The week that was: Consumer discretionary stocks rally; SAIL, Bandhan Bank plunge

The week that was: Consumer discretionary stocks rally; SAIL, Bandhan Bank plunge

NEW DELHI: The ongoing earnings season mandated the movement in stocks during the past week, which saw an administration change in the US and continued bullishness from the foreign investors.

In the BSE 500 index, 351 stocks closed the week in red led by SAIL and Bandhan Bank, and the rest ended in the green, led primarily by consumer discretionary names. Amongst the sectoral indices, auto, consumer durables, capital goods and IT managed to end in the green while others finished the week on a subdued note. The broader indices underperformed for a second straight week.

This week is a holiday-shortened one and we expect volatility to remain high due to the scheduled derivatives expiry. Besides, Budget-related news and global cues will also be in focus.

“The continuing upswing in the market has pushed valuation levels to highest levels since 2008 with market trading at a trailing P/B of 4.15x and P/E of more than 20 on FY22 earnings. Hence, the risk-return equation does not look favourable in the short term and one cannot rule out an interim correction; although the structural support in terms of earnings visibility continues to hold,” said Hemant Kanawala, Head – Equity, Kotak Mahindra Life Insurance.

Here are 10 stocks that buzzed the most last week:

JK Tyre: Shares of the tyre manufacturer climbed 50 per cent to Rs 136.05 after the company said its net profit for the third quarter more than doubled, bringing an influx of new investors.

Cyient: Investors bought shares of the IT company in heaps ahead of its earnings, taking the stock price to Rs 602.85, up 21.96 per cent compared with the previous week. The numbers, however, did not match up to the hype as the net profit fell compared to the last year.

Future Retail: After Sebi gave its nod to the RIL-Future Group deal, investors binged on Future Retail shares. The stock climbed 14.88 per cent to Rs 85.3. However, it still needs approval from the court as the matter is sub-judice.

Bajaj Auto: Shares of automaker rocketed on Friday, taking its weekly gain to 14.34 per cent, to Rs 4,094.10. The massive demand was following a stellar set of numbers presented by the company for the October-December period.

Havells: The electrical appliances maker was also in focus last week as the company reported an about 75 per cent jump in net profit in Q3. The stock rallied 14.33 per cent to Rs 1,122.10.

Tata Motors and its DVR shares: Both counters were among the top gainers as hopes of an upcoming partnership with Tesla kept them in high demand. Tata Motors DVR rose 11.66 per cent to Rs 113.45 while Tata Motors went up 11.14 per cent to 289.40.

Crompton Greaves Consumer Electricals: Shares advanced 11.14 per cent to Rs 428.15 after the company said its revenue from the sale of electric consumer durables showed good growth.

SAIL: Shares of the steelmaker tanked 17.09 per cent to Rs 58.20 after the owners of the company launched an offer for sale at a sharp discount to the prevailing prices. A floor price of Rs 64 per share was set for the OFS.

Bandhan Bank: Shares of the midcap bank took a beating during the week as the company said its bad loan ratio increased significantly during the quarter. The stock dropped 14.74 per cent to Rs 314.20.

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