Markets this week: BHEL, Sesa Sterlite top Sensex gainers

May 16, 2014

By Ankush Arora and Sankalp Phartiyal

India’s stock market closed the week on a record-breaking note as the Bharatiya Janata Party led by Narendra Modi swept the Lok Sabha election, handing the Congress party its worst ever result.

Surpassing 25,000 for the first time on the day of counting, the benchmark Sensex jumped 4.9 percent this week. The broader Nifty, which also scaled a fresh peak on Friday, rose 5 percent.

In 2014, overseas investors have so far invested 6.5 billion rupees in Indian equities, contributing to a 14 percent gain in the main stock indices.

After this week’s rally, Deutsche Bank raised its December 2014 target for the BSE Sensex to 28,000. Macquarie raised its 12-month target for the Nifty to 8,400 from 7,200.

Ratings agency Standard and Poor’s has said India’s fiscal, economic reforms to determine credit rating.

The rupee rose 2.1 percent this week, its third consecutive weekly gain and also its biggest weekly rise since Sept. 13.

India’s wholesale inflation eased in April helped by a moderation in food prices but monsoon risk may spark higher prices.

Next week, attention will shift to the cabinet formation of the new Modi government. Markets will also eye signals on India’s economic or fiscal plans.

GAINERS

BHEL: The power equipment maker gained 18.3 percent this week after India on Thursday approved the decision to sell a 4.66 percent stake in the company through a block deal.

BHEL shares touched a 52-week high of 234 rupees on Friday, and surged 30 percent for the year.

SESA STERLITE: Shares in the company hit a 52-week high of 218.80 rupees on Friday and rose 17.3 percent this week to make it to the list of top Sensex gainers.

Of the 34 analysts covering the stock, 19 have a ‘buy’ or equivalent rating, according to Thomson Reuters data.

TATA POWER: The stock closed 3.7 percent higher at 90.60 rupees on Friday, outperforming the BSE power index and extending gains for the week to 12.5 percent.

Shares in the power company also touched a 52-week high of 92.95 rupees on Friday.

A man walks past Bombay Stock Exchange building in MumbaiCOAL INDIA: Shares in the world’s No. 1 coal miner vaulted nearly 12 percent this week.

“Coal India, with reserves of ~20bn tonne and resources of ~60bnt, stands to be a natural beneficiary of the prevailing demand-supply gap in coal (~100MT in FY11, and set to cross ~170/200MT by FY17e), and thus does not face any off-take risk,” Antique Stock Broking wrote in a research note dated May 9.

NTPC: India top power producer gained 11.4 percent even though the stock is still down 3.6 percent so far this year.

NTPC on Thursday beat analyst forecasts to declare a net profit of 30.94 billion rupees for the quarter ending March 31. Consensus forecast for March-quarter net profit was 28 billion rupees.

LOSERS

Dr. Reddy’s was the biggest Sensex loser this week, closing with losses of 11.3 percent. India’s No. 3 IT services provider Wipro and Hindalco fell 1.8 percent each, followed by Sun Pharma, which lost 1.7 percent. Cipla dropped 1.1 percent.

(Editing by Tony Tharakan; Follow Tony on Twitter @TonyTharakan, Sankalp @sankalp_sp and Ankush @Ankush_patrakar | Disclaimer: This article is website-exclusive and cannot be reproduced in any form without permission)

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