Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Heavyweights provide strength - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • May 31, 2003

    Heavyweights provide strength

    It was a week dominated by the index heavyweights on the indices. Moreover, amongst index heavyweights, it was primarily the old economy stocks, which continued to rule the indices and provide the much-needed support to the markets. Just to put things in perspective, the top 5 index heavyweights contributed about 82 points to the Sensex of the 131 points gained. The indices remained firm throughout the week and finally closed on decent gains. The BSE Sensex ended the week higher by 4.3% while the Nifty closed higher by 4%. The month of May should give the investors some solace considering the fact that during this month, the Sensex gained 7.5% while the Nifty was higher by 7.8%.

    Top 5 weightage stocks on BSE
    COMPANY Price on May 23 (Rs) Price on May 30 (Rs) %CHANGE 52-WEEK H/L (Rs)
    HLL 150 158 4.8% 208 / 135
    RELIANCE 270 299 10.8% 306 / 218
    SBI 342 352 3.0% 362 / 218
    INFOSYS 2610 2672 2.4% 4,873 / 2,420
    ITC 677 694 2.4% 725 / 590

    Banking stocks continued their run on the bourses with majority of the stocks registering gains over the week. However, during the week, there was volatility witnessed among these stocks, which was due to the uncertainty, or rather the non-clarity, of the issue of return of capital to the government by some banks. While there have been contradicting statements from the government as far as the acceptance of return of equity by banks is concerned, the final statement on Friday indicated that the government will not take back capital at par from PSU banks. On the other hand, these banks as yet, do not seem to be ready to pay back capital at a premium to the government, as it will eat into their reserves. Some of the banks, which are planning to return the equity, include Andhra Bank, BOB, PNB and Oriental Bank of Commerce. The governmentís stand is likely to have some impact on these banking stocks next week.

    Top 5 gainers over the week
    COMPANY Price on May 23 (Rs) Price on May 30 (Rs) %CHANGE 52-WEEK H/L (Rs)
    BSE-SENSEX 3,050 3,181 4.3% 3,417†/†2,828
    S&P CNX NFTY 968 1,007 4.0% 1,106†/†920
    HFCL 22 31 42.5% 75 / 11
    IDBI 25 34 39.0% 36 / 15
    SHREE RAMA MULTI 7 8 27.1% 32 / 4
    STERLITE OPTICAL 30 38 26.3% 124 / 25
    LIC HOUSING FIN. 89 111 25.5% 113 / 57

    Petrochemical stocks were in the limelight throughout the week, with Reliance being a key gainer in the lot. A primary cause for the optimism towards the sector since the last few months has been the upturn in the petrochemical cycle. Good results announced by BPCL during the week buoyed sentiments regarding the refinery sector. Further, with the government announcing that the divestment process of the two oil-refining majors, HPCL and BPCL, would be completed by the end of the current fiscal and of certain others like NALCO and SCI within a few months, PSU stocks also were favoured during the week.

    Top 5 losers over the week
    COMPANY Price on May 23 (Rs) Price on May 30 (Rs) %CHANGE 52-WEEK H/L (Rs)
    NOVARTIS 270 228 -15.4% 286 / 201
    TATA INFOTECH 135 121 -10.9% 268 / 119
    BANK OF BARODA 129 117 -9.5% 141 / 44
    MASTEK 277 257 -7.5% 615 / 249
    ADANI EXPORT 179 166 -7.0% 201 / 118

    However, the story does not end here. International investors have also been finding value in Indian equities. This is evident from the fact that FIIís have invested about Rs 37 bn in the 5 months of the current year 2003, which is almost equal to the total FII investments in the whole of 2002. We had and continue to support the fact that Indian equities are attractively valued (11.7x) and will provide good returns over a long-term horizon.



    Equitymaster requests your view! Post a comment on "Heavyweights provide strength". Click here!


    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)