Benchmark indices fell sharply on December 21 following consolidation seen in the previous session after the rally in seven consecutive sessions.
The 30-share BSE Sensex plunged 689.60 points, or 1.89 percent, to 35,742.07, in addition to 53 points decline in the previous session. Before this correction, the index had rallied more than 1,500 points, or 4 percent, in seven consecutive trading days.
The 50-share NSE Nifty fell far below 10,800 levels, down 197.70 points, or 1.81 percent, at 10,754.
The broader markets, too, were under pressure but the fall was less compared to frontliners. The Nifty Midcap slipped 1.58 percent and Smallcap 1.13 percent.
All sectoral indices were in bear trap. Nifty Bank, Auto, FMCG, IT and Realty were prominent losers, falling 1.5-2 percent.
The correction after strong rally seems to be due to profit booking, which is always needed and a part of rally, experts said, adding the consolidation is expected to continue for a while before moving on in either direction due to lack of domestic and global cues.
Also, the trading volume is expected to be lower for coming few sessions as foreign and domestic investors go on a year-end holiday and Christmas festival.
Here's a look at the top 10 stocks which moved the most in the week gone by:
Top Gainers
Hindustan Petroleum Corporation, up 10%
Share price of oil refining firm, Hindustan Petroleum Corporation (HPCL) jumped 10 percent for the week after slump in global crude oil prices. Crude oil prices tumbled after reports of swelling inventories and forecasts that record US and Russian output will hit a market that may see weaker demand if global growth deteriorates as many expect.
InterGlobe Aviation Ltd., up 8%
Aviation major Interglobe Aviation spiked 8 percent last week following weak oil prices. Also global research firm Morgan Stanley had upgraded its rating on the stock to "Overweight" from "Equalweight". The research firm also increased the stock's target price to Rs 1,311 from Rs 790.
Bharat Petroleum Corporation, up 8.5%
Along with HPCL, Bharat Petroleum Corporation also registered some handsome gains last week, up over 8 percent led by dip in crude oil prices on the back of inventory concerns.
Piramal Enterprises, up 7.3%
Pharma firm Piramal Enterprises added over 7 percent gains for the week as it plans to raise up to Rs 2,650 crore through the issuance of non-convertible debentures (NCDs) on private placement basis. In a regulatory filing, it said the committee approved to issue up to 26,250 secured non-convertible debentures (NCDs) of up to Rs 2,625 crore (including green shoe option) on private placement basis in four series.
Power Grid Corporation, 6%
Power Grid Corporation of India clocked gain of 6 percent for the week gone by. The company said that it has got shareholders' approval to raise shareholding limit of Foreign Portfolio Investor (FPI) to 35 percent from 30 percent at present. The special resolution to increase in shareholding limit of Foreign Portfolio Investors (FPIs), including Foreign Institutional Investors (FIIs), limits in Power Grid to 35 per cent is approved with the requisite majority, a BSE filing said.
At present, the FPIs/FIIs holding in Power Grid is about 24 per cent.
Tata Motors, up 5.5%
Share price of auto major Tata Motors registered gains off over 5 percent for the week as the company said that it will increase prices of its trucks and buses by 1-1.5 percent next month due to a consistent rise in raw material cost. A top company official confirmed to Moneycontrol that a price hike is on cards. The Mumbai-based company has already increased prices of its products thrice this financial year.
Also, the company has joined hands with self-drive rental car firm Zoomcar to offer the electric version of its compact sedan Tigor in Pune city as part of the shared mobility plans. Under this partnership, Zoomcar expects to deploy 500 electric vehicles in over 20 cities with Tata Motors over the next one year, a release said.
Top Losers
ABB India, down 8.91%
ABB India's investors are jittery about the parent firm ABB AG’s decision to sell its global power grid business to Japan’s Hitachi for $11 billion. ABB India shares have fallen 6.7 percent since the news became public. Indian investors’ fears are not unfounded. After all, the power grid segment comprises 40 percent of the Indian arm’s annual revenue and 30 percent of Ebit (earnings before interest and taxes), a Mint report said.
Also, global investment firm Phillip Capital downgraded the stock as it feels the sale of power grid business deal seems to have priced in. The research house believes that ABB has moved in the right direction by exiting a project-heavy and low-growth and low-return business while focusing its energies on the evolving high-growth opportunities.
Zee Entertainment, down 8.5%
Zee Entertainment fell close to 9 percent for the week after global research firm Bank of America Merrill Lynch downgraded the stock to underperform with a target price at Rs 375, implying 25 percent potential downside from current price. The global investment firm found the stock expensive at 18x EBITDA/32X PE on FY19E and hence cut FY20-21 EPS by 6-7 percent.
The brokerage sees some near-term pressure on advertising and subscription revenues of the company and expects Jio to disrupt the media landscape in the next 12-18 months.
Infosys, down 8%
Share price of IT major Infosys shed 8 percent last week along with other IT companies as the rupee gained strength against the US dollar. “US stocks
continue to sell-off with Nasdaq at the cusp of entering 'bear' market territory as sentiment turns weak. The US dollar sees a sharp decline to hit a six-week low with most emerging market currencies seeing gains,” IIFL Securities said.
Biocon, down 4%
Pharma major Biocon's share price shed 4 percent for the week and also hit new 52-week low on Rs 524.10 per share on December 20, 2018. Last Friday, the stock ended lower by 2.46 percent. Also, Biocon-Mylan faces competition in US for trastuzumab from Teva-Celltrion duo.
Mylan-Biocon's trastuzumab has an advantage they were indicated for treatment for stomach cancer as well, along with breast cancer of HER2-positive subtype. In contrast to Mylan-Biocon, Celltrion-Teva is embroiled in patent litigation with Roche.
With inputs from agencies
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