The week that was in 10 stocks: Horror show in Adani Group stocks; graphite electrode makers get hammered

MUMBAI: Last week was marked by an increase in volatility and concerns over market valuations in the backdrop of the US Federal Reserve’s shift in tone over its ultra-accommodative monetary policy.

With more members of the US Federal Reserve’s rate-setting panel now voting for interest rate hikes in 2023 and the committee willing to discuss the path for reducing its record $120-billion per month bond buying program, global markets faced some pangs of anxiety.

At home, signs that global liquidity may soon normalise from the extraordinarily high levels seen over the past 14 months due to money printing by major central banks forced investors to dial back on the euphoria seen in many pockets of the market.

Both the Nifty50 and BSE-Sensex ended in the red for the week for the first time in five weeks, while broader markets faced deeper cuts.

That said, following are the tens big movers that defined the week’s action on Dalal Street:

Adani Group stocks get pummeled
It was a harrowing week for shareholders of Adani Group stocks as the conglomerate lost over $25 billion in market value in five days of intense sell-off. The crash was triggered by an Economic Times report that showed that three of the conglomerate's biggest foreign shareholders had had their accounts frozen by the country’s securities depository for inadequate disclosure of information. Shares of Adani Ports, Adani Transmission, Adani Power, Adani Green Energy, Adani Enterprises and Adani Total Gas nosedived 7-23 per cent.

HEG and Graphite India get hammered
Shares of two listed graphite electrodes makers HEG and Graphite India saw an intense sell-off during the week triggered by concerns over prices cooling in the coming months as steel prices ease. Graphite electrode is essential in the use of steel production and weakening of outlook for the sector generally has ramifications for graphite electrode makers. Shares of Graphite India tanked 18 per cent in the week, while those of HEG fell 10 per cent.

VI gets a lift
Shares of the telecom operator Vodafone Idea rose 5 per cent during the week on media reports that the government could give its green signal to the company’s foreign direct investment proposal. The FDI approval is seen as crucial in the company’s efforts to raise much-needed fresh capital. According to media reports, the company could raise around Rs. 9,000 crore from a qualified institutional placement issue once the FDI approval comes through.

Gujarat Gas soars on Nomura’s view
Shares of the natural gas company rose 9 per cent this past week as analysts are gun-ho over demand revival as industrial towns in Gujarat come back strongly from the restrictions imposed due to the second Covid wave. Brokerage firm Nomura Financial Advisory and Securities India reiterated its “buy” call and raised the price target to Rs 875, the highest on the Street.

SREI Infrastructure Finance surprises
Shares of the non-bank lenders skyrocketed 72 per cent during the week on hopes of turnaround in operations and as the company received a term sheet from Singapore-based firm to infuse capital in arm Srei Equipment Finance. The company informed the bourses on Friday Makara Capital is willing to infuse Rs. 2,200 crore in Srei Equipment Finance.

ADAG stocks have stellar week
Shares of Reliance Infrastructure, Reliance Power, Reliance Capital, Reliance Home Finance and Reliance Communication jumped 23-27 per cent during the week aided hopes of turnaround in the sector after Reliance Power said Reliance Infra will be issued preferentially allotted equity shares and warrants to convert debt into equity.