Balrampur Chini Mills, Aditya Birla Fashion and Retail and HCL Technologies scale new 52-week high; here’s why

On Friday at, over 96 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, traded at 26,237, up 0.08%, and SENSEX at 85,817, down marginally 0.02%. The Nifty Bank is trading at 54,225, down 0.28%, while the fear gauge India VIX fell to 11.71.

The broader market indices traded in positive territory, with the Nifty Midcap 100 up 0.18% and Nifty Smallcap 100 up 0.43%. Sectoral indices traded mixed, with Nifty IT up 1.15%, being the top gainer. Meanwhile, Nifty Realty remained the top loser with a 1.55% fall.

Top three stocks that hit a fresh 52-week high on Friday, September 27, 2024

Balrampur Chini Mills Ltd

India’s leading sugar producer's stock surged 7.5% on Friday, reaching a fresh 52-week high of ₹658.95. The company's market capitalisation now stands at ₹13,200 crore.

With the fresh sugar crushing season of FY 24-25 to begin from October 1, 2024, the investor buying interest in the stock picked up. On Friday, Balrampur Chini’s share trading volume surged to 41.25 lakh shares with a trading value worth ₹265.56 crore on NSE till 10.05 a.m.

Monsoon this year has been above normal, which is a good indication for the sector as the sugarcane’s tonnage per hectare is expected to improve. However, excessive and continuous rainfall in Maharashtra and other parts of the country during September 2024 has led to restrictive lifting of sugar at the mills level, causing inventory to climb. As a result, the industry is urging the government to allow a lower monthly sugar quota for October 2024.

According to millers, if the government permits a higher sugar quota for October 2024, the mill’s financial liquidity could suffer.

The industry expects the government to set the October 2024 sugar release quota below 22 lakh tonnes at the national level to support the sale of unsold September 2024 quotas held by sugar mills and dealers. A lower quota, as per industry insights, could help stabilise sugar prices and support the upcoming sugar season. For September 2024, the Food Ministry had allocated a monthly sugar quota of 23.5 lakh metric tonnes (LMT).

Aditya Birla Fashion Ltd

The fashion and retail brand’s shares climbed to a 52-week high at ₹364.4, after surging 6.53%.

The stock is experiencing strong buying interest ahead of the upcoming festive and wedding season, which typically boosts demand for apparel. Factors such as recovering consumer demand, higher disposable income, and a growing shift among Indian consumers toward branded clothing are expected to drive growth for established retail fashion brands like Aditya Birla Fashion.

Additionally, apparel makers are likely to benefit from reduced input costs, thanks to the basic customs duty cuts on key inputs announced in Budget 2024.

Year to date (YTD), the Nifty has risen by over 20.8%, while Aditya Birla Fashion has outperformed with a remarkable 56% gain.

HCL Technologies Ltd

The IT major’s stock climbed to a 52-week high at ₹1,828.55 after soaring up 2.5% with its market cap surpassing ₹4.96 lakh crore mark.

The Accenture Q4 results reported recovery in consulting business, which is positive for Indian IT companies. It highlights signals of recovery in discretionary spendings. The results provide some clarity on the near to medium term demand outlook for Indian IT companies. The Nifty IT Index has rallied over 20 % since 2024. The IT sector remains bullish due to the positive commentary by Indian IT companies on-demand recovery in the BFSI vertical and discretionary spending.

HCL’s stock in 2024, so far, has rallied over 21%, while in the last 12 months stock delivered a return of 43%.