Stock Movers | Tata Motors, HDFC Bank among top 10 Nifty 50 stocks that swung 3-9% in first 7 sessions of May
- Domestic equity benchmarks logged their worst week since mid-March, dropping about 1.8 per cent each and snapping two straight weeks of gains.
India's financial markets have witnessed extreme volatility since the onset of May 2024 - the month that marks the crucial final phases of polling for the high stakes' Lok Sabha elections, followed by the counting of votes and results on June 4, 2024. A lower voter turnout so far in poll phases has raised concerns whether Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) and its allies can achieve the landslide victory predicted by opinion polls last month.
Investors had already priced market stability over BJP returning to power, however, the current volatility has raised concerns of uncertainty. This has subsequently led to a significant change in the market's fear gauge index — ‘India VIX’—which gained 386 percentage points during last week to touch 18.47, a 19-month high.
In the week ended May 10, the frontline indices logged their worst since mid-March, dropping about 1.8 per cent each and also snapped two straight weeks of gains. On a weekly basis, the BSE benchmark tanked 1,213.68 points or 1.64 per cent, and the Nifty 50 declined 420.65 points or 1.87 per cent. So far in May, Sensex and Nifty 50 have swung 2.67 per cent and 2.68 per cent respectively.
D-Street movers in 7 sessions of May
In terms of changes in stock prices, Dalal Street's top five best-performing stocks in the first sessions of May include Tata Group's largecaps such as Tata Motors and information technology (IT) giant TCS. However, fast-moving consumer goods (FMCG) major HUL has merged as the top Nifty 50 gainer in the first seven market sessions this month. FMCG and auto stocks have witnessed the biggest gains in their respective prices so far in May 2024.
On the other hand, index heavyweights including banking majors ICICI Bank, HDFC Bank and Axis Bank have been among the top Nifty 50 losers so far this moth. The banking index has emerged as the top drag over weak March quarter results and volatility due to the Reserve Bank of India's orders against bank majors.
Nifty 50's top 5 best-performing stocks in 7 sessions of May:
Hero MotoCorp Ltd: The auto giant has emerged as Nifty 50's best-performing stock and clocked gains of 7.36 per cent in its stock price over the last seven sessions, according to Bloomberg data. The two-wheeler manufacturer's net profit rose 18 per cent to ₹1,016 crore in the January-March quarter.
Hindustan Unilever Ltd (HUL): The FMCG giant has emerged as Nifty 50's second best-performing stock and clocked gains of 5.92 per cent in its stock price over the last seven sessions. HUL posted a six per cent decline in its standalone net profit to ₹2,406 crore in the March quarter of FY24.
Also Read: Nifty FMCG shines on D-Street over upbeat earnings, settles higher despite all-round selloff; HUL, Marico top gainers
Tata Motors Ltd: India's third-largest carmaker by sales has emerged as Nifty 50's third best-performing stock and witnessed a gain of 3.82 per cent in its stock price over the last seven sessions. The auto giant's net profit surged over three folds to ₹17,407 crore in the fourth quarter of FY24.
Tata Consultancy Services (TCS): India's biggest IT services provider as emerged as Nifty 50's fourth-best performing stock and clocked a rise of 1.92 per cent in its stock price in the last seven sessions. The IT major registered a net profit of ₹12,240 crore in the March quarter and declared a dividend.
Mahindra & Mahindra (M&M) Ltd: The auto major has emerged as Nifty 50's fifth best-performing stock clocking a gain of 1.70 per cent in its stock price over the last seven market sessions so far in May, according to Bloomberg data.
Nifty 50's 5 worst-performing stocks in 7 sessions of May:
Larsen & Toubro Ltd (L&T): The infrastructure giant has emerged as Nifty 50's worst-performing stock and witnessed a decline of 8.98 per cent in its stock price over the last seven sessions, according to Bloomberg data. L&T's net profit rose four per cent to ₹1,393 crore in the March quarter of FY24.
HDFC Bank Ltd: The country's largest private lender has emerged as Nifty 50's second worst-performing stock and witnessed a decline of 4.12 per cent in its stock price in the last seven sessions. HDFC Bank's net profit in the March quarter stood at ₹16,512 crore and was not comparable to the year-ago period.
Reliance Industries Ltd (RIL): India's most valuable company has emerged as Nifty 50's third worst-performing stock and witnessed a decline of 4.06 per cent in its stock price in the last seven sessions. RIL's consolidated net profit declined around two per cent to ₹18,951 crore in the fourth quarter of FY24.
Axis Bank Ltd: India's fourth-largest lender as emerged as Nifty 50's fourth worst-performing stock and witnessed a decline of 3.93 per cent in its stock price in the last seven sessions, according to the data. The private sector bank reported a net profit of ₹7,130 crore in the January-March quarter of FY24.
ICICI Bank Ltd: India's second-largest lender as emerged as Nifty 50's fifth worst-performing stock and witnessed a decline of 2.90 per cent in its stock price in the last seven sessions. The private sector bank's net profit rose 17 per cent to ₹10,707 crore in the March quarter of FY24.
FII outflows to India VIX- key reasons behind the current stock market crash
India VIX index: Over the lingering uncertainty of the election results, volatility has seeped in the market sentiment and is likely to remain the same in the absence of any major positive triggers. The market's fear gauge volatility index gained 386 percentage points during last week to touch 18.47, a 19-month high.
Outperformance of Chinese markets: The recent strong performance of Chinese indices is also a trigger, prompting a shift of foreign inflows from Indian to Chinese markets. Chinese markets are far more cheaper for foreign investors compared to Indian markets. The price to earnings (PE) ratio of India is double that of China's. This has lately triggered massive outflows from Indian equities and debt markets.
Subdued Q4 Results: The ongoing January-March quarter results for FY24 (Q4FY24) season have gone without any surprise, according to market experts. This also failed to trigger extra buying on Dalal Street. "As the market had already discounted the Q4 results 2024 ahead of the quarterly results season, investors are booking profit now as the season is about to end next week," said Saurabh Jain of SMC Global Securities.
Where are markets headed?
D-Street analysts expect the current trend in the domestic markets to continue in the short term due to election-led uncertainties. They added that investors would be watchful of their equity exposure over the next few weeks as any adverse news on the election front could trigger massive sell-off going ahead.
‘’It is advised to maintain a negative bias until the Nifty convincingly surpasses the 22,400 level. However, there are indications of resilience in certain areas, allowing participants to selectively explore buying opportunities. Looking ahead, the 21,800 level in Nifty is seen as critical, potentially influencing market direction,'' said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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