The sell-off was deeper among tech stocks, which took advantage of the sell-off of Nasdaq-listed tech names. Rising inflation, geopolitical tensions in Europe and soaring crude oil prices also clouded the mood on Dalal Street.
“Over the coming week, the domestic market is expected to remain highly volatile as investors await the outcome of the upcoming budget announcement. As recent earnings failed to excite the market, earnings results from the coming week will be a key factor in determining investor confidence,” said Vinod Nair, head of research at Geojit Financial Services.
Here are a few actions that have been in the spotlight over the past week:
Sterlite technology: Shares of the broadband service provider were among the biggest losers last week, falling 24% after the company posted a surprise loss because one of the customers failed to pay.
Tata teleservices: The stock continued to slide for another week, dropping 23% after the company decided to convert some of its statutory debt into equity for the government. The problem with the conversion was the price, which was only a fraction of the existing price.
Trek : The stock continued to slide and fell another 19% during the week amid police arrests of company officials in the Surat gas leak case. Reports alleged that the leaked tanker came from Hikal. In addition, the general manager of the company is also on the run.
Edge information: Info Edge, which has stakes in many Indian unicorns and startups, fell 16% during the week. Tech stocks slipped under the bear scanner after a long stretch as market consolidation began.
Zomato: Both stocks fell 14-15% over the week amid strong selling in U.S. tech stocks. Loss-making companies have lost their advantage as the market has become more risky with a probable monetary tightening awaiting them.
Tech L&T, Tech HCL: IT stocks, which saw heavy buying ahead of the earnings season, also saw an unraveling after most of them released December quarter numbers. Traders who had prepositioned recorded profits. The lack of luster in the numbers also put them off. Both stocks were down 12-13%.
Aunty Elxsi: Shares of the design company jumped 14% during the week after the company reported bumper numbers for the December quarter. The company primarily serves automakers and the stock has seen a meteoric run as electric vehicles gradually become mainstream.
Motorcycle Hero: The motorcycle maker rose 7% after its board approved an increase in its stake in Ather Energy, a startup that makes electric scooters and bicycles. He already had a significant stake in the startup.
