The week that was: Tata Group stocks shine as Tata Motors clocks record weekly gains

The week that was: Tata Group stocks shine as Tata Motors clocks record weekly gains

MUMBAI: After a strong start to the New Year, last week was all about consolidation for the benchmark indices amid concerns over valuations and underwhelming developments on the global front.

The Nifty 50 and BSE Sensex indices rose merely 0.6 per cent and 0.5 per cent respectively during the week, as investors dragged their feet over further bullish bets on the market given emerging concerns over a stuttering global economic recovery in the near term.

“We might end up getting more of a sideways year than a strongly up year because last year, the stock market already built in a lot of expectations for the recovery that we will have this year,” Mark Matthews, MD, Julius Baer, told ETNow.

Despite those concerns, participation in the market rose last week as average daily turnover of the cash segment on NSE rose 7.5 per cent. Curiously, speculators resorted to short covering in the derivatives segment during the week as open interest in the January futures contract of the Nifty 50 index fell 3.6 per cent from the previous week.

Muted gains in the market were also because domestic institutional investors net sold nearly as much as foreign portfolio investors net bought during the week. Overseas investors net purchased Rs 7,637 crore worth of stocks on a provisional basis, whereas domestic institutions net sold shares worth Rs. 7,444 crore.

Here are 10 stocks that piqued investors’ interest this week:

Tata Motors: The stock registered its best weekly performance in history, soaring 31 per cent on talks over a tie-up with Tesla in India and signs of continued sequential recovery in subsidiary Jaguar Land Rover despite lockdowns in most parts of Europe.

Bharti Airtel: Perhaps not as scintillating as Tata Motors, but the stock surged nearly 12 per cent last week, logging its best weekly performance since April. The gains were driven by the likelihood of an increase in weight of the scrip in MSCI indices after NSDL notified a hike in the FPI limit to 100 per cent from 49 per cent earlier.

JK Tyre & Industries: Shares of the tyre maker jumped 13 per cent last week, marking their best weekly performance since October, as its arm Cavendish Industries reported strong earnings for the December quarter.

Tata Consultancy Services: India’s largest Indian IT company by market capitalisation had another stellar week despite some profit-booking in the previous session. The stock ended 3.6 per cent higher to mark its longest weekly winning streak in its history.

Infosys: A blockbuster Q3 earnings performance by the company ensured that the stock ended the week with gains of 2.5 per cent despite intermittent profit-booking by some investors. With the latest weekly gain, the stock has now recorded is longest weekly stretch of gains since late June.

Burger King: Shares of the quick-service restaurant company saw a humbling week, after a stupendous rally over the past few weeks since its listing. The stock fell 13 per cent with selling being driven by investors who participated in its anchor issue in December as their lock-in period ended this week.

Tata Elxsi: The Tata Group stock saw an over 15 per cent surge during the week, driven by a solid earnings performance in the December quarter and optimism that the company will sustain the strong show in the coming quarters.

Bandhan Bank: Shares of the private lender saw sharp profit-booking, as they tanked 12 per cent during the week on concerns over the promises by politicians in Assam to waive of small loans in the state. Bandhan Bank has a large microfinance lending business in Assam, and is only facing tighter restrictions on business practices in the state.

ITC: Shares of the shampoo-to-cigarette maker were the unsung performers of the week as they silently mustered an 8 per cent gain, and helped the benchmark indices remain in the green for the week.

Tata Steel Long Products: Another stock from the Tata Group stable which was one of the outstanding performers during the week was Tata Steel Long Products, gaining 34 per cent. The surge in its share price was driven by staggering operating performance for the December quarter.

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