NIFTY50 shed early gains, but holds the 25,000 mark; these three stocks hit 52-week highs on Tuesday

On Tuesday, over 65 stocks advanced to 52-week highs. The benchmark indices, NIFTY50, traded at 25,062, down 0.26%, and SENSEX was at 81,800, down 0.21%. Nifty Bank traded at 51,773, almost flat. The fear gauge, India VIX, rose to 13.10.

The broader market indices traded mixed, with the Nifty Midcap 100 index down 0.11% and the Nifty Smallcap 100 index up by 0.57%. The sectoral indices followed the trend, with Nifty Media up 0.71%, being the top gainer, while Nifty Auto was down by 1.20%, being the top loser.

Top three stocks that hit a fresh 52-week high on Tuesday, October 15, 2024

Infosys Ltd

India’s second-largest IT company by market cap, the scrip rallied 1.66% clinching a 52-week high at ₹1,991.45 ahead of the company's announcement of Q2 earnings scheduled this week. This took the company’s market cap to the mark of ₹8.27 lakh crore.

During the previous quarter, Infosys witnessed sequential revenue growth. The street anticipates the IT giant to witness yet another strong quarter, with a rise in growth guidance as Infosys’s strong digital capabilities would leverage on the discretionary demand-led demand recovery.

Infosys’s dollar revenue is anticipated to grow due to the continued ramp-up of mega deals, volume growth, and in-tech acquisitions. However, Infosys’s margins may be impacted due to the reversal of one-offs and large deal investments. Additionally, market reports indicate margins for the IT sector companies are likely to be largely range-bound in Q2 as wage hikes have been deferred to H2FY25.

To focus on growth Infosys is stressing more collaboration with global giants in AI capabilities, Infosys recently entered into a strategic collaboration with Microsoft to expand and accelerate customer adoption of the Microsoft cloud and generative AI. Also, Infosys collaborated with Zooplus, Europe’s leading e-commerce to drive digital transformation and enhance e-commerce capabilities.

The stock has risen nearly 27% so far in 2024.

Kaynes Technology India Ltd

India’s leading end-to-end and IoT solutions-enabled integrated electronics manufacturing service provider’s stock price surged 3.38% on Tuesday, hitting a 52-week high at ₹5,874.2.

The stock has been trading positively in the last five sessions, up nearly 9% with the company's market cap reaching the ₹37,600 crore mark. In 2024, Kaynes Technology’s share doubled its value delivering a 119% return on a year-to-date basis aided by substantial revenue growth, mainly due to robust industry demand, the introduction of new segments and acquisition of new clients, rising domestic production, import replacement, and international collaborations.

Recently Kaynes has acquired Iskraemeco India Private Ltd, through acquisition company aims to accelerate its smart meter manufacturing business in India. Currently, smart meters contribute approximately 10% to total sales, expected to rise to 15% as production ramps up. The acquisition enhances Kaynes Technology's manufacturing scale and technological edge in smart meters. Iskraemeco's existing contracts include significant orders from PGCIL and the West Bengal government, enhancing Kaynes Technology's competitive positioning in the market The company is looking to leverage its existing capabilities to fulfil growing demand in the smart metering sector.

Coforge Ltd

The IT service provider’s stock hit a 52-week high of ₹7,585, skyrocketing 2.06% during Tuesday's session, with its market cap reaching ₹50,500 crore.

Amid positive global cues, IT stocks witnessed positive momentum, with mid-cap IT stock, Coforge trading in positive terrain. In the past 12 months, the stock has declared an equity dividend amounting to ₹95 per share, with the latest being with a record date of October 12 amounting to ₹19 per share.

The IT mid-cap is likely to perform better amid an overall slowdown in the IT sector, attracting investors' interest. Coforge management is optimistic about future growth, driven by strong order book, headcount additions, and strategic acquisitions. Further, the company is adapting to industry changes, particularly in AI and automation, positioning itself for robust growth despite temporary setbacks in certain verticals.

Year-to-date, the stock has risen over 21% in 2024.