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Indian bellweather indices Sensex gained nearly 2.76 per cent and Nifty 2.8 per cent respectively during the last week and reached a fresh life-time high. This occurred amid a rally in the US and European markets and good foreign fund inflows.
All sectoral indices ended in green during the week. BSE Auto (3.82 per cent), BSE Healthcare (3.65 per cent) and BSE IT (3.54 per cent) have been the best-performing indices. Nippon Life AMC (15 per cent), NLC India (11.28 per cent), and Aavas Financiers (10.25) have been among the best-performing stocks in S&P BSE 500 index, getting a boost from company and industry specific events that played out during the week
Nippon Life AMC
The stock of Nippon Life Asset Management surged nearly 15 per cent during the week on the back of a favourable outcome from the market regulator SEBI for the mutual fund players.
Nippon Life along with other AMC stocks such as HDFC AMC and UTI AMC were in the spotlight on Friday. In the recent SEBI board meeting, it has been proposed that the decision to revise the total expense ratio (TER) for the mutual fund schemes shall be postponed. The news fueled the buying interest in the AMC stocks as the profitability of these companies shall remain at the same level for some time versus prior expectations that it could be negatively impacted if the new SEBI proposal was implemented.
The stock of Nippon Life AMC trades at a trailing PE of 25 times and P/B of 5.11 times.
NLC India Ltd
The stock of coal mining PSU NLC India Ltd shot up by around 11 per cent in the last week.
The company has been in news ever since its MD Prasanna Kumar Motupalli has announced the company’s renewable energy based plans. The company plans to set up a step-down subsidiary for operating its renewable energy businesses. Consequently, the company plans to invest around ₹24,000 crore in solar power projects till 2030. For the same, it plans to raise money by bringing investments from the private space as well as listing it on the bourses.
The stock of NLC India trades a trailing P/E of 10.77 times.
Aavas Financiers Ltd
The stock of housing finance company rose around 10 per cent during the week led by a single day gain of around 5 per cent on Tuesday. Aavas Financiers is engaged in the business of offering housing loans to customers present in low and middle income segments in semi-urban and rural areas.
Positive reaction from the street came after Societe Generale picked up around 0.5 per cent stake in the company. It was a result of a bulk deal that happened between Societe Generale and venture capital firm Small Cap World fund.
The stock trades at a trailing P/B of 3.72 times.
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