Markets & Models
After a phenomenal victory by the Bulls last week, Nifty 50 made a high of around 18,390 on Thursday and closed slightly its previous high. The index continued to trade above the Psychological level of 18,000 for the entire week and closed with a gain of 1.35% for the week. Nifty 500 also followed suit with a gain of 1.29%.
With the previous all-time high at a stone’s throw, traders and investors await with anticipation to celebrate the next high.
Multiple companies like Asian Paints, Lupin, Eicher Motors, Gillette, etc. came up with good Q4 results, further boosting investors' sentiments.
Regarding models, ‘Quick Short’ and ‘High Five’ were the top-performing models for this week, with a return of 2.35% and 1.26%, respectively.
On the other hand, Treading Ten didn’t perform as well, with a negative return of - 1.28%, followed by ‘Back Up’, which ended the week with a negative return of 8.15%.
Leaders & Laggards
Although the entire week seemed green, sectors like Automobiles, Consumer Services, FMCG, and Capital goods led the rally. Auto companies like Eicher Motors, TVS Motor Company and tyre manufacturer Apollo Tyres reported multifold increase in profit figures, which was followed by buying in these counters.
Conversely, sectors like Fertilizers, Metals, and PSU Banks underperformed this week.
NEULANDLAB, or Neuland Laboratories, was among the top-performing stocks, with a gain of 25.60% for the month of May, as a part of ‘Sector Superstars’. The company, a leading manufacturer of active pharmaceutical ingredients (API), reported a 59% increase in Net sales and a whopping increase of 288.16% in Net Profits YoY.
ZENSARTECH, Zensar Technologies, held under ‘Buy High Sell Higher’, posted a monthly return of 18.63%. The share rose 10% on Friday, making a new 52-week high after the company posted strong quarterly earnings. The company is a technology service and digital solution provider mainly operating in two segments, Digital and Application Services (DAS) and Digital Foundation Services (DFS).
INDIANB, Indian Bank, which is a part of ‘Sector Superstar’, was one of the underperformers with a -12.04% return for the month. The stock witnessed selling pressure after muted earning release from the company, failing to meet investors’ expectations.
STERTOOLS, or Sterling Tools, was another stock from the ‘Sector Superstar’ model with a negative return of 11.81% for the month of May. The company, which manufactures and supplies metal and steel pallets, galvanized pellets, etc. faced the headwinds of the metals industry.
In Other News
The IPO market sprung back to life after the Rs 4326.36 crore IPO of Mankind Pharma
made a bumper listing on Tuesday, with a closing gain of 32.4% from the IPO price. However, some gains were lost as news broke out that Income Tax officials had raided the company's headquarters.
Go First, which had declared bankruptcy last week (2nd May), announced that it has come up with a different plan to restart its operations from 24th May. However, this time it will only operate with 23 aircraft.
Zomato shares slipped almost 6% on Tuesday after investors got concerned about the increasing popularity of ONDC. Numerous screenshots went viral on the internet, showing the price difference of the same food ordered through Zomato/Swiggy and ONDC.
The report of substantial Lithium reserves found in Rajasthan’s Degana that could potentially meet India’s 80% demand was denied by the Geological Survey of India (GSI), which said that reports of large lithium reserves being identified in the state were ‘baseless’. The reserves, which were considered larger than the previously discovered 5.9 million tonnes in Jammu & Kashmir, were stated as “baseless and misleading.”
That said, we look forward to celebrating a new lifetime-high in Nifty. Till then, enjoy the weekend.