The Indian equity markets rose on Friday after the Reserve Bank of India rate hike came in line with market expectations. In early trade, markets opened lower but quickly bounced back and rallied nearly 2%. The Sensex ended with a gain of 1,016.96 points, or 1.80%, at 57,426.92, while the Nifty closed at 17,094.35, up 276 points, or 1.64%. The BSE Midcap and Small-cap indices closed 1.39% and 1.45% higher, respectively.
However, in September the Sensex lost 3.4% while the Nifty50 dropped 3.6%. The BSE Small-cap index fell 0.69 % in the same period, while the BSE Midcap index shed 2.18%.
On September 30, the RBI raised interest rates by 50 basis points (bps), representing the fourth consecutive rate hike as policymakers increased efforts to reduce inflation. The repo rate now stands at 5.90%, up from 5.40%. The RBI has raised interest rates by 190 basis points (bps) so far in 2022.
On the other hand, the Indian rupee hit another record low of 82 against the US dollar on Wednesday. So far this year, the Indian currency has lost 9.45% of its value against the US dollar, and since the start of the first rate hike from the US Fed on March 22, the rupee has fallen by 7.05%.
After two consecutive months of buying, FPIs became net sellers in September and withdrew ₹12,000 crore from Indian markets. During the same period, DIIs invested approximately Rs. 7,000 crore in equity markets. FPIs turned net buyers in July after nine straight months of massive net outflows, which started in October last year, Trendlyne data showed.
Meanwhile, crude oil prices tumbled 9% in September, marking a fourth consecutive monthly loss due to growing recession fears, continuous rate hikes from major central banks, and persistent headwinds from surging inflation.
In the Nifty 500 Index, only one stock was able to gain more than 40% in September, and seven stocks returned between 20–30%, 17 stocks rallied between 15% and 20%, and 24 stocks surged between 10% and 15%.
Tata Investment Corporation led the Nifty 500 Index gainers in September, gaining more than 43 percent. The stock has climbed from ₹1,602 to ₹2,302.70, generating a return of over 43.73%. The majority of the stock gains came in the second week of last month when it jumped from ₹1,828 to ₹2,691.30 in just four trading sessions.
Tata Investment Corporation is a non-banking financial company (NBFC) promoted by Tata Sons. The company is registered with the Reserve Bank of India under the category of an investment company.
Vijaya Diagnostic Centre was the second top gainer in the Nifty 500 index. The stock gained 29.71% in a month to ₹460.70 from ₹355.15. Over the last three months, the stock has delivered a return of 38.27% to its shareholders.
The rally in the stock started in mid-July and, from that point, the stock saw a one-way rally and has given a 51.81 percent return. But the stock is still 14% down from its IPO issue price of ₹531.
According to a report by Mint, Team Saurabh Mukherjea has recently added Vijaya Diagnostic Centre to its small-cap portfolio. Saurabh Mukherjea is the founder and chief investment officer of Marcellus Investment Manager.
|Scrip||% Monthly Returns|
|Tata Investment Corp||43.7|
|Vijaya Diagnostic Centre||29.7|
|Shree Renuka Sugars||26.2|
|Mazagon Dock Shipbuilders||26|
|Krishna Institute of Medical Sciences||25.8|
|JK Lakshmi Cement||23.9|
|Tube Investments of India||21.2|
|Karur Vysya Bank||18.7|
|Kalyan Jewellers India||17.9|
|Solar Industries India||17.6|
|Bajaj Holdings & Investments||16.9|
|Indian Hotel Company||16.2|
Shree Renuka Sugars was the third top gainer in the Nifty 500, rising 26.17% from ₹47 to ₹59.30. The stock is trading nearly 144% higher from its 52-week low of Rs. 24.4.
The bull run in the stock came after the company announced its plan to expand ethanol capacity by December. Further, on September 22, the board of directors of Wilmar Sugar, which is a holding company, provided a letter of support to the company to meet the shortfall in its normal trade-related working capital requirements for up to a period ending May 31, 2023.
Shares of Mazagon Dock Shipbuilders hit a fresh 52-week high of ₹498.8 on Friday. Since June, the stock has jumped from ₹234.85 to ₹493.45, delivered a multibagger return of 110.11%. The stock price increased from ₹391.60 to ₹493.45 in the last month, representing a 26 percent return on the strong business outlook.
The stock rose the most after the company reported a 133.33 percent increase in net profit year on year to ₹217 crore for the June-ending quarter, up from ₹93 crore the previous year.
Mazagon Dock Shipbuilders Ltd. is engaged in building and repairing ships, submarines, various types of vessels, and related engineering products. The company is owned by the government of India, its website shows.
Shares of Krishna Institue of Medical Sciences hit an all-time high on the BSE in Friday's trade. The stock opened with a gap up of ₹15 per share, at ₹1,415, and rose further, reaching a new all-time high of ₹1,573.9 on the BSE. At the current price, the stock is trading 51.40% above its 52-week low of ₹1,000, recorded on November 11, 2021.
Dhani Services was the top loser in the Nifty500 Index. After rising by 60% in August, the stock fell by 26.6 percent in September. The stock hit a 52-week high on October 21, 2021, similar to the same time when the Nifty reached its all-time high. But since then, the stock started moving down and it continued the same trend till February this year. The stock lost nearly 40% of its value in February alone, and it has corrected by 84.76% from its 52-week high till July. However, the stock experienced buying momentum in August but failed to maintain its bullish trend in September.
Last month, Can Fin Homes lost 22% of its value. The stock has been in a downtrend since September 15 after Girish Kousgi, the company's MD and CEO, resigned for personal reasons. The company said in a filing with BSE that Kousgi would be relieved on October 20 after office hours. On Friday, the stock closed at ₹479.80, up 1.79 percent, and currently trading at a three-month low.
Can Fin Homes, promoted by Canara Bank, is a housing and finance company that is focused on primarily providing housing loans. Domestic brokerage firm, Motilal Oswal, has a target price of Rs. 640 on Can Fin Homes.
Other stocks that have dropped between 15-20% in the last month include MMTC, Rain Industries, Brightcom Group, Gujarat State Fertilizers & Chemicals, Adani Transmission, HEG, Tata Motors, Torrent Power, Medplu Health Services, Macrotech Developers, Hinduja Global Solutions, Elgi Equipments, Godrej Properties, and Sharda Cropchem.
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