Tracking Sensex: Top losers, gainers of the week
Indian shares ended in the green in three of five trading sessions but jittery market reaction to the U.S. Federal Reserve’s announcement of a gradual end to its $85 billion bond-buying stimulus took the BSE Sensex down 2.1 percent for the week. The broader 50-share Nifty lost 2.4 percent.
The U.S. central bank’s monetary programme has been a source of easy money for emerging markets such as India that used FII inflows to finance its current account deficit. The possibility of a liquidity drought and a consequent selloff by foreign investors spooked the markets with the rupee plummeting to a record low of 59.98 against the dollar on Thursday.
China factory activity, which shrunk to a nine-month low, also alarmed Asian markets this week.
Here’s a look at the top five Sensex losers of the week.
JINDAL STEEL AND POWER (JSPL): Shares in JSPL ended 15.7 percent down this week, making it the worst Sensex performer. With Friday’s close of 204.25 rupees, the stock has lost 57.4 percent from its 52-week high of 480 rupees hit on July 5, 2012. According to Thomson Reuters data, 17 of the 28 analysts covering the stock have a buy or equivalent rating, while four have a sell rating.
HINDALCO: Next among the losers was copper producer Hindalco that fell 9.7 percent in the week ending June 21. The stock, which ended in negative territory in four of the last five sessions, has lost 28.3 percent so far this year.
NTPC: On Friday, the power generation company gained 2.1 percent after the government said it would allow power companies to pass on the costs of imported coal to customers. But NTPC still lost 5.6 percent of its value this week. Of the 43 analysts covering the stock, 36 have a buy or equivalent rating, Thomson Reuters data shows.
ICICI BANK: India’s biggest private lender was among the top Sensex losers with 5.3 percent of its stock value wiped off this week. ICICI Bank, which lost 8.3 percent so far this year, ended marginally in the red at 1043.40 rupees on Friday. ICICI, which is among the top three shares in the BSE Sensex with the highest foreign ownership, fell on fears high foreign holding in the stock made it vulnerable to outflows, as a selloff after the U.S. Federal Reserve heralded an eventual end to high liquidity.
However, Ambareesh Baliga of Edelweiss Financial Services still maintains a buy rating on the stock with a target price of 1,326 rupees. Baliga says ICICI has more long-term investors and there are no immediate fears of a selloff.
HDFC BANK: India’s No. 3 lender by loan value lost 4.4 percent this week. The stock has fallen 6.3 percent so far this year and is off 12.6 percent from its 52-week high of 727 rupees hit on May 30.
GAINERS: Wipro and Bajaj Auto were the best Sensex performers of the week, climbing 3.3 percent. Maruti Suzuki rose 2.6 percent while Hero MotoCorp and Bharti Airtel ended the week with gains of 1.4 percent and 1.2 percent.
(You can follow Sankalp on Twitter @sankalp_sp)