Market Movers: ITC rides the momentum wave as metal stocks regain some ground

MUMBAI: Whisper it, but just hit a 52-week high! Yes, ITC, the stock that never moves, the stock whose investors deal with heartbreak with memes, managed to hit a 52-week high in today’s session after another solid 3 per cent gain.

The stock is now up 15 per cent this month, a feat thought near impossible for a stock that couldn’t get itself out of the tight trading range of Rs 200-220 for almost six months. The optimism is real as investors pin hope on strong volume recovery in the cigarette business in coming months aided by the reopening of the economy. ITC investors are firmly atop the momentum bull for now.

Metals regain some ground
After the near 7 per cent slide on Monday, metal shares found solace in dip buyers. The Nifty Metal index rose over 2 per cent to recoup a third of Monday’s losses with investors hoping that China will be able to pull off a soft landing for its second largest real estate company.

The confidence in the sector remains fragile and today’s move could possibly be a dead cat bounce for a sector whose outlook has suddenly become hazy at a time when its valuations are near a peak.

rallies again

While ITC has been the standout performer so far this month, the ONGC stock has quietly accumulated more than 11 per cent gains. Today, the stock surged over 5 per cent as investors baked in prospects of a sharp uptick in domestic gas prices come October 1.

Natural gas prices have been on a tear this year and with government prices up for revision on September 30, the company is banking on a large increase in price. That should boost the natural gas producer’s earnings handsomely over the coming quarter.

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What good looks like

GR Infraprojects’s shares surged 11 per cent and were among the top performers on the National Stock Exchange today. HDFC Securities last week initiated coverage on the stock with a tagline “this is what good looks like”. The brokerage firm is supremely impressed by the company’s capital management.

“A wide gap remains between the largest listed peer and the second largest company; we believe GR Infraprojects has the right ingredients which would put it on the path of narrowing the gap,” HDFC Securities said. Investors firmly agree.



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