/The week that was: Midcap IT firms in demand, turbulent takeoff for Nazara

The week that was: Midcap IT firms in demand, turbulent takeoff for Nazara

MUMBAI: Benchmark equity indices managed to limit their run of weekly losses to two as they gained more than 2 per cent last week helped by positive cues from global markets.

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 this 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.

Coforge continues stellar show
After the dip last week, shares of Coforge were back in the green this 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 from next 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 stock of JSW Steel shone the brightest this week as they rose 14 per cent to cap a stellar week for metal companies. The announcement of the US’ $ 2.3 trillion infrastructure plan alongwith reports of further supply curbs in China were behind the double-digit gains in the stock this week.

Graphite India piggybacks on steel rally
Shares of the graphite electrode maker rose 17 per cent this week on the perception that strong demand for steel would result in higher demand for electrodes that are used in steel furnaces. Graphite India’s prospects are closely linked to the global steel industry’s and the latter’s prospects are as bright as they have been in a long time.

Inox Leisure falls due to Covid-19
Shares of the theatre-chain owner fell more than 7 per cent this week as investors dialled 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 full recover to 2022.

Ashok Leyland rises on strong sales
Shares of the commercial vehicle manufacturer rose 4 per cent this week after reporting better-than-expected sales number for March. Ashok Leyland sold 17,231 units during the previous 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 gains of 6 per cent despite exiting the Nifty50 index on Wednesday. Brokerage firm Goldman Sachs reportedly said that the company will benefit from surge in polyethylene prices, rise in pipeline gas volumes and structural strength in global crude oil prices. Brokerage firm CLSA argued that the stock trades at a hefty discount to 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 this week as speculators took bets on a 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 Nazara
Shares of the 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 losses of 16 per cent from the listing price.

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Markets-Economic Times