Stocks
Big gainers when the market declined
Over the last 12 months, the Sensex has been down by about 14.8%. But a handful of stocks recorded massive gains. Which were these stocks?
 
Last January, investors expected the market to put in another year of strong rally after the sharp rise they enjoyed in 2014, following the installation of a new government at the Centre in mid-2014. The S&P BSE Sensex was above 29,000 in January 2015 and seemed to be headed higher. Investors were expecting a “reformist” budget, the second one by the Narendra Modi government. Actually, it was first one that the government had time to plan. After all, the July 2014 budget left the government with very little time to prepare. The budget turned out to be an anti-climax. The Sensex crossed 30,000 but that was the peak. On 20th January 2016, it had touched a low of 23,839, a peak to trough decline of 20.6%. 
 
In this decline, a lot of quality stocks have gone down more than Sensex. But there are some stocks that have bucked the trend. They have doubled, trebled and one has even gone up fivefold. Which are these stocks? We trolled our database to find out the biggest gainers. To eliminate the many thinly-traded stocks that are rigged with impunity, we limited our search to companies, which have market capitalisation of at least Rs1,000 crore and whose shares are liquid, which we have defined as trading 2,000 shares a day on 90% of trading days. Based on this database, we looked up the stocks that did the best. Here is a table that lists the result of this exercise
 
 
The biggest gainer is Kellton Tech Solutions, followed by Rajesh Exports. Kellton is a small CMMi Level 3 and ISO 9001:2008 certified global IT services organisation, headquartered in Hyderabad with development centres in the US and India. Its financials are improving and it has acquired a US software company three days ago. Rajesh Exports is a controversial company, whose price movement is unrelated to its fundamentals.
 
Indeed, some of these stocks are “operator-driven”, meaning they are jacked up only with the intention of dumping them at a later date. But certainly a company like Kwality or Nilkamal Plastics has a solid business model and were undervalued in January given their growth prospects. The flavour of the year was textile stocks. That is the reason why a company like Sangam India did extremely well, even though its growth has been modest. One of the big gainers is High Ground Enterprises which is into Engineering Procurement and Construction Management (EPCM) operating in oil & gas, water resource management, roads, telecom, solid waste management, fire and safety etc. In 2014-15 it entered into the business of third party certification, completing work for Indian Oil petrol pumps across 1000 cities and towns in India. Among its clients are Mumbai International Airport Authority, Indian Oil, Raymond, Essar Ports,  etc. Curiously, the company is also getting into visual media, focused on content development, technical media services and post-production. It has set up a boutique digital post-production/technical media facility to cater to domestic and export market. It is difficult to say how much of this genuine. 
 
Morepen Labs which was drowning in huge debt, has literally has come back from the dead. According to the company, Morepen is the leading supplier of Loratadine worldwide including a 90% share of the US market. It is also the largest manufacturer of Montelukast and its intermediates and is an important player in selling its patented form of Atorvastatin Amorphous. In the September quarter, it reported a net profit of Rs3.22 crore which was 10 times that of September 2014.
 
Another company that recorded a fantastic rise in net profit was Nilkamal Plastics. In September 2015, its net profit was Rs25.74 crore compared to Rs6.84 crore the same quarter a year ago. While Nilkamal was a profit-making company that has done even better thanks to lower input costs and wider product range, a big gainer in 2015 was a basket case. One of the most spectacular turnarounds of recent times happened in case of SpiceJet, where Ajay Singh returned at the helm with bag of financial engineering tricks that led to Rs72 crore profit for the September quarter of 2015 against a Rs310 crore loss in the same period a year before. Among the big gainers was Kwality, which was up 191%. What is not clear is as to how the shares of Kwality, whose turnover and profits merely inched up in each of the quarters last year, tripled over the year. Maybe this year will provide a clue. 

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Nifty, Sensex in an uptrend – Weekly closing report
Nifty will weaken on a close below 7,400
 
We had mentioned in last week’s closing report that Nifty, Sensex would be in rally mode and that Nifty would rise this week subject to dips. The major indices rallied to record gains for the week. The weekly trends of the major indices are given in the table below:
 
