The week that was in 10 stocks: Pharma and sugar stocks rally, JK Cements tumbles

BJP’s landslide victory in four states including Uttar Pradesh set the tone for recovery amid the ongoing geopolitical worries between Russia and Ukraine and rising crude oil prices.

Benchmark indices – BSE Sensex and Nifty50 Index- gained over 2 per cent each, whereas midcap and smallcap indices surged 3 per cent each. All the sectoral indices advanced during the week gone by.

Vinod Nair, Head of Research at Geojit Financial Services said that the domestic market opened weakly witnessing a heavy sell-off as oil prices surged above $130 a barrel, following the risk of a US and European ban on Russia’s oil export.

“However, the mood was reversed as the results of the state election turned positive for the market and oil prices started cooling off. Indian markets witnessed increased optimism in the progress of high-level talks between Russia & Ukraine and a surge in the global markets,” he added.

In the BSE 500 index, nearly 390 stocks ended the week with gains while the rest recorded losses. As many as 30 stocks gained in double digits during the week.

Below are some of the key names that were in the spotlight during the week:

Pharma Stocks: Pharma players rallied as the outlook for Indian drug exporters turned positive on prospects of firm exports amid the ongoing geo-political scenario. Take Solutions gained 38 per cent to Rs 37.8, whereas IOL Chemicals & Pharma jumped 23 per cent to Rs 427.6.

Sugar Stocks: Domestic sugar companies were high in demand among the trades on the back of various factors including favourable mix of ethanol, higher sugar realisations and improvement in operating margins of companies. Dwarikesh Sugar gained 36 per cent to Rs 129.15, whereas Avadh Sugar & Energy jumped 19 per cent to Rs 699.2.

BGR Energy Systems: The smallcap construction and engineering player soared 25 per cent to Rs 92.85 during the week after the Madras High Court reinstated the order worth Rs 4,442.75 crore awarded to the company by Tamil Nadu Generation and Distribution Corporation

Reliance Infrastructure: The Anil Ambani led infra player gained 18 per cent to Rs 122.4 following a favourable order from Delhi High Court, where it has directed Delhi Metro Rail Corporation to pay Rs 6,330 crore to a subsidiary of Reliance Infrastructure in line with the arbitration award passed in 2017.

Gujarat Narmada Valley Fertilizers & Chemicals: The state-run chemical maker continued its strong performance in the week gone by as the scrip surged 18 per cent to Rs 707.75. The scrip has zoomed more than 60 per cent in the year 2022 so far.

JK Cement: The cement player dropped about 13 per cent to Rs 2296.25 amid the rising prices. Also, the company announced its entry into the paints business via a wholly-owned subsidiary. The company is looking to invest ?600 crore over the first five years.

Elgi Equipments: The air compressor manufacturer tumbled another 12 per cent to Rs 306.5 during the week. The scrip has been in a freefall ever since it announced plans to consolidate its production facilities into a single campus in Coimbatore.

Jindal Stainless: The metal player shed 10 per cent to Rs 178.40 amid the rising global crisis between Russia and Ukraine which led to a sharp rally in the Nickel prices, impacting the input prices of the company. This may impact the supply chain in the near term.