The Indian equity markets exhibited wild swings during the last week of trade. On August 30, Indian equity markets began on a negative note after Federal Reserve Chair Jerome Powell stated in his Jackson Hole speech that the central bank will not relent in its fight against rapid inflation and will continue to raise interest rates. But markets quickly regained and surged by close to 3% in Tuesday's trading session, supported by low crude oil prices and a recovery in the Indian rupee. However, the Nifty and Sensex failed to maintain this trend, falling 1.22% and 1.29% respectively in Thursday's trading session.
On Friday, the Nifty opened with a 56-point gap up and reached an intraday high of 17,643.85, but ended flat ahead of US jobs data. The Sensex closed 37 points higher at 58,803.33 while the Nifty50 closed 3 points lower at 17,539.45.
Crude oil prices dropped 6 percent in the last week. Both WTI and Brent are trading below $100 due to recession worries and concerns over the impact of new Covid lockdowns in China. Nevertheless, experts believe prices may rise in the coming days in hopes that OPEC+ will discuss output cuts at a meeting on Monday.
Meanwhile, FPIs pumped a net amount of ₹51,000 crore into Indian equities during August. This is the highest in 20 months amid improving risk sentiments and low crude oil prices, PTI reported.
FPIs turned buyers for the first time in July after nine straight months of massive net outflows, which started in October last year. Between October 2021 till June 2022, they withdrew ₹2.46 lakh crore from the Indian equity markets. In addition, FPIs infused a net amount of ₹3,844 crore into the debt market during the month under review.
The Indian rupee, on the other hand, closed at 79.71 against the US dollar on Friday. The dollar index fell to 109.2, below 20-year highs of near 110 hit earlier this week after the August jobs report showed the labor market may be cooling, easing the pressure on the Fed to raise rates aggressively.
As markets remain close to all-time high levels, some of the Nifty100 stocks listed below are still trading near to their 52-week lows.
Shares of Biocon hit a 52-week low in Friday's trade after the US FDA issued form 483 for 3 sites. The US health regulator has issued Form 483s with 11 observations each for two sites in Bengaluru and six observations for a plant in the Malaysia site, Business standard reported.
So far in 2022, the stock has lost 19% of its value. The stock started 2022 on a higher note. It increased by 4% in January, rising from ₹361.40 to ₹367.10. But since then, the stock has fallen 21.54% in six months.
LIC shares have been declining since its listing. The stock dropped 27.67% from its 52-week high of Rs. 919, set in May 2022, and with Friday's closing price of Rs. 664.65, the stock is just 2.15% away from its 52-week low.
In just the last three months, the stock has fallen 17.51%. In August, the stock dropped by 0.63%; in July, it rose marginally by 0.57%; and in June, it dropped by 16.90%. However, analysts believe it can recover losses considering the quarterly earnings performance of the company.
Analysts at Geojit Financial Services have given a "BUY" rating on the stock, with a target price of Rs. 810/share, implying an upside of 22% from the current market price.
On the other hand, Motilal Oswal is also bullish on LIC and recommended a 'buy' rating on the stock with a target price of ₹830/share.
The state-owned Indian Oil Corporation and BPCL are only 5.23% and 9.75% off their 52-week lows, respectively. Both stocks have been falling since their Q1 results. Despite a 70% rise in revenues, BPCL posted a standalone net loss of about ₹6,290 crore due to a rise in operating expenses.
The company's total expenditure during the June 2022 quarter jumped 87 percent to ₹1,26,905 crore, compared with ₹67,821.4 crore in the corresponding period last year. Similarly, IOC posted a standalone net loss of ₹1992.5 crore as against a net profit of ₹5,941.4 crore in the same quarter of last year.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.