The Indian equity market staged a strong comeback on May 20 with both the benchmark indices Sensex and Nifty rallying 2.9% each, posting biggest single-day gain in last three months. The Sensex ended 1,534.16 points, or 2.91%, higher at 54,326.39, and the Nifty jumped 456.75 points, or 2.89%, to close at 16,266.15.
Broader markets also strengthened as the Nifty Midcap 100 and Nifty Smallcap 100 indices surged over two percent each. All the sectoral indices ended in the green for the day led by sharp gains in Nifty Metals, Nifty Realty, Nifty PSU Bank, Nifty Pharma, among others.
During the highly volatile week, the 30-share index Sensex and the 50-share index Nifty50, both jumped around 3% each, snapping a five-week losing streak.
The bout of foreign institutional investors (FII) selling continued for this week. FIIs sold more than Rs 10,000 crore in the cash segment for the week. This was countered by Domestic Institutional Investors (DII) buying to the tune of over Rs 7,000 crore.
However, investor sentiment continues to remain sombre amid prevailing macroeconomic and global geopolitical uncertainty due to concerns over rising inflation, high oil prices, hawkish central banks and monetary policy tightening and the risks of sustained FII outflows.
Here are the top Nifty gainers for the week:
Commercial vehicle manufacturer Eicher Motors was the top gainer among Nifty stocks for the week ended May 20. The stock rallied 11.3% during the week.
The company had last week reported a 16% YoY rise in its consolidated net profit at Rs 610 crore for the fourth quarter of FY22. The company’s total revenue from operations in the March quarter stood at an all-time high at Rs 3,193 crore, an increase of 8.6% from Rs 2,940 crore in the year-ago period.
Shares of Hindalco Industries rallied 10.6% during the week to close at Rs 428.00 apiece on the National Stock Exchange. The positive movement in the stock comes amid the broader rally in metal index amid hopes of demand revival in China. Value buying in metal stocks also emerged as they have corrected sharply in the last one month.
State-owned Coal India jumped 10.2% for the week. Coal India is the largest coal producer in the world and enjoys monopolistic status and higher dividend payout with healthy profitability. Coal India achieved the highest production of 534.7 lakh tons during April 2022, indicating 6.02% growth, according to the Ministry of Coal.
Meanwhile, according to media reports, union power ministry has asked six states to clear dues they owe to Coal India.
Adani Ports & SEZ
The Adani Group firm Adani Ports & Special Economic Zones gained 8.7% this week. On May 20 itself, the stock jumped 5.29% to end at Rs 771.60 apiece.
The stock price hit a 52-week high of Rs 924.65 on April 27, 2022, while it had hit a 52-week low of Rs 638.10 on June 18, 2021.
ITC shares surged 8.3% for the week and closed at Rs 280.05. The market capitalization is around Rs 3.45 lakh crore.
The cigarette-to-soap maker reported healthy margin expansions in its cigarette and FMCG businesses during Q4FY22. This comes at a time when most of its peers witnessed margin headwinds. The company posted 11.60% YoY rise in its consolidated net profit at Rs 4,259.68 crore, while its consolidated revenue from operations rose 15.25% to Rs 17,754.02 crore during the quarter.
Here are the top Nifty losers for the week:
Shares of IT major Tech Mahindra declined 6% during the week amid weakness in the broader IT index. Tech Mahindra’s Q4FY22 net profit stood at Rs 1,506 crore, while its revenue was at Rs 12,116 crore.
Tata Consultancy Services (TCS)
India’s largest IT services provider TCS fell 3.6% for the week. The company reported a consolidated net profit of Rs 9,926 crore in the fourth quarter of fiscal 2022 with a revenue of Rs 50,591 crore.
The shares of TCS hit a 52-week high of Rs 4,043.00 apiece on January 17, 2022, while it hit a 52-week low of Rs 3,052.10 on May 20, 2021.
The shares of Infosys, the second-largest IT services company in India, were also among the top 5 losers for the week, declining 3.3% in five trading sessions.
The company had disappointed the street with a weak set of earnings for Q4FY22 last month. The Bengaluru-based IT major posted a consolidated net profit of Rs 5,686 crore upon revenue of Rs 32,276 crore.
PowerGrid Corporation of India
State-run PowerGrid Corporation of India’s share price fell 3.1% during the week. The company is expected to post steady performance in the March quarter amid decent capacity addition and stable growth in both transmission and consultancy segments.
The stock hit a 52-week high of Rs 248.35 on May 10, 2022, and a 52-week low of Rs 167.15 on July 29, 2021.
Shree Cement declined 2.5% during the week to close at Rs 22,040 apiece on the NSE. The company’s market cap is around Rs 79,416 crore.
The cement sector has been witnessing action recently and with the acquisition of Holcim’s Indian assets – Ambuja Cements and ACC – by Adani Group is expected to further consolidate the Indian cement industry.
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