BSE, MCX and Hero MotoCorp clinch fresh 52-week high; here’s why

On Wednesday, over 86 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, traded above the 25,450 mark, while the SENSEX was at 83,235, up 0.19%. NIFTY Bank was trading at 52,691, up 0.96%, while the fear gauge India VIX rose to 12.91.

The broad market indices traded in mixed, with Nifty Midcap 100 down 0.43%, while the Nifty Smallcap 100 was muted with gains of 0.03%. The sectoral indices traded mixed with Nifty’s Financial Services being the top gainer (+1.25%), while Nifty’s IT remained the top loser (-3%).

BSE gains ahead of rival NSE's IPO

Shares of Asia’s first stock exchange logged a fresh 52-week high at ₹3,643.35, climbing 9.29% in Wednesday's session.

The stock witnessed a surge in buying interest after its unlisted rival National Stock Exchange (NSE), received clearance from SEBI (Indian market regulator) in a long-standing case, paving its way towards an initial public offering (IPO). Since the beginning of this week, i.e. Monday, the stock has surged over 25%.

NSE’s IPO could boost shares of other market infrastructure companies, including BSE and depository service providers. Whenever companies like NSE with huge issue size come up with IPOs, a large pool of investors is eager to participate in the IPO.

A company like BSE would benefit from brokerages and commission earnings from NSE’s fundraising. Last month, the National Stock Exchange (NSE) officially sought approval for its initial public offering (IPO) by applying for a no objection certificate (NOC) with capital markets regulator SEBI.

Further, the NSE IPO would also re-rate the valuation of BSE. Currently, BSE trades with a market capitalisation of ₹49,020 crore with a price-to-earnings ratio of 84.7.

MCX m.cap crosses ₹30,000 crore

Multi Commodity Exchange of India Ltd (MCX) - The first listed online commodities trading platform soared over 4.52% on Wednesday, peaking at a 52-week high at ₹5,908.8 and reaching the market cap to the ₹30,000 crore mark.

In the past month, MCX shares have surged over 23%, driven by the positive outlook for Indian markets. This is largely due to expanding demand from improving economic activity and the growing need for commodity price risk management.

In October 2023, MCX transitioned to a new tech platform provided by TCS, replacing the previous software from 63Moons Technologies. Market experts viewed this switch positively. The transition also allowed MCX to significantly reduce major maintenance costs, further boosting investor confidence as operations remained seamless.

Starting October 1, MCX will pay fixed annual maintenance charges (AMC) to TCS, eliminating the volatility seen in previous quarters and enhancing profitability. For the June quarter of FY25, MCX reported a 25% quarter-on-quarter (QoQ) profit increase, alongside a nearly 30% QoQ rise in revenue to ₹234.4 crore. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) also jumped 30% QoQ to ₹132.6 crore.

Hero MotoCorp surges ahead festive season optimism

India’s leading 2-wheeler maker’s scrip climbed to a 52-week high at ₹6,145.95, gaining over 3.1% in Wednesday’s morning session.

The stock is currently in an upward trend driven by strong trading activity and investors' interest. capture growth for the company. Till 11.17 a.m. on the NSE, the stock witnessed a trade volume of 6.25 lakh shares with a trade value of ₹380.19 crore.

The stock of the company gained on the back of a positive outlook, as the company has seen favourable trends across its domestic, electric vehicle (EV) and global businesses, in the last quarter.

Two-wheelers are a better tactical play for festive demand revival. With rural market demand improving due to favourable monsoon.

Therefore the company anticipates to increase momentum in the October to December 2024 quarter due to positive customer sentiment. Additionally, the company is expected to launch products in internal combustion engine (ICE) as well as EV categories.

Hero MotoCorp is India’s leading two-wheelers manufacturer, with a nearly 32% share of the domestic motorcycle market in volume terms.