Even amidst the global geo-political crisis, the Indian stock market is making new record highs. As a result of China's mega stimulus package against the fear of the world, including America, Europe, and the war with Lebanon now by Israel and this war will result in a Middle East war, along with the boom in the markets of Asia and Europe, the Nifty in the Indian stock market posted a record high for the sixth consecutive day on the monthly F&O expiry day. The Sensex based on the new peak was placed. US, Asian and Indian stock markets advanced with impressive gains after the US Fed announced a cut in interest rates. Funds in the valuation game led by Maruti Suzuki, Mahindra & Mahindra, Tata Motors took a bullish storm after Sebi approved the Indian unit of Korean auto giant Hyundai for an IPO of shares worth Rs 25,000 crore, the largest in the history of India's capital market. Along with automobile stocks, metal-mining, FMCG, banking, IT stocks remained attractive, Sensex neared 86000 level and Nifty crossed 26400 level to reach new highs. The Sensex surged to a new all-time high of 85978.25, while the Nifty future also touched a new high of 26402.90. Along with this, Bank Nifty future was also seen at a new high of 54640.
In the stock market, there has been a frenzy of buying between the F&O expiry. Against the continuous record rise of Sensex, Nifty, small and mid-cap stocks are selling today, despite the rise in the heavyweight stocks with large market capitalization, the attractiveness of investors in the stocks of the group means that the aggregate market capitalization of the companies listed in BSE also hit a new record. The height was reached. Future direction of the market….Friends, the stock market is on a continuous bullish streak. Due to China's mega stimulus package, there was a big boom in the global stock markets, especially in Asia, Europe, in anticipation of recovery in the global economy.
The US surprised global markets with an unexpected half-percentage-point cut in interest rates, prompting high-interest-earning foreign funds to reinvest their funds in the relatively high-yielding markets of developing nations, including India. The massive net buying in stocks by foreign portfolio investors and block deals in frontline-index stocks has left many players wondering. This rampant rise in perceived risk of high valuations has left investors confused. However, the historical rally seen in Sensex, Nifty has actually been more index management through frontline, index stocks. While the returns in small, mid cap stocks have declined, it is clear that funds, players have eased their investments by taking chances in many stocks. So, it is advisable to keep booking profits in the stocks that have risen wildly in this record boom. It will be imperative to invest very limitedly in stocks with elite good fundamentals.
Reserve Bank of India (RBI) has been estimated by S&P Global Ratings to cut interest rates in the October meeting. India's strong economic growth will support the Reserve Bank to keep inflation under control, he said in the Economic Outlook for Asia-Pacific. High food inflation is a matter of concern for the Reserve Bank.
The Monetary Policy Committee (MPC) meeting of the Reserve Bank is being held from October 7 to 9. The Reserve Bank has maintained the repo rate at 6.50% from February, 2023. After the reduction in the repo rate by half a percent by the American Federal Reserve, the market is hoping that the Reserve Bank will also reduce the repo rate. It is also expected that the RBI will reduce the interest rate twice in the current financial year. India's strong economic growth is also expected to help the RBI manage inflation. India achieved a strong growth rate of 8.20% in the last financial year. Global trends, geopolitical tension and Reserve Bank's monetary policy will be closely monitored by Indian markets in the coming week. But as per my personal advice, a wise investor should book profit in stages… why right..!!!
Rights Ltd. ( BSE CODE – 541556 ) Rights Limited is a Miniratna (Category-I) Schedule 'A' Central Public Sector Enterprise established on 26 April 1974 under the Ministry of Railways, Government of India. The company is a leading multidisciplinary engineering and consultancy organization offering a competitive diversified and comprehensive concept of customized competitive commissioning services and integrated solutions in the transport and infrastructure sector in India and abroad. Services provided by rights cover transport and infrastructure sectors such as railways, highways, airports, ropeways, urban transport, inland waterways and renewable energy etc.
RAITS is a wholly owned subsidiary of Indian Railways, Ministry of Railways, Government of India and has so far served customers in more than 55 countries in Asia, Africa, Latin America, South America and the Middle East region and is currently serving Sri Lanka Bangladesh Nepal Mozambique Mauritius and Botswana. is Rights Limited was incorporated by the Ministry of Railways (MoR), Government of India and has the benefit of being associated with Indian Railways which is the fourth longest rail network in the world.
