These 16 BSE500 stocks jump up to 22% this week; IT counters languish

Indices for second-rung stocks, however, outperformed their larger peers.

The record low levels of the domestic currency and intense FII outflows are capping the upside in the market. Further, lacklustre India Inc earnings are keeping sentiments in check.

Vinod Nair, Head of Research at

, said volatility has re-emerged and investors have turned their focus on the upcoming Fed policy in the backdrop of heightened US inflation.

“Fall in crude prices and reduction in FII selling added optimism to the domestic market while gloomy IT results, depreciating rupee and fear of a global recession are restricting sizable up moves,” he said.

In the BSE 500 index, more than 265 stocks were able to deliver positive returns whereas others settled in the red this week. Only 15 stocks were able to gain more than 10 per cent, while four registered double-digit cuts.

Among gainers, ITI topped with a 23 per cent rise for the week as the scrip jumped to Rs 120.35 from Rs 98.1 after the company announced the appointment of a new chairman and managing director.

Anupam Rasayan rallied more than 18 per cent this week to Rs 734.45 on the back of a strong technical setup and reaffirmation of better ratings from Crisil on its debt.

Telecom gear manufacturer HFCL zoomed 16 per cent to Rs 67.1 during the week after the company bagged a Rs 59.22 crore order from a telecom company in India.

Domestic brokerage firm Ventura Securities has a target price of Rs 86 on the counter, signalling an upside potential of more than 28 per cent.

and also advanced up to 16 per cent during the week over the positive outlook for the healthcare sector.

Infrastructure solution providers, including

, and continued to attract investors, thanks to the strong push from the government for the sector. These stocks gained 14-15 per cent.

Blue Star, IDBI Bank, KRBL, EPL,

, Ceat, and were other counters which gained between 10-12 per cent during the week.

On the contrary, IT stocks were the worst performers following their June quarter earnings. The majority of the stocks missed estimates on the margin front and analysts foresee the trend to continue.

plunged about 11 per cent to Rs 903, whereas dropped over 10 per cent to Rs 883.1 during the week. HCL Tech reported its Q1 earnings this week, whereas Tanla’s earnings are awaited.

Brokerages retained their positive outlook on HCL Technologies stock even as they slashed earnings estimates for the tech giant following its mixed bag show for the June 2022 quarter.

Morgan Stanley, which has a target price of Rs 1,300, is equal weight on the IT bluechip, whereas domestic brokerage Reliance Securities sees it at Rs 1,351. Nirmal Bang has a ‘sell’ tag on the counter with a target price of Rs 866.

Smallcap software exporter

hit its new 52-week low during the week but settled at Rs 309.8, plunging 10 per cent. The CK Birla Group software company turned ex-date for share buyback on Thursday.

Seasoned investor Ashish Dhawan stayed put in Birlasoft in Q1 as he kept his 31,00,000 shares or 4.79 per cent stake intact in the company.

Other IT companies —

and Mastek — also slipped up to 9 per cent during the week, signalling weakness in the sector.

Shares of

tumbled 10 per cent to Rs 1966.6 during the week. The diagnostic chain stock has dropped about 50 per cent in the current year as its managing director and promoter sold shares worth Rs 38 crore.
continued to remain positive on Dr Lal Path Labs. However, the brokerage has trimmed its target price to Rs 2,820 from Rs 3,036 earlier.

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