Category: Market Updates

At 14:30 IST, the barometer index, the S&P BSE Sensex, surged 1,033.18 points or 1.26% to 81,983.27. The Nifty 50 index jumped 286.30 points or 1.17% to 24,753.75.

The broader market underperformed the benchmark indices, the S&P BSE Mid-Cap index rose 0.19% and the S&P BSE Small-Cap index added 0.26%.

The market breadth was positive. On the BSE, 2,153 shares rose and 1,763 shares fell. A total of 126 shares were unchanged.

Buzzing Index:

The Nifty Private Bank index gained 0.99% to 26,034.20. The index rallied 3.16% in five consecutive trading sessions.

Kotak Mahindra Bank (up 1.29%), RBL Bank (up 0.93%), Axis Bank (up 0.91%), ICICI Bank (up 0.83%), City Union Bank (up 0.55%) HDFC Bank (up 0.37%) and IDFC First Bank (up 0.15%) advanced.

On the other hand, Federal Bank (down 0.19%), Bandhan Bank (down 0.15%) and IndusInd Bank (down 0.04%) edged lower.

Numbers to Track:

The yield on India’s 10-year benchmark federal paper rose 0.04% to 6.797 as compared with the previous close of 6.794.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.7225, compared with its close of 84.7500 during the previous trading session.

MCX Gold futures for the 5 December 2024 settlement gained 0.16% to Rs 76,168.

The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, was down 0.23% to 106.07.

The United States 10-year bond yield added 0.50% to 4.203.

In the commodities market, Brent crude for the February 2024 settlement gained 23 cents or 0.32% to $72.54 a barrel.

The bulls made a strong comeback on the Street, with the benchmark indices Nifty and Sensex surging nearly 2 percent each, propelling investor wealth by a staggering Rs 8.5 lakh crore in just one day. A confluence of factors—including the positive outcome of the Maharashtra elections, encouraging signals from Asian and US markets, and a welcome dip in foreign outflows—sparked widespread buying across the bourses.

The Indian stock market has experienced a significant jump today, with various factors contributing to this upward trend. Here are some of the key reasons:

 Both key indices had clocked modest gains in the previous session on Tuesday. However, they resumed their downward march on Thursday on lingering concerns over weak earnings, geopolitical tensions, and stretched valuation. The US indictment of Adani Group Chairman Gautam Adani and other senior executives on bribery charges dealt a fresh blow to sentiment.

Let’s take a look at the key factors behind the market selloff.

DIwali Muhurat Trading 2024 is coming up, so mark your calendars! On November 1, 2024, from 6:15 PM to 7:15 PM, there will be a special one-hour trading session. In a period typically linked to riches and success, this is a fortunate time to participate in the Indian equity market. Get your investment plan ready now to take full advantage of this important cultural trading event.

Muhurat Diwali Trading 2024
A special event known as muhurat trading takes place on the Indian stock exchanges on Laxmi Pujan, the day of Diwali. Taking place in the evening, this unique trading session lasts only one hour. For traders and investors, it offers a rare chance to engage in the market during a period considered favourable for investments.

Diwali is a festival that represents the triumph of good over evil and light over darkness. People typically invest in a variety of assets, such as stocks and mutual funds, during this joyous time. Many people think that investing now increases the likelihood of building wealth. Muhurat trading is a much-anticipated event, with the stock exchanges announcing the timetable each year.

Muhurat Trading date and time

The stock exchanges specify the time of Muhurat Trading for every year. Muhurat Trading session 2024 will be held on Friday, November 1. The special trading session will be held from 6:00 pm to 7:00 pm. The stock exchanges also conduct a 15-minute pre-open session starting 5:45 pm. The trades taking place during the special trading session are also settled on the same day.

Hyundai Motor India, the country’s second-largest carmaker, has finally made its debut in the Indian primary market with a massive IPO. The much-anticipated offering has garnered significant attention from investors, given the company’s strong brand presence, robust financials, and growth potential.

Key Highlights of the IPO:

Issue Size: The IPO is expected to raise a staggering ₹27,870.16 crore, making it one of the largest IPOs in India’s history.

