By Indian equity markets opened with strong momentum on Thursday, driven by positive global cues and optimism surrounding China’s stimulus measures.
The Nifty 50 hit a fresh record high, while the Sensex added 190 points in early trading.
As of 9:30 AM IST, the Sensex was at 85,167.56, while the Nifty 50 crossed a milestone at 26,050, surpassing its previous record close.
This upward trend aligns with gains in Asian markets and a positive outlook for US stock futures, providing a strong backdrop for the domestic indices.
Indian markets: top gainers and sector performance
Among the top performers on the Nifty 50 were Maruti Suzuki, Tata Motors, and HCL Tech, reflecting strong investor interest in the automotive and technology sectors.
Tata Motors saw renewed interest due to increasing demand for electric vehicles (EVs), while Maruti Suzuki benefitted from positive market sentiment and sector-specific developments.
On the other hand, sectors like FMCG and IT faced some selling pressure, while other indices traded in the red.
Major losers on the Nifty included Hero MotoCorp, Hindalco, Axis Bank, Tata Steel, and JSW Steel, which experienced profit-taking amidst broader market optimism.
Ola Electric shares up on bullish outlook
Shares of Ola Electric Mobility surged by over 3%, reaching Rs 106 in early trade on Thursday.
This uptick came after HSBC reiterated its bullish outlook on the EV maker, maintaining a ‘buy’ recommendation with a target price of Rs 140.
HSBC’s bullish stance implies a 35% upside from the last closing price of Rs 103 per share on the NSE.
Despite the stock declining by 12% earlier in the week, the brokerage remains confident in the long-term growth potential of Ola Electric. HSBC highlighted the company’s initiatives to address operational challenges, particularly service-related issues.
Ola Electric has been dealing with a backlog of service requests, with reports indicating that its service stations receive approximately 80,000 complaints per month.
In response, the company has formed a new service team to manage the growing number of customer concerns.
HSBC also emphasized the potential upside in Ola’s battery venture.
The brokerage expects the company to produce batteries that meet global standards at a lower cost, which could significantly boost profitability.
Ola Electric sold 49% of all electric two-wheelers in India during the June quarter and aims to manufacture most of its EV parts domestically, including the battery—a key factor in its growth strategy.
SpiceJet surges despite Carlyle Aviation stake sale
In other market developments, shares of SpiceJet rose on Thursday, despite news that Carlyle Aviation Management, an Ireland-based aircraft lessor, offloaded a 1.42% stake in the airline.
Carlyle’s stake sale occurred between September 17 and 23, involving the sale of more than 1.81 crore shares with voting rights.
Carlyle’s stake in SpiceJet has fluctuated as part of the airline’s debt-restructuring process.
Earlier this month, Carlyle wrote off $40.17 million in lease arrears, converting $30 million of dues into equity in SpiceJet at Rs 100 per share.
Another $20 million was converted into compulsorily convertible debentures (CCDs) of SpiceJet’s cargo arm, SpiceXpress & Logistics.
Carlyle has been consistently converting lease payments into equity stakes in the airline.
In August 2023, the lessor converted $28 million of outstanding dues into a 5.9% stake in SpiceJet, further strengthening its investment in the struggling airline.
As the markets continue to show resilience amid global uncertainty, investor sentiment remains positive, driven by both corporate developments and macroeconomic factors.
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