The week that was: Sugar & healthcare stocks surge; metal counters lose sheen

NEW DELHI: Domestic equity markets saw rangebound trade with a negative bias last week amid mixed cues. The holiday-truncated week was affected by concerns about rising US inflation, issues related to the supply of vaccines and surging Covid-19 infections in India, which led to the extension of lockdowns in the majority of the states. Better-than-expected readings on CPI and industrial production, and in-line Q4 earnings reports failed to lift investors’ sentiment on Dalal Street.

For the week, the benchmark BSE Sensex shed 473.93 points or 0.96 per cent to settle at 48,732.55, whereas the broader NSE Nifty 50 barometer declined 145.35 points or 0.98 per cent to 14.677.8. BSE midcap and smallcap gauges lost up to half a per cent each during the week but managed to outperform the headline indices.

During the week, metal stocks remained in focus as China announced a series of measures to tighten controls on steel capacity. Sugar stocks remained in demand as the ask for ethanol rose. Healthcare securities remained in focus amid the ongoing Covid crisis.

“The market traded under pressure last week and lost nearly a per cent, pressurised by weak global cues. In a holiday-shortened week, the benchmark started on a positive note, however selling pressure in the following sessions trimmed all the gains and pushed the index in the red. Global investors feared that the recent spike in US inflation could prompt a rate hike earlier than expected. On the domestic front, early signs of cases peaking in India restricted the downside,” said Ajit Mishra, VP- Research. Religare Broking.

“In absence of any major event, participants will be closely eyeing the performance of global indices, US bond yields, the movement of rupee against the US dollar and crude oil prices. Needless to say, Covid-related updates and the progress of the vaccine drive will also be in focus,” he added.

Here are 10 stocks that captured the moves on Dalal Street last week:

Bajaj Hindusthan Sugars, , Praj Industries: Sugar stocks were in a sweet spot amid rising international prices due to a drought in Brazil and increased demand for ethanol from oil market companies (OMCs) that raised their outlook. Bajaj Hindusthan Sugars jumped 25 per cent to Rs 12.85, Shree Renuka climbed 21 per cent to Rs 14.75 and Praj Industries surged 17 per cent to Rs 313.05.

Godrej Consumer Products: The personal care company’s stock jumped as its board appointed Sudhir Sitapati as CEO and MD, and reported a decent rise in quarterly net profit. The FMCG major posted a 59.13 per cent increase in consolidated net profit to Rs 365.84 crore for the quarter ended March 2021.

UPL, Chambal Fertilisers & Chemicals, Nath Bio-Genes: Agrochemical shares rallied as a strong outlook for monsoon and expected price increases auger well for the sector, which might lead to a re-rating of the pack. Nath Bio-Genes soared 25 per cent to Rs 436.6 and Chambal Fertilisers spiked 23 per cent to Rs 270.45. UPL jumped 18 per cent to Rs 743.3

Gufic Biosciences, SPARC, Shalby: Pharma counters rose as the health crisis in the country worsened. Gufic Biosciences jumped 33 per cent,

rallied 20 per cent and Shalby surged 18 per cent for the week.

Tata Metaliks, Jindal Steel & Power, SAIL: The metal pack took a hit after China’s top producer Tangshan city warned mills to maintain market order.

plunged 13 per cent to Rs 1,026.2, whereas shed 13 per cent to Rs 417.3. tanked 12 per cent to Rs 127.15.

Venky’s India: The only listed poultry firm in the country jumped on turnaround quarterly numbers. The company turned profitable in the March quarter, logging a net profit of Rs 77.90 crore as against a net loss of Rs 96.73 crore in the corresponding period a year ago. The scrip jumped 34 per cent to Rs 2,195.3 for the week.

Neuland Laboratories: The smallcap pharmaceutical firm slid 23 per cent to Rs 2,075.7 for the week after it reported a quarter-on-quarter decline in net profit in Q4. The company registered a net profit of Rs 17.29 crore for the quarter ended March against Rs 26.67 for the quarter ended December 31, 2020. It had posted a net loss of Rs 9.30 crore for the quarter ended March 2020.

IndiaMART Intermesh: The e-commerce company’s stock lost 9 per cent for the week on weak operational performance in the March quarter. The B2B e-commerce firm’s total income increased 1 per cent to Rs 190 crore in Q4 from Rs 187 crore in the corresponding three-month period a year ago.

HBL Power Systems: Shares in the battery producer jumped 21 per cent as the government approved the PLI scheme for promoting battery storage to pull down the cost of electric vehicles in the country and promote the new-age transport.

Grindwell Norton: The counter jumped 15 per cent for the week after the maker of abrasives, ceramics and plastics delivered solid 29.3 per cent profit growth in the Covid-hit FY21.