BEML, IGL, Zomato rally up to 24% this week; Natco, Yes Bank among top laggards on BSE500

New Delhi: Domestic equity markets settled higher during the truncated week, thanks to upbeat economic data which boosted the morale of traders.

Benchmark indices - BSE Sensex and Nifty50 - added 2 per cent each, whereas midcap and smallcap gauges also added over a per cent each. Fear gauge India VIX dropped close to 7 per cent, breaching the 18-mark again.

Ruchit Jain, Lead Research, 5paisa.com said the market continued its positive momentum and the reaction of the U.S. markets to inflation numbers led to a further up move in the global equity markets.

The return of the foreign investors and a weakening US dollar aided the domestic markets during the week. Ease in inflationary pressure also supported the sentiments of traders during the week.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said that the sentiments in the market have turned bullish due to the sustained buying by FPIs.

"India is a preferred destination since it has the best growth prospects among large economies of the world," he added. "FPIs have turned buyers in autos, capital goods, FMCG and telecom. They continued to sell IT."

Among sectoral indices, BSE Metal index zoomed 5 per cent, followed by a 4 per cent rally in Capital Goods and Power indices each. Energy, utilities, finance and industrial stocks added 3 per cent each during the week.

In the BSE 500 index, about 290 stocks settled in the green, whereas others dropped during the four trading sessions; 15 stocks were able to register double-digit gains, whereas only two plunged 10 per cent or more.

Among gainers, BEML rallied about 24 per cent to Rs 1,756.15 during the week on the back of demerger buzz for its land holding company, sparking the privatization buzz and update over the execution of a $20 million order.

Indraprastha Gas jumped 22 per cent to Rs 430.55 after the company reported a 72 per cent rise in the net profit to Rs 420.86 crore, with a 155 per cent rise in the revenue at Rs 3,193.85 crore.

Brokerage firm Sharekhan has a buy rating on Indraprastha Gas with a target price of Rs 450, whereas ICICIDirect has suggested to hold the counter with a target of Rs 415.

Tata Chemicals jumped 18 per cent as profit after tax (PAT) rose 87 per cent to Rs 641 crore in Q1FY23, whereas Metro Brands hit a new 52-week high as it returned to the black in the quarter. The scrip rallied 16 per cent to Rs 854.3.

Hindustan Aeronautics, Zomato, Mahanagar Gas, KSB, Mazagon Dock, JSW Energy and Bharat Forge advanced 12-14 per cent each, whereas Piramal Enterprises, Mahindra Holidays, JK Paper and HFCL also added over 10 per cent each.

On the other hand, Natco Pharma plunged 14 per cent to Rs 646.25 during the week despite a strong performance in the June quarter as the brokerage cut the estimates for the company due to inflation, delays in launches and higher expenses.

Brokerage firm ICICI Securities has maintained its buy call on Natco Pharma but slashed its target price to Rs 818 from Rs 856 earlier. Edelweiss has retained its hold rating on the stock with a target price of Rs 740 on the stock.

Advanced Enzyme Technologies tumbled another 10 per cent to Rs 264 during the week as its profit slid 56 per cent to Rs 17.6 crore in Q1FY23. ICICI Direct has downgraded the stock to reduce from hold with a target price of Rs 265.

Aster DM Healthcare, Brightcom Group, Ipca Laboratories, Hitachi Energy India, Yes Bank and Abbott India dropped 8-9 per cent each during the week ended on August 12, 2022.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of Economic Times)