Top Gainers: FMCG Stocks Surge as IT Counters Face Massive Sell-Off

Mumbai, April 22: While stocks from the FMCG and energy sectors bucked the trend strongly on Wednesday, stocks in the information technology sector posted their worst single-day percentage decline in years if not decades. Tata Consumer Products, Hindustan Unilever, NTPC, Tata Motors Passenger Vehicles, and Hindalco Industries were Wednesday’s top gainers while HCL Technologies, Infosys, Mahindra & Mahindra, TCS, and Tech Mahindra were the biggest losers of the day.

Surging 3.33% from its previous closing price, Tata Consumer Products touched a high of ₹1,194.90 and a low of ₹1,139.80 before closing Wednesday’s session at ₹1,180. The strong rebound in TataConsumer comes on heavy buying by investors who saw the FMCG sector as a safe haven when every other sector was plunging. The resurgence in buying comes amid a severe sell-off across Dalal Street as selling pressure by broader market investors continues unabated.

The Consumer Goods giant was closely followed by Hindustan Unilever which gained 2.39% from its previous closing price. It touched a high of ₹2,408 and a low of ₹2,310.40 before closing Wednesday’s session at ₹2,366. Well within its daily price range and closing well above its opening price indicates heavy accumulation by institution buyers throughout the day’s session.

NTPC Limited added 2.26% Wednesday after touching a high of ₹407.25 and a low of ₹393.20 before closing at ₹405.15. Similarly Tata Motors Passenger Vehicles climbed 1.74% Wednesday, touching a high of ₹367.95 and a low of ₹353.40 before closing Wednesday’s session at ₹362.10. Hindalco Industries was the fifth-most improved scrip of the session, gaining 1.65% from the previous closing price. Hindalco touched a high of ₹1,043.35 and a low of ₹1,017 before closing Wednesday’s session at ₹1,038.55.

A session low of ₹1,281 was all HCL Technologies could muster before closing Wednesday down 10.74% at ₹1,286.40. The Infosys stock price hit a high of ₹1,358 just as trading began before falling all the way down to a session low of ₹1,255.90. It eventually closed Wednesday down 3.38% at ₹1,268.80. Market capitalisation imploded by over ₹31,000 crore for HCL Tech on Wednesday alone. Likewise, Mahindra & Mahindra hit a low of ₹3,143 and closed Wednesday down 3% at ₹3,150. Typically considered a defensive stock, M&M gave up strong gains it made earlier in the month to join the selling frenzy on Dalal Street. On Wednesday, shares of Tata Consult Services or TCS touched a low of ₹2,503.60 before closing down 2.88% at ₹2,535.30. Tech Mahindra wasn’t spared either as it hit a low of ₹1,404.10 and closed Wednesday down 2.50% at ₹1,463.30. That said, Tech Mahindra did recover from its lows as its intra-day high was ₹1,502.80.

The Sensex and the Nifty 50 both ended their three-day winning streaks on Wednesday as stocks closed sharply lower. The Sensex ended Wednesday’s session at 78,516, shedding over 750 points, while the Nifty 50 plunged nearly 200 points to end at 24,378. The Nifty IT index took the worst-hit as volatility plagued trading on Dalal Street today. Stocks such as HCL Tech, Infosys, and Tech Mahindra all reported their quarterly earnings yesterday and today. While revenues and profits for the quarter were mostly higher year-on-year, the issue that spooked investors was the lacklustre future earnings guidance provided by each IT stock. If earnings aren’t growing, what is driving valuations higher?” investors are wondering. US tensions with Iran are escalating again and crude prices are threatening to cross $100 per barrel U.S. market traders ended their day in the red which did not help Indian bulls when Indian markets opened.

Source:

• https://www.nseindia.com/market-data/top-gainers-losers