased 18% YoY to Rs 4,521 crore, while Net Interest Margin (NIM) was at 4.78% for the quarter under review. The bank’s asset quality also improved sequentially.
HDFC Ltd 5.85%
The shares of HDFC Ltd, the country’s largest mortgage lender, rallied 5.85% during the week and ended at Rs 2,330.00 apiece on the NSE. The market cap of HDFC Ltd crossed Rs 4.22 lakh crore.
On May 26, HDFC Ltd announced the sale of 10% of its stake in HDFC Capital Advisors Ltd (HCAL) to Abu Dhabi Investment Authority for Rs 184 crore.
Mahindra & Mahindra 5.43%
Automotive major Mahindra & Mahindra’s (M&M) shares surged more than 5.4% for the week. M&M shares hit a 52-week high of Rs 979.00 on November 17, 2021, and a 52-week low of Rs 671.15 on March 8, 2022.
M&M recently announced the launch of its new Scorpio-N model on June 27, which will be manufactured at its Chakan plant.
HDFC Bank 5.38%
The shares of private lender HDFC Bank rose over 5.3% for the week and closed at Rs 1,393.40 apiece.
The private lender reported a 22.8% YoY rise in standalone net profit for the quarter ended March 2022 at Rs 10,055.20 crore. The bank’s Net Interest Income (NII) rose 10.2% to Rs 18,872.7 crore and the net interest margin (NIM) stood at 4%. The bank has the best in class asset quality and strong growth expectations from Q2FY22.
Here are the top Nifty losers for the week:
Divi’s Laboratories -18.35%
Divi’s Laboratories was the worst performer among the Nifty50 constituents, sliding more than 18% during the week. The stock also hit a 52-week low of Rs 3,365.55 on May 26. It had hit a 52-week high of Rs 5,425.10 on October 18, 2021.
Divi’s Laboratories reported a net profit of Rs 895 crore in Q4FY22, a rise of 78% from Rs 502 crore, YoY. Revenue from operations increased 40% to Rs 2,518 crore from Rs 1,788 crore, YoY.
JSW Steel -13.10%
JSW Steel was the second-worst performer on the Nifty for the week, losing over 13%. The stock price ended at Rs 548.55 apiece on the NSE on May 27, near its 52-week low of Rs 520.05 it scaled a day before.
Steel stocks have been witnessing a sharp correction after the government last weekend levied export duties on steel products and iron ore. The prospects of falling utilisation and declining steel prices loom ahead for the steel stocks.
Shares of state-run Oil & Natural Gas Corporation Ltd (ONGC) took a sharp beating this week with the stock ending at Rs 143.50 apiece. ONGC stock price plunged over 5% on Friday itself.
Heavy selling on ONGC stock was witnessed after media reports claimed that the government was considering a windfall tax on state-owned and private oil and gas (O&G) giants.
Tata Steel -10.86%
Tata Steel shares also tumbled nearly 11% this week, in line with the other steel manufacturers. Tata Steel stock price also hit a 52-week low of Rs 991.80 on May 25, 2022.
The government’s announcement of imposing a 15% export duty on steel seems to have taken out the sheen from the sector. The export duties is expected to lead to slower growth, lower profits and a slowdown in capex of the steel companies.
Asian Paints -8.85%
Shares of Indian multinational paint company Asian Paints dropped over 8% for the week and close at Rs 2,836.90 on Friday.
The weakness in Asian Paints comes on the backdrop of Grasim Industries announcing to double its capex to approximately Rs 10,000 crore to set up paints business in the next 2-3 years. The Aditya Birla Group company Grasim Industries had forayed into the paint business in 2021 and is expected to begin production from the fourth quarter of 2023-24.
Grasim’s entry into the paint industry is likely to boost competition in the industry, where Asian Paints currently holds nearly 50% market share.
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