 
On Monday, positive global indices, coupled with firm crude oil prices and a stable rupee, supported the upward movement of the Indian equity markets. Initially, the bellwether indices opened on a positive note in sync with their Asian peers. Even the firm closing of the domestic and the US markets last week supported the upward trajectory. Moreover, the short-covering rally was supported by firm oil prices and a stable rupee which gained eight paise at the opening, starting the week at 67.55 to a US dollar from its previous close of 67.63. Further, expectations of an additional stimulus from the ECB (European Central Bank) by March this year boosted investors’ confidence. However, gains were capped by profit bookings and caution over the upcoming rate setting meeting of the FOMC (Federal Open Market Committee) scheduled for January 27-28. The FOMC assumes significance as higher interest rates in the US are expected to lead away FPIs (Foreign Portfolio Investors) from emerging markets such as India. In addition, selling pressure was witnessed on account of the F&O (Futures and Options) expiry slated for Thursday. The S&P BSE market breadth favoured the bulls with an advance decline ratio of nearly 2:1. There were 1,673 advances and 900 declines.
 
On Wednesday, caution over the upcoming rate-setting meeting of the US Fed's FOMC (Federal Open Market Committee) scheduled for January 27-28, coupled with a weak rupee dented investors' sentiments leading to major indices in the Indian equity markets closing the day's trade flat. Initially, the bellwether indices opened on a flat-to-positive note in sync with their Asian peers and firm closing of the domestic markets on Monday. Moreover, short-coverings were supported by firm oil prices and expectations of healthy roll-over figures from the F&O (Futures and Options) expiry slated for Thursday. The weakness in rupee subdued sentiments too. The rupee value weakened to 68-level against a US dollar during intra-day trade. The weakness in the rupee value indicates the massive outflow of foreign funds from the Indian equity and debt markets. On Monday, the foreign institutional investors (FIIs) were net sellers. According to data with stock exchanges, FIIs divested Rs91.15 crore.
 
Hopes of a monetary policy easing, coupled with healthy roll-over from derivatives expiry and status quo in US interest rates, slightly buoyed the Indian equity markets on Thursday. The headline indices were trading in a very narrow range, as gains made on the account of positive international sentiments were erased by caution over the sliding value of rupee and the upcoming Reserve Bank of India's (RBI's) monetary policy review. Initially, the bellwether indices opened on a flat note, ignoring positive cues from their Asian peers, firm crude oil prices and the US Fed's decision to maintain status quo in interest rates. However, the major indices closed with marginal losses.
 
On Friday, hopes of an interest rate cut, coupled with a strengthening rupee and positive global cues, buoyed the Indian equity markets. Initially, the Indian bellwether indices opened on a positive note, in sync with their Asian peers, firm crude oil prices and Bank of Japan's (BoJ) decision to maintain its stimulus program. Markets started their upward climb after initial consolidation from Thursday's close, when both bellwether had indices closed flat. In addition, short-covering and value buying at lower levels pushed up prices. Investors were seen hopeful of an interest rate cut during the upcoming monetary policy review by the Reserve Bank of India (RBI) which is slated for February 2. Expectations were backed up by Bank of Japan's decision to go in for a negative interest rate to support the Japanese economy. BoJ's decision came a day after the US Fed maintained its status quo on key lending rates. Recently, the European Central Bank (ECB) indicated more stimulus measures which will be announced in March. Besides, strengthening of rupee's value soothed investors' nerves. The rupee opened at 68.12 against a US dollar from Thursday's close at 68.23 to a greenback.
 
With favourable macroeconomic cues, the major indices of the Indian equity markets are likely to be on an upward trajectory for a while. Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

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Now, live-stream Facebook videos on your iPhone
New York : Facebook has rolled out an update for iPhone users that enables them to live stream videos on the social media website.
 
The feature was rolled out in the US on Thursday and would be extended in other countries in the coming weeks, MIT Technology Review reported.
 
The Thursday's announcement comes after a month the social media website said it was testing a feature that enables users to live-stream videos on phones.
 
Currently popular apps, like Meerkat and Twitter-owned Periscope are leading the way in this space.
 
For the feature to work, the user has to update status in the Facebook app and touch a little icon at the bottom of the window that lets the user write a description of the video and decide who he/she want to be able to see it.
 
Then, the user hit "Go Live" and it starts recording. 
 
As soon as the video is live, the user will be notified about who is watching it. People can also add comments while streaming. The video is then saved to user's timeline.
 
Facebook's decision to enable live streaming for iPhone users (and, presumably, eventually those on Android as well) makes a ton of sense, the report said.
 
Facebook during its quarterly earnings call on Wednesday said that its users watch 100 million hours of video each day, and that 500 million people watch video daily on the social network.
 
Facebook's this move aims to take advantage of its mobile reach and get more people to spend more time on the social website.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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