1 week ago
Welspun Corp Leads Weekly Gainers Amid Volatile Indian Markets
Some Indian company shares went up sharply this week even though the overall stock market was weak.
Welspun Corp had the biggest gain among the stocks mentioned, rising 23.4%.
Jyoti CNC Automation, Balrampur Chini Mills and Welspun Living also posted large gains.
The Nifty 50, which tracks major Indian companies, fell for seven days in a row through Wednesday.
Higher oil prices worried investors because India imports much of its crude oil.
Investors were also concerned about rising bond yields, inflation, government debt and tensions in the Middle East.
Analysts said some companies may still perform well if they have strong earnings and finances.
They advised investors to be selective and avoid buying shares too aggressively during the uncertainty.
Welspun Corp shares rose 23.4% this week to ₹2,311, leading the listed Nifty 500 gainers.
Jyoti CNC Automation gained 19.6%, while Balrampur Chini Mills and Welspun Living rose 16.7% and 15.3%, respectively.
Seven other listed stocks, including Aegis Logistics, Netweb Technologies and Ipca Laboratories, gained at least 10%.
The Nifty 50 fell for seven straight sessions through Wednesday as higher oil prices intensified inflation concerns.
Analysts expect volatility to continue because of crude prices, bond yields, geopolitical risks, the dollar and institutional flows.
- Who
- Welspun Corp, Jyoti CNC Automation, Welspun Living and other Nifty 500 companies; Indian equity investors and market analysts.
- What
- Eleven listed stocks gained 10% or more this week despite a broader market decline and continuing volatility.
- Where
- Indian stock markets, influenced by developments in global oil, bond and currency markets.
- When
- During the week covered by the report; the Nifty 50's seven-session losing streak continued through Wednesday.
- Why
- Higher crude prices, rising global bond yields, geopolitical uncertainty and concerns about inflation pressured the broader market, while company-specific developments supported selected stocks.
Market Risks
Selective Opportunities
Near-term market direction
Market Risks
Higher crude prices, global bond yields, inflation concerns and geopolitical uncertainty could keep Indian equities volatile and under pressure.
Selective Opportunities
Domestic economic fundamentals were described as relatively supportive, and stocks with strong earnings visibility, healthy balance sheets and sustainable cash flows may remain better positioned.
Investment approach
Market Risks
Investors face risks from oil-price increases, global demand uncertainty, monetary-policy developments and possible weakness in the rupee and institutional flows.
Selective Opportunities
Analysts recommended a selective, stock-specific approach, disciplined position sizing and gradually accumulating fundamentally strong companies rather than aggressively chasing prices.
Sector positioning
Market Risks
Sectors vulnerable to higher crude prices and uncertain global demand warrant caution.
Selective Opportunities
Banking, financial services, infrastructure, capital goods, defence, metals and selected healthcare stocks were identified as relatively better positioned.
Key facts
- Top gainer
- Welspun Corp rose 23.4% to ₹2,311.
- Other major gainers
- Jyoti CNC Automation gained 19.6%, Balrampur Chini Mills 16.7% and Welspun Living 15.3%.
- Number of 10% gainers
- Eleven stocks listed in the report gained at least 10%.
- Nifty 50 performance
- The index recorded seven consecutive daily declines through Wednesday.
- Oil-market pressure
- Crude oil prices reached a one-month high amid Middle East tensions and expected United States sanctions on Iran.
- India's oil exposure
- India imports around 85% of its crude oil requirements.
- Analyst guidance
- Religare Broking advised selective investing, prudent risk management and gradual accumulation during meaningful declines.
Quotes
Ponmudi R.
CEO of Enrich Money
“With the bulk of the June-quarter earnings season now behind the market, global macroeconomic and geopolitical developments are likely to assume a greater role in setting the near-term direction.”
livemint.com
Sources
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