Top Movers- Week ended Jan 4

 

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The New Year began well for the Indian markets. During the past week, the Sensex gained 1.74 per cent to close at 19,784 while the Nifty which was up 1.82 per cent closed at 6016.

With U.S authorities finally striking a deal to avert the ‘fiscal cliff’, markets world over witnessed a rally. Back home, the Sensex and the Nifty soared high, gaining over 0.75 per cent on January 1.

Over the past week, all the sectoral indices exceptBSE FMCG (down 0.81 per cent) rose. The top gainers were BSE Realty (up 5.19%), BSE PSU(up 4.20 per cent) and BSE Oil and Gas (up 4.06 per cent).

Expectations of an impending rate cut by the Reserve Bank of India aided realty stocks.

The BSE Oil and Gas index benefited from positive news on the policy front. The Rangarajan Panel has suggested a new gas pricing formula which, if implemented, could result in an increase in gas prices. It has also recommended an increase in the tax holiday period for exploration blocks from seven years to 10 years. Cairn India (up 5.36 per cent for the week) and Reliance Industries (up 2.57 per cent) have been permitted by the Petroleum and Natural Gas Ministry to undertake additional exploration in their existing fields.

Stocks of gold loan NBFCs — Manapurram Finance and Muthoot Finance — shot up 27 per cent and 13 per cent respectively. They reacted positively to an RBI working group proposal recommending an increase in the loan to value (LTV) ratio to 75 per cent from the current 60 per cent.

The stock of financier IFCI moved up by about 15 per cent over the week. This was driven by a major revamp of the company board, which saw four existing directors step down and the Government nominating two new directors. The Government had increased its stake in the NBFC to over 56 per cent last December and the latest move strengthens its hold over the company.

The stock of Magma Fincorp was up 15 per cent. With expectations of the RBI bringing down key policy rates, cost of funds for it will fall.

Other stocks in the NBFC pack — Dewan Housing Finance, Magma Fincorp, Srei Infrastructure and SKS Microfinance — maintained their good momentum and gained handsomely (between 12-20 per cent) during the week. Improved market sentiment towards the larger players in this segment on the back of the Usha Thorat Committee report seems to be driving the rally.

The stock of Jai Corp surged 22 per cent with the unveiling of Maharashtra's new industrial policy. The policy allows Special Economic Zone (SEZ) developers to de-notify land and set up integrated industrial areas. Jai Corp has invested in two SEZs near Mumbai.

The stock of Jet Airways was up almost 8 per cent over the week. The airline confirmed that it is in talks with Abu-Dhabi based, Etihad Airways, regarding stake sale. A fund infusion, if it happens, will help the highly leveraged Jet Airways.

Among the losers, the stock of Kingfisher Airlines dropped close to 6 per cent during the week. The operating licence of the ailing airline lapsed with the aviation regulator refusing to consider a renewal of its licence pending the submission of a revival plan.