Stock Fundamentals


| Updated on November 19, 2011 Published on November 19, 2011

The week ended November 18 saw the BSE Sensex and NSE Nifty shed 4.8 and 5 per cent respectively with food inflation persisting at double-digit levels and GDP growth expectations being tempered to below seven per cent by Macquarie Securities. The broader BSE 500 shed 5.6 per cent through the week as Standard and Poor's raised a red flag over waning ability to compete following lacklustre investments in infrastructure.

With few gainers to talk about for this week, a standout performer on the bourses was Patni Computers. The scrip gained 22 per cent over the last week as iGATE raised over Rs 1,000 crore in debt to buy out Patni shareholders and delist the company. This gain far exceeded the 2.3 per cent loss posted by the BSE IT index.

Despite little in terms of a tangible resolution in sight and slipping market share, Kingfisher Airlines gained 22 per cent as rumours that the Ministry of Aviation may allow foreign airlines to invest in local carriers. Buzz over a possible hike in the FDI holding limits in retail companies set the shares of Pantaloon Retail galloping. The scrip gained 16 per cent over the week. Capping the list of notable gainers this week is Cipla Pharma whose shares gained 9.4 per cent following a strong set of second quarter results. The losers were aplenty, both in terms of loss and sheer number of companies which lost. About 465 of the BSE 500 companies bled on the bourses, 165 of those losers shed over 10 per cent of their share price!

Pipava Defence was the most hammered stock of the week, shedding over 34 per cent. While few notable downside triggers emerged over the week, continued concerns over high levels of pledged stakes by the promoters and reports of an IT raid added fuel to the fire. The Parsvnath scrip also shed 23 per cent on similar concerns of pledged stake.

News that promoters have reduced their stake in Suzlon Energy by 2 per cent sent investors fleeing from the scrip which shed 31.5 per cent hitting a lifetime low.

The education segment had more than its fair share of losers with Educomp and Everonn 22 and 18 per cent respectively. Educomp lost on larger than expected drop in second quarter profits. Despite rumours that Everonn may have signed on new private equity partners to come onboard, a delay in an open offer proposed by the Varkey group.

Three companies which were hammered by a bad set of second quarter results were Shree Renuka Sugars, Aurobindo Pharma and Unitech which shed 32.3, 26 and 16.5 per cent respectively. While the Shree Renuka scrip did gain by the end of the week, debt concerns remain for the company.

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