Hindalco Industries, CG Power and Industrial Solutions and Power Grid Corporation of India scale fresh 52-week high; here’s why

On Wednesday, over 110 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, traded below the 25,950 mark, while the SENSEX was at 84,890, down 0.02%. Nifty Bank was trading at 54,033, up 0.12%, while the fear gauge India VIX fell to 13.34.

The broad market indices traded in negative terrain, with Nifty Midcap 100 down 0.66%, while the Nifty Smallcap 100 was down 0.19%. The sectoral indices traded mixed with Nifty Media being the top gainer (+0.51%), while Nifty PSU Banks remained the top loser (-1.23%).

Top three stocks that hit a fresh 52-week high on Wednesday, September 25, 2024

Hindalco Industries Ltd - Shares of the flagship company of Aditya Birla Group engaged in copper and aluminium, logged a fresh 52-week high at ₹730.9, climbing 1.82% in Wednesday's session.

The stock witnessed a surge in buying interest in the previous five sessions with share price up over 5%. The metals stocks have remained in the spotlight following China's announcement of measures to boost the property market.

China remains the largest consumer of commodities in the world and a stronger China demand can lift up global demand and prices too. According to the media reports, China's central bank has reduced the amount of cash banks must have on hand and lowered a key interest rate on Tuesday, September 24 in an effort to support the country's faltering economy,

Further reports suggest that the Chinese government is expected to lower the outstanding mortgage rate and reduce the down payment required for second home purchases. Additionally, there may be opportunities to renegotiate or refinance existing mortgages among banks, and the government plans to enhance its re-lending program for state-owned firms to help absorb unsold property inventories. In 2024, Hindalco's share price surged over 18.45% on a year to date basis.

CG Power and Industrial Solutions Ltd - The engineering conglomerate share price soared over 4.16% on Wednesday, peaking at a 52-week high at ₹814.4 and reaching the market cap to the ₹1,24,500 crore mark.

The stock’s trade volume on NSE till 10.30 a.m. surged to 40.10 lakh shares, with trade value worth ₹320.42 crore. Investors are showing active interest in the stock as the Government plans to cover 10,000 trains through Kavach 4.0 in next 5-6 years, said the Union Railway Minister.

In July 2024, CG Power & Industrial Solutions inked definitive agreements for buying 55% stake in GG Tronics (GGT).

Through the acquisition CG's aims to expand its Railway product portfolio by diversifying into closely related or adjacent areas poised for growth. The integration leverages synergies between the companies. CG's extensive expertise in manufacturing, engineering, and project management, complemented by GGT's specialised knowledge in Railway Transport Safety, particularly in the Train Collision Avoidance System 'KAVACH,' and embedded systems will enable CG to actively pursue 'KAVACH' and other Rail Safety projects, in the areas of train collision avoidance system through this vehicle.

CG Power is engaged in providing end-to-end solutions to utilities, industries and consumers for the management and application of electrical energy. The company offers products, services and solutions through two segments: Power Systems and Industrial Systems.

In 2024, CG Power's share price surged over 74% on a year to date basis.

Power Grid Corporation of India Ltd - India’s leading electric power transmission companys’s scrip climbed to a 52-week high at ₹366.25, gaining over 4.63% in Wednesday’s morning session.

The stock is currently in an upward trend driven by strong trading activity and investors' interest with share price up 8.34% in the previous five sessions.

In the latest development the Power Grid emerged as the successful bidder under a tariff-based competitive bidding process to set up dynamic reactive compensation at Khavda Pooling Station 1 (KPS1) and Khavda Pooling Station 3 (KPS3) on a build, own, operate, and transfer (BOOT) basis.

This project will involve the installation of STATCOMs at both polling stations, along with necessary bay extension work in Gujarat.

The Indian power sector remains investors' preferred sector due to optimistic outlook, driven by rising demand, government support for modernisation of outdated infrastructure, and transition to cleaner energy sources. Therefore, Power Grid has strong growth prospects in coming years.