These stocks are closing FY17 with a bang

By: | Published: March 31, 2017 1:50 PM

With the financial year 2016-17 coming to a close today, the last trading week witnessed a healthy momentum in several share prices, particularly of Banking and Financial Services companies, with some hitting year highs and the others making all-time highs.

Of late, share prices in India have been supported by bright corporate earnings outlook, UP state election results, passage of GST, weakening Pound Sterling, strengthening rupee, capital infusion in PSU banks, healthy fundamentals of private banks.

With the financial year 2016-17 coming to a close today, the last trading week witnessed a healthy momentum in several share prices, particularly of Banking and Financial Services companies, with some hitting year highs and the others making all-time highs.

Of late, share prices in India have been supported by bright corporate earnings outlook, UP state election results, passage of GST, weakening Pound Sterling, strengthening rupee, capital infusion in PSU banks, healthy fundamentals of private banks, government’s push to solve the problem of banks’ stressed assets, rising foreign reserves, narrowing Balance of Payments, and other factors.

On a high

Tyre maker MRF hit its all-time high on Friday, rising to Rs 60,300. Incidentally, MRF is the costliest scrip on the Indian bourses. MRF and other tyre makers have recently gained traction on the back of encouraging news reports on rubber prices, the key ingredient for them.

Procter & Gamble Hygiene and Health Care too made its all-time high, hitting Rs 7,485. Consumer products companies, especially those catering to the Indian domestic markets, are on a roll with the Lok Sabha clearing the decks for implementation of GST – the most ambitious tax reform ever, which will subsume all central and state taxes in favour of a unified tax regime across the country.

Banking on Fundamentals

Banking and financial services stocks, in particular, have sparked this week, with several of those making their all-time or year-highs. Today, State Bank of India, the country’s largest bank by assets, touched its fresh 52-week high of Rs 294.7, while yesterday, the country’s most valuable lender HDFC Bank hit its year-high of Rs 1,479.95.

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Private sector lender Yes Bank too hit a year-high of Rs 1,557.5 yesterday, while today Federal Bank made its new all-time of Rs 92. Other lenders hitting their one-year highs earlier this week include Housing Development Finance Corp (Rs 1,520.2), IndusInd Bank (Rs 1,424.3), Bajaj Finance (Rs 1,188), Indiabulls Housing Finance (Rs 996.5), LIC Housing Finance (Rs 625.7) and Sundaram Finance (Rs 1,630.5). Kotak Mahindra Bank had hit its one-year high of Rs 886.4 earlier last week.

Becoming Powerful

Power and infrastructure companies including NHPC (Rs 32.05) and Adani Ports & SEZ (Rs 342.7) rose to their one-year high levels today. On the other hand, private sector utility Tata Power (Rs 91.15), and state-run financiers Power Finance Corp (Rs 148.4) and Rural Electrification Corp (Rs 185.35) hit their one-year highs earlier this week.

Trading firm

Other stocks that have traded strong recently, rising to their one-year high levels this week, include mining and metals major Vedanta Ltd (Rs 278.1); salt maker Tata Chemicals (Rs 606.5); battery maker Exide (Rs 226.2); information technology services provider HCL Tech (Rs 890.15); media firms Sun TV (Rs 797.85), PVR (Rs 1,469.95), Dish TV (Rs 111); tyre maker Apollo Tubes (Rs 1,198), electric equipment maker Havells (Rs 474.5), and consumer goods company Voltas (Rs 424.75).

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