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Today, we recommend two stocks, one from the railway sector and another from the FMCG sector. Both sectors play a pivotal role in India’s development. The FMCG sector is driven by key factors like rising disposable income, urbanization, digital penetration, and growing rural demand. Whereas, the railway sector is poised to grow in the future as the government is planning to enhance infrastructure, increase speed and capacity, and improve passenger experience. We also analyse the market’s performance on Tuesday to understand what may lie ahead for the stock indices in the coming days.

In FY25, IRFC's net interest income grew by 2.2%, rising from ₹6,429 crore in FY24 to ₹6,569 crore. Its net interest margin also saw a modest improvement, reaching 1.42% compared to 1.38% the previous year. During the fiscal year, IRFC sanctioned loans amounting to ₹5,700 crore, which included ₹700 crore to NTPC and ₹5,000 crore to NTPC Renewable Energy Ltd. The company also signed a rupee term loan agreement worth ₹5,000 crore with NTPC REL and emerged as the L1 bidder for financing ₹3,167 crore toward the development of the Banhardih Coal Block in Jharkhand’s Latehar District.

The company was awarded Navratna status by the Department of Public Enterprises in FY25 and is aiming to achieve Maharatna status in the near future. The IRFC board also approved financing of up to ₹700 crore to NTPC on a finance lease basis for 20 BOBR rakes under Indian Railways’ General Purpose Wagon Investment Scheme (GPWIS). Additionally, a lease agreement for eight BOBR rakes valued at approximately ₹250 crore was signed with NTPC Ltd. in January 2025. IRFC has also entered into a Memorandum of Understanding with REMCL to jointly explore financing options for renewable energy projects for Indian Railways, including potential funding in nuclear, thermal, and renewable energy domains.

The company's operating revenue for FY25 was ₹81,612.78 crore, up 10.4% from FY24 ₹73,891.43 crore. Their net profit increased by 69%, from ₹20,751.36 crore in FY24 to ₹35,052.48 crore in FY25.The company's vertically integrated supply chain and strong network of 27,500 farmers spread across 1.4 lakh acres of certified organic land in 71 clusters across 10 states will provide it with a competitive edge. Additionally, ITC has acquired the Sresta Natural Bioproducts Private Limited brand 24 Mantra Organic, a leader in organic packaged foods with a portfolio that comprises over 100 organic products, for ₹400 crore on a cash-free, debt-free basis.

Moreover, the company spent ₹50.6 crore to acquire Mother Sparsh Baby Care Private Limited, a business that provides upscale natural and ayurvedic baby care products. Additionally, ITC declared that it will buy ABREL's pulp and paper business, "Century Pulp and Paper," for a single sum payment of up to ₹3,500 crore on a debt-free, cash-free basis. The company has an installed capacity of 4.8 lakh MTPA.

On Tuesday, the Nifty 50 opened strong at 25,427.85, above all key EMAs, and surged to an intraday high of 25,548.05 before closing at 25,522.50, marking a gain of 61.20 points or 0.24%. Similarly, the BSE Sensex rose by 270.01 points, or 0.32%, opening at 83,387.03 and ending the day at 83,712.51. Both indices remained above their 20/50/100 and 200-day EMAs. The RSI for the Nifty 50 stood at 62.53, while the Sensex was at 61.97, below the overbought zone of 70. The modest gains in both benchmarks were fueled by growing retail investor confidence, though sentiment remained cautious ahead of the anticipated India-US trade agreement outcomes.

Sectoral performance was mixed. Nifty Realty emerged as the top gainer, closing at 982.35, up 9.60 points or 0.99%, with stocks such as Brigade Enterprises, Prestige Estate Projects, and Phoenix Mills posting gains of over 1.5%. The Nifty CPSE index also performed well, rising 59.60 points or 0.91% to settle at 6,636.90, bolstered by more than 1% gains in NHPC, NTPC, and Bharat Electronics Ltd.

On the flip side, the Nifty Consumer Durables index was the biggest laggard, dropping 895.50 points or 2.29% to end at 38,248.80. Titan Company Ltd led the decline with a fall of over 6%, attributed to weaker-than-expected performance in its jewelry segment. Other major losers included Whirlpool of India, PG Electroplast, and Crompton Greaves Consumer Electricals, each down over 2%. The Nifty Health Index also declined, falling 131.30 points or 0.89% to close at 14,588, weighed down by losses exceeding 2% in Aurobindo Pharma, Lupin, Granules India, and Dr. Reddy’s Laboratories.

Asian markets closed mostly in the green. The Hang Seng in Hong Kong gained 260.24 points or 1.08% to close at 24,148.07. South Korea’s Kospi rose 55.48 points or 1.78% to finish at 3,114.95. Japan’s Nikkei 225 added 101.13 points or 0.25%, closing at 39,688.81, while China’s Shanghai Composite Index ended higher by 24.35 points or 0.70%, at 3,473.13. Meanwhile, the US Dow Jones Futures saw a marginal uptick, ending at 44,416.46, up 11.09 points or 0.03% as of 5:00 PM.

Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.

Investments in securities are subject to market risks. Read all the related documents carefully before investing.

Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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