Paytm, media among stocks that zoomed up to 18% during the week

New Delhi: Domestic equity markets majorly ended with gains during the week as benchmark indices settled about a per cent higher on a weekly basis.

Optimism over dovish or lesser hawkish stance from the US Federal Reserve, strong economic data and drop in the crude oil prices lead to recovery in global markets, which pushed the Indian indices higher.

Broader markets outperformed the benchmark indices as midcap and smallcap index rallied up to 3% during the week, whereas on a sectoral front, realty, metal and media pack stole the show.

Vinod Nair, Head of Research at Geojit Financial Services, said bulls continued their quest for gains, hitting fresh record highs, boosted by falling crude, robust GDP numbers, and a dovish stance by the Fed chair.

"The rally was halted by negative cues from global counterparts and broad-based profit booking in large caps," he added. "Investors' concerns were allayed as the Fed chair adopted a dovish stance."

On the 500 index, about 400 shares settled in green, whereas more than 100 stocks ended in red. About two dozen counters rose in double digits but none of the stocks dropped more than 7% for the week.

Network18 Media & Investments led the gainers with the stock rising 18% for the week as the media counters were in the limelight following the takeover of NDTV by Adani Group. This may lead to re-rating of the sector.

One97 Communication (Paytm) zoomed 16% during the week as the stock hogged limelight following its investors’ meet, attracting some buying near its 52-week lows.

Global brokerage CLSA has a ‘buy’ rating on Paytm with a target price of Rs 650, whereas Morgan Stanley has maintained an equal weight rating for Paytm with a target price of Rs 695. ICICI Securities has a target of Rs 1,285 with a ‘buy’ tag.

Varun Beverages and The New India Assurance Company jumped 14% each, whereas Tube Investments of India, Birlasoft and JK Lakshmi Cement gained 13% each.

Brokerages had a ‘hold’ rating on Varun Beverages with a target price of Rs 1,317. Motilal Oswal has suggested a ‘buy’ rating with a target price of Rs 2,879. Axis Direct and HDFC Securities had a ‘buy’ call on JK Lakshmi Cement.

Aditya Birla Capital, TV18 Broadcast, Chemplast Sanmar, Suzlon Energy, KIOCL and Dalmia Bharat also jumped between 11 and 12% each during the week.

HDFC Securities has ‘buy’ a tag on Aditya Birla Capital with a target price of Rs 167, whereas Motilal Oswal has recommended to ‘buy’ Dalmia Bharat with a target price of Rs 2,000.

Esab India, Prestige Estates, BHEL, L&T Technology Services, IRB Infra, APL Apollo, MMTC, Swan Energy, Kalyan Jewellers and Bandhan Bank gained 10% during the week.

Geojit Financial Services has suggested to ‘hold’ BHEL with a target price of Rs 75, whereas ICICI Securities has a ‘buy’ rating on Prestige Estates with a target price of Rs 473. IDBI Capital has a ‘buy’ rating on APL Apollo with a target of Rs 1,216.

JM Financial has ‘buy’ rating on Bandhan Bank with a target price of Rs 325. ICICI Securities has maintained its ‘buy’ rating on Kalyan Jewellers with a target price of Rs 103. Ventura Securities has a ‘buy’ call in IRB Infra with a target of Rs 729.2.

Among the losers, Laurus Labs topped as it tanked 7% for the week, whereas Maharashtra Scooters and Allcargo Logistics tanked 6% each. Schaeffler India, Granules India and Gujarat State Petronet shed 5% each.

Kotak Institutional Equities has a ‘sell’ rating on Laurus Labs with a target price of Rs 350. HDFC Securities has an ‘accumulate’ rating on Gujarat State Petronet with a target price of Rs 263.7. Geojit has an ‘accumulate’ rating on Granules India with a target price of Rs 408.


(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)