Benchmark indices opened mildly in the red on Monday. The BSE Sensex was down around 150 points at around 62700 levels, while the fifty-share index NSE Nifty 50 was trading below 18700.
Indian markets ended lower on Friday as they witnessed a bout of profit booking. Tech stocks were top laggards, with the Nifty IT index declining the most in three months. In fact, even PSU banks witnessed profit booking and the Nifty PSU index ended lower for the first time in seven days. The thirty-share index ended the week at 62181 points, down 0.62% or 389 points. Similarly, the Nifty settled at 18496 points, down 0.61% or 113 points.
Market Movers
Some of the top gainers this week were Central Bank of India (up 30%), YES Bank Ltd. (up 13.22%), JK Lakshmi Cement Ltd. (up 13.11%), Bank of India (up 12.66%), and Indian Overseas Bank (up 12.42%).
On the other hand, some of the top losers were Easy Trip Planners Ltd. (down 18.43%), LTIMindtree Ltd (down 13.11%), Rail Vikas Nigam Ltd. (down 10.38%), Indian Railway Finance Corporation Ltd. (down 10.00%), and HCL Technologies Ltd. (down 9.52%).
The Recap
In this week’s recap, we shall take a look at why Jefferies is bullish on Tata Motors, a promoter selling a stake in TVS motors, a small-cap stock that declared a ₹ 100 dividend and more.
A promoter entity of TVS Motor’s offloaded its entire stake in the company
Srinivasan Trust, a promoter entity of TVS Motor Company on Monday sold 25,69,726 shares or their entire stake (0.54% stake) in the company. These shares were sold at an average price of ₹ 1020.03. KN Radhakrishnan, director & CEO, of TVS Motor Company, said that the company will grow ahead of the industry, both in domestic and international markets, on the back of investments made especially in the area of marketing coupled with the launch of new products. Its shares gained 64.48% as per year-to-date data.
Govt on track to meet the fiscal deficit target of 6.4%
The World Bank said in its India Development Update on Tuesday said that the central government of India is on track to meet its fiscal deficit target of 6.4 per cent of the GDP for 2022-23 on the back of strong growth in revenue collections. Its revenue increased by 9.5 per cent and spending by 12.2 per cent. With regard to the current account deficit, the report said, it turned into a deficit of 1.1 per cent of GDP in 2021-22 from a surplus in the previous year, and the deficit widened further in FY’23 due to surging imports.
A small-cap stock gained 44% this week after declaring a dividend of ₹ 100
The shares of Narmada Gelatines Ltd gained a whopping 44.54% in the past three days after it hit an upper circuit for three days in a row. The company declared a special interim dividend of ₹ 100 per share and its shares closed at ₹ 423.50 on Friday. The company manufactures ossein and gelatine in India and has set Monday, December 19th, 2022 as the record date for the issue.
Newly listed watchmaker signed two deals with Swiss watchmakers
Luxury and premium watch manufacturer, Ethos Limited has signed an exclusive partnership with Swiss watch brand Speake-Marin to make its timepieces available at Ethos’ watch boutiques. In another development, it signed an exclusive retail partnership with Trilobe to launch the Fine Watchmaking Brand in India. Ethos’ shares got listed on the bourses on May 30, 2022.
Jefferies is bullish on the shares of Tata Motors
Global brokerage Jefferies said that it likes Tata Motors based on the cyclical recovery and improving franchise in India, early leadership in India EVs, and JLR’s focus on returning to higher margin Land Rover models. It noted that Indian truck and PV (passenger vehicle) demand is recovering from the worst downturn in decades.
It said that Tata Motors has made a strong comeback in PVs with market share rising from 5 per cent in FY20 to 14% in 1HFY23, led by a strong SUV focus, better products and an improved brand positioning.
Written by Simran Bafna
Disclaimer
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