Market Bizzz

Despite a 1.43% decline in the Sensex for the week ending September 6, nine penny stocks surged between 10% and 55%. These stocks, with market capitalizations below Rs 1000 crore and share prices under Rs 20, saw significant gains. Notable performers included Deep Diamond India with a 53% gain and RISA International with a 25% increase.

The Sensex ended a three-week winning streak with a 1.5% loss amid weak global cues and lack of favorable domestic news. Key factors to watch this week include Fed rate cut hopes, IPOs, crude oil rates, FII activity, global macroeconomic data, inflation data, and technical support levels for the Nifty index.

All three main indexes were lower, with the 11 sectors of the benchmark S&P 500 losing ground led by declines in communication services, consumer discretionary and technology equities.

In the MSCI Standard Index, which focuses on large and mid-cap companies, China retains the top weight at 24%, with India following at around 20%. India reclaimed the second spot in the index last November, overtaking Taiwan.

On Vi, it maintained its sell rating, while raising the price target to ₹2.5 from ₹2.2, implying a downside of 81.4% from Friday’s closing of ₹13.43. Vodafone shares plunged 11% on Friday.

Promoters held 66.56 per cent stake in the company as of 30-Jun-2024, while FIIs owned 10.87 per cent, DIIs 16.25 per cent.

Goldman Sachs has issued a sell call on Vodafone Idea with a target price of Rs 2.5, while maintaining a buy call on Bharti Airtel with a target price of Rs 1,700. Jefferies has maintained a buy rating on Bajaj Finance and a hold rating on M&M Finance, with target prices of Rs 8,410 and Rs 315 respectively.

We looked at the capital expenditure by both the central and state governments, which was partly affected by the parliamentary election. However, on a seasonally adjusted sequential basis, the momentum was still positive.

Reliance Industries’ board will consider issuing bonus shares in a 1:1 ratio, as announced by Chairman Mukesh Ambani during the company’s 47th AGM. The move aims to reward shareholders and enhance liquidity. RIL has a history of bonus issues and reported a record annual profit of Rs 79,020 crore in FY24.