While Sensex tanked 674 points to 27,590, the Nifty closed at 8,083, down 170 points on April 3. Indian markets will remain shut on April 6 on account of a public holiday.
Experts suggest that 7,800 would be a crucial level to watch out for. If it breaks, then it could touch 2020's lows.
"Technically speaking, the Nifty needs to sustain above 7,800 levels in the current leg of downswing to retain a positive bias which will subsequently give a life line to the bulls," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
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Here are the top 10 stocks that moved the most last week:
Top gainers
Balrampur Chini, up 39 percent
Share price of Sakthi Sugars surged over 39 percent for the week as investors bet on demand for the commodity remaining strong despite the ongoing 21-day lockdown. Hopes of sugar producers in Uttar Pradesh securing permission from the state government to manufacture hand sanitisers also boosted sentiment.
Lupin, up 17 percent
Share price of Lupin jumped over 17 percent in the week after the company received received an EIR from the USFDA.
The company has received an establishment inspection report (EIR) from the USFDA for its Aurangabad, India facility. Lupin received an establishment inspection report from the US drug regulator. The company received the EIR for its Inhalation Research Center located at Coral Springs, Florida. The facility was inspected by the Food and Drug Administration between February 19 and February 26, on behalf of the UK Medicines and Healthcare products Regulatory Agency for Lupin’s generic Fostair application to the UK regulator.
Morgan Stanley initiated an overweight call on the stock with target of Rs 948 per share. Brokarage firm Motilal Oswal has a buy rating on the stock with target at Rs 815. While near-term outlook may be subdued, the broking house remain positive on the company.
Cipla, up 16 percent
Cipla share price added over 16 percent in the week gone by after the pharma company announced the successful completion of Phase-3 clinical study for a generic version of GSK's Advair Diskus. "This is an important milestone and is a testament to Cipla's strong respiratory capabilities and will go a long way in strengthening our respiratory franchise in the US," Umang Vohra, MD and Global CEO said.
"Cipla will now file the product with the USFDA (another three-four months). Being a complex product and based on past experience with other players (Mylan, Hikma, Sandoz), it is highly likely that the approval pathway will be longer than the usual one-year cycle," said Emkay. The brokerage has a buy call on the stock with a target at Rs 522, implying a 26 percent potential upside.
ITC, up 13 percent
Share price of tobacco manufacturer ITC was up 13 percent for the week after reports emerged that the company was looking to acquire spice maker Sunrise Food.
ITC, however, in a BSE filing on April 2 denied any such development. "We would like to inform that the company has not entered into an exclusivity agreement for the acquisition of Sunrise Foods Private Limited," the regulatory filing by ITC said.
Top losers
RBL Bank, down 32 percent
Shares of private sector lender RBL Bank plunged more than 32 percent after the management forecast rise in provisions from credit card business in the first quarter of FY21. "Microfinance book was in good shape through March, but disbursals in microfinance will be a concern going ahead. We will see a rise in provisions on credit card business in Q1FY21," Vishwavir Ahuja, Managing Director & CEO at RBL Bank told CNBC-TV18.
Current spending in credit card business dropped to 40 percent, he said, adding but the net income of the bank is the highest in any quarter for Q4FY20. The bank has managed to maintain its operating profit & liquidity position, he said, adding the revenue-generating and earning capacity remained strong. "Maharashtra, particularly, withdrew money from some private banks. We have seen a decline in our wholesale book," Ahuja said, adding two-thirds of liability base is from retail customers.
IndusInd Bank, down 28 percent
IndusInd Bank share price shed over 28 percent this week as the bank is looking to raise as much as $500-750 million in 'confidence capital' from global firms, attempting to allay investor's fears after the novel coronavirus (COVID-19) outbreak, The Economic Times reported.
The private lender, backed by the Hinduja family, also saw an outgo of one-tenth of its deposits after Yes Bank went through a crisis. Global private equity (PE) funds such as Blackstone, Apax Partners, General Atlantic (GA), Advent, TPG, Carlyle and others have been contacted, the report said.
