The BSE Sensex and Nifty 50 closed in the red on Friday, losing 1% for the week, marking the worst week in over two months. IT stocks and oil and gas counters dragged the markets down. Shares of HCL Technologies fell 7% in Friday trading after the company said that FY23 growth in constant currency terms will be at the lower end of their guided band of 13.5–14.5% due to volatile macros and higher furloughs in Q3FY23.
Other IT stocks, such as Tech Mahindra, Infosys, and Wipro, fell 3.59%, 3.18%, and 2.25%, respectively, during Friday's trading session. The Nifty IT index slumped 946.55 points, or 3.14%, to 29,168.45.
The BSE Sensex lost 686.83 points, or 1.09%, during the previous week to close at 62,182, while the Nifty50 lost 199 points, or 1.07%, to finish the week at 18,497. The BSE small-cap index fell 1.18% during the same period, while the BSE midcap index closed at 0.86% lower.
Last week, Brent crude futures ended at roughly $76 per barrel, down 10.37%. WTI crude futures were down by 11.20% to end the week at $71.02 per barrel. Crude oil prices have been trading below $100 for the last five months. Despite Russian President Vladimir Putin's warning that Moscow may reduce oil production in response to the G-7 nation's price cap on the price of its crude. Oil prices are continuing to decline due to growing concerns about recession in advanced economies.
The Indian rupee, on the other hand, fell 1.23% last week to 82.41 against the US dollar. The Indian currency is down 10.67 percent against the US dollar this year and 9.16 percent since the US Fed began raising interest rates in March.
Meanwhile, small-cap stocks rallied over the last week, with returns of up to 47%. Four stocks in the BSE small-cap index rallied above 30%, eight stocks returned between 15% and 30%.
|Scrip Name||% Weekly Returns|
|Punjab & Sind Bank||45.4|
|Central Bank of India||35.58|
|TruCap Finance Ltd||23.6|
|Jammu & Kashmir Bank||20.2|
|Bajaj Hindusthan Sugar||14.4|
Optiemus Infracom stood as the top gainer in the BSE small-cap index in the last week with a surge of 47.2%. The stock began its upward journey on November 18, and it has since returned nearly 70% by moving from ₹214.30 apiece to the current level of ₹363.40.
Punjab & Sind Bank was the second-top gainer during the last week with gains of over 45.4%. The stock has experienced a one-way rally since the beginning of the current month, rising from ₹20.80 per share to ₹33.80, generating an extraordinary return of 62.5%.
Shriram Engineering, Procurement, and Construction (SPEC) stock jumped 38.4% in the last week. The stock has experienced significant volatility this calendar year, reaching a one-year high in January and losing 42.74% of its value in just one month to February of this year.
The share price of the Central Bank of India gained 9.35% in Friday's trading session to reach a new 52-week high of ₹34.5 apiece. In the last week, the stock rallied from ₹24.45 to ₹33.15, delivering a return of 35.58%.
In its latest report, domestic brokerage firm LKP Securities has given a "buy" call on the stock with a 12-month target price of ₹37 apiece.
"After incurring losses for six consecutive years (FY16–FY21), the Central Bank returned to profitability in FY22." "Moreover, the bank has been reporting consistent growth in net profit since the last six quarters," the brokerage said.
After hitting a one-year high of ₹111.80 apiece on June 30 of this year, shares of Trucap Finance have steadily dropped to ₹56.70, losing nearly 50% of their value in just four months to October. However, the stock gained momentum since then and has returned 28.83% to date, with the majority of gains coming in the last week at 23.6%.
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