Global markets rose as investors were able to look past the rise in US bond yields and the strength in the US dollar on optimism that global economic and earnings growth will soar in the coming years.
The strong economic data emerging out of the US and Europe has further buttressed investors’ belief that any rise in global bond yields can be manageable as long corporate earnings remain on pace to clock their highest growth in decades.
For the week, the Nifty50 index rose 2.4 per cent, while the BSE Sensex climbed 2.1 per cent.
Here are 10 stocks that captured the week’s action:
Intellect Design Arena
Shares of the mid-cap information technology firm jumped 17 per cent last week amid rising optimism among investors for its earnings growth and future prospects. That belief was strengthened by the firm’s announcement of a digital banking services order from Concentra Bank.
After the dip in the previous week, shares of Coforge were back in the green last week as they rose nearly 5 per cent. The stock has risen in four out of the past five weeks reflecting the confidence investors have in midcap IT companies delivering on their earnings potential when they announce their March quarter results starting this week.
Info Edge India slumps
While most of its peers had a solid week, Info Edge India had a forgettable one as the stock’s exclusion from the Nifty IT index triggered heavy losses. Shares of the Zomato investor fell 5 per cent during the week as investors feared outflows from mutual funds tracking the IT sector in the country.
JSW Steel shines brightest
Among the heavyweight steel manufacturing companies, the JSW Steel stock shone the brightest last week, rising 14 per cent to cap a stellar week for metal companies. The announcement of the United States’ $2.3 trillion infrastructure plan along with reports of further supply curbs in China were behind the double-digit gain in the stock.
Graphite India piggybacks on steel rally
Shares of the graphite electrode maker rose 17 per cent last week on the perception that strong demand for steel would result in higher ask for electrodes that are used in steel furnaces. Graphite India’s prospects are closely linked to the global steel industry’s, which are as bright as they have been for a long time.
Inox Leisure falls due to Covid-19
Shares of the theatre-chain owner fell more than 7 per cent last week as investors dialed back their optimism for stocks of companies that benefitted from the re-opening of the economy. The imposition of night curfews in Maharashtra will hamstring the fragile recovery in the multiplex business and further delay a full recovery to 2022.
Ashok Leyland rises on strong sales
Shares of the commercial vehicle manufacturer rose 4 per cent last week after the company reported better-than-expected sales for March. Ashok Leyland sold 17,231 units last month, which was higher than analysts’ estimate of 15,900 units.
GAIL takes Nifty50 exit in stride
Shares of GAIL India ended the week with a gain of 6 per cent despite exiting the Nifty50 index on Wednesday. Brokerage firm Goldman Sachs reportedly said that the company will benefit from a surge in polyethylene prices, a rise in pipeline gas volumes and the structural strength in global crude oil prices. Brokerage firm CLSA argued that the stock trades at a hefty discount to its long-term average, which hints at more room for gains.
Adani Gas rises on MSCI inclusion hope
Shares of Adani Total Gas jumped 17 per cent last week as speculators took bets on the potential inclusion of the stock in the MSCI indices at the next quarterly review of the index aggregator in May. Analysts suggested that the stock could be up for inclusion with likely inflows of more than $100 million.
Turbulent debut for
Shares of ace investor Rakesh Jhunjhunwala-backed Nazara Technologies had a turbulent start as a listed company. While the stock listed at a premium of 80 per cent on Tuesday, it ended the day 20 per cent lower than the listing price as investors rushed to book profits. It fell another 8 per cent on Wednesday before rallying 14 per cent on Thursday to end the week with a loss of 16 per cent from the listing price.