Bank Nifty trades at 53,000 mark, post-Fed’s 50 basis rate cut, here are three stocks that hit 52-week highs on Thursday

At 3.00 p.m. on Thursday, more than 100 stocks surged to 52-week highs as benchmark indices traded in positive territory. The NIFTY50 was up 0.15% at the 25,415 level, the SENSEX rose 0.28% to the 83,177 mark, and the Nifty Bank climbed 0.48% to 53,000. Meanwhile, the India VIX, the market's fear gauge, dropped 6.33% to 12.53.

Broader market indices traded in negative territory, with the Nifty Midcap 100 declining 1.20% and the Nifty Smallcap 100 dropping 1.61%. Sectoral indices traded mixed, with Nifty’s Media down 2.53%, being the top loser, while Nifty’s FMCG gained 0.63%, remaining the top gainer.

Top three stocks that hit a fresh 52-week high on Thursday, September 19, 2024

Bharti Airtel Ltd - India’s 2nd largest telecom operator scrip traded to a 52-week high at ₹1,711.7, after a 3.43% surge in Thursday’s session.

Buying interest surged in stock after a media report suggested that, Airtel is planning to issue orders worth around $1 billion (₹8,375 crore) to Ericsson, Nokia, and Samsung for 4G network equipment over the next three years.

The new contracts are intended to accelerate the transition of Airtel’s feature phone users to smartphones and enhance revenue per user. The contracts will address 3,00,000 new 4G base stations, with Ericsson, Nokia, and Samsung supplying about 50%, 45%, and 5% of the equipment, respectively, over three years.

The deal could heighten Aitel’s competition with Reliance Jio, which currently dominates the 4G user market in India. Airtel’s new deal is expected to attract users migrating from feature phones to 4G, potentially causing a shift in the user base from Jio to Airtel. Additionally, Airtel can also take on board the users who are shifting from feature phones to 4G.

Further, in a separate development, the Supreme Court declined to hear curative petitions filed by telecom companies seeking relief in the Supreme Court's 2019 ruling that added their non-telecom revenue to the adjusted gross revenue (AGR) for calculating licence fees and spectrum usage charges payable to the government.

The order is a blow for Airtel, The telecom department estimated Airtel’s AGR dues at ₹43,980 crore as opposed to the company’s own estimate of ₹13,004 crore.

Airtel’s stock has rallied over 65% in 2024, so far on a YTD basis.

NTPC Ltd - The thermal energy producer’s stock soared 4.27% on Thursday, peaking at a 52-week high at ₹431.85.

The investor reacted positively to stock, as NTPC’s renewable energy arm NTPC Green filed draft papers for a ₹10,000 crore initial public offering. NTPC Green Energy (NGEL), a subsidiary of NTPC, NGEL aims to generate 60 GW of power by FY32, The proceeds from the IPO are expected to fund investments in solar energy, green hydrogen, and green ammonia.

The public issue, which could become India’s largest in 2024, next to LIC’s ₹21,000 offer, will be a fresh issue of equity shares, with no offer for sale from the promoter entities.

The NGEL’s IPO will feature a quota for existing shareholders of parent company NTPC Ltd, with a maximum of 10% of the issue earmarked under this category. Investors holding shares of NTPC as of the date of filing the red herring prospectus (RHP) will be eligible for this quota. The date of filing the RHP is not known; however, it will be filed soon.

Investors expect NTPC Green's IPO to potentially trigger a re-rating of NTPC stock. Additionally, a special quota for NTPC shareholders could enhance their chances of IPO allotment, addressing the challenge of high subscription rates seen in recent IPOs.

ICICI Bank Ltd - The leading private lender’s stock climbed to a 52-week high at ₹1,300, surging over 0.90% in the Thursday morning session.

This is the first time the bank’s share touched ₹1,300 mark, with the market cap reaching ₹9.15 lakh crore. The private banking stocks witnessed an upward trend after the U.S. Fed’s 50 basis point interest rate cut. As investors anticipate the rate cut would be a positive benefit for banks and NBFCs.

In Q1FY25, ICICI Bank reported a 7.3% YoY and 2.4% QoQ increase in net interest income, totalling ₹19,553 crore. Pre-Provision Operating Profit grew by 13.3% YoY and 6.6% QoQ to ₹16,025 crore. Non-interest income rose 28.8% YoY but fell 24% QoQ. Profit after tax surged 14.6% YoY and 3.3% QoQ to ₹11,059 crore, driven by slightly higher-than-expected operating profits.

The company’s stock price has surged over 29% in 2024 so far on a YTD basis.