These stocks rallied the most in the record-breaking week; do you own any?

After consolidating for almost six weeks benchmark equity indices gave an unconditional breakout to log strong gains on the back of positive global cues, robust earnings season, and strong GST collections. Indices gained for four days since Monday to attain multiple all-time highs during the week. In the week ended on Friday, 6 August 2021, the Sensex surged 1,690 points or 3.22% to settle at 54,277. The Nifty 50 index soared 475 points or 3.01% to settle at 16,238. The Nifty hit a record high of 16,349 while the BSE Sensex hit an all-time of 54,717 during the week. However, investors booked profits on the last day of the week. On Friday, the Reserve Bank of India kept the key policy rates unchanged. Small-cap and midcap indices underperformed the market.

On the other hand, some pain was visible in the broader markets as the BSE Mid-Cap index rose 117 or 0.51% to settle at 23,204. The BSE Small-Cap index gained 19 points or 0.07% to settle at 26,805. Whereas the BSE 500 index advanced 470 points or 2.16% to end at 22,224 after hitting a new peak of 22,365.

A deeper look into the BSE 500 index reveals that as many as 230 constituents or 46% of the index delivered positive returns to investors this week. With a gain of 18.27%, BASF India was the top performer of the week as its shares rallied to Rs 3,390.30 on August 6, 2021, from Rs 2,866.50 on July 30, 2021. Piramal Enterprises (up 14.95%), Suven Pharmaceuticals (up 14.12%) and Rossari Biotech (up 13.11%) were other stocks that rallied over 12% this week.

“Two months of boredom finally came to an end as market kick-started the August month with a bang. There were several attempts made recently to reach the millstone of 16000 but every time global markets became a spoilsport. This time it was certainly not the case. We had complete support from the global peers which provided the impetus to reach the magical figure of 16000. The moment we surpassed and sustained above it, there was no looking back. Barring Friday’s muted session; the Nifty had an excellent week to add more than 3% to the bulls’ kitty to hasten towards the 16300 mark,” said Sameet Chavan, chief analyst-technical and derivatives at Angel Broking.

Top gainers

Nilkamal (up 11.63%), Bliss GVS Pharma (up 11.57%), Dr. Lal Pathlabs (up 11.51%), Tata Investment Corporation (up 11.18%), Cholamandalam Investment and Finance Company (up 11.05%), Indostar Capital Finance (up 10.28%), Narayana Hrudayalaya (up 10.23%), KPIT Technologies (up 10.08%) and Deepak Fertilisers and Petrochemicals Corporation (up 10.01%) were among other majors gainers of the week.

Outlook

Market participants will track macroeconomic data along the result season will continue to drive stock-specific movements on the markets. 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 also be monitored.
That apart a four IPOs with hit the street this week raising Rs 11,875.51 crore will also influence the liquidity in the market.

The key thing to watch out for in the near future would be the US bond yields because any rise in yields can take out the FII money from developing countries like India to western markets and could also be a risk for emerging markets currencies.

“The 1QFY22 earnings season has so far been in-line to better than expectations. Among the sectors, Cement, Metals, Healthcare, and Oil & Gas have reported better than expected numbers while IT, Consumer, and Private Banks have been in line. The primary market continues with a flurry of activity with as many as 4 IPOs lined up next week. We expect the positive momentum in the market to continue on account of strong domestic economic data, impressive quarterly results and unlocking in various states,” said Siddhartha Khemka, head – retail research of Motilal Oswal Financial Services.

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