Stocks to Look out for as Sensex and NSE Takes a Dive

Indian stock markets started trading in the red on Thursday, 6 January 2022, amidst rising COVID-19 cases and a hawkish stance by the US Feds. As of 11:33 PM, NSE Nifty50 went down 223.75 points (1.25%) to 17,701 while S&P BSE Sensex went down 781 points (1.30%) to 59,442.09.

The broader market mirrored these losses as finance and technology stocks dragged down the market. Even then, a few stocks seem to be in a good position and may create a buzz by the end of the day.

Want to know more about these stocks? Read along.

Vedanta

Vedanta Limited is a well-known international natural resource company. Its main business is mining operations for aluminum, zinc, silver, lead, copper, iron ore, oil, and gas.

Vedanta has recently entered into an agreement with GEAR India to deploy one of India’s largest fleets of electric forklifts powered by lithium-ion batteries. Over the next few months, the company will commission 23 such forklifts at its manufacturing facility in Odisha.

Bharti Airtel

Bharti Airtel Limited is India’s second-largest mobile network operator based in New Delhi. It provides voice services, fixed-line broadband, and 2G,4G LTE, and 4G+ services. Recently, the company sold its tower assets in Tanzania, gaining US$159 million.

Airtel has announced the formation of a joint venture with Hughes Communications India to provide satellite broadband services. A subsidiary of Hughes Network System LLC, Hughes India, will hold a 67% stake in this joint venture, while Airtel would have a 33% stake.

GAIL India

This is a government-owned natural gas company with diversified operations, including natural gas distribution, processing, LPG production, re-gasification, manufacturing petrochemicals, E&P, etc. It has a 70% market share in gas transmission and around 13,340 kilometers of gas pipelines around the country.

GAIL has acquired a 26% stake in ONGC (Oil and Natural Gas Corporation) Tripura Power Company. OTPC has a gas combined cycle power plant in Tripura with a 726.6 MW capacity.

Anand Rathi Wealth Services

Anand Rathi Wealth provides wealth management services mainly to high net worth and ultra-high net worth individuals (HNIs and UHNIs). This financial services firm is among the top 3 non-bank mutual fund distributors and earns the highest gross commission.

Recently, the company’s shares were listed on stock exchanges. It will announce the financial results for the period ending on 31 December 2021 and declare interim dividends, if any.

NHPC

NPHC Limited is a hydropower generation PSU (public sector undertaking) of the Indian Government. Incorporated in 1975, this company performs all operations from planning to construction of hydroelectric projects.

The public company has recently entered into a joint agreement with GEDCOL (Green Energy Development Corporation of Odisha Ltd). This would see these companies set up floating solar power projects in various water reservoirs in Odisha with a capacity of 500 Megawatts.

Hinduja Global Solutions

HGS provides business process management and customer experience (CX) cycle optimization services to companies around the world. Its services include HRO solutions, back-office processing, customer services, analytics, etc.

The company has announced that its Board of Directors will meet on 6 January 2022. They will consider the declaration of interim dividends and the issuance of bonus shares.

Colgate-Palmolive

Colgate-Palmolive is an American consumer product MNC specializing in the production and distribution of various household and personal care products. In India, they are mainly known for oral care products, including toothpaste, mouthwash, tooth powder, etc., under the Colgate brand.

Its Indian subsidiary stated that it is in talks with distributors boycotting its products in Maharashtra and a few other states. The issue is price disparity between traditional distributors and organized B2B channels.

RBL Bank

Formerly known as Ratnakar Bank, this is a private sector bank headquartered in Mumbai. It has an expanding presence across the country with a network of 445 branches, 386 ATMs and 271 banking outlets in every state and union territory of India.

Recently, the bank announced that its gross advances grew 5% to Rs. 59,941 crores year-on-year (YoY). Last year, its gross advances amounted to Rs. 57,092 crores in the same quarter.

Mahanagar Gas

Mahanagar Gas Limited (MGL) distributes natural gas to Indian customers, including residents, restaurants, hospitals, nursing homes etc. In places like Mumbai, Thane, and nearby places, it is the sole distributor of CNG (compressed natural gas) and PNG (piped natural gas).

Recently, LIC (Life Insurance Corporation of India) acquired over a 2% stake in the company. This has increased the insurance company’s shareholding to 7.01% from its 5% stake earlier.

Bottom Line

While it may be tempting to invest in stocks trading high today, investors should always exercise due caution before doing so. While equity investments always come with risks, one can always follow the best practices to minimize them and get higher returns.

Source: Economic Times

Frequently Asked Questions

1. What did the FOMC members discuss in their last meeting?

The Federal Open Market Committee (FOMC) hinted that the US Federal Reserves could hike rates faster than expected. The US Central Bank’s hawkish comments forced NASDAQ to go down 3% on 5 January 2022.

2. How do the US Feds’ hiking rates affect the Indian stock market?

A hike in interest rates in the US would lead to global funds pulling out from Indian government securities. As foreign portfolio investments would slow down flows into the Indian equity and bond markets, it would weaken the rupee as the dollar would strengthen.

3. Which stocks were the top laggards on Sensex on 6 December?

HDFC, Infosys, Tech Mahindra, HDFC Bank, Tata Consultancy Services (TCS) and HCL Technologies were the top laggards on BSE in early morning trade.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.