Stock Market Weekly Recap - 12 Aug to 16 Aug

After a significant decline in the Indian stock market last week, the benchmark indices were largely flat this week. However, the week ended on a positive note with gains in information technology stocks. This positive trend was influenced by U.S. economic data that alleviated recession concerns in the world's largest economy, leading to a global market rally.

On Friday, August 16th, the Nifty 50 closed at 24,541.1, marking a 0.62% weekly decrease, while the Sensex closed at 80,436.84, reflecting a 0.87% weekly increase.

Nifty 50: Top Gainers and Losers

Top Gainers

Top Losers

Important Highlights of the Week

Hindenburg Alleges SEBI Chair's Adani Links; Buch Denies Claims: 

Hindenburg Research, a US-based short-seller, has leveled fresh allegations against SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch. The firm claims, based on purported whistleblower documents, that the couple had stakes in offshore entities linked to the Adani Group. This accusation has brought renewed focus to the Rs 41,814 crore worth of investments made by mutual funds in 10 Adani group companies. In response, Madhabi Puri Buch and Dhaval Buch have issued a joint statement categorically denying these allegations. They firmly rejected any involvement with the offshore entities allegedly connected to Adani, amidst ongoing scrutiny of the group's financial dealings and regulatory oversight.

Ola Electric's Market Momentum Continues with Motorcycle Entry

Ola Electric Mobility, a leading electric two-wheeler manufacturer in India, continued its strong performance following its market debut. The company's shares hit the 20% upper circuit on Friday, reaching a new high of Rs 133.80. This rally was sparked by HSBC initiating coverage with a "buy" rating and setting a target price of Rs 140 per share. Simultaneously, Ola Electric announced its expansion into the motorcycle segment, unveiling three new electric bike models: Roadster Pro, Roadster, and Roadster X. This move signifies the company's diversification beyond its current scooter offerings.

Indian Two and Three-Wheeler Auto Companies Post Strong Sales Growth in April 2024

Several two and three-wheeler auto companies in India reported strong sales figures for April 2024, as announced on May 1. 

Hero MotoCorp led with an impressive 34.7% year-on-year growth, selling 533,585 units of motorcycles and scooters. Their domestic sales grew by 33%, while exports surged by 105%.

Bajaj Auto recorded a 17% growth in overall sales, reaching 388,256 units. Both domestic sales and exports saw increases of 17% and 18% respectively.

TVS Motor Company reported a 25% year-on-year growth with total sales of 383,000 units. Their two-wheeler sales rose by 27%, while electric vehicle sales saw a significant jump of 179.5%.

Royal Enfield, the motorcycle division of Eicher Motors, experienced a 12% year-on-year increase in sales, totaling 81,870 units. Their international business grew by 60.6%.

These figures indicate a strong performance in the two and three-wheeler segment for April 2024, with substantial growth in both domestic and export markets.

Hindustan Zinc Plans Rs.8,000 Crore Special Dividend Amid NCLT Approval

Hindustan Zinc Ltd (HZL), a Vedanta group company, is planning to distribute a special dividend of Rs.8,000 crore to its shareholders in the current fiscal year. The decision follows the National Company Law Tribunal's (NCLT) approval to transfer Rs.10,383 crore from HZL's general reserves to retained earnings. HZL's board is expected to meet soon to discuss and approve this special dividend, which will be in addition to the regular annual dividend of approximately Rs.6,000 crore. The government, as well as the promoter Vedanta Ltd, which holds a 65% stake in HZL, will benefit from this payout. Vedanta is expected to receive around Rs. 5,100 crore, which may be used to further reduce its debt.