India Insight

Markets this week: Cipla, BHEL top Sensex gainers

August 22, 2014

A man looks at a screen across the road displaying the election results on the facade of the BSE building in MumbaiThe BSE Sensex closed 1.2 percent higher in a week that was marked by two successive record highs for the benchmark.

Prime Minister Narendra Modi’s Independence Day speech and easing wholesale inflation boosted sentiment earlier in the week. Buying of Indian equities by foreign investors and a slide in Brent crude prices to near 14-months lows also helped.

Foreign portfolio investors have poured $12.2 billion in Indian shares this year on hopes the new BJP-led government and the Reserve Bank will revive flagging growth and lower deficit.

In the currency market, the rupee on Friday hit a three-week high on strong, continued foreign buying of shares and debt with gains in emerging market currencies aiding sentiment.

Here are the top five Sensex gainers and losers this week:

GAINERS

CIPLA: The drugmaker’s stock rose 11.2 percent this week, making it the best Sensex performer. While Cipla missed street estimates in its June-quarter earnings its stock touched a record high of 501 rupees on Friday.

In an August 18 note, Karvy Stock Broking said it had ‘sell’ rating on Cipla with a price target of 435 rupees

BHEL: Shares in the power equipment maker closed 7.1 percent higher this week, extending gains for the year to nearly 29 percent.

“With margins capped by competition, low capacity utilization and rigid cost structure we see a sustained period of low RoE for BHEL,” said HDFC Securities in a note dated August 13 after BHEL’s profit fell about 59 percent for the quarter ending June. The brokerage maintained its sell rating on the stock.

SBI: The lender’s stock rose nearly 7 percent this week. Earlier this month, SBI, India’s largest bank, reported its first profit increase in six quarters on higher interest income, and said that bad loans were largely stable.

SBI shares have surged nearly 43 percent so far this year.

Of the 50 analysts covering the stock, 34 have a ‘buy’ or equivalent rating, according to Thomson Reuters data.

AXIS BANK: Shares in India’s third-largest private-sector bank gained 6.5 percent this week to make it to our list. The stock has gained about 55 percent in 2013 and is not far from its record high of 408.59 rupees hit on July 23.

BAJAJ AUTO: The motorcycle maker’s stock ended up nearly 6 percent this week, taking gains for 2014 to 18.4 percent.

The company posted a flat first-quarter profit but 19 of the 55 analysts covering the stock have a ‘buy’ or equivalent rating on it, according to Thomson Reuters data.

LOSERS

HDFC slumped 7.1 percent, followed by cigarette maker ITC which fell 3.7 percent. TCS, India’s no. 1 software services exporter, and HUL ended the week with losses of 1.4 percent. Tata Steel shed 0.7 percent.

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

 

 

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