Stock Fundamentals


| Updated on September 03, 2011 Published on September 03, 2011

During a week of much-needed respite for the markets from the clutches of the bear, the BSE Sensex and NSE Nifty ended the weeks higher by 6.2 per cent each. The truncated week of trading saw Asian markets end strongly. The markets bucked the trend of weak markets over the last few weeks with the BSE500 index gaining 5.6 per cent. The gains were despite what analysts believe are strong signs of a domestic slowdown with Indian Purchasing Managers Index survey coming in at its lowest level in 29 months. The week was one of broad gains for the market as a whole as 175 of the BSE 200 scrips posted gains of at least one per cent.

Euphoria over Manappuram Finance's NCD issue, which mopped up Rs 470 crore led investors to push the scrip up by 30 per cent, making it the top gaining stock of the week among the BSE 200 pack. Last week's biggest losing index, the BSE Metals Index, staged a strong comeback this week posting the highest gains of 11.5 per cent among the BSE Indices.

The top gaining scrip among the metals pack was JSW Steel, which was up 18.5 per cent through the week following reports that the company's output may not be adversely impacted by the ongoing ban on iron ore mining in Karnataka. The stock had shed a third of its market cap over the last three months as a fall out of the alleged Karnataka mining scandal.

Other stocks in this space which gained through the week were Tata Steel, Jindal Steel and Power and Bhushan Steel which gained between 14 per cent and 16 per cent . These were among the companies which had shed significant market cap over the last three months over several concerns, including high raw material costs potentially eating into profitability. While that trend has yet to show signs of abating, several market participants went into bottom-fishing mode.

The trend was evident in the BSE Realty Index gaining to be the second highest winner over the course of the week. The Index was up 10 per cent through the week. Index heavyweight DLF gained over 18 per cent following the company's announcement that it was mulling the sale of its IT park in Noida, possibly to IDFC. DLF is said to be mulling options to par on its debt load over the next few years. Investors were also excited over the possibility of a further stake sale in various businesses by Reliance Capital to Nippon Life. The scrip was up by 18 per cent through the week as was group company Reliance Communication, which was up 17 per cent through the week.

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