KIOCL hits new high

KIOCL is the top gainer on the BSE currently; from its close of Rs.440.55, the stock actually opened lower at Rs.438.45 but soon jumped up to hit a new 52-week high at Rs.528.65, its 20% UC where it now stays frozen.

The commodity price tailwind  seems to be at work first. KIOCL is a pure-play iron ore pellets exporter. Global pellet/iron ore prices have been firming up due to China restocking and Brazilian supply disruptions. Thus for KIOCL, even without a fresh order, higher benchmark prices immediately lifts earning visibility.

The stock has a very low free float since the Government of India holds 99.03%. Even small institutional or HNI buying pushes it into upper circuits and new highs. Thus its momentum and top gainer status attracts further retail volumes.

Also with PSU defence, mining and metals names (HAL, Mazagon, NMDC, SAIL) seeing strong buying, KIOCL is riding the sector-wide rerating wave.