The Sensex climbed 443 points, or 0.54%, to close at 82,200.34, while the Nifty 50 rose 122 points, or 0.49%, to settle at 25,090.70.

The BSE Midcap index advanced 0.55%, broadly in line with the benchmarks, while the BSE Smallcap index ended flat.

Against this backdrop, Trade Brains Portal has picked two stocks—one from the railway sector and another from the FMCG sector.

Stocks to trade today, recommended by Trade Brains Portal for 21 July:Rail Vikas Nigam LtdCurrent price: ₹378.60Target price: ₹480 in 16 – 24 MonthsStop-loss: ₹325

Why it is recommended: RVNL was founded in 2003 to revolutionize the railway landscape in India with a focus on project implementation and the development of transportation infrastructure, such as railway lines, electrification, bridges, and more. The Department of Public Sector Enterprises (PSE) had awarded the company the title of Navratna, which denotes a large, profitable, and strategically significant PSU. To carry out projects in their respective regions, RVNL has 30 project implementation units spread across 25 locations in India. Additionally, two project units have been formed outside of India: one in Dubai and one in the Maldives.

In FY25, the company’s revenue was ₹19,923 crore, down 8.9% on year from ₹21,878.5 crore. Net profit fell 17.3%, from ₹1,550.87 crore to ₹1,281.5 crore. This decline was due to a delay in funding by the Ministry of Railways. They anticipate higher margins in FY26, and the turnover would be the same as the FY25 projection of ₹21,000 crore. As the company expands into new areas, such as metro maintenance, small-scale manufacturing, and international projects, the margins are expected to improve.

The company is actively diversifying into long-term revenue visibility outside of the fiercely competitive EPC market. Utilizing the increasing number of metro projects around India, key priority areas are railway infrastructure and metro system operation and maintenance (O&M). Furthermore, the company has one of the key joint ventures in the development of Vande Bharat, which will begin production in June FY26, and the company anticipates positive cash inflows starting the following year. On the order book part, the company anticipates that Bharat Net orders will rise from the present order of ₹14,000 crore to ₹17,000 to ₹18,000 crore in FY26, a 20% to 25% increase. The company currently has a ₹1 lakh crore order book, of which ₹45,000 crore comes from Indian Railways and around ₹55,000 crore comes from projects that were put out to bid.

Risk factors: Since RVNL is not designated as a Zonal Railway, it does not have the authority to approve plans, drawings, and other materials. As a result, delays in obtaining approval from Zonal Railways for plans, traffic blockages, etc., could affect RVNL’s project development. Additionally, delays may occur due to modifications made to the Railways’ approved plans during project execution.

Varun Beverages LtdCurrent price: ₹ 489Target price: ₹ 630 in 12 MonthsStop-loss: ₹ 406

Why it’s recommended: VBL’s revenue from operations grew by 28.9% YoY to ₹5,566.9 crore in Q1 CY2025 from ₹4,317.3 crore in Q1 CY2024. Their sales volume also increased by 30.1% to reach 312.4 million cases, driven by strong organic volume growth of 15.5% in India and inorganic volume contributions from South Africa and the Democratic Republic of Congo. VBL’s EBITDA increased by 27.8% in Q1 CY 2025 to Rs. 1,263.96 crore. PAT increased by 33.5% to Rs. 731.4 crore in Q1 CY2025, driven by robust volume growth and lower finance costs. (Note: The company follows a January-December calendar year format.).

The company has commissioned new production facilities at Kangra (Himachal Pradesh) and Prayagraj (Uttar Pradesh) and also set up backward integration facilities at the Prayagraj plant, as well as at the DRC plant in the international region. Acquired BevCo along with its wholly owned subsidiaries and SBC Beverages Ghana Limited (SBCG) in West Africa. VBL has recently entered into binding agreements to acquire a 100% stake in Tanzania and Ghana, further enhancing its African market presence. The company has also secured exclusive snacks franchising rights for PepsiCo’s brands in Morocco, Zimbabwe, and Zambia, set to commence by October 2025.

VBL successfully raised ₹7,500 crore through a Qualified Institutional Placement (QIP) for strategic acquisitions and expansions. Currently, the company’s net debt stands at ₹6,000 crore, with plans to utilize the proceeds for debt reduction for CY2025.VBL is adding about 10-12% additional outlets (400,000-500,000 outlets) every year, bolstering its growth. The company owns 130+ depots, 2800+ primary distributors, and 10,000+ vehicles, and also has franchise rights in Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.

VBL is the world’s second-largest PepsiCo franchisee with a market share of 72% in the carbonated segment, holding exclusive rights to manufacture and distribute PepsiCo’s carbonated and non-carbonated beverages across 27 Indian states and 7 union territories. The company has 50 state-of-the-art production facilities, 38 in India & 12 international territories.

Risk factors: Consistent growth in revenue and sales volumes may be affected due to fluctuations in seasonal sales that might pose a risk to the company’s overall financial performance throughout the year. Further, regulations like plastic bottle bans, high sugar taxes, and FDI restrictions pose risks for Varun Beverages.

Market Recap | 21 July

Indian equities rebounded on Monday, led by strong gains in banking stocks after robust quarterly earnings from private sector lenders. The Nifty 50 opened at 24,999, up 31 points from Friday’s close of 24,968, and steadily climbed through the day to hit an intraday high of 25,111. On the daily chart, the index traded below the 20-day EMA but held above the 50-, 100-, and 200-day EMAs. Its Relative Strength Index (RSI) stood at 47.63—well below the overbought threshold of 70.

The BSE Sensex mirrored the Nifty’s strength, opening at 81,918—up 160 points from the previous close of 81,758. Gains in HDFC Bank and ICICI Bank, both rising around 2.8% after posting better-than-expected earnings, helped drive market sentiment. The Bank Nifty surged 669.75 points, or 1.2%, to close at 56,952.75.

Most sectoral indices ended higher. The Nifty Finance Index led the rally, closing at 26,990, up 434.75 points or 1.64%, boosted by financial names such as:

ICICI Bank (+2.8%)

HDFC Bank (+2.2%)

ICICI Lombard General Insurance (+2.0%)

The Nifty Private Bank Index also ended strong, climbing 354.45 points, or 1.3%, to 27,888. The Nifty Services Index gained 368.10 points, or 1.1%, to settle at 33,129. Among individual stocks, InfoEdge, ICICI Bank, and Eternal rose up to 4%.

On the downside, the Nifty Oil & Gas Index fell 128.80 points, or 1.09%, to close at 11,643. Reliance Industries dropped 3.14%, dragging the index lower along with Gujarat State Petronet and Gujarat Gas. The decline followed the European Union’s decision to lower the price cap on Russian oil and tighten sanctions on the shadow fleet transporting it.

The Nifty PSU Bank Index also underperformed, shedding 41.35 points, or 0.58%, to end at 7,121.15.

Asian markets were broadly positive on Monday: Hang Seng (Hong Kong): +168.48 pts (0.67%) to 24,994.14; Kospi (South Korea): +22.74 pts (0.71%) to 3,210.81; Shanghai Composite: +25.31 pts (0.71%) to 3,559.79

As of 0440pm (India time), Dow Jones Futures were up 87.9 points, or 0.2%, trading at 44,430.09 on the US exchange.

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