Rights Ltd. A/T+1 Group is a leading company in the civil construction sector. The face value of this company is Rs.10. At current prices, the market cap value of this company is approximately Rs.17,224.84 crore. The total turnover of this company is approximately Rs.9.76 crores. The share of this company rose to Rs.413.08 and fell to Rs.216.33 during the fifty-second week.
Share Holding Pattern : Promoters holding 72.20% and public holding 27.80% in the quarter ended September 21 – 2024. Bonus Share : 1:1 share bonus given in year 2024.
Dividend: Dividends paid by the company are Rs.16.00 per share in the year 2020, Rs.15.00 per share in the year 2021, Rs.19.50 per share in the year 2022, Rs.20.25 per share in the year 2023 and Rs.12.25 per share in the year 2024.
financial result : (1) Full financial year April 2023 to March 2024 : Net sales fell to Rs.2312.00 crores from Rs.2519.62 crores NPM 19.64% Net profit fell from Rs.530.54 crores to Rs.454.11 crores Earnings per share Rs. 18.90 has been registered. (2) Fourth quarter January 2024 to March 2024 : Net sales fell to Rs.606.18 crore from Rs.652.88 crore, net profit increased by 20.30% from Rs.118.57 crore to Rs.123.07 crore, earning Rs.5.12 per share. . (3) First quarter April 2024 to June 2024 : Net sales fell from Rs.606.18 crore to Rs.453.78 crore, NPM of 14.29%, net profit fell from Rs.123.07 crore to Rs.64.86 crore, earning Rs.2.70 per share earnings. . The share price of this company, a leader in the civil construction sector, is currently trading around Rs.358. Buyable with a stoploss of Rs.334, this stock is likely to register a price of Rs.377 to Rs.390 in a short period of time…!! Bullish focus on Rs.393…!!
Coal India Ltd. ( BSE CODE – 533278 ) Coal India Limited is a 'Maharatna' public sector undertaking under the Ministry of Coal, Government of India with its headquarters at Kolkata, West Bengal. Coal India Limited was incorporated as a private limited company on 14 June 1973 with the name 'Coal Mines Authority Ltd' as a state-owned coal mining corporate organized after the nationalization of the coal industry in India. During the year 1975-76 the name of the company was changed from 'Coal Mines Authority Limited' to 'Coal India Limited'. Coal India Limited is the world's single largest coal producer with 83 mining areas spread across eight provincial states of India with a total of 322 mines. The company manufactures non-coking coal and various grades of coking coal for various applications and others include cement, fertiliser, brick kilns and other industries.
Coal India Ltd. A/T+1 Group is a leading company in coal sector. The face value of this company is Rs.10. At current prices, the market cap value of this company is approximately Rs.3,18,027.60 crore. The total turnover of this company is approximately Rs.8.56 crores. The share of this company rose to Rs.544.70 and fell to Rs.283.15 during the fifty-second week.
Share Holding Pattern : Promoters holding 63.13% and public holding 36.87% in June-2024 quarter.
Dividend: Dividend paid by the company in the year 2020 is Rs.19.50 per share, in the year 2021 is Rs.17.50 per share and in the year 2022 is Rs.23.00 per share.
Financial Result: (1) Full financial year April 2022 to March 2023 : Net sales increased to Rs.1950.51 crore from Rs.1131.92 crore net profit increased to Rs.14802.31 crore from NPM 758.89% from Rs.11201.57 crore Earnings per share Rs.24.02 registered. (2) Fourth quarter January 2024 to March 2024 : Net sales increased from Rs.398.59 crores to Rs.488.05 crores, net profit from Rs.9316.40 crores at NPM of 683.58%, net profit fell to Rs.3336.22 crores, earning Rs.5.41 per share. . (3) First Quarter April 2024 to June 2024 : Net sales fell to Rs.389.71 crore from Rs.488.05 crore, net profit from Rs.3336.22 crore at NPM of 22.44%, net profit fell to Rs.87.46 crore from Rs.0.14 per share. .
The share price of this coal sector leader is currently trading around Rs.516. Buyable with a stoploss of Rs.488, this stock is likely to register a price of Rs.553 to Rs.560 in a short period of time….!! Bullish focus at Rs.563.
The author is a SEBI registered research analyst and proprietor of Investment Point.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
