Nifty MNC index at new high; Honeywell, 3M India, Schaeffler gain up to 9%

In the past one month, the MNC index has rallied 8%, as against less than 1% gain in Nifty 50

Shares of multi-national companies (MNCs) continued their northward movement, with the Nifty MNC Index hitting a new high of 28,590, gaining nearly 1 per cent in Thursday's intraday trade. The spurt comes after various companies reported healthy March quarter earnings and gave a strong outlook.

Honeywell Automation India, 3M India, Schaeffler India, Timken India, Linde India, SKF India, and ABB India were up in the range of 2 per cent to 9 per cent in the intraday trade. Most of these stocks are currently trading at their respective all-time high levels.

The Nifty MNC index comprises 30 listed companies on the National Stock Exchange (NSE) in which the foreign promoter shareholding is over 50 per cent.

 

At 12:40 PM, the Nifty MNC index was up 0.27 per cent, as compared to 0.12 per cent decline in the Nifty 50. In the past one month, the index has rallied 8 per cent as against less than 1 per cent gain in the benchmark index.

Further, thus far in the calendar year 2024, the MNC index has surged 18 per cent, as compared to a 2.6-per cent rise in the Nifty 50.

Among individual stocks, Honeywell Automation India surged nearly 9 per cent to Rs 53,485, also its record high on the NSE, after the company recorded a 32 per cent year-on-year (Y-o-Y) jump in its net profit at Rs 148.2 crore in the March quarter. The board has announced a final dividend of Rs 100 per share. The stock bounced back 16 per cent from its intra-day low of Rs 46,253.

Shares of Schaeffler India, too, hit a new high of Rs 4,180, surging 6 per cent on the NSE. In the past one month, it has zoomed 31 per cent, as the company said it recorded strong double-digit Y-o-Y growth in the domestic business, across businesses.

Shares of SKF India, meanwhile, rallied 6 per cent to Rs 5,650 in the intraday trade, surging 12 per cent in the past two trading days. In the past six trading days, the stock of the abrasives & bearings has soared 24 per cent after the company's profit before tax jumped 35 per cent Y-o-Y at Rs 229.20 crore. Despite the challenging external environment, the management said the company succeeded in delivering an impressive revenue growth, achieving a 10 per cent increase in revenue at Rs 1,203 crore.

The board recommended a final dividend of Rs 130 per equity share for the financial year ended March 31, 2024.

Shares of Timken India surged 8 per cent to Rs 4,288.80, also its new high on the NSE in the intraday trade today. In the past one month, the stock has zoomed 47 per cent. Net profit of the company rose 35 per cent Y-o-Y at Rs 141.4 crore in the March quarter.

Revenue grew 11.9 per cent Y-o-Y at Rs 898 crore, mostly rail and domestic sector. The exports were down, and the management said the company still sees that export markets are not going to be buoyant in short to medium term.

That apart, ABB India hit a new high of Rs 8,377.65, up 4 per cent on the NSE in the intraday trade, and has rallied 28 per cent thus far in the month of May.

With its diverse portfolio, ABB India is strategically positioned to expand its market presence, capitalising on the upsurge in economic activities across various sectors including power transmission, clean energy, railways, metro, and public infrastructure. Government investments provide further support to these endeavors. Additionally, ABB is at the forefront of innovation in sectors such as data centers, electronics, and logistics, driving towards sustained growth.

"The national elections in 2024 is likely to be a pivot between two halves of 2024. The focus on local manufacturing with Production Linked Incentive (PLI) scheme in digital India and digital infrastructure, high end local manufacturing including electronics, the expansion of railways and metros and continued initiatives for energy transition and security are all drivers which augur well for ABB India’s growth," the company said in annual report.