HCC on Cloud nine, hits 52-week high, here's why!

one of the trader’s favorite stocks is seen following the similar trend is Hindustan Construction Company also known as HCC.   

Thursday session is turning out to be a decent session for the broader markets as the Nifty Midcap and Small-Cap index is seen outperforming the frontline indices. Both the broader indices i.e., Midcap and Small-Cap index are up by 0.45 and 0.41 per cent, respectively.   

Amidst the buzz in the broader market the advance decline ratio is titled in favour of the bulls and many stocks are seeing surging northwards with robust volumes and one of the trader’s favorite stocks is seen following the similar trend is Hindustan Construction Company also known as HCC.   

The stock of HCC has jumped over 8 per cent and it is trading near its day’s high and with this it has marked its fresh 52-week high. The most amazing thing is that the stock has seen records volumes as well on Thursday as it has recorded highest single day trading session volume in many years, as the total traded volume is close to 14 crore shares.   

The stock is up by 75 per cent from its September lows and in the recent past, the volume has been above average, which clearly indicates larger participation in the direction of trend.   

In a recent update, IDBI Trusteeship Services Ltd has invoked nearly 3.15 crore pledge shares, representing a 2.08 per cent equity stake in HCC, after promoter group company Arya Capital Management defaulted on its non-convertible debenture.   

In a press release, it is mentioned that on the instructions of the investors/lenders pledge, over 3.15 crore equity shares have been invoked on December 02, 2022 by IDBI Trusteeship Services Limited as Debenture (as per the instructions of Debenture Holders) which were pledged as security for Non-Convertible Debentures of Rs 270 crore issued by Arya Capital Management Private Limited.   

So, considering the overhang of invocation of pledge shares is out of the way and the same being absorbed in the open market, the stock is likely on the upward march.