Zomato Share Price: Zomato, Star Health among BSE 500 stocks, fall up to 20% in volatile week


New Delhi: The last week of June turned out to be a mixed one for the domestic equity markets as the benchmark indices ended marginally higher.

weak rupee,

The number of FIIs, fear of recession and inflationary pressures continued to weigh on sentiments. However, strong auto sales numbers and good GST collection in June lifted the sentiments.

Benchmark indices – BSE Sensex and Nifty 50 – gained less than half a per cent each, while midcap and smallcap indices gained up to a per cent each.

Among sectoral gainers, power, utilities and capital goods sectors rose 3-3 per cent, followed by FMCG, realty and metal indexes, up 2-2 per cent. In contrast, telecom and banking stocks disappointed the most.

Leading indicators suggest improvement in prospects for banking, IT, telecom and auto, said VK Vijayakumar, principal investment strategist.


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“Near-term stock price movement will lead to better-than-expected Q1 results in these segments. Metal stocks are likely to absorb poor Q1 results,” he said.

In the BSE 500 index, 300 stocks gave positive returns. However, only 10 stocks managed to post double-digit gains. The company announced the creation of a unified lighting business segment by merging its consumer lighting business and its professional lighting business, which grew by nearly 14 per cent to Rs 1041.3. It was another top performer after the company appointed Nikunj Kedia as product head as it rose 13 per cent to Rs 1543.9. Recently, CCI approved the acquisition of stake in the company by BC Asia Investments.

auto accessories firm

The healthy growth outlook also led to a 13 percent increase during the week. The stock closed at Rs 124.9 during the week amid rising vehicle sales.

led by gautam adani

It rose nearly 12 per cent to Rs 2,402.70 during the week. The company was on the radar of traders due to its strong technical setup.

tube investment of india,

BASF India, Metro Brands, and others were the counters that posted double-digit returns during the week.

In contrast, only five stocks fell 10 per cent or more. Zomato was at the top of the losers’ list, falling nearly 20 per cent to Rs 56.1 after the company’s board approved the acquisition of Blinkit in an all-stock deal.

Market analysts and investors turned down the Rs 4,447.5 crore Blinkit deal due to high valuations and high liquidity burn, which will impact Zomato’s path to profit.

Credit Suisse said the deal is on expected lines, adding that the acquisition will likely increase the EBITDA loss for the next two financial years. Another brokerage Edelweiss said that Blinkit’s annual cash burn is Rs 1,290 crore.

On the basis of profit booking, 12 percent fell to Rs 346. Last week the stock was trading around Rs 390-400.

Despite the announcement of its partnership with

Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Company fell 11 per cent to Rs 473.65 during the week. It has shed over 47 per cent from its issue price of Rs 900.

in the last month,

The company has been given a buy rating with a target price of Rs 840, while Emkay Global has a buy rating on the stock with a target price of Rs 945.

Oil India fell 11 per cent to Rs 213.95 after the government imposed additional excise duty on the fuel.

Johnson Controls – Hitachi Air Conditioning India, Bharat Dynamics,

And Blue Star was the other stock that lost 8-10 per cent during the week.

Yash Shah, Head of Equity Research, Samco Securities said the domestic equity market is expected to remain volatile due to market developments. “Investors should pay careful attention to management commentary and choose solid fundamental companies to focus on the longer-term picture,” he said.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)



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