It was a tough week for Indian shares with the benchmark indexes bearing the brunt as the rupee tumbled to a fresh all-time low of 61.80 versus the dollar on Tuesday. Fears of the US Federal Reserve tapering its stimulus also weighed on street sentiment. The BSE Sensex and the Nifty ended down around 2 per cent each during the week.
The day the rupee breached its latest record low, India appointed former IMF chief economist Raghuram Rajan as the next RBI governor.
The central bank announced fresh steps after market hours on Thursday to curb volatility in the forex market. The rupee posted its best single-day gain in two weeks in anticipation of support measures by the RBI and the government.
According to Morgan Stanley, the RBI’s cash-tightening measures in July made Indian shares much more vulnerable to global cues, especially the expected tapering of US monetary stimulus.
India’s top power equipment maker, BHEL, was the worst Sensex performer this week, closing 21.3 per cent lower during the same period. On Monday, its shares fell 19 per cent to their lowest level in nearly eight years, after its quarterly profit dropped 49 per cent. Of the 48 analysts covering the stock, 29 have a ‘sell’ or equivalent rating, according to Thomson Reuters data.
Shares in Sun Pharma ended in the red in all four trading sessions, taking its losses for the week to 8.6 per cent. This week apart, the stock continues to do well and outperformed the broader Sensex that is down 3.2 per cent so far in 2013. Sun Pharma has gained nearly 38 per cent this year and its stock touched a 52-week high of Rs 581.40 on July 31 after the company completed a stock split that doubled the number of its outstanding shares.
Of the 41 analysts covering the stock, 26 have a ‘buy’ or equivalent rating, Thomson Reuters data showed.
Tata Power reported an unexpected net loss of Rs 1.55 billion in the April-June quarter, sending the shares tumbling nearly 15 per cent to a 52-week low. The stock ended the week about 8 per cent down.
Despite gaining 2.2 per cent on Thursday, HDFC, fell 7.7 per cent this week.
Bajaj Auto ended the week with losses of nearly 7 per cent. Last week, Bajaj Auto reported an 18 per cent drop in July sales.