The week that was: ICICI Bank, Axis Bank rally on earnings; Britannia slumps

The Nifty50 and BSE-Sensex index each rose nearly 2 per cent, helped by rebound in banks and index majors like Reliance Industries.

Steel, pharmaceutical and bank stocks dominated the gains in the market during the week. In the broader market, too, gains were widespread as Nifty Midcap 100 index rose 3 per cent and Nifty Smallcap 100 climbed 4 per cent.

Here are the major stocks that defined the week’s action:


RIL awakens with a handsome gain
Shares of the country’s highest valued company jumped 5 per cent during the week even before it reported better-than-expected earnings for the March quarter after market hours on Friday. The stock was boosted by a bullish report by Jefferies India earlier in the week and media reports of possible breakthrough in the company’s efforts to sell 20 per cent stake in its energy business to Saudi Aramco.

Alkyl Amines, Balaji Amines soar
Shares of Alkyl Amines and Balaji Amines soared 35 per cent and 34 per cent, respectively, during the week on investors perception that ramping up of COVID-19 vaccine capacity in the country in the coming months will boost the demand for amines, which is used as a raw material in manufacturing of vaccines.

Bajaj Finance surges on firm outlook
Shares of the non-bank lender rose 16 per cent after its March quarter earnings and more importantly, post its outlook. The company said high frequency data did not reflect much impact of the ongoing second wave and related restrictions on the business. The company suggested that it will be able to make up for whatever impact of COVID in the June quarter in the remaining quarter of the year.

Tata Steel gains as outlook sweetens
Shares of the country’s largest steel manufacturer surged 11 per cent in the week as analysts pointed to possibilities of further price hikes by companies. In addition to that, China’s reported move to withdraw export sops for its companies also boosted sentiment as it will boost market share for Indian producers in the global market.

Britannia slumps on weak earnings
Shares of the company fell 5.5 per cent this week after it reported weak earnings for the quarter ended March. The company’s consolidated net profit fell on a year-on-year basis for the first time in six quarters and investors believe that the June quarter earnings won’t fare any better because of the high base of the year-ago quarter.

Axis Bank, ICICI Bank gain
Shares of the two corporate loan-focused banks had a strong week given investors’ preference for such banks in light of strong corporate loan growth exhibited by both the lenders. Axis Bank’s stock rose 6.5 per cent in wake of strong March quarter earnings, while ICICI Bank’s shares climbed 5 per cent.

HCL Tech falls on muted earnings
Shares of the IT company fell 6 per cent last week after the company’s March quarter earnings and its 2021-22 guidance underwhelmed investors. The company’s guidance of double-digit revenue growth in FY22 was not specific enough for investors to ascertain if the stock merited more gains after a strong performance in 2020-21.

ONGC rises with global oil prices
Shares of India’s largest oil producer rose 6 per cent this week after global crude oil prices surged in expectations of strong demand. The strength in the company’s stock was also buttressed by a bullish call by Goldman Sachs for Brent crude oil futures topping $80 per barrel in July-September due to a surge in demand in many Western nations.