Marico, Sarda Energy & Minerals and BSE Ltd hit fresh 52-week high; here’s why

On Thursday, more than 90 stocks surged to 52-week highs, however, benchmark indices traded in negative territory. The NIFTY50 was down 1.45% below the 25,450 level, the SENSEX fell almost the same 1.46% to the 83,031 level, and the Nifty Bank plunged 1.33% to 52,211. Meanwhile, the India VIX, the market's fear gauge, jumped 11% above 13.

Broader market indices traded in negative territory, with the Nifty Midcap 100 declining 0.92% and the Nifty Smallcap 100 dropping 1.08%. Sectoral indices traded in the red, with only the exception of Nifty Metal, which is up 0.38%, while Nifty’s Realty tumbled by 2.82%, being the top loser.

Top three stocks that hit a fresh 52-week high on Thursday, October 3, 2024

Marico Ltd

The parachute oil maker’s scrip traded to a 52-week high at ₹719.85, after a 3.78% surge in Thursday’s session with the company’s market cap reaching ₹92,600 mark.

Stock price witnessed sharp upward momentum after Marico reported a robust business update for Q2FY25, showcasing a stronger-than-expected performance.

FMCG Major in its business update indicated that it expects to deliver double-digit revenue growth this year. Marico's domestic business posted mid-single digit volume growth, showing sequential improvement in the Q2FY25 as rural demand outperformed urban on a year-on-year basis for a third quarter in a row, the Marico said in a press release.

In a business update, Marico added that the focus at Marico will remain on revenue forecast while staying watchful on the margin front in the H2FY25.

Segment Wise Highlights

Parachute Coconut Oil: Reported mid-single-digit volume growth, recovering from a weaker 2% in the previous quarter. This was aided by double-digit value growth, attributed to previous pricing interventions despite recent grammage adjustments.

Saffola Edible Oils: Showed low-single-digit sales value growth, slightly below the anticipated 5%. Notably, pricing growth transitioned from negative to flat-to-positive for the first time in eight quarters.

Value-Added Hair Oils: Sales remained subdued due to heightened competition, although management anticipates improvement through increased promotional activities.

Foods and Digital-first Brands: Continued strong performance, meeting the company’s growth aspirations.

International Business: Delivered impressive low-teen constant currency sales growth, outperforming expectations. Bangladesh reported high-single-digit growth despite a challenging operating environment.

Marico’s stock has rallied over 28.5% in 2024, so far on a YTD basis.

BSE Ltd

Asia's first stock exchange’s scrip sky-rocketed 9.75% on Thursday, peaking at a 52-week high at ₹4,235, with company’s market-cap reaching ₹57,300 crore mark.

The buying interest in shares surged after the Securities and Exchange Board of India (Sebi) announced new norms governing trading in futures and options (F&O) to curb excessive volumes in the segment and strengthen the overall framework governing their trade.These new rules are likely to benefit BSE. SEBI’s new rule includes reduction of weekly expiries, which means that from November 20, there will be only one weekly expiry per exchange. The minimum value of derivative contracts has also been increased to ₹15 lakh, from the current ₹5 lakh.

Previously, since NSE had expiries on all days except Friday, BSE found it challenging to scale up its market share. However, starting from November 20, BSE will have a level playing field with NSE The BSE has also scaled up its derivatives market share to 27 %/13.3 % in terms of notional turnover/premium turnover in September 2024. This has been on the back of product innovation, wherein they launched the expiries on different days, compared to the existing products of the NSE. While the BSE is less likely to be impacted in the new regulatory environment, compared to NSE. The BSE has other revenue drivers, such as the co-location segment and new products (commodities and power).

Additionally, with effect from October 1st, the BSE has raised the transaction fees for Sensex and Bankex options contracts to ₹3,250 per crore of premium turnover.

In the past one month, BSE has outperformed the market by surging 55%.

Sarda Energy and Minerals Ltd

The leading steel producer stock climbed to a 52-week high at ₹478.8, surging over 6.11% in the Thursday morning session.

The share price rallied in a positive development for the company as the National Company Law Appellate Tribunal (NCLAT) upheld the National Company Law Tribunal’s (NCLT) order approving Sarda Energy’s bid for SKS Power.

The Delhi bench of the NCLAT on Tuesday, October 1 upheld the NCLT’s August 13, 2024 order approving Sarda Energy and Mining resolution plan for bankrupt SKS Power Generation (Chhattisgarh).

The NCLAT dismissed the plea filed by other resolution applicants Torrent Power, Jindal Power and Vantage Point Asset Management, challenging the NCLT-approved resolution plan.

The insolvency proceedings for SKS Power Generation began in April 2022 after lenders, including State Bank of India and Bank of Baroda, moved NCLT and filed claims amounting to ₹1,890 crore Additionally, Sarda Energy has recently secured the Chhattisgarh Environment Conservation Board's nod to expand coal production from 1.44 MTPA to 1.68 MTPA.

The company’s stock price has surged over 83% in 2024 so far on a YTD basis.