Markets & Models
The bears dominated this week and managed to bring the Nifty 50 down by almost 1.37% from the high of 18458. Out of the 5 days, 3 days ended in the red, as profit-taking set was witnessed at higher levels. Nifty 50 ended the week with a negative return of -0.60%, whereas the Nifty 500 ended with -0.46%. Investors are maintaining a risk-averse sentiment after recent events, including US debt-ceiling deals, raising concerns about a slowing economy, recession fears and more.
This week, multiple companies came up with good results, which did boost investors' confidence. Stocks like RK Forge, TWL, Apar Industries, and Kirloskar Industries, which are part of our monthly models, made new all-time highs.
Leaders & Laggards
Even if most sectors were down this week, Realty and IT outperformed with a positive 1.23% and 0.96%, respectively.
On the other hand, Media and Pharma were affected the most, with a negative 2.02% and -2.90%.
NEULANDLAB, Neuland Labs remained the top performer this week, as the stock extended its gains to 37.76% for May, compared to 25.60% last week. It is a part of the ‘Sector Superstar’ model, a sector momentum strategy that identifies the top three trending sectors from 15 custom-constructed sectors.
ZENSARTECH, Zensar Technologies, similar to the previous week, the stock managed to keep its position with a total gain of 23.64% this month. The company engages in technology application services and belongs to the ‘Buy High Sell Higher’ model.
INDIANB, or Indian Bank, remained one of the underperformers among the ‘Sector Superstar’ model, with a negative return of 13.20% for this month. Even though selling pressure was witnessed across the board, the model didn’t widen the loss from the previous week.
STERTOOLS, or Sterling Tools, recovered some losses but still was on the underperforming list with a negative return of 11.08% for the month of May. The stock also belongs to the ‘Sector Superstar’ model, which picks the top trending sectors.
In Other News
India’s largest cinema distributor PVR INOX reported almost a 3X increase in net losses. The company also has decided to shut down 50 screens in the next 6 months due to increased depreciation.
Two Adani companies plan to raise as much as $2.6 billion, even in the current situation. The Adani group requires capital to finish their second Mumbai airport, deploying new power transmission lines and more.
With air travel demand rising, India’s largest airline, IndiGo, reported a profit of Rs 919.2 crores in Q4, in contrast to a loss of Rs 1,681.8 crores in the previous year. Passenger ticket revenues also increased by 81%, which led to profits.
The Reserve Bank of India (RBI) has extended international credit card payments under its liberalised remittance scheme (LRS), which means any foreign transaction you do with your credit cards is going to attract a 20% TCS (Tax Collected at Source), which has angered credit card users.
Battlegrounds Mobile India(BGMI) has received a three-month trial approval after the game complied with issues of server locations and data security. A close watch would be kept on the game for the next 3 months before a final decision is taken.
We hope you get some chicken dinners over the weekend and will see you next week. But make sure to play in moderation!