14 stocks gain over 30% in a week;PC Jeweller,Dhanlaxmi Bank surge over 60%
A sharp turn in mid and small-cap index stocks have seen the market price of 14 companies rally more than 30% during the current week, taking cues from falling oil prices, strengthening of the rupee, strong inflows from domestic mutual funds and easing of US-China trade war fears.
PC Jeweller, Dhanlaxmi Bank, Reliance Communications, Adani Power, Bombay Dyeing & Manufacturing Company, DB Realty, KEI Industries, Usha Martin and Kalpataru Power Transmission were among 14 stocks, rallied in the range of 30% to 66% during the current week.
The S&P BSE Midcap and Small-cap index, were up 1.6% each today at 01:23 PM; outperforming the S&P BSE Sensex in the current week. The midcap (up 8.3%) and smallcap (up 7.2%) were up more than 6%, as compared to 5% gain in the benchmark index, thus far during the week. The midcap and smallcap index have recovered 11% and 9%, respectively, from their respective 52-week lows touched on October 9, 2018, on the BSE in intra-day trade.
Domestic mutual funds invested Rs 239.76 billion in Indian stock markets in October, a record monthly inflow taking advantage of the correction in the market. Their total investments thus far in the current calendar year touched Rs 1.12 trillion, data shows.
Dhanlaxmi Bank has locked in upper circuit of 10% at Rs 18.05 today, zoomed 64% from Rs 11.03 on last Friday. The private sector lender today reported a more-than-double net profit at Rs 121 million for the September quarter (Q2FY19), due to lower provisioning for bad loans. It had a profit of Rs 61 million in the same quarter the previous year. It posted a net loss of Rs 450 million in the June quarter (Q1FY19).
The bank’s assets quality improved sequentially, with the gross NPA as on Q2FY19, was 7.81% against 8.94% in Q1FY19, while net NPA was at 2.92% against 3.79% in the previous quarter.
Adani Power hit a fresh 52-week high of Rs 52.45, gaining 48% thus far in current week, after Adani Group company posted 22% year-on-year (Y-o-Y) growth in its consolidated net profit at Rs 3.87 billion in September quarter. It had posted a profit of Rs 3.17 billion in the same quarter last year. The electric utility company had a net loss of Rs 8.25 billion in the previous quarter.
Commenting on the results, Gautam Adani, Chairman, Adani Power said, "We are pleased to note the progress in ensuring sustainable operations of the Mundra power plant, with the Hon'ble Supreme Court permitting the Gujarat Government to approach the CERC for implementation of recommendations made by the High Power Committee.
"We have also received other important Regulatory and judicial approvals for compensation claims of our projects at Tiroda and Kawai. With the quick ramp-up of coal supplies under SHAKTI, we firmly believe that these developments will help the plants achieve cash flow certainty and improvement in long-term profitability. We remain committed to our goal of catering to India's growing power demand and contributing significantly to its economic growth."