Trade Brains Portal recommends two stocks for 8 July
We also analyse the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.
Two stocks to buy today, recommended by Trade Brains Portal
NMDC Ltd
Current price: ₹68
Target price: ₹83 in 12 months
Stop loss: ₹60
Why it’s recommended:The company, established in 1958, is India’s largest iron ore producer. It is headquartered in Hyderabad and operates four mechanised mines: two in Chhattisgarh and two in Karnataka. Excluding iron ore, NMDC is the only organised diamond producer in India and conducts mining from the Majhgawan mine in Panna, Madhya Pradesh.
In FY25, the company formulated a four to five year plan to double capacity from about 50 MT to 100 MT. It acquired 1,167 acres from RINL near Gangavaram Port for ₹1,500 crore, which is a critical part of the expansion plan. It aims to achieve a production and sales target of 55.4 MT in FY26, showing strong potential to grow volume by 10% and facing no major constraints in evacuation or market demand. It made an all-time high capex of ₹3,700 crore in FY25. Management expects capex of ₹4,000-4,200 crore in FY26, with plans to increase it to more than ₹10,000 crore annually in FY27-FY28 as major projects move from sanction to execution. The company opened an office in Dubai to easily coordinate with Africa, and is also looking for assets abroad.
The company has around ₹43,000 crore worth of projects until Q2FY26 that are at various stages of commission, with an additional ₹31,000-32,000 crore of projects under review, including two major slurry pipelines (Kirandul–Bacheli and Nagarnar–Vizag), which may cost around ₹20,000 crore combined. The company had a JV with CMDC, which is going to operate two coal blocks and two iron ore blocks, which are expected to become operational by FY26. Management sees a significant opportunity in coking coal, with India’s imports projected to rise to 150–160 MT.
NMDC Limited maintained a consistent record of paying dividends, with a recent interim dividend payout of ₹2.30 per share for FY25, a total payout of ₹7.25 per share in FY24, ₹5.91 per share in FY23, and a notably high dividend of ₹14.74 per share in FY22.
Risk factors: The company is exposed to the cyclicality of the steel industry, as iron ore is the key raw material for steel production. It hampers the volume and profitability of the company when there is a drop in steel sector demand. NMDC is vulnerable to both price volatility and significant swings in the demand for its goods. The decline in iron ore prices, particularly on the global market, urged steel companies to import and put pressure on domestic supply and prices. It eventually leads to lower realisations.
Power Finance Corporation Ltd
Current price: ₹412
Target price: ₹513 in 12 months
Stop loss: ₹361
Why it’s recommended:The company is a Schedule-A Maharatna CPSE, a leading non-banking financial corporation incorporated in 1986. It is the largest NBFC player by net worth and holds a 20% market share. It is the most profitable NBFC in India as of FY25, offering a range of loans that cater to the demands of the power industry, including short-term and long-term loans, equipment lease finance, and transitional financing services for a range of power projects in the transmission, distribution, and production sectors.
The PFC group loan asset book has crossed ₹11 trillion, and registered year-on-year growth of 12%. On a standalone basis, it crossed ₹5 trillion in loan assets, growing at 12.81% YoY. The renewable book more than doubled in the past five years to ₹81,031 crore, and grew 35% YoY in FY25. Interest income for FY25 stood at ₹49,875 crore and grew at 14.3% YoY, whereas PAT stood at ₹30,514 crore, registering 15% growth over the previous financial year.
The company recorded a yield of 10.02% on its earning assets as of FY25, whereas the cost of funds stood at 7.44%. It resulted in a spread at the guided range of 2.58% and recorded a NIM of 3.64%, 18 bps higher than FY24. The company gave a guidance range spread of around 2.5% for FY26.
The company recorded a net NPA of 0.38% in FY25, compared to 0.85% in FY24. It has successfully decreased the NPA ratio since FY19, when it was 4.55%. Its net worth stood at ₹90,937 crore as of 31 March 2025, registering notable growth of 15% YoY. The capital adequacy ratio for FY25 is at 22.08%, well above the minimum regulatory requirements.
The company has been fast-tracking its stage 3 asset resolution. Sinnar Thermal Power Project, which was part of Stage 3 Assets, with an outstanding amount of ₹3,000 crore, is a 1,350-megawatt coal-based plant. It is being resolved under NCLT. Whereas, India Power Haldia, with an outstanding amount of ₹959 crore, is a 450-megawatt coal-based plant, which is also being resolved under NCLT.
A final dividend of ₹2.05 per share was announced by the company, and the total dividend for FY25 stood at ₹15.80 per share, which includes the cumulative interim dividend of ₹13.75 per share that was previously paid.
Risk factors: The company is exposed to concentration risk as it relies on the power sector. It is also vulnerable to counterparty risk of private sector power players, as they are exposed to historical asset quality risks due to issues around fuel availability, challenges with passing on fuel price increases, and the absence of long-term power purchase agreements.
How the market performed on 7 July
The Nifty opened on Monday at 25,450.45, grew to a day-high of 25,489.8, and closed flat at 25,461.00. The BSE Sensex also followed the same movement and closed flat with a marginal growth of 9.61 points, or 0.01%. The index opened at 83,398.08, touched the day’s high at 83,516.82, and closed at 83,442.5.
The Nifty ended above all 20/50/100/200 EMAs, and the Nifty 50 RSI stood at 61.02. Further, the BSE Sensex RSI closed at 59.92, well below the overbought level of 70, and the Sensex also closed above all 20/50/100/200 EMAs.
The India VIX rose by 0.245 points, or 1.99%, to 12.56 from 12.32, indicating an increase in market volatility ahead of India-US trade deals.
The sectoral indices showed mixed signals. The Nifty FMCG index, which ended the day at 55,652.85, up 917.25 points, or 1.68%, was among the biggest gainers. Stocks like Godrej Consumer Products, Dabur India, Hindustan Unilever, and Emami were among the index’s top gainers, as they rose by 6% on Monday. The Nifty MNC index was also among the top gainers, closing the day at 29,045.6 after rising 0.49%. Stocks like Hindustan Unilever, Cummins India, and Britannia Industries have gained more than 3%. The Nifty Oil & Gas Index was also in green on Monday, closing at 12,051.85, gaining 49.5 points, or 0.41%. The index moved by stocks such as Petronet LNG Ltd, Indian Oil Corporation, and BPCL, rising to 2.6%.
A few indices ended in the red on Monday. The Nifty Media index was among the top losers on Monday and ended the day at 1,743.5, down -18.2 points, or -1.03%. Nazara Technologies Ltd, Sun TV Network Ltd, and Zee Entertainment dragged the sector down with a decline surpassing 3%.
Asian markets were mixed on Monday. The Hong Kong Hang Seng index declined 0.12%, or 28.23 points to close at 23,887.8, while the South Korean Kospi index gained slightly by 0.17%, or 5.19 points, to close at 3,059.47.Japan’s Nikkei 225 ended the day at 39,587.68, down by 223.2 points or 0.56%. The Shanghai index ended the day flat at 3,473.13, a marginal growth of 0.81 points, or 0.02%.On Monday, the US Dow Jones Futures closed at 44,803.74, down 24.79 points or 0.06% as of 4:48 PM.
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