Moneycontrol could not independently verify the report.
IndusInd Bank has asked Morgan Stanley and Citi to approach PE players, the report said, adding that the promoters are considering diluting their stake by 5-10 percent, subject to approval by The Reserve Bank of India (RBI). The bank is looking at three-to-four investor who have “patient long-term money to invest,” sources told the publication.
Investors will most probably negotiate board seats and other affirmative rights, which the bank’s promoter family and management will take into consideration, the report added.
TVS Motor Company, down 21 percent
Share price of TVS Motor Company fell 21 percent after the company reported a 55.5 percent decline in total sales in March at 1,44,739 units. The company, which primarily makes two-wheelers and three-wheelers, had sold 3,25,323 units in March 2019, TVS Motor Company said in a statement. "There has been a huge impact on the company's production and sales this month because of COVID-19 lockdown across the country," it added.
Total two-wheeler sales during the month stood at 1,33,988 units as against 3,10,885 units in March 2019, down 56.9 percent. Domestic two-wheeler sales stood at 94,103 units last month as compared to 2,47,694 units in March 2019, a decline of 62 percent, it added. Total exports declined 34.3 percent to 50,197 units last month as compared with 76,405 units in March 2019.
Ashish Chaturmohta of Sanctum Wealth Management has a sell recommendation on the stock with target of Rs 235. He is of the view that the stock is in long-term downtrend forming lower top and lower bottom on the weekly chart. It has broken major support zone of Rs 340-320 with high volumes and long body bearish candle, indicating selling pressure.
Kotak Mahindra Bank, down 18 percent
Share price of private sector lender Kotak Mahindra Bank fell 18 percent this week after the bank talked of increased risk and cost due to extended moratorium and warned of default if recovery was delayed.
While addressing conference call, the country's fourth-largest private sector lender said it was seeing problems in unsecured personal loans such as credit cards and consumer durables, especially from customers who are fence-sitters and have the ability to pay but not the will. "Extra efforts are required to remind them through calls," it said.
"Defaults are expected to rise due to which recovery will be delayed. The bank is focusing to protect balance sheet rather than looking for balance sheet or income statement growth," said the lender.
Maruti Suzuki, down 17 percent
Auto major Maruti Suzuki share price shed 17 percent after the country’s top car maker reported a 47 percent fall in sales for March. The company sold 83,792 vehicles in March against 1,58,076 units in year-ago period. Shares of Maruti ended 1.03 percent lower. Total sales include 76,976 units in the domestic market, 2,104 units of domestic OEM sales and 4,712 units of exports.
Shitij Gandhi Technical Analyst at SMC Global Securities has a sell on the stock with target price at Rs 5,000. He is of the view that the stock after consolidating in the range of Rs 7,000 to Rs 7,500 levels has given a sharp breakdown below its 200-days exponential moving average on the daily charts and went below Rs 5,000 levels to mark its 52-week low of Rs 4,803 on March 13.
On the lines of General Motors and Ford in the US, India’s automotive giant Maruti Suzuki is stepping in to help produce critical medical equipment and supplies. Car market leader Maruti Suzuki will assist three different companies in producing ventilators, masks, and protective clothing the Delhi-based company informed on March 28.
Eicher Motors, down 14 percent
Eicher Motors share price was down 14 percent this week after the company declared its sales figures for the month of March. Eicher Motors on April 1, 2020, said its total two-wheeler sales declined 41 percent to 35,814 units in March 2020 as against 60,831 units in March 2019. On a month-on-month basis, total Royal Enfield sales declined 43.63 percent in March 2020 from 63,536 units in February 2020.
Total two-wheeler exports jumped 33 percent to 3,184 units in March 2020 compared with 2,397 units in March 2019. Along with other auto manufacturers, Eicher Motors is also feeling heat from the lockdown due to coronavirus.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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