NIFTY50 holds the 25,250 level; these three stocks hit 52-week highs on Tuesday

On Tuesday, over 79 stocks advanced to 52-week highs. The benchmark indices remained muted, NIFTY50, traded at the 25,263 level, down 0.06%, and Sensex was at the 82,490 level, down 0.08%. Nifty Bank was at the 51,394 level, down 0.09%. The fear gauge, India VIX, fell to 13.74 levels.

The broader market indices traded in the green, with the Nifty Midcap 100 index up 0.40% and the Nifty Smallcap 100 index with 0.50% gains. The sectoral indices traded mixed, with Nifty Media down 0.46% being the top loser, while Nifty Pharma up by 0.75% remained the top gainer.

Top three stocks that hit a fresh 52-week high on Tuesday, September 3, 2024

Matrimony.com Ltd - India’s leading online matchmaking and marriage service platform scrip clinched a 52-week high at ₹846.95 after surging over 13.54% on Tuesday.

The stock price climbed after the company announced a board meeting to propose a buy-back on September 5. The buy-back received a positive reaction from investors with a surge in buying interest in the counter.

The proposed buy-back is strategically thought to benefit shareholders ahead of the October 1st changes in tax policy laid down in Union Budget 2024, as per which buy-back of shares would be taxed in the hands of shareholders.

If the back-back is approved, this will mark the 2nd buyback by Matrimony.com, earlier the company executed a buyback of equity shares back in July 2022.

When a company purchases its own outstanding shares from the market using its accumulated profits or reserves, it is known as a buy-back of shares. Buy-back reduces the number of shares outstanding in the open market and also acts as a tool to return cash to investors.

Further share has been in an upward trend in the past few sessions with the stock gaining 22% in the last one month. Also in 2024 on a year-to-date (YTD) basis the stock has climbed 80%, so far.

The company recently announced that it delivered one of the world’s largest advanced broadband network gateway (BNG) projects for BSNL worth ₹390 crore. According to the company, this project was initiated in October 2022 and was successfully commissioned in August 2024. HFCL executed this crucial infrastructure upgrade to CUPS architecture end-to-end, including the design, supply, commissioning, testing, and seamless migration of legacy networks and services to the new network.

In Q1FY25, the company reported a consolidated revenue of ₹1,158 crore, up 16% YoY and a net profit of ₹111 crore up 46% YoY. While the total order book as of QFY25 stands at ₹6,776 crores.

HFCL was established in 1987, It is a leading technology company specializing in creating digital networks for telcos, enterprises and governments. The company is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment, Optic Fiber and Optic Fiber Cable (OFC).

ITC Ltd - The FMCG major price traded to a 52-week high at ₹515.95 and soared to 1.16% in Tuesday's morning session, the company’s market-cap reached ₹6,45,000 crore mark.

Stock has gained positive momentum on account of a bullish outlook in H2FY25 supported recovery of rural demand, stable commodity prices, and favourable macroeconomic conditions.

Management has remained bullish on the outlook stating that the Union Budget 2024-25 provided a strong impetus to engender a virtuous cycle of investment and employment whilst ensuring macro-economic stability and enabling inclusive growth.

During the Q1 earning announcement management added, moderating inflation, improving agri terms of trade, expectation of normal monsoons and the Government's thrust on public infrastructure and the rural sector augur well for a pick-up in consumption demand, building on the green shoots of recovery that are visible in rural markets.

In the last 6 months, the stock has rallied almost 25.71% and 17.55% in the last 12-month period.