Top gainers, losers in June quarter

Shares ended the June quarter on a positive note, as the Sensex and Nifty registered gains of around three per cent during the period, data showed.

The markets managed to post gains in the quarter despite falling around two per cent in June after the US Fed said it plans to begin winding down its stimulus later this year if economic conditions are favourable.

In positive developments, monsoon rains arrived on time and covered the whole country two weeks ahead of schedule while inflation slipped below five per cent. Sentiment was also boosted when rating agency Fitch revised its outlook on India back to 'stable' from 'negative'.

However, current account deficit concerns were exacerbated as the rupee remained weak and fell below 60/dollar mark for the first time ever. Here are the top five gainers and losers of the June quarter:

GAINERS
Hindustan Unilever (HUL): India's largest consumer goods maker emerged the best Sensex performer in the June quarter with gains of over 25.5 per cent. Unilever, the parent company, said in April it will raise its stake in HUL to as much as 75 per cent.

Of the 41 analysts covering HUL, 19 have a 'sell' or equivalent rating on the stock, while 14 have a 'hold', Thomson Reuters data showed.

Given the risk of subdued volume growth, risk to earnings, the open offer from Unilever comes at an opportune time for investors, in our view, and presents a good exit opportunity," Nomura said in a research note on June 27.

Dr Reddy's Laboratories: Shares of the drugmaker surged 25.4 per cent in the April-June period, with the company's stock hitting a record high in May. Dr Reddy's reported better-than-expected 66.5 percent rise in the March-quarter net profit.

Increased traction in approvals from the US FDA for new product launches is helping the company, a media report said.

Sun Pharmaceuticals: Shares of the country's largest drugmaker by market capitalisation rose 23.23 per cent in the three-month period, taking their gains for the year to almost 40 per cent. In June, Sun Pharma said it will pay $550 million, as part of its settlement in a patent infringement suit in the US.

ICICI Securities reduced the target price for the stock to Rs 1,126 but maintained a 'buy' rating. "The key risks to our view are: greater-than-expected volatility at Taro's operations and slower-than-expected expansion of Indian pharmaceutical market," it added.

Maruti Suzuki: The largest car maker ended the quarter with gains of a little over 20 per cent at Rs 1,538 after its stock hit a 52-week high of Rs 1,773.45 on May 20.

The company's May vehicle sales were down 14.4 per cent. JP Morgan downgraded Maruti to "underweight" and cut its target price to Rs 1,510 on June 18, citing muted passenger car demand in India as one of the reasons.

Mahindra & Mahindra: The utility maker's shares ended the quarter with gains of 12.23 per cent at Rs 966.55, despite ending flat in June. The company recently agreed to sell a majority stake in its auto component unit to Spain's CIE Automotive for about $116 million. It also agreed to acquire a 13.5 per cent stake in CIE for 94.24 million euros.

After warning fierce competition could erode its dominant SUV position, M&M in June made its first push into the small car market with the launch of Verito Vibe.

LOSERS
Jindal Steel: Shares in Naveen Jindal-controlled company slumped 38 per cent in the April-June period, making it the worst performer among the 30 Sensex components.

Jindal Steel, which is down more than 50 per cent in 2013, nosedived after the Central Bureau of Investigation filed a case against the company in the 'coalgate' scam on June 11.

Infosys: Shares of India's no 2 IT services exporter ended the quarter with losses of 13.72 per cent, as disappointing earnings outlook in April and worries over the proposed US immigration bill weighed.

On April 12, Infosys missed analyst expectations by a wide margin when it forecast a dollar revenue growth of 6-10 per cent in FY14. This made investors jittery and the shares fell over 20 per cent to register their biggest single-day fall in 10 years.

In June, markets cheered return of Narayana Murthy as chairman, who pledged to turnaround the company within three years.

Tata Steel: As metal stocks struggled, shares in India's largest steelmaker by market value ended the quarter with losses of 12.32 per cent. Weak European operations have been a cause of concern for Tata Steel, which paid $13 billion to acquire Anglo-Dutch steelmaker Corus in 2007.

The company said in May that 'severely depressed' conditions in Europe are expected to continue over the short-to-medium term. "Recent correction in stock price discounts the weak uncertain global environment and higher-than-estimated borrowing," Avendus Securities recently said in a research note.

Sterlite Industries: This was another stock from the metals pack which made it to the top losers' list of the quarter with losses of 11 per cent. The company's copper smelter in Tuticorin reopened this month, according to sources, after being shut down for two months on environmental concerns.

Shares in Sterlite have lost more than 30 per cent in 2013 and are currently trading near levels last seen in early 2009. The company reported a 51 per cent rise in its March-quarter profit on April 30.

Tata Power: Shares of the power company lost 10.73 per cent in the quarter and touched their lowest levels since mid-2009 in June. Of the 34 analysts covering the stock, 11 recommend holding it while eight have a 'sell' or equivalent rating. Tata Power said last month that it will hold off on major investments until it clarifies a regulatory decision to raise tariffs.