Hawkish commentary from the Federal Reserve, elevated crude oil price, rising geopolitical tensions and persistent selling from the FIIs kept the trades on toes. Back home, India Inc’s muted earnings in Q3 failed to boost the morale of the investors.
Benchmark Indices- BSE Sensex and Nifty50- dropped 3 per cent each during the holiday truncated week. The second rung stocks, midcap and smallcap indices, tanked 4 per cent, highlighting the fear in the broader markets during the week.
Global markets were in the midst of a selloff this week, primarily due to the expectations of Fed’s stance and mounting concerns in Ukraine about a potential war with Russia, said Yesha Shah, Head of Equity Research, Samco Securities.
“To combat rising inflation, the Fed announced plans to begin raising interest rates as early as March of this year, she added. “Back home, the increased tapering and the possibility of a rate hike may slow the flow of foreign funds into our markets.”
In the BSE500 index, about 370 stocks registered degrowth during the week, whereas the remaining 130 stocks ended higher. About 30 stocks registered double digit cuts during the week.
Below are some stocks that were in the spotlight during the last week:
Lux Industries: The stock of the Kolkata-based hosiery maker tanked 24 per cent to Rs 2780.1 after the market regulator Sebi barred 14 entities for insider trading in its scrip. Those barred included Udit Todi, company’s executive director and son of the company’s MD.
Zomato: The food delivery platform shed 21 per cent to Rs 89.6, scaling new lows during the week, as the new age tech companies continued to bleed during the week on the back of higher valuations. Zomato also announced plans to pick up stakes in a couple new companies.
CarTrade Tech: Another recently listed player, a classified platform for autos, eroded 20 per cent of value and fell to Rs 654.35 during the week as the company reported a net loss of Rs 18.48 crore against a profit of Rs 23.88 crore in the same quarter last year.
Indiamart Intermesh: The B2B e-commerce firm slumped 21 per cent to Rs 4827.75 after a disappointing performance in the December 2021 quarter. Its consolidated net profit declined 12.4 per cent to Rs 70.2 crore in the December 2021 quarter.
Tata Teleservices (Maharashtra): The telecom services player plunged 19 per cent to Rs 157.45. The counter has been on a free-fall since it announced that it will be allotting shares to the government at a steeply lower price compared to the prevailing one.
FSN E-Commerce Ventures: The parent company of beauty products retailer Nykaa declined over 17 per cent to Rs 1645.4 amid a brutal market sell-off among the recently listed companies, particularly the startup stocks, citing their rich valuations.
Mahindra Logistics: The logistics and transportation player reported a sharp 72 per cent decline in the net profit to Rs 5 crore in December 2021 quarter, which was Rs 18 crore in the year ago period. The scrip dropped 17 per cent to Rs 587.2 during the week.
Sharda Cropchem: The agrochemical player zoomed 58 per cent to Rs 601 during the week as the company’s Q3 net profit more-than-doubled to Rs 102 crore in December 2021 quarter. It had posted a PAT of Rs 48.3 crore a year ago.
Orient Bell: The manufacturer of ceramic and vitrified tiles surged 20 per cent to Rs 452.85 during the week on the back of a strong show in the December 2021 quarter. The company reported a 61 per cent rise in the net profit to Rs 12.10 in Q3.
PSU banks: The state-run lenders witnessed a decent demand during the week on the back of strong performance in the December 2021 quarter. Bank of Baroda advanced 12 per cent to Rs 103.25, whereas Canara Bank gained 11 per cent to Rs 238.85 during the week. The former lender will announce its earnings on Saturday, February 5, whereas the former one has already announced its earnings for the period.