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Mid-cap and small-cap stocks were battered last week, with their representative indices on the BSE dropping 6 per cent each. The broader market was hardly better off as the CNX 500 lost 4.3 per cent. The persisting weakness in the rupee, the RBI lowering its forecast of economic growth for this fiscal, poor numbers for core industrial output in June all served to depress stock prices. Bellwethers Sensex and Nifty lost 3 and 3.5 per cent respectively.
Among sector indices on the BSE, the Realty index received a beating and was down 14.6 per cent for the week. The biggest losers in this index were DLF , down 25 per cent, Indiabulls Real Estate and HDIL , down 14-19 per cent. The other interest-rate sensitive Bankex shed 4.5 per cent. Following up in terms of loss were the PSU and FMCG indices, down 8-9 per cent. Other heavy losers were the Oil & Gas and Metals indices. Amidst the gloom, camping out in the green were the BSE IT and Teck, which closed up 3.8 and 2.4 per cent.
Among individual stocks, Natco Pharma shot up 19 per cent for the week after receiving a favourable ruling from a US court to launch its generic drug to treat multiple sclerosis.
Many stocks received a boost from good numbers for the June 2013 quarter. Sun TV Networks posted a 41 per cent sales growth, though profits were flat on account of paying the IPL fee. The stock closed the week with a 12 per cent gain.
Similarly, HCC managing to post the first net profit in several quarters along with strong revenue growth helped the stock to gain 10 per cent for the week. The stock of Titan Industries also rose 8 per cent through the week on good results.
Poor results were the undoing of many a stock too. Indian Bank, Jaiprakash Associates and Jaypee Infratech lost 27-29 per cent. The stock of Bank of Baroda shed 12 per cent in the aftermath of declaring its June 2013 results, extending the week’s loss to 15 per cent.
Rumours that an unlisted Adani group company had exposure to the controversy-plagued NSEL, through castor seed contracts, set off a fall in the Adani Group’s listed stocks. Adani Ports, Adani Enterprises and Adani Power closed the week down between 12-20 per cent.
Similar overreaction hit the stock of IRB Infrastructure which lost 28 per cent through the week. The company withdrew a Rs 9,630 crore bid for the Mumbai TransHabour Link project, citing poor prior experiences with the Maharashtra government.
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