Sensex up but these BSE500 stocks fall up to 23% this week

Banking and auto stocks gained while metals and oil & gas stocks fell sharply in the week that saw the BSE Sensex rising 558.27 points or 1.02 per cent to 54,884.66, and Nifty50 by 86.30 points or 0.53 per cent to 16,352.45. Selling was, however, seen in the smallcap index, which ended 2.76 per cent lower, even as the BSE Midcap index settled flat for the week.

Pain in the broader market was visible clearly in the advance-decline ratio of the BSE500 index where 341 of the 501 index stocks settled lower for the week. At least 24 stocks saw double digit cuts while only eight index stocks ended the week with double-digit gains.

Among BSE500 names, the worst fall was seen in shares of steel makers, thanks to a hike in export duty on iron ore to 50 per cent across all grades from 30 per cent for lumps. The government imposed a 15 per cent export duty on hot-rolled, and cold-rolled steel products from nil earlier and announced export cuty on pellets at 45 per cent from nil earlier, making exports unviable.

The development sent shares of

(down 23 per cent), (down 18 per cent), JSPL (down 17 per cent), (down 13 per cent) and (down 11 per cent) tumbling.

Shares of Divi’s Labs dived 18.39 per cent to Rs 3,514.45, even as the company’s March quarter results came in better than Street expectations. Analysts said the numbers were driven mainly by Covid-treatment drug molnupiravir supplies but felt the contribution from Covid-related products will start slowing from June quarter.

“Divi’s continues to tackle pricing pressure in generic APIs and we expect these conditions to prolong for another 6-12 months. Logistical challenges are expected to weigh on operating margins given the higher freight rates and continued blockades at major global ports,” Choice Broking said in a note.

An untimely resignation of MD & CEO P N Vasudevan, the previous week, sent shares of

tumbling this week. Vasudevan’s tenure ends on July 23 and the bank board will submit a revised proposal to the RBI to extend his tenure by one year (against its earlier proposal of a 3-year extension) to ensure a smooth transition process.

The stock fell 16.93 per cent for the week to Rs 43.65.

Shares of Vaibhav Global declined 16.83 per cent to Rs 334.60 on less-than-expected quarterly numbers. The company’s March quarter profit plunged to Rs 27.21 crore from 56.02 crore a year ago. Total income was up marginally to Rs 693.88 crore from Rs 672.80 crore YoY.

Shares of Welspun Corp saw profit booking this week after rallying 46 per cent from May 12 to May 18. This stock fell 15.91 per cent for the week to Rs 206. Meanwhile, Welspun Corp’s consolidated net profit fell 30 per cent to Rs 263.56 crore in March quarter on account of higher expenses, the company said on Friday.

Widening of losses hurt

shares. The utility player reported a consolidated net loss of Rs 205.52 crore in the March quarter, which stood at Rs 54.25 crore in the quarter ended March 2021, according to a regulatory filing. This stock fell 15.88 per cent for the week to Rs 7.68.

Piramal Enterprises’ March quarter results, especially losses reported by its financial service business, hurt sentiment. While

reported a consolidated net profit of Rs 150.53 crore, its financial service business reported a net loss of Rs 321 crore in the fourth quarter, due to poor asset quality, additional provisioning and interest reversals. This stock fell 14.2 per cent for the week to Rs 1,644.90.

NMDC,

, , , , & Investments, and Affle (India) were some of the stocks which fell 11-18 per cent for the week.

“The volatility observed this week is expected to continue considering major economic data releases, the current earnings season, and the monthly expiry. The FOMC minutes, US GDP growth rate forecasts, and initial jobless claims will all influence global market sentiment. Markets will continue to remain bumpy, and investors should remain on the sidelines until a clear trend emerges,” said Yesha Shah, Head of Equity Research, Samco Securities.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)