Market Buzz: Gift Nifty Rises, Akums Drugs Expands, L&T Secures Agra Metro Project, and Top Stocks to Watch

On Wednesday, Indian benchmark indices extended their downtrend, closing the session on a negative note. Both the BSE Sensex and NSE Nifty50 failed to maintain their initial momentum, with market sentiments reflecting bearish tendencies. By the end of the trading day, the BSE Sensex saw a sharp decline, closing 319 points lower, marking a 0.4% drop, while the NSE Nifty also slid by 86 points, registering a 0.3% fall.

Despite the overall market weakness, some stocks such as Trent, Infosys, and Mahindra & Mahindra (M&M) managed to post gains. However, the broader market was dragged down by losses in Wipro, Bajaj Auto, and Hindalco, which were among the top losers of the day.

In terms of broader market performance, the BSE MidCap index ended slightly lower, down 0.2%, while the BSE SmallCap index bucked the trend, gaining 0.3%. The sectoral performance was mixed, with the realty and telecom sectors experiencing buying interest, whereas the power and auto sectors witnessed notable selling pressure.

Commodities Update: Gold Prices Rise

In commodity markets, gold prices gained traction on Wednesday, with the latest contract on the Multi Commodity Exchange (MCX) trading 0.6% higher at Rs 76,799 per 10 grams. This upward movement was seen during the closing hours of the Indian markets and reflects a continued demand for safe-haven assets amid ongoing global uncertainties.

Gift Nifty Signals Positive Opening for Indian Markets

As of 7:35 AM on Thursday, the Gift Nifty was trading 36 points higher, indicating a potential positive start for Indian equity markets. With global cues being relatively stable, Indian markets are expected to open on a firm note, potentially reversing some of Wednesday’s losses.

Buzzing Stocks: Sterlite Technologies and Railtel Corporation Shine

Among the top buzzing stocks today, Sterlite Technologies gained significant attention. The company’s shares surged by 6% on 16 October following the announcement of its AI-driven data centre solutions at the India Mobile Congress 2024. The company launched an array of optical fibre products aimed at supporting the burgeoning AI infrastructure, which is increasingly reliant on higher fibre density due to the shift towards GPU-based servers.

Another stock to watch is Railtel Corporation of India. Railtel shares jumped by 10% in Wednesday’s afternoon trade after securing a substantial Rs 798 million contract from the Maharashtra Housing and Area Development Authority (MHADA). The telecom company will be responsible for setting up cloud-based data centres and disaster recovery sites for MHADA. Despite the recent surge, Railtel shares have declined by 21% over the past three months, signaling a potential turnaround with this new contract.

Akums Drugs Partners with Canadian Firm for Indian Market Expansion

In the pharmaceutical sector, Akums Drugs and Pharmaceuticals made headlines by announcing a strategic licensing agreement with Canadian company Triple Hair Inc. Under this deal, Akums has been granted exclusive rights to further develop and market Triple Hair’s innovative products in India. The collaboration will focus on obtaining necessary regulatory approvals and licenses, followed by the commercial promotion of the products to Akums’ marketing partners and clients.

Akums is a major player in contract development and manufacturing (CDMO), producing a wide range of pharmaceutical products, including tablets, capsules, vials, and more. This partnership is expected to enhance its market presence in India, particularly in the field of innovative hair care products.

KBC Global’s Fundraising and New Project Announcements

KBC Global, a construction and infrastructure company, revealed its plans to raise up to Rs 100 crore through equity shares to bolster its financial position. The company aims to use the funds primarily for debt repayment. Additionally, KBC Global disclosed that a step-down subsidiary has signed a Memorandum of Understanding (MoU) with the Liberia Special Economic Zone Authority to develop residential complexes and commercial spaces in Liberia. This project, valued at USD 12.5 million, highlights the company’s growing international footprint.

Moreover, KBC Global recently started a new project in Deolali, Nashik, with six commercial and 22 residential units, further expanding its portfolio of real estate developments.

L&T Secures Agra Metro Project

In a major development for the infrastructure sector, Larsen & Toubro (L&T) secured a significant order from the Uttar Pradesh Metro Rail Corporation Ltd (UPMRCL) for the design and construction of Agra Metro Phase 1, Line-2. The project will span from Agra Cantonment to Kalindi Vihar and is expected to enhance urban mobility in Agra.

The project is a key milestone for L&T’s heavy civil infrastructure vertical and is slated for completion within 30 months. The company classifies this as a “significant” order, valued between Rs 10 billion and Rs 25 billion. L&T’s expertise in engineering and construction, coupled with its focus on quality, has solidified its position as a leader in the Indian infrastructure sector for over eight decades.

In conclusion, While the Indian stock markets faced a downtrend on Wednesday, the day was filled with significant sectoral developments. From Sterlite Technologies’ advancements in telecom and AI to Railtel’s major contract win, there were notable success stories amidst the market’s broader decline. Additionally, the partnerships and projects announced by Akums Drugs, KBC Global, and L&T reflect ongoing growth and expansion in various sectors, offering potential positive signals for future market movements. With Gift Nifty pointing towards a positive opening, investors will be keenly watching today’s market session for further cues.