Stock Market Weekly Recap - 02 Aug to 06 Aug
08 September 2024
3 min read
00:00 / 00:00
On September 6, 2024, the Indian stock market experienced a significant decline due to a combination of factors. Weak global cues played a crucial role, as negative trends in global markets, driven by mixed economic data and anticipation of critical U.S. jobs data, created uncertainty among investors. This was exacerbated by substantial foreign fund outflows, with foreign institutional investors selling equities. Additionally, panic selling emerged as investors worried about the potential impact of upcoming U.S. labor market data on interest rates, heightening fears of an economic slowdown and leading to widespread market sell-offs.
On Friday, August 30th, the Nifty 50 closed at 24,852.15, marking a 1.52% weekly decline, while the Sensex closed at 81,183.93, reflecting a 1.43% weekly increase.
Nifty 50: Top Gainers and Losers
Top Gainers
Stock | LTP(Rs.) | Weekly Increase |
Hero Motocorp Ltd | 5743.75 | 5.29% |
Asian Paints Ltd | 3273.7 | 4.70% |
Bajaj Finserv Ltd | 1857.15 | 4.16% |
Titan Company Ltd | 3695.5 | 3.66% |
Sbi Life Insurance Company Ltd | 1896.3 | 2.49% |
Top Losers
Stock | LTP (Rs.) | Weekly Decrease |
Coal India Ltd | 488.55 | 6.93% |
Oil and Natural Gas Corporation Ltd | 308.8 | 6.64% |
Tata Motors Ltd | 1049.35 | 5.58% |
Dr Reddy's Laboratories Ltd | 6667.15 | 5.18% |
NTPC Ltd | 394.8 | 5.14% |
Important Highlights of the Week
Reliance announces bonus issue: RIL board approves 1:1 allocation of free shares.
On September 5th, Mukesh Ambani headed the board of Reliance Industries to approve the issue of 1:1 bonus shares which was announced at the company’s 47th AGM held in August. The board also decided to raise its authorized share capital from ?15,000 crores to ?50,000 crores.
Godfrey Phillips to Propose 1:2 Bonus Share Issue at AGM; Stock Rises 3%"
Godfrey Phillips India Limited plans to propose a 1:2 bonus share issue at its Annual General Meeting (AGM) on September 21, 2024, where shareholders would receive one bonus share for every two shares held. The company will also discuss increasing its borrowing limits to support future growth. The announcement has led to a 3% rise in the company’s stock price, reflecting positive investor sentiment. This bonus issue aims to boost stock liquidity and make shares more accessible to investors, signaling the company’s strong financial health and optimistic outlook. Investors are closely watching the AGM for further developments.
Vodafone Idea and Indus Towers Shares Plunge After Goldman Sachs Raises Concerns
Vodafone Idea shares fell by 13% and Indus Towers dropped 6% following a report by Goldman Sachs, which raised concerns about the companies' financial health. Goldman Sachs highlighted potential risks related to Vodafone Idea’s ability to generate sufficient cash flow and meet its financial obligations. The report also expressed doubts about the stability of Indus Towers' earnings due to its reliance on Vodafone Idea for a significant portion of its revenue. This negative outlook led to substantial declines in both companies' stock prices, reflecting investor anxiety about their financial stability and future performance.
NLC India and GMDC Shares Surge After Coal Ministry Allocates Three Commercial Coal Mines
Shares of NLC India and Gujarat Mineral Development Corporation (GMDC) surged following the Coal Ministry's allocation of three commercial coal mines to the companies. This allocation is expected to boost their revenue and operational capacity significantly. The move is part of the government's strategy to enhance coal production and meet rising energy demands. The news led to a notable increase in the stock prices of both NLC India and GMDC, reflecting investor optimism about the positive impact on their financial performance and growth prospects.
