By Ankush Arora and Aditya Kalra
The BSE Sensex gained 1.5 percent this week, its first weekly gain in 2014, as easing headline inflation data raised hopes the Reserve Bank of India would keep interest rates unchanged at its Jan. 28 meet.
Headline inflation eased to a five-month low of 6.16 percent in December on lower prices of vegetables. This was the slowest pace of growth since July 2013 and below economists’ expectations of 7 percent.
Sentiment was also boosted for the rupee, which rose 0.6 percent during the week to touch a five-week high. However, share losses on Friday weighed on the currency.
Here are the top gainers and losers of this week:
BHEL: After falling over 4 percent last week, the power equipment maker’s stock ended 5.4 percent higher. The stock has now lost 3 percent this month, after posting negative annual returns between 2010 and 2013.
In a research report dated Jan. 16, Maybank Kim Eng said: “We forecast BHEL’s 3Q profit to decline 50 percent y/y due to backlog reduction, slowing revenue and margin pressure”. The report, that maintains a ‘sell’ rating on the stock with a target price of 126 rupees, added that any hope of recovery in new orders is unlikely until elections are over this year.