The BSE Sensex recovered on Thursday and Friday after the index lost around 700 points in the first three trading sessions of the week. However, the index still ended down 0.4 per cent as a weak rupee, concerns over foreign fund flows and uncertainty over the end of the U.S. Fed’s stimulus plan kept investors on the edge.
As a worsening current account deficit (CAD) and inflation loomed large, the rupee hit fresh record lows below 65 per dollar in the week ending August 23. However, gold prices and bonds rallied.
Fitch Ratings has warned Asia’s third-largest economy of a downgrade if the government fails to soothe tensions in the financial market. JP Morgan and HSBC downgraded Indian shares to ‘neutral’.
Here are the top losers and gainers of the week:
BHARTI AIRTEL: India’s top telecom service provider was the worst Sensex performer with a weekly loss of 8 per cent, taking its losses for the month to over 10 per cent.
Nomura, which maintains a neutral rating on the stock with a target price of 315 rupees, said in a research note on Aug. 21 that financial leverage and inadequate infrastructure are challenges for the company.
NTPC: The stock has lost 7.6 per cent of its value this week to end at 129 rupees. It touched a 52-week low of 126.25 rupees on Thursday.
However, analysts seem to be optimistic about the stock. Of the 44 analysts covering the stocks, 39 have a ‘buy’ or equivalent rating on the stock, according to Thomson Reuters data.
SUN PHARMA: Shares of the pharma company also struggled, sliding 6.5 per cent in the five-day period. The stock ended in the red for three of five trading sessions this week.
Earlier in August, India’s top drugmaker by market value reported a net loss of 12.76 billion rupees ($209.64 million) for the June quarter.
“Strong earnings growth coupled with superior execution track record makes Sun Pharma an attractive investment opportunity at current levels,” Motilal Oswal said in a research report on Aug. 12.
CIPLA: With losses of 4.4 per cent, this drugmaker was