The Nifty50 started off selling at the word go and fell further in the latter part on June 21 after escalating tensions between US-Iran and RBI Government comments.
The index closed way below 11,800 levels and formed Bearish Belt Hold pattern on the daily charts and bearish candle on the weekly scale. For the week, the index lost 0.8 percent, continuing downtrend for the third consecutive week.
The index has recently taken multiple support near 50 DEMA at 11,650 zone but the absence of buying interest is also visible at 11,850 zone, experts said, adding that bearish candle on daily, as well as weekly, scale indicates that bears are restricting its upside momentum.
The Nifty50 opened lower at 11,827.60, which was also an intraday high, and extended selling pressure in the second half to hit a day’s low of 11,705.10. The index closed lower by 107.70 points at 11,724.10.
Domestic markets ended the week on weak note with Nifty finished below 11,750 level amid uncertainty around the US-China trade negotiations and rising oil prices.
At close, the Sensex was down 407.14 points at 39,194.49. About 1157 shares have advanced, 1292 shares declined, and 167 shares are unchanged.
Here is a look at the top gainers and losers for the week:
Hexaware Technologies, up 21 percent
The share price of software firm Hexaware Tech gained over 20 percent for the week. Japanese brokerage Nomura upgraded to the company to “neutral” from “reduce” after the acquisition of Mobiquity. On June 14, Hexaware acquired US firm Mobiquity Inc for around USD 182 million to directly compete with large digital agencies and consulting firms.
“We acquired Mobiquity Inc for a total consideration of around $182 million to directly compete with large digital agencies and consulting firms,” the Indian IT firm said in its BSE filing.
Suzlon Energy, up 10 percent
Suzlon Energy added over 10 percent for the week. The stock jumped the most in five months on June 20. Lenders are likely to consider the beleaguered wind-turbine maker’s plan to sell its operations and maintenance business to pare debt. The firm plans to offer a so-called one time settlement to the lenders led by SBI using the proceeds of the sale, sources said.
Godrej Properties, up 4.65 percent
Real estate major Godrej Properties registered gains of over 4 percent for the week. However, the scrip fell 3 percent intraday on June 21 after global investment firm Morgan Stanley downgraded the stock on valuation concerns. “We downgrade Godrej Properties to underweight from equal-weight, but raised price target to Rs 802 from Rs 707 earlier,” the brokerage said, adding current valuation appears ahead of fundamentals.
It further said the downgrade reflected its relative preference within its coverage universe. The stock trades at a 10 percent premium to one-year forward NAV estimate and risk-reward is skewed negatively, it added.
Jain Irrigation Systems, down 32 percent
The share price of Jain Irrigation Systems plunged as much as 32 percent for the week after India Ratings cut its long-term issuer rating. India Ratings and Research said it has downgraded Jain Irrigation Systems’ Long-Term Issuer Rating to BBB from A- while placing it on Rating Watch Negative (RWN).
The downgrade reflects deterioration in the liquidity profile of Jain Irrigation on account of a delay in the realisation of its receivables from its micro-irrigation systems (MIS) segment, the rating agency said.
Reliance Communications, down 13 percent
Claims against Reliance Communications (RCom) have risen to Rs 57,382.5 crore with new entities, including some Reliance Anil Dhirubhai Ambani Group companies, joining the creditors’ list, according to a regulatory filing. Interim Resolution Professional (IRP) Pardeep Kumar Sethi, however, admitted dues of Rs 30 crore out of fresh claims of Rs 8,189 crore, taking admitted claims so far to Rs 49,223.88 crore, RCom said in the filing.
The stock price continued to slide even further after Reliance Communications reported a consolidated net loss of Rs 7,767 crore in the fourth quarter of 2018 -19. For the entire financial year 2018-19, the company reported a net loss of Rs 7,206 crore as against Rs 23,839 crore in 2017-18.
Jet Airways, down 11 percent
Jet Airways has been on a roller-coaster ride throughout the week with the stock sky rocketing as much as 150 percent on June 20. The Mumbai bench of National Company Law Tribunal (NCLT) admitted petition filed by the State Bank of India (SBI) for resolution of Jet Airways under the Insolvency code and suggested a timeline of 90 days, citing it as a matter of national importance.
NCLT directed the IRP to submit fortnightly progress reports on the case, with the first such report to be submitted before July 5. The troubled airline that was grounded two months ago as it ran out of cash, owes over Rs 8,000 crore to a consortium of 26 banks led by SBI.
UPL, down 11.36 percent
The share price of agrochemical company UPL registered a loss of 11 percent for the week. However, the stock rebounded 5 percent on June 21 after Deutsche Bank maintained a buy call on the stock. The brokerage house also set the target price at Rs 1,050, implying a 21 percent potential upside from current levels.
UPL shares corrected 13 percent in the previous two sessions – on June 19 and June 20 – on concerns like Mauritius Tax Law and Asian Swine Fever. Deutsche believes these concerns are overdone.
Dewan Housing Finance, down 9 percent
The NBFC crisis has led to DHFL registering yet another week of loses with the scrip ending the week 9 percent in the red. The scrip rose 10 percent on June 21 after reports made rounds that the company has sold Rs 2,000 crore worth of its loan portfolio to offshore investors led by SC Lowy, a privately-held banking group headquartered in Hong Kong.
The share price fell 16 percent to hit five-and-half-year low on June 6 as rating agencies downgraded rating on commercial paper after the company defaulted on debt repayment.
Indiabulls Housing Finance, down 8.93 percent
The share price of Indiabulls Housing Finance ended the week down over 8 percent. The stock fell 8 percent on June 12 after the company moved the Supreme Court seeking urgent listing of a plea filed against it in which it has been alleged that the company misappropriated Rs 98,000 crore of public money.
Indiabulls Housing Finance on Friday said the Competition Commission of India (CCI) has approved the proposed merger of the company with Lakshmi Vilas Bank. “The Competition Commission of India… at its meeting held on June 20, 2019, considered the proposed combination and approved the same,” Indiabulls Housing Finance said in a BSE filing.
IRB Infra, down 12.85 percent
IRB Infra ended the week with loses of over 12 percent. During the week, the share price fell 14 percent on June 19 to hit more than the five-year low after a media report indicated that there could be a new operator for Mumbai-Pune Expressway.
IRB Infrastructure told CNBC-TV18 that it will rebid for the Mumbai-Pune project in August as it contributed 13 percent to FY19 revenues.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.