Modest gains for indices; sugar stocks turn sweet; Adani energised

Stock market indices ended Monday's trading session with modest gains, despite reaching fresh record highs as traders remained cautious ahead of the Federal Reserve’s upcoming policy meeting, where a rate cut is anticipated for the first time since 2020.

The Nifty 50 ended the session with a 0.11 percent gain at 25,383 points, having reached an all-time high of 25,445 points during the session. The Sensex ended with a 0.12 percent gain at 82,988 points, also hitting a new peak.

Among the 50 Nifty constituents, 26 stocks ended in the positive, with NTPC leading at 2.6 percent. Other notable gainers included JSW Steel, Hindalco Industries, Shriram Finance, Larsen & Toubro, ICICI Bank, Axis Bank, and Eicher Motors, all rising between 1 percent and 1.7 percent.

Several stocks, including JSW Steel, LTIMindtree, HCL Technologies, and Tech Mahindra, reached new 52-week highs. While the main indices saw modest gains, mid and-small-cap stocks continued their strong performance for the second consecutive session.

The Nifty Midcap 100 index rose by 0.38 percent to 60,259 points, maintaining its position above the 60,000 mark. The Nifty Smallcap 100 index increased by 0.16 percent, closing at 19,537 points.

Sweet gains for sugar stocks

Sugar stocks surged up sharply in today's session, with gains of up to 8.7 percent after the Department of Food and Public Distribution (DFPD) authorised sugar mills and distilleries to produce Rectified Spirit (RS) and Extra Neutral Alcohol (ENA) using sugarcane juice and B-heavy molasses.

This move is expected to enhance production flexibility for ethanol and other alcohol-based products, supporting the industry's diversification efforts.

In a significant move to improve the financial health of the sugar industry, the government, on August 30, lifted restrictions on using sugarcane juice, sugar syrup, and B-molasses for ethanol production in the 2024–25 ethanol supply year (ESY).

Bajaj Housing Finance's bumper debut

Bajaj Housing Finance shares made a stellar debut on the NSE, opening at ₹150 each, which was a remarkable 114.29 percent premium over the IPO price of ₹70. The stock closed the session at ₹165, marking a 135 per cent increase from the IPO price.

While Bajaj Housing Finance's performance was impressive, its success led to declines in peer stocks such as LIC Housing Finance, PNB Housing Finance, and Can Fin Homes, which ended the day with losses of up to 6.3 percent.

Bajaj Housing Finance was the largest IPO of the year so far, and with its current gains, the shares now rank as the second-best performer among main board IPOs.

Rice stocks, including KRBL, LT Foods Ltd, Kohinoor Foods, and others, surged up to 19 percent in today’s intraday trade following the government’s decision to remove the minimum export price (MEP) on basmati rice. On Friday, the Commerce Ministry announced the immediate removal of the MEP for both onions and basmati rice. 

Market participants anticipate a significant boost in exports, which is expected to benefit companies like KRBL, LT Foods, Kohinoor Foods, Chaman Lal Setia Exports Ltd, GRM Overseas Ltd, Mishtann Foods Ltd, Sarvesh Foods, Lakshmi Energy and Foods Limited, Adani Wilmar, and others.

Adani Green Energy, Adani Power impress 

Shares of Adani Power and Adani Green Energy ended with gains of up to 8 percent after both companies were issued letters of intent by the Maharashtra state DISCOM to supply a total of 6,600 MW of hybrid solar and thermal power.

Adani Green Energy will supply Maharashtra with 5 GW (5,000 MW) of solar power from the world’s largest renewable energy park, currently being developed at Khavda in Gujarat's Kutch District. Adani Power will supply 1,496 MW of thermal power (net) to Maharashtra from a new 1,600 MW ultra-supercritical thermal power project.

(By arrangement with livemint.com)