The week that was in 10 stocks: ZEE shines, but DHFL, Vedanta reel under pressure
- Country’s biggest lender by assets on Friday reported Rs 3,955 crore profit for the quarter ended December 31.
- The earnings were better than what the market had expected.
- Analysts in an ETNOW poll had projected Rs 3,200 crore profit for the quarter.
The 30-share Sensex jumped 444 points to close at 36,469 on February 1, 2019 from 36,025 on January 25. Likewise, the NSE Nifty index gained 113 points to 10,894 during the same period.
Take a look at the top stocks and sectors that buzzed through the whole week.
Shares of Zee Entertainment Enterprises bounced back and ended the week with a gain of over 10 per cent after it denied links with a company being probed for suspicious demonetisation deposits.
Subhash Chandra-promoted two Essel group companies Zee Entertainment Enterprises and Dish TV denied links with Nityank lnfrapower and Multiventures, a company being probed by the SFIO for suspicious demonetisation deposits, as claimed in a media report. On January 25, shares of ZEE group companies had come under massive selling pressure, plummeting up to 33 per cent, and suffered a combined erosion of Rs 13,352 crore in market valuation.
Shares of mining giant Vedanta on Friday tanked 18 per cent after the company reported a 25.54 per cent decline in consolidated net profit for the quarter ended December 31, 2018.
Most of the brokerages also turned bearish on Vedanta following company’s move to buy Volcan Investments’ stake in Anglo American via subsidiary Cairn India Holdings. Commenting on the development, Sameer Kalra of Target Investing said, “We believe this is negative for Vedanta as the company transfers Rs 1,431 crore cash to group company given that it has net debt level of Rs 19,000 crore even after accounting cash and investment balance of Hindustan Zinc which is Rs 23,333 crore is not usable by the company.”
Shares of Dewan Housing Finance Corporation Ltd (DHFL) slipped nearly 50 per cent during the past five trading sessions amid a string of negative reports surrounding the firm. The scrip slipped to Rs 111.50 on February 1 from Rs 209.20 January 25. The mortgage firm on Thursday appointed a chartered accountant firm to examine allegations made by portal Cobrapost that the NBFC, through shell companies, has siphoned out Rs 31,000 crore.
The corporate affairs ministry has also started inquiring into allegations of DHFL diverting Rs 31,000-crore loans and would seek more information from the housing finance firm, according to reports.
Among the sectoral indices on BSE, the IT index gained the most 4.39 per cent, followed by consumer durables (up 2.20 per cent), auto (up 1.94 per cent), FMCG (up 0.78 per cent) and realty (up 0.41 per cent). However, metal, oil & gas, and PSU index declined 1.80 per cent, 0.95 per cent and 0.15 per cent, respectively.
@fresh 52-week low
One-fifth of the companies in the BSE500 index scaled their fresh 52-week low during the week. Some of the stocks in the list included Aditya Birla Capital, Dilip Buildcon, Grasim Industries, Hindustan Zinc, Jagran Prakashan, Motherson Sumi, Parag Milk Foods and Tejas Network. On the other hand, UPL, Info Edge, Wipro, Dr Reddy’s Labs, Infosys and Aarti Industries hit their fresh 52-week high during the same period.
Stocks that plunged up to 47 per cent
Dewan Housing Finance Corporation (down 47 per cent), Sterlite Technologies (down 21 per cent), Linde India (down 20 per cent) and Vedanta (down 17 per cent) stood among top losers in the BSE500 index, whereas Jubilant FoodWorks (up 13 per cent), Gateway Distriparks (up 12.59 per cent), Zee Entertainment (up 12 per cent) and Persistent Systems (up 10 per cent) emerged as top gainers in the index during the week gone by.
State Bank of India
Country’s biggest lender by assets on Friday reported Rs 3,955 crore profit for the quarter ended December 31. The earnings were better than what the market had expected. Analysts in an ETNOW poll had projected Rs 3,200 crore profit for the quarter. Despite the profit in Q3, share price of the lender closed 3.09 per cent to Rs 284.30 on BSE on Friday.
Shares of Hero MotoCorp rallied over 5 per cent for the week ended February 1. The company, however, reported a 4.5 per cent drop in net profit for third quarter despite higher sales. Brokerage Motilal Oswal Securities has a neutral view on the stock with a price target of Rs 2,928. It said the margins of the company were in-line of the expectations and higher other income restricts the decline in PAT.
IPO and new listings
Chalet Hotels: The initial public offering of Chalet Hotels, which owns, develops and manages high-end hotels in key metro cities in India, was subscribed 1.57 times on the last day of bidding Thursday.
Xelpmoc Design: Shares of Xelpmoc Design and Tech, a professional and technical consulting services company, will list on the bourses on February 4, Monday. This will be the first main-board IPO for the year.