NIFTY50 drops over 150 points; these three stocks buck the market trend and hit a 52-week high on Wednesday

On Wednesday at 11.10 a.m., over 110 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, traded at the 25,131 level, up 0.59%, and SENSEX at the 82,119 mark, down 0.53%. Nifty Bank is trading at 51,415 levels, down 0.53%, while the fear gauge India VIX rose to 14.25.

The broad market indices traded mixed, with Nifty Midcap 100 down 0.48%, while the Nifty Smallcap 100 was up by 0.15%. All of the sectoral indices traded in red except for Nifty Pharma (+0.08%), Nifty FMCG (+0.05) and Nifty Mid Small Healthcare (+0.29) while Nifty’s IT remained the top loser down 1.74%.

Top three stocks that hit a fresh 52-week high on Wednesday, September 4, 2024

Hindustan Petroleum Corporation Ltd (HPCL) - The share price of the oil marketing company logged a fresh 52-week high at ₹442.5, climbing 3.9% in Wednesday's session.

The stock has been trading with positive momentum in recent periods, with the share price up 8% in just a week. The decline in Brent crude price is cheering the stock prices of oil marketing companies (OMCs).

In the last 5 days Brent crude has dropped 6.46% to $72.93, oil prices are under pressure due to a decline in demand from China and expectations of increased OPEC and its allies (OPEC+) production starting in October to make up for a significant decline in output from Libya.

A decline in crude prices benefits oil marketing companies, it reduces input costs, which directly leads to higher margins. OMCs also enjoy the benefit of inventory gains as they replenish stocks at lower prices.

In Q1FY25 earnings, HPCL reported an operating margin of 2% with consolidated revenue of ₹1,13,888 crore and net profit of ₹634 crore. The total expense stood at ₹1,11,800 crore of which input material accounted for 94% of total.

The stock price is up over 65.52% in 2024, so far on a YTD basis.

CCL Product (India) Ltd - The leading coffee producer soared over 2.77% on Wednesday, peaking at a 52-week high at ₹741.7 and reaching the market-cap to the ₹9,902 crore mark.

The stock price has been trading in an upward trend, for the last one month with the share price up 18%. Recently this Hyderabad-based company launched a small-format cafés concept. According to the management, The cafés are small format and primarily for takeaways. The company will look for six months to a year to get the proof of concept before deciding how to scale this concept.

Small-format coffee shops are proving successful in India. In January 2024, Tata Starbucks outlined takeaway-focused outlets would be key to achieving its goal to reach 1,000 stores by 2028, while Mumbai-based start-up abCoffee has raised $5.4 million over the last 12 months to accelerate the roll-out of its quick-service, on-the-go concept.

CCL’s move into India’s coffee shop market underlines the vast opportunities generated by rising domestic coffee consumption and increased demand for premium café experiences.

In Q1FY25, the coffee maker reported consolidated revenue of ₹773 crore and net profit of ₹71 crore, operating margin of 17%. The company has a record date of September 13, scheduled next week for its final dividend of ₹2 per share.

Established in 1994, CCL Products (India) is a public company focused on producing high-quality coffee. They engage in the production, trading, and distribution of coffee in India, Vietnam, and Switzerland.

The record date, also known as the cut-off date, is the specific day on which a company finalises the list of shareholders eligible for its forthcoming dividend distribution.

Senco Gold Ltd - The retail jewellery brand’s scrip climbed to a 52-week high at ₹1,230, gaining over 3.24% in Wednesday’s morning session.

The stock is currently in an upward trend driven by strong trading activity and investors' interest. It has a positive outlook ahead of the Indian festive season, and the growth is expected to further expand during this period due to a surge in demand.

The company has a pan-India presence with a strong network in the east region. Also, with the government’s favourable policies such as excise cuts, leading to lower gold prices, jewellery companies anticipate more footfalls and increased market share for organised players. Further no-new issue SGBs series would also surge the demand for physical gold in the upcoming period for the investor who prefers gold-linked investments.

The festive season, favourable policies, lower prices and the company’s vast network would capture growth for the company. In Q1FY25, the company reported a consolidated revenue of ₹1,415 crore and net profit of ₹53 crore.

The stock of Senco has rallied over 22% in the last one month, 71% in 2024, on a YTD basis and 198% in the last 12 months.