Weekly Stock Market Recap: 6 Key News Stories and Their Impact on Stock Prices

1. IT Stocks Result Announced for Q3

Despite of many negative news around the IT sector and stagnant performance from last 2-3 years; the IT sector continues to deliver good returns. Positive developments hint at a potential boom in the coming 3-5 years, despite ongoing concerns.

IT Sector Quarterly Results Analysis

IT StocksSalesSales (INR Cr.)Net ProfitNet Profits (INR Cr.)OPMOPM (%)
HCL Technologies (Winner of IT Stocks)Highest ever sales declared26,672 to 28,446Highest ever profits declared3,833 to 4,351Margins improved22% to 24%
TCSGrowth in sales59,962 to 60,583Slight declined in profits11,380 to 11,097Margins improved26% to 27%
Infosys Ltd.Flat Sales38,994 to 38,821Profit slightly declined6,215 to 6,113Margins Constant24% to 24%
WiproDeclined sales22,516 to 22,205Profit slight improvement3,970 to 4,198Margins improved18% to 19%

Which IT Stocks are you currently holding in your Portfolio? Comment below !!

Also Read: Quick Highlights of HCL Tech Q3 Results; Dividend Declared

Read More: Is India’s Market About To Boom? 8 Key Players Join A Prestigious Global Club

2. SEBI New Rule on Short Selling Ban

  • The Securities and Exchange Board of India (SEBI) has banned naked short-selling in the Indian stock market.
  • This means that investors will no longer be able to sell stocks they do not own and have not borrowed.
  • All stocks that trade in the futures and options segment are eligible for short-selling under the new rules.
  • The SEBI’s decision is expected to have a positive impact on retail investors, as it will help to reduce volatility in the market.

What is Short Selling?

short selling is a strategy where you borrow shares of a company, sell them immediately, and then buy them back later, ideally at a lower price. This way, you profit from the decline in the stock price.

Here’s a breakdown of the steps involved:

  1. Borrowing shares: You borrow shares from your broker, who usually charges a borrowing fee and interest.
  2. Selling the shares: You sell the borrowed shares on the market, just like you would with any other shares you own.
  3. Waiting for the price to drop: You hope that the price of the stock will fall in the future.
  4. Buying back the shares: When the price drops, you buy back the same number of shares at the lower price.
  5. Returning the borrowed shares: You return the borrowed shares to your broker and close your short position.

3. Strategic Move by RIL: Acquires ₹3,300 Crore Stake in Alok Industries

Investment boost:

  • Reliance Industries Limited (RIL) invested Rs 3,300 crore in Alok Industries by subscribing to non-convertible redeemable preferential shares.
  • The preferential shares offered a 9% dividend rate but are non-convertible to common shares.
  • RIL can redeem the shares at par anytime within 20 years from allotment.
  • This investment signifies RIL’s confidence in Alok Industries’ potential.

Share price reaction:

  • Following the news, Alok Industries’ stock price soared 15% and hit its 52-week high.
  • The increased demand led to the stock getting locked in the upper circuit.

Also Check: Top Ayodhya Stocks: 9 Stock Picks Across 3 Key Sectors to Watch

4. Polycab India Falls 21% and Gain 3%, says no I-T demand Served Yet

  • The Income Tax department found unaccounted cash sales of ₹1,000 crore after raiding Polycab India, a leading manufacturer of wires, cables, and electrical items.
  • The raids took place at over 50 premises across the country.
  • Incriminating evidence in the form of documents and digital data was also seized by the department.
  • Following the news, Polycab India’s share price plunged 16.26%.
  • Polycab India’s stock price initially fell 21% after the income tax department raided the company.
  • The stock price then rose 3% after the company said it had not received any communication from the income tax department.
  • Analysts believe the stock price will fall further until the investigation is complete.
  • The company has a strong financial record and analysts are mostly bullish on the stock.

5. Capital Foods & Organic India Boost Tata Consumer to Record 52-week high

Tata Consumer Products Limited (TCPL) is acquiring a controlling stake in Organic India and 75% of Capital Foods.

  • The acquisition will give TCPL access to a wider range of products, new markets, and a larger organic product portfolio.
  • The deal is significant for TCPL because it will allow them to compete directly with Nestle’s Maggie, which has a 60% market share in the instant noodles category.
  • TCPL’s stock price rose over 2% to a new 52-week high on the news of the acquisition.
  • The acquisition is expected to close in the coming months.

6. MoU Boost: Tata Power Shares Spike After Gujarat Renewable Project Agreement

Tata Power’s arm signed a memorandum of understanding (MoU) with the Gujarat government to develop 10,000 MW of renewable energy power projects.

  • The projects will be developed across multiple sites in the state and will have a total investment potential of Rs 70,000 crore.
  • This collaboration is expected to support India’s goal of generating 50 percent of power from renewable sources by 2030.
  • The projects have the potential to generate employment for over 3,000 people.
  • Analysts are positive on Tata Power’s prospects and believe it can deliver Rs 10,000 crore EBITDA by FY27.
  • Tata Power currently houses 4.3 GW of operational solar, wind, and hybrid assets and plans to add 10 GW before FY27.

Disclaimer: The information provided on this website is for general informational purposes only and should not be construed as financial advice, investment recommendations, or guarantees of any kind. This information is not intended as a substitute for professional financial advice. You should always seek the advice of a qualified financial advisor before making any investment or financial decisions.

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Hey, I'm Soniya Luthra (founder of financefundaa.com), a Chartered Accountant and seasoned stock market expert with extensive experience in trading and fundamental analysis. As an active participant in the market, I'm passionate about using my expertise to provide clear, actionable insights and guidance, helping readers make informed financial decisions.

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