The Sensex and Nifty 50 were mostly flat for the week ending June 25, 2023, with a move of -0.6 per cent and -0.9 per cent respectively.
In the past week all the sectoral indices took a hit and closed in the red. BSE Metals and BSE Consumer Durables were the biggest losers, losing 2.4 per cent and 2.3 per cent each. BSE IT and Healthcare were relatively firm and lost 0.4 per cent and 0.6 per cent each.
Among the BSE 500 stocks, the top gainers with fundamental news driving the shares were Saregama and Shriram Finance. While CreditAccess Grameen and Swan Energy also had a good week, there was no significant fundamental news with regard to those shares. .
The stock of Shriram Finance shot up by around 20 per cent last week on the back of a rating upgrade by brokerage firm Jefferies.
Earlier, Jefferies was concerned about a potential equity supply overhang weighing on the shares. However, with Apax Partners exiting its position last year, and PE firms Piramal Enterprises and TGP Capital offloading their stakes in the firm, the overhang appears to have gone, Jefferies said. Last week Piramal Enterprises updated via a regulatory filing that it had sold its entire direct investment of 8.34 per cent to third-party investors. This cleared a major supply overhang for the shares.
With this concern sorted out and a favourable commercial vehicles outlook, which bodes well for the company’s lending book, the brokerage firm has upgraded the rating on the stock from Hold to Buy.
The stock is currently trading at a trailing P/B of 1.44 times.
The stock of Saregama surged nearly 16 per cent during the week on account of a favourable order from the National Company Law Tribunal (NCLT) regarding its upcoming demerger. Saregama is India’s oldest music label and is also the largest global owner of sound recording and publishing copyrights of Indian music across 14 different languages. It also sells unique music devices under its brand name Saregama Carvaan.
The NCLT has approved the demerger of Saregama India’s e-commerce distribution business and identified non-core assets into Digidrive Distributors Ltd. The demerged company intends to create a specialised master distributor for retailing all its physical products (including Carvaan) on the digital marketplaces.