Is there an investment opportunity in PSP Projects shares?

In a truncated trading week, benchmark equity indices ended with small losses after seeing high volatility as the surging Delta variant cases sapped risk appetite globally. However, the market was back on its feet as gains yielded on Thursday and Friday, wiped out the majority of the losses incurred earlier this week. BSE Sensex settled the week at 52,975 down 0.37% and the Nifty 50 declined 0.42% to end at 15,856.

The broader market also corrected in line with the benchmark indices as the BSE MidCap closed lower by 0.47% at 23,021, while the BSE SmallCap index ended at 26,425 declining 0.14% and the BSE 500 index lost 0.37% to settle at 21,784.

Despite the weak performance this week some 188 stocks or 38% constituents of the BSE 500 index ended the week with positive returns. With a gain of 24.57%, Jindal Stainless was the top performer of the week as its shares rallied from Rs 124.15 on July 16, 2021, to Rs 154.65 on July 23, 2021. JSW Energy (up 24.39%) and Schaeffler India (up 21.58%) were the other stocks that rallied over 25% this week.

Expert view

“The truncated week kick-started with a surprising gap down on Monday owing to some nervousness across the globe. As the day progressed, the selloff augmented to close below the 15,800 mark. In fact, there was a follow-through seen to it on a subsequent day to test sub-15,600 levels. Fortunately, the global peers had a good relief move thereafter which resulted in a v-shaped recovery in our markets in the latter half. Eventually, Nifty ended the action-packed week with negligible losses,” said Sameet Chavan of Angel Broking.

It’s been more than a month now; the Nifty is trapped in a range of merely 500 points. Unfortunately, global peers experience some sell-off when Nifty is about to reach the milestone of 16,000 and on the other hand, some relief comes when we are at crucial supports. This week’s price action is exactly a replica of this. After undergoing some price correction for the first couple of days, we witnessed a good relief rally to reclaim the important level of 15,800 on a weekly closing basis, Chavan added.

Top gainers

Indiabulls Real Estate (up 18.96%), Jindal Stainless (Hisar) (up 16.49%), Caplin Point Laboratories (up 14.95%), Jubilant FoodWorks (up 13.50%), Allcargo Logistics (up 11.60%) and Crisil (up 11.24%) were among other majors gainers of the week.

Outlook

Market participants will be looking forward to June 2021 quarterly earnings. The trend in global stock markets, the movement of the rupee against the dollar, and crude oil prices will dictate the trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be monitored. Progress of monsoon and developments in the monsoon session of the Parliament will also be closely watched.

“In the coming week, Markets will first react to results of three majors Reliance Industries, ITC and ICICI Bank on Monday whose weightage in Nifty is ~20%. It will track global cues for further market direction while a lot of stock-specific action will be seen given the earnings season in progress. Overall, the result season so far has been healthy and is providing g support to the market which has shown strong resilience even though it faces headwinds from the advent of a possible third Covid wave and persistent inflation readings prompting a potential rate increase,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.