Paytm, Sun TV among biggest laggards on BSE500; PSBs & railway stocks steal the show

Domestic equity markets settled with mild cuts for the week on the back of muted global cues which were dashed by the better US retail sales numbers and hawkish commentary from the US Federal Reserve.

Benchmark indices BSE Sensex and Nifty50 index settled marginally lower for the week, whereas midcap and smallcap indices dropped up to 2 per cent for the week, whereas India VIX dropped on a weekly basis.

On a sectoral front, PSU lenders stole the show, followed by some buying in IT, telecom and infra counters. Utilities, autos, consumer durables, metals and power stocks were among the top disappointments.

In the absence of major domestic triggers, the domestic market is expected to continue its focus on global trends, said Vinod Nair, Head of Research at Geojit Financial services.

"Considering the current market scenario, a balanced approach with a mix of equity and debt is advised as interest yields are becoming attractive, and the economy is slowing," he added.

On the BSE500 index, as many as 180 stocks settled higher for the week, whereas remaining 320 counter registered cuts. However, a dozen stocks jumped over 10% for the week, whereas the same number of registered double digit cuts.

Among the gainers, Rail Vikas Nigam jumped 24% to Rs 63.20 on Friday. The stock has been in momentum considering the strong order inflows and momentum in the railway counters.

Other railway players including Ircon International and Indian Railway Finance Corporation (IRFC) also jumped 17% and 13% each, on the back of positive news flows and swelling order books.

"There is a resurgence in the order book across different sectors, largely railway electrification, new lines and miscellaneous capex to renovate existing capex," said Vinayak Chatterjee, Founder & Managing Trustee, The Infravision Foundation.

Timken India was also at the focus of investors, rising 21% to Rs 3,479.7 after the company announced to set up a new manufacility in Bharuch to manufacture spherical roller bearing and cylindrical roller bearings and components.

Brokerage firm Way2Wealth Research has a buy rating on the stock as it expects to gain from a cyclical recovery in its key segments.

Housing & Urban Development Corporation (Hudco) gained 15% after strong Q2 performance and Redington India was up 13% for the week after it joined hands with Enertech to offer solar hybrid solutions in India.

IFB Industries, IIFL Finance, Esab India, Indiabulls Real Estate, RHI Magnesita India and Union Bank of India jumped 10-12% each for the bank. Union Bank had a buy rating from Motilal Oswal but its targets were met.

In October, Dalal & Broacha re-initiated coverage on IIFL Finance with a buy rating and a target price of Rs 483, whereas Nuvama Wealth Management has a buy call on RHI Magnesita with a target price of Rs 690.

One97 Communication, the Paytm-parent tumbled 14% to Rs 546.30 for the week following the selloff after the lock-in expiry. Softbank offloaded 2.93 crore shares worth Rs 1,631 crore of the company.

However, JP Morgan has a buy rating on the Paytm with a target price of Rs 1100 ad big funds like Bank of America, Morgan Stanley and Societe Generale buy its shares

DCM Shriram, Sun TV Network and Star Health and Allied Insurance Company dropped 13% each for the on the back of weak September 2022 performance.

BNP Paribas has a buy rating on Sun TV Network with a buy tag and a target price of Rs 650, whereas HDFC Securities has suggested to buy Star Health with a target price of Rs 795.

Thermax, EIH, Restaurant Brands Asia, Chalet Hotels, Deepak Fertilisers And Petrochemicals Corporation, Aster DM Healthcare, Mishra Dhatu Nigam, Metropolis Healthcare were other stocks which shed 10-12% each for the week.

ICICIDirect Research has a hold rating on Thermax with a target price of Rs 2,540, whereas Nuvama Wealth has a buy rating on the stock with a target price of Rs 156.

Prabhudas Lilladher has buy rating on Aster DM Healthcare with a target price of Rs 265, whereas ICICI Securities has suggested to buy Metropolis Healthcare with a target price of Rs 1,926.

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