Adani Ports: The week that was: SCI cheers privatisation plan with 29% bounce; Adani Ports spikes on Gangavaram buy
A new 52-week high in the 10-year US bond yields later last week spooked investors the world over once again, following a massive global selloff on February 26, which turned equities unattractive overnight as investors stared at potential foreign outflows.
Still, the market managed to stay positive for the week, with sentiment also boosted by signs of recovery in monthly auto sales. Nifty Auto shot up by 3.49 per cent during the week.
Most sectors pushed higher last week, barring PSU bank and telecom spaces. On NSE, the media, IT, automobile and FMCG gauges, rising 2.83 per cent to 6.58 per cent, were the biggest gainers.
Broader markets continued their outperformance compared with benchmarks last week, much like the week before. The S&P BSE Midcap and Smallcap indices surged 4.86 per cent and 5.69 per cent, respectively.
Defensive sectors such as IT and FMCG were able to maintain an edge last week. Midcaps and cyclicals also attempted to maintain their spark, which could be tested going forward, say analysts.
On the BSE 500 index — BSE’s broadest gauge — a total of 294 stocks registered weekly gains, led by Adani Gas, Adani Power, Indiabulls Real Estate, Shipping Corporation, APL Apollo Tube and Just Dial, which surged between 22.29 per cent and 36.74 per cent.
Here are a few stocks that buzzed the most last week:
Adani Ports shares gained 11.05 per cent for the week, after the company announced the acquisition of Windy Lakeside Investment’s 31.5 per cent stake in Gangavaram Port for Rs 1,954 crore. Other Adani group stocks also got a boost, with Adani Gas soaring 36.74 per cent and Adani Power 34.75 per cent.
Indiabulls Real Estate
Indiabulls Real Estate jumped 34.40 per cent for the week, building on last week’s gains, after fair trade regulator CCI cleared the proposed merger of Embassy group firms NAM Estates and Embassy One Commercial Property Developments with the company. Embassy Group said it expects to complete the process of merger by the end of this year. Embassy Group will become the promoters of the merged entity through a cash-less scheme of amalgamation.
Shipping Corporation of India
Shipping Corporation gained 29.06 per cent as the state-run company’s disinvestment process gathered momentum with the government receiving multiple expressions of interest.
Tata Power
Tata Power shares finished the week with a 12.83 per cent leap as the company’s subsidiary, TP Saurya, signed a power purchase agreement to provide develop a 15 MW solar project and provide solar power to Tata Steel at Jamshedpur, Jharkhand. The PPA is valid for 25 years from scheduled commercial operation date. Tata Steel shares rose 2.59 per cent during the week.
Vodafone Idea
Vi shares plunged 6.88 per cent for the week, after an ET report suggested the struggling telecom company’s big fundraising plans hit an air pocket amid differences with key members of the prospective lenders’ consortium over funding terms and furnishing of guarantees in case of payment defaults. In a separate development, Vodafone Idea partnered with Aditya Birla Health Insurance to offer health insurance benefits on mobile recharges. Vi customers would get a fixed cover of up to Rs 1,000 for a period of 24 hours of hospitalisation, and Rs 2,000 of cover for ICU expenses from Aditya Birla Health Insurance.
Indian Overseas Bank, Bank of Maharashtra, Central Bank of India
Indian Overseas Bank, Bank of Maharashtra and Central Bank of India shares plunged 10.56 per cent, 9.13 per cent and 8 per cent, respectively, cooling down for the second straight week after a Reuters report last month suggesting that they were under consideration for privatisation had sent them soaring to clock their best week on record. In the week to February 26, IOC and BoM had risen a modest 1.47 per cent and 2.95 per cent, respectively, but CBI tanked 11.09 per cent.
