Street signs: PSU banks in demand, dip in Symphony stocks and more

PSU banks in demand

The Nifty PSU Bank index rose 11 per cent last week, its biggest weekly gain since October 2017 after the Centre had announced recapitalisation. The latest surge comes after the leader of the pack - State Bank of India (SBI) - suggested that the worst of bad loan could be over. The bank’s chairman said this fiscal will be the year of hope and the next fiscal could be one of happiness. The Nifty PSU index had dropped 60 per cent from its 2018 peak following the fraud at Punjab National Bank (PNB). The index has retraced 40 per cent of the losses, but is still down more than 40 per cent. Experts say the SBI commentary was the trigger investors were looking for to bring life back in the moribund sector. 
 

Samie Modak

Hot summer for Symphony

India’s leading air cooler maker Symphony has witnessed an unusually hot summer with its stock falling more than 20 per cent in the past month. This dismal performance of Symphony comes after the company's March quarter earnings disappointed. However, some brokers were quick to recommend the stock to their clients given the summer has been quite intense this year. “We expect good sales numbers for June quarter due to a hotter summer. Moreover, the stock is currently trading at reasonable valuations,” said a broker. 
 

Pavan Burugula

Value buying in Tata Motors?

At a time when investors are dumping shares of Tata Motors following weak earnings, two foreign portfolio arms of Franklin Templeton and other savvy investors have made fresh purchase last week. Analysts have pared volume, margin and price targets for the stock leading to a sharp fall in the counter on Thursday following the result announcement. However, some are of the view that the worst could be priced in and the stock could surprise on the upside from here.

Pavan Burugula