Can Fin Homes, M&M Fin among 8 BSE500 stocks that lost up to 19% during the week

New Delhi: Indian equity markets settled with big cuts during the week ended Friday, following jittered global sentiments after US Federal Reserve's monetary policy outcome.

The US central bank increased interest rates by another 75 basis points and vowed more rate hikes in order to tame inflation. This spooked traders across the globe, triggering a sharp selloff.

The Fed's 75 bps rate hike was anticipated, but the sustained aggressive stance, indicating 125 bps hikes in the next two policy meetings by Dec 2022 spooked the market, said Vinod Nair, Head of Research at Geojit Financial Services.

The Indian currency fell to a new record low of 81 per US dollar as FIIs began selling, he added. "The extended hawkish monetary policy is bound to further slow down the global growth engine."

Benchmark indices - BSE Sensex and Nifty 50 - dropped over a per cent each, while midcap and smallcap indices underperformed as they shed 2 per cent during the week. The BSE500 index was also down by more than a per cent.

On the sectoral front, power, utilities and IT index dropped 5 per cent each, followed by a 4 per cent fall in realty and PSU indices. In contrast, the FMCG index rose 4 per cent, whereas healthcare, auto and consumer stocks also posted some gains.

In the BSE500 index, 345 stocks settled in the red, whereas other 155 stocks posted gains for the week. Only eight stocks were able to rise 10 per cent or more, whereas the same number of stocks clocked double-digit cuts.

Among the biggest losers, Can Fin Homes plunged 19 per cent to Rs 517.30 after the company said its chief executive officer (CEO) Girish Kousgi has resigned from the post of Managing Director & CEO of the company for personal reasons.

Domestic brokerage firm ICICI Direct stated the overall impact as negative, whereas global brokerage firm Jefferies retained a buy rating on CanFin Homes with a target price of Rs 730.

Mahindra & Mahindra Financial Services dropped more than 14 per cent to Rs 194.45 after the Reserve Bank of India (RBI) directed the NBFC to immediately stop recovery operations via third-party collection agents.

Global brokerage firm Morgan Stanely is overweight on the counter with a target price of Rs 225 as it said that the impact on collections will depend on the share of outsourcing in collections. CLSA maintained outperform rating with a target of Rs 260.

Power Grid Corporation and Tata Investment Corporation declined 14 per cent and 12 per cent, respectively. PCBL, Fortis Healthcare and MRPL also tumbled 10-12 per cent each during the week.

Smallcap counters including KBC Global, Sindhu Trade Links, Vinyl Chemicals (India) and Future Lifestyle Fashions were down between 18-23 per cent during the week.

Among the gainers, Dish TV India rose 24 per cent to Rs 18.90, extending its gains since the resignation of Jawahar Goel. Shree Renuka Sugar rallied 18 per cent to 57.6 on better credit ratings and relief on the working capital front.

Sterling and Wilson Renewable Energy surged 16 per cent to Rs 337.30 after the company's wholly-owned step-down subsidiary Sterling and Wilson Solar Solutions signed an MoU with the government of Nigeria.

KPIT Technologies jumped 15 per cent to Rs 660.40 as its board has approved the acquisition of four of the Technica Group companies for about Rs 640 crore to be paid over six months.

Global research firm Goldman Sachs has a buy tag for the counter with a target price of Rs 900 on the stock. Prabhudas Lilladher had a buy call, with a target of Rs 650, which has already been met.

Metal firm Welspun Corp advanced 13 per cent during the week on the back of order wins and acquisitions. Metro Brands, JM Financial, Krishna Institute of Medical Sciences and Cochin Shipyard also gained 11-13 per cent each.

Motilal Oswal Financial Services has initiated coverage on Metro Brands with a target price of Rs 1,000, whereas ICICI Securities has a buy call on Krishna Institute of Medical Sciences with a target price of Rs 1565.

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