Even as the frontline indices logged gains for the fifth straight week, the market breadth was weak with only 202 of BSE 500 stocks registering gains in the week.
IT stocks were the highlight of last week’s performance as most of them beat street view at their June quarter earnings, and the commentary was laced with optimism.
As we enter a new week, a host of companies are slated to announce their fiscal first quarter earnings, charting the path for the market in days to come.
Here are key stocks that saw movement during the last week:
Infosys, Wipro, HCL Technologies: IT firms stole the show last week, as they posted forecast-beating earnings for the June quarter, big deal wins and optimistic outlook. IT bellwether Infosys jumped 15.51 per cent last week, helped and logged a new high of Rs 952 on Thursday. The rally was backed by a 11.5 per cent YoY profit expansion for the quarter at Rs 4,233 crore, which was way above analysts’ projection of Rs 3,820 crore. Peer
Wipro too, was one of the top gainers among frontline stocks last week. The stock jumped 17.67 per cent last week, even as it reported a flat 0.11 per cent YoY growth in profit at Rs 2,390.40 crore, because that beat analysts’ estimate of Rs 2,101 crore by a wide margin.
HCL Technologies followed suit, and rose 7.02 per cent in the week, as the stock rose ahead of its Q1 earnings which were announced on Friday. The company posted a 31.70 per cent year-on-year (YoY) rise in net profit at Rs 2,925 crore for the quarter ended June.
Reliance Industries: While the index heavyweight logged just 1.79 per cent gains in the week, it witnessed wild swings as it corrected from a record high seen on July 15 ahead of its annual general meeting. Chairman Mukesh Ambani did make a host of big-bang announcements and investors were disappointed that the deal with global energy major Saudi Aramco had not progressed as per the timeline.
Bharat Petroleum Corporation: The state-run oil marketing company BPCL saw its stock rising up by 17.92 per cent for the week, buoyed by reports of strong interest from global energy players for a stake buy in the company. ET Now on Thursday reported global energy majors like Saudi Arabia’s Aramco, Russia’s Rosneft, Exxon Mobil and Adnoc (Abu Dhabi National Oil Co) are lining up to pick 51per cent stake in the company and are in the process of preparing bids.
Zee Entertainment Enterprises: Zee Entertainment Enterprises dropped 7.47 per cent ahead of the company’s quarterly earnings announcement next week. The media giant is expected to report a 55.5 per cent plunge in June quarter net profit, while its revenues may have dipped by 37.6 per cent, as the lockdown stalled shooting of TV content, forcing it to depend on repeat telecasts, which do not command premium ad rates, according to ICICI Securities.
Bajaj Consumer Care: Personal products maker Bajaj Consumer Care jumped 21.30 per cent in the week, even as the company posted a decline in net profit for the quarter ended June, but still beat analysts’ estimates. The company reported 4.35 per cent decline in its consolidated profit at Rs 54.23 crore for the quarter ended June 30, on the account of disruptions caused by COVID-19 pandemic.
Avenue Supermarts: Shares of Avenue Supermarts, the company that owns retail chain D-Mart, plunged 14.33 per cent last week, after it reported a 87.61 per cent year-on-year (YoY) plunge in consolidated net profit at Rs 40 crore for the June quarter. The company said its consolidated total revenues fell 33.22 per cent YoY to Rs 3,883 crore in the June quarter affected by a strict lockdown.
Arvind Fashions: Arvind Fashions saw its stocks eroding 22.57 per cent value in the week, as investors were disappointed with the company’s June quarter results, even as its rights issue sailed through. The retailer, that has a portfolio of branded apparel brands such as Calvin Klein and Tommy Hilfiger, posted a 39 per cent revenue fall during the fourth quarter while EBITDA loss was Rs 92 crore. Separately, the company’s Rs 400-crore rights issue was fully subscribed.
Cyient: IT firm Cyient surged 17.92 per cent in the week even as the company’s consolidated net profit dropped by 10 per cent to Rs 81.4 crore for the June quarter, but still managed to beat analysts’ expectations. Motilal Oswal Financial Services sharply upgraded Cyient’s FY21/FY22 EPS estimates to the tune of 25 per cent, supported by a better-than-expected revenue and margin outlook.