The week that was: EV plays, sugar stocks steal limelight

view original post

NEW DELHI: The domestic equity market started the new calendar year on a positive note as benchmark indices gained over two and a half percent. The bias was positive from the beginning, taking cues from global counterparts.

The benchmark indices moved from strength to strength, thanks to healthy buying across sectors, especially the banking pack. However, the momentum paused later on in the week as the US Fed meeting minutes suggested tightening of monetary policy and a faster than expected rate hike.

“Investors will be keeping a close eye on the domestic inflation rate as well as inflation numbers for the United States and China. In contrast to other central banks, as RBI appeared confident of containing inflation in India, a higher-than-expected inflation would point to a policy rate hike sooner than planned, which can cause jitters in the market,” said Yesha Shah, Head of Equity Research, Samco Securities.

Here are some stocks that were in limelight during the week:

Greaves Cotton: Shares of the diversified engineering company were in great demand during the week as it jumped 27 per cent after reports said it doubled the number of electric vehicles sold during December. The company has been making great strides in the EV field by acquiring companies. This is also helping its shareholders make money.

India Cements: Amid price hikes taken by cement companies and increased demand for the product, India Cements climbed 25 per cent during the week. The stock also happens to be a major pick by Radhakishan Damani.

KPIT Tech: Shares of the company rose 16 per cent during the last week amid a number of initiations of coverage on the stock. The most bullish among them was from Goldman Sachs that had a target upwards of Rs 1,000.

Ujjivan Small Finance Bank: The stock climbed 15 per cent after the lender provided a strong update for the third quarter of the current fiscal. The gross loan book of the lender increased 22 per cent to Rs 16,600 crore from Rs 13,600 crore in the same quarter previous fiscal, whereas it stood at Rs 14,500 crore in September 2021 quarter, 15 per cent lower.

Balrampur Chini Mills, Praj Industries: Shares of sugar manufacturers were in huge demand during the week as ethanol blending in fuel is picking up. Balrampur Chini Mills surged the most at 14 per cent. Praj Industries, which builds mills for sugar and ethanol producers, also added 11 per cent during the week.

Sun Pharma Advanced Research: The stock has been seeing buying ever since the government approved the Covid-19 drug molnuparavir and vaccination of teenagers in the country. It further climbed 13 per cent during the week.

Grasim Industries: The Nifty50 stock has generated good interest recently as analysts say its core businesses are performing well while its paint venture could be a real money spinner going ahead. Motilal Oswal also upgraded the counter to buy last week. The stock advanced 11 per cent.

SpiceJet: The airline stock saw some selling as air traffic fell last week amid rising Covid-19 cases in the country, data released by the aviation ministry showed. The counter slipped 5 per cent.

Paytm, Policybazaar: Shares of these new-age tech companies hit fresh lows during the week as investors continued to stay away from these stocks. Paytm hit a low of Rs 1,232 during the week while Policybazaar dropped to Rs 885. Both are trading below their IPO prices.