The market mood around these seven stocks has suddenly changed ⁠— here's why

• Market sentiment in some of the stocks have turned positive suddenly in the last five days due to change in sector outlook and so on.
• Shares of NALCO surged more than 11% in the last 5 days due to the rise in metal prices.
• IndiaMART InterMESH and Hindustan Aeronautics gained more than 10% during the period as it entered the futures and options market.

A few weeks ago the fear of loan defaults by small borrowers in the microfinance segment made Bandhan Bank look very vulnerable. Similar pain among shopkeepers, vendors and other micro, small and medium enterprises (MSMEs) would keep dragging the stock of IndiaMart back to near ₹7,000 levels.

The outlook didn’t seem to improve sharply for aviation and Interglobe Aviation, which operates IndiGo Airlines remained subdued for much of July and August. But all these stocks, along with a few others, seemed to have suddenly gained traction in the last five days.

Here are seven such stocks that have picked momentum in the last five days:


National Aluminium Company

Shares of the state-run aluminium maker have surged 11% in the last 5 days as the metal prices have been rising because of supply-side bottlenecks in the world’s largest primary aluminium producer, China.

Aluminium prices are reportedly expected to stay elevated in the near term. Growing disruptions in supply from China are driving prices up. The disruptions are largely because of new emission rules, power shortages and floods in July.

High aluminium prices means better realisations for aluminium makers.

Mahindra & Mahindra Financial Services

The non-banking finance company’s stock has surged 8% in the last five days led by heavy volumes. Volumes traded in the stock remained elevated above 5-18 million in the last five days.

Besides, the financier was at more than 95% collection efficiency in July and expects it to continue as things normalise, said Ramesh Iyer, vice chairman and managing director of the company in an interview with CNBC-TV18.

The market capitalisation of the company stood at ₹19,768 crore as on August 31.

Bandhan Bank

Investors seem to be picking up the Kolkata based bank’s stock on expectations of high returns.

Analysts at Credit Suisse reportedly believe that the bank would give more than 20% return on equity. With this, it has set a target of ₹370 apiece.

As on August 31, the stock price is at ₹284.70 per share.

Analysts at Kotak Securities feel the same, as it says return on equity is likely to move more than 20%. After the bank reported a 32% on year decline in net profit due to high provisions, analysts at Kotak Securities said it sees an improvement in the second half of FY22 as the economic situation improves. It has set a target price of ₹335 per share.

IndiaMART InterMESH

Another stock that turned around in the last five days was B2B e-commerce platform IndiaMart InterMESH. The stock surged more than 10% in 5 days against tepid trading in the rest of August.

This is primarily because the company’s stock has been added to the futures & options market from August 27. The move boosts participation in the stock as investors and institutions can hedge underlying positions in the stock.

Moreover, the B2B e-commerce platform’s consolidated net profit grew by 19% year-on-year to ₹88 crore for the quarter ended June 30, 2021.

Hindustan Aeronautics

Shares of the state-owned aerospace and defence company were triggered after the company signed a $716-million deal with GE Aviation for supply of engines. Moreover, the stock’s inclusion in the futures and options segment also fueled the rally.

ICICIdirect has reportedly set a target price of ₹1,380 per share for the next three months.

The stock price stood at ₹1,369.35 as on August 31.

Aptus Value Housing Finance India

Shares of the newly listed housing finance company made a turn around after its weak listing last week. Shares of the company had debuted with 6% discount to its issue price and now in the last five days, it has gained 6%.

Analysts had remained positive on the stock despite tepid listing as it expects the company to do well in the long run given consistent strong financial performance, industry leading return ratios and good asset quality.

Interglobe Aviation

Shares of the airline company have been gaining on expectation of recovery in air traffic as pace of vaccinations goes up. A report by ICICI Securities reportedly said that the average daily passenger traffic is recovering gradually after dropping to a low in May 2021 due to second COVID-19 wave’s restrictions.

Besides, the appointment of Gregg Saretsky as a special advisor also gave some support to the stock price. He is said to work closely with the executive leadership team to accelerate operational and commercial improvement opportunities at the airline.

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