Market Highlights: Gift Nifty Rises, NELCO Q1 Earnings, HPL Electric’s Major Order, and Today's Top Stocks

Benchmark Indices Close Lower Amid Mixed Sector Performance

On Thursday, Indian benchmark indices, the Sensex and Nifty50, experienced a downturn for the second consecutive day. The sell-off in stocks such as L&T, HDFC Bank, Bajaj Finance, ICICI Bank, Sun Pharma, and Bharti Airtel contributed to this decline.

At the closing bell, the BSE Sensex was down by 27 points, while the NSE Nifty ended 9 points lower. Despite the overall negative trend, ONGC, Coal India, and ITC emerged as top gainers. Conversely, Tata Consumer Products, Sun Pharma, and M&M were among the top losers.

Sector-wise, the BSE MidCap index rose by 0.4% and the BSE SmallCap index increased by 0.6%. The energy and oil and gas sectors saw significant buying interest, whereas the power and realty sectors faced selling pressure.

Gold prices for the latest MCX contract traded 0.2% higher at Rs 72,840 as the Indian market closed on Thursday. Early today, at 7:30 AM, the Gift Nifty was up by 58 points at 24,464 levels, indicating a positive opening for Indian share markets.

Top Buzzing Stocks Today

Oriental Rail Infra: Shares of Oriental Rail Infrastructure hit a 52-week high of Rs 378.6 and locked at a 5% upper circuit on July 11 after the company secured a significant order from Indian Railways. According to the contract, 95% of the value will be paid upon receipt of an inspection certificate and proof of dispatch, with the remaining 5% paid after acceptance of the goods.

IRCTC: The Indian Railways’ collaboration with the Delhi Metro Rail Corporation (DMRC) and the Centre for Railway Information Systems (CRIS) aims to promote the ‘One India – One Ticket’ initiative, designed to integrate public transport systems and enhance travel experiences for passengers in the Delhi/NCR region.

HPL Electric Secures Major Order

HPL Electric announced on July 11, 2024, that it had won a Letter of Award for smart meters valued at Rs 20 billion. This order, received from regular leading customers, surpasses the company’s previous year’s total order book and represents approximately 64% of its market capitalization.

Additionally, on July 8, HPL Electric signed a memorandum of understanding (MOU) with China-based Guangxi Ramway Technology Co. Ltd. This agreement focuses on local manufacturing and assembly of relay/latching relays in India, potentially involving technical partnerships and equipment procurement.

HPL Electric & Power specializes in electrical and power distribution equipment. Its product range includes cables, energy-saving meters, industrial and domestic circuit protection switchgear, and CFL & LED lamps.

Shipping Stocks Surge on Government Policy Expectations

Shipping company shares soared by up to 20% on the BSE in anticipation of favorable government policies in the upcoming Union Budget. Shipping Corporation of India led the surge with a 20% rise to a new all-time high of Rs 328.9. Great Eastern Shipping Company also hit a 52-week high of Rs 1,542.8, climbing over 13%. Essar Shipping shares increased by 10%, while Garden Reach Shipbuilders and Cochin Shipyard gained 5% each.

The rally is driven by expectations of the government’s proposal for the creation of a Maritime Development Fund under the Harit Nauka scheme, with anticipated allocations between Rs 150 billion and Rs 200 billion. This fund could offer shipbuilders long-term loans at lower costs, spurring positive sentiment in the sector.

NELCO Q1 Results

NELCO reported a year-on-year decline in its consolidated net profit and revenue for Q1 FY25. The net profit fell by 20.4% to Rs 46 million, and revenue from operations decreased by 6% to Rs 741 million. Sequentially, NELCO’s net profit and revenue declined by 25% and 9%, respectively.

A subsidiary of Tata Power Company, NELCO provides comprehensive networking solutions, specializing in the sale and rental of VSATs, maintenance of private hubs, and hybrid networks. Established in 1940, NELCO, formerly known as National Radio & Electronics Company, was promoted by the Investment Corporation of India to manufacture broadcasting equipment.

In Conclusion, The Indian stock market witnessed a mixed performance, with benchmark indices closing lower amid selective buying in the energy and oil and gas sectors. Key stocks such as Oriental Rail Infra and HPL Electric made significant strides with new orders and collaborations, while shipping stocks surged on anticipated government policy announcements. Meanwhile, NELCO reported a decline in its quarterly results. As the Gift Nifty indicates a positive start, investors remain watchful of market trends and upcoming announcements.

Disclaimer: This article is for informational purposes only and does not constitute stock recommendations. Investors should conduct their own research before making investment decisions.