The week that took domestic equities on a rollercoaster journey saw losers outnumbering gainers. However, 11 stocks that are part of the BSE 500 index gave handsome returns to investors. Of these 11 stocks, two are part of the benchmark Nifty 50 index – ITC and .
The rest include
, , , , , , FSN E-Commerce, and & Tubes.
ITC, IIFL Finance, Rajesh Exports, and Ratnamani Metals scaled 52-week high in the week gone by, while KPIT Technologies hit an all-time high. Shares of ITC, IIFL Finance, CCL Products, and Dalmia Bharat gave more than 10% returns on a week-on-week basis. Firstsource Solutions, Rajesh Exports, and FSN E-Commerce clocked over 12% weekly gains, and Ratnamani Metals nearly 18%.
Sharp gains in ITC were driven by prospects of a hike in cigarette prices after almost a gap of 2 years following the hike in the duty on the product in the Union Budget for FY24.
The government hiked the National Calamity Contingent Duty (NCCD) on cigarettes by 16%. NCCD accounts for about 10% of overall taxes on cigarettes. Analysts expect the hike in the duty to give room for ITC to raise prices by about 1-3% across categories, which will subsequently drive its profitability.
“Cigarette volumes that have been very healthy at mid-single digits in the recent quarters are likely to sustain. We like ITC from a 1-year perspective,” Securities said in its report.bNomura Financial Advisory and Securities upgraded ITC stock to “buy” from “neutral” . “In our view, ITC’s predictability premium is increasing with a pragmatic tax structure,
which will not only act as fodder for cigarette volumes but also improve the overall business outlook, with its key hurdle now behind,” the brokerage said, while raising cigarette volume estimates for FY24 and FY25. Indian Hotels was another star performer, as the thrust given by the government to boost tourism bolstered growth prospects for the hospitality sector. The government will select 50 where physical connectivity, virtual connectivity, tourist guides, high standards for food streets and tourists’ security and all the relevant aspects would be made available on an app to enhance tourist experience.
KPIT Technologies is another stock that analysts are bullish on and see room for more upside. While the stock ended 1.2% down at Rs 778.35 on the NSE on Friday, Amol Athawale of Kotak Securities believes the stock can move up to Rs 850 if it stays above Rs 750.
The stock could also test Rs 880 if the momentum sustains, but below Rs 750, the uptrend would be vulnerable, he said.
With the laggards outnumbering gainers last week, 18 stocks on BSE 500 clocked double-digit weekly losses, of which 7 were Adani Group companies.
Adani Ports and Special Economic Zone, Adani Power,
, , , , and shed 17-45% in the week
gone by. The impact of the allegations made by short-seller Hindenburg Research was such that it eroded over $100 billion of investors’ wealth in just 7 trading days.
With worries of a regulatory intervention to probe into the allegations of the American whistleblower looming over Adani Group, one isn’t sure if there is light at the end of the tunnel.
(Data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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