This week, domestic equity markets have seen modest rate cuts as better US retail sales data, and hawkish comments from the Federal Reserve dampened global cues.
Benchmarks BSE Sensex and Nifty50 closed marginally lower for the week, while midcap and smallcap indices fell 2% for the week, while India’s VIX fell every week.
On the sector side, PSU lenders stole the show and subsequently bought IT, telecom and infrastructure counters. Utilities, autos, consumer durables, metals and power stocks disappointed the most.
In the absence of major domestic triggers, the domestic market is expected to continue to focus on global trends, said Vinod Nair, head of research at Geojit Financial Services.
“Given current market conditions, with interest rate yields becoming increasingly attractive and a slowing economy, a balanced approach to equity and debt mix is recommended,” he added.
As many as 180 stocks in the BSE500 ended the week higher, while the remaining 320 stocks fell. However, 12 stocks rose more than 10% for the week, while the same number posted double-digit declines.
Rail Vikas Nigam rose 24% to Rs 63.20 on Friday among gainers. The stock has been on an uptrend, given strong order inflows and momentum at rail counters. Other railroads, including Ircon International and Indian Railway Finance Corporation (IRFC), rose 17% and 13% on positive news and higher orders.
Timken India was also in the spotlight for investors, rising 21% to Rs 3,479.7 after the company announced that it would build a new mega-factory in Bharuch to make spherical and cylindrical roller bearings and components.
Brokerage Way2Wealth Research has a buy rating on the stock, as it expects to benefit from a cyclical recovery in its key industries.
Housing & Urban Development Corporation (Hudco) rose 15% after a strong second quarter, and Redington India rose 13% this week after joining forces with Enertech to provide solar hybrid solutions in India.
Shares of IFB Industries, IIFL Finance, Esab India, Indiabulls Real Estate, RHI Magnesita India and Union Bank of India were all up 10-12%. Union Bank has a buy rating on Motilal Oswal, but its target has been achieved.
In October, Dalal & Broacha reactivated coverage on IIFL Finance with a buy rating and a target price of Rs 483. In contrast, Nuvama Wealth Management has a buy call on RHI Magnesita with a price target of Rs 690.
Paytm parent One97 Communication fell 14% to 546.30 rupees in the week after it sold off after the lockup period expired. SoftBank sold 2.93 crore shares in the company worth Rs 1,631 crore.
However, JPMorgan has a buy rating on Paytm with a price target of Rs 1,100, with big funds like Bank of America, Morgan Stanley and Societe Generale buying its shares.
DCM Shriram, Sun TV Network and Star Health and Allied Insurance Company all fell 13% on poor performances in September 2022.
BNP Paribas has a buy call on Sun TV Network with a target price of Rs 650, while HDFC Securities has a buy call on Star Health with a target price of Rs 795.
Other stocks like Thermax, EIH, Restaurant Brands Asia, Chalet Hotels, Deepak Fertilisers And Petrochemicals Corporation, Aster DM Healthcare, Mishra Dhatu Nigam, and Metropolis Healthcare are down 10-12% this week.
ICICIDirect Research has a holding call on Thermax with a target price of Rs 2,540, while Nuvama Wealth has a buy call on the stock with a target price of Rs 156. Prabhudas Lilladher has a buy call on Aster DM Healthcare with a target price of Rs 265, while ICICI Securities recommends a buy call on Metropolis Healthcare with a target price of Rs 1,926.
