Indian benchmark indices ended around 1 percent lower for the week amid weak corporate earnings and continued selling by foreign investors after Finance Minister Nirmala Sitharaman proposed surcharge for FPIs in the Union Budget.
Indian benchmark indices gave up early gains to end lower on Friday, dragged by auto and financial stocks as the first set of corporate results failed to impress investors.
The BSE Sensex closed 560 points (1.4 percent) lower at 38,337, down 1 percent for the week, while the broader NSE Nifty50 ended lost 177 points (1.5 percent) to 11,419, down 1.1 percent for the week. The Nifty Midcap underperformed the indices, losing 4 percent for the week, while Nifty Smallcap fell 3.3 percent.
All sectoral indices, except Nifty IT, were down for the week. The Nifty Auto index fell the most, down 6 percent followed by the Nifty PSU Bank (down 5 percent), the Nifty Metal (down 2.8 percent), the Nifty Bank (down 2.7 percent) and the Nifty Media (down 1.8 percent). Meanwhile, the Nifty IT index rose 0.8 percent for the week.
Infosys was the top performer for the week, up 7.5 percent on strong Q1 earnings. Analysts were impressed after the IT major increased its revenue guidance from 7.5-9.5 percent to 8.5-10 percent for the full year FY20. Brokerages were also bullish on the stock and raised their target prices.
Sun Pharma was second on the list, up 3.5 percent after Morgan Stanley 'double upgraded' the stock on hopes of earnings revival. The brokerage upgraded the stock to overweight and raised price target to Rs 505 from Rs 470 per share.
HDFC gained 2.5 percent after the bank said its board will meet on Saturday, 20 July 2019, to consider a declaration of a special interim dividend for the financial year 2019-2020. It also became the fourth Indian company to cross the Rs 4 trillion market capitalisation (m-cap)-mark.
Wipro rose 2.1 percent after the company's operating profit margin in Q1 beat analyst estimates. It posted a 12.5 percent rise in consolidated net profit at Rs 2,387.6 crore for the April-June quarter and guided for up to 2 percent sequential revenue growth for the July-September period.
Among other gainers, UPL advanced 2.9 percent, NTPC added 1.9 percent, and Kotak Bank gained 1.5 percent.
YES Bank was the worst-performing stock for the week, down 12.3 percent after the lender posted a 91 percent (YoY) fall in net profit at Rs 113.76 crore for Q1 on account of Rs 6,232 crore addition to the non-performing assets.
M&M fell 9.4 percent after global brokerage house CLSA downgraded its rating on the stock to 'sell' from 'underperform', citing weak earnings growth ahead. It also slashed its target price to Rs 590 from Rs 690 per share. Other auto stocks also declined for the week amid consumption slowdown. Eicher Motors was down 6.7 percent, Hero MotoCorp lost 6.4 percent and Bajaj Auto shed 6.1 percent.
Other losers include IndusInd Bank (down 6.4 percent), GAIL (down 6.2 percent), and GAIL(down 4 percent).
Filatex India was the top midcap gainer for the week, up 32.7 percent, followed by Mangalam Drugs (up 27.3 percent), HDFC AMC (up 18.5 percent), Mercator (up 16.7 percent), IndiGo (up 8.5 percent), Chalet Hotels (up 6.7 percent), Thermax (up 5.8 percent), and Greaves Cotton (up 5.4 percent).
HDFC AMC rose 18.5 percent after its net profit during the April-June quarter grew 42.2 percent to Rs 292 crore with asset under management growth of 18 percent YoY.
IndiGo gained 8.5 percent ahead of its Q1 results.
Thermax gained 5.8 percent after it won an order of Rs 471 crore from an Indian government power company to set up two flue gas desulphurisation systems at their thermal power plant in the state of Jharkhand.
Talwalkars was the worst midcap performer for the week, down 40.2 percent followed by Genus Power (down 24.7 percent), Cox & Kings (down 22.5 percent), RBL Bank (down 22 percent), Religare (down 20.8 percent), DEN Networks (down 19.6 percent) and Reliance Infra India (down 17.8 percent).
Cox & Kings fell 22.5 percent after the company defaulted on repayments for the fourth time in three weeks. The firm said it had defaulted on its repayment obligations on commercial papers worth Rs 45 crore, while the interest of Rs 41 lakh could not be timely paid on bonds worth Rs 50 crore.RBL Bank lost 22 percent after the company said that it expects some challenges on some of their exposures in the near term. The fall came despite the lender reported 41 percent year-on-year (YoY) rise in profit at Rs 267.10 crore in Q1.