Price Band: The price band for the IPO has been set at ₹1,865 to ₹1,960 per share.

Subscription Period: Investors can bid for the shares from October 15 to October 17, 2024.

Anchor Investors: The company has already secured ₹8,315.28 crore from 225 anchor investors, including prominent mutual funds and institutional investors.

Why Investors are Excited:

Strong Brand Value: Hyundai has built a reputation for quality, reliability, and innovation in the Indian automotive market.

Robust Financials: The company has consistently delivered impressive financial performance, driven by its diverse product portfolio and strong market share.

Growth Prospects: India’s booming automotive market presents significant growth opportunities for Hyundai, especially in segments like SUVs and electric vehicles.

Government Support: The Indian government’s focus on promoting domestic manufacturing and reducing dependence on imports is likely to benefit Hyundai.

Should You Invest?

While the Hyundai Motor India IPO offers a compelling investment opportunity, it’s essential to consider your risk tolerance and investment goals before making a decision. Investors should carefully analyze the company’s financials, market dynamics, and competitive landscape to assess the potential returns and risks associated with the IPO.

Stay Tuned for Updates

As the subscription period for the Hyundai Motor India IPO unfolds, we will continue to provide real-time updates on the subscription status, grey market premium (GMP), and expert opinions.

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Following a briefing from the National Development and Reform Commission of China that offered no information on more stimulus, the market rally in China lost momentum on Tuesday. 

After returning from the Golden Week holiday, mainland China’s CSI 300 soared almost 10% at the start of Tuesday. However, the index ultimately trimmed gains to a 5% increase. After a dramatic 10% decline, Hong Kong’s Hang Seng index recovered marginally to a 6.4% loss.

Tuesday saw a significant decline in other Asia-Pacific markets as investors watched Japan’s August wage and spending statistics. In real terms, household expenditure in Japan decreased 1.9% year over year in August, which was less than the 2.6% dip that experts surveyed by Reuters had predicted. The decline is occurring at the quickest rate since January, when it fell 6.3% annually. 

Additionally, that decrease occurred prior to the biggest pay increases for unionised Japanese workers in 33 years being granted during spring wage negotiations. But according to figures from the nation’s statistics agency, real salaries increased by 2% in August, reaching an average of 574,334 yen ($3,877.44).

The benchmark Nikkei 225 slipped 0.99% after the release, while the Topix was down 1.06%. South Korea’s Kospi was 0.72% lower, dragged by shares of heavyweight Samsung Electronics after it released worse than expected third quarter guidance. The small cap Kosdaq was down 0.31%. Australia’s S&P/ASX 200 slipped marginally.

U.S. stocks fell overnight as market sentiment was affected by increased oil costs and higher Treasury yields. The S&P 500 fell 0.96%, and the Dow Jones Industrial Average fell 0.94%. With a 1.18% decline, the Nasdaq Composite suffered the most loss. For the first time since August, the benchmark 10-year Treasury yield exceeded 4%, rising to 4.02%. Because of the ongoing high levels of tension in the Middle East, oil prices also increased. The price of U.S. crude rose over 3% to hover over $77 per barrel.

The Indian stock market collapsed on Thursday, with the major indices, the Sensex and Nifty 50, opening more than 1% lower due to weak global signals and growing worries of a full-fledged conflict between Iran and Israel over geopolitical tensions in the Middle East.

The Nifty 50 opened 344.05 points, or 1.33%, lower at 25,452.85, while the Sensex fell 1,264.20 points, or 1.50%, to open at 83,002.09. In four sessions, the Nifty 50 has down 3%.

The new guidelines for trading derivatives by the Securities and Exchange Board of India (SEBI) and mixed cues from Asian and US stock markets during the course of the night also affected market mood.

The following five main causes of today’s stock market meltdown in India are:

Iran – Israel Conflict
After Iran launched a volley of almost 200 missiles towards Israel on October 1 in revenge for the assassination of Hezbollah’s Hassan Nasrallah, tensions in the Middle East increased. With Tehran threatening to launch a more powerful attack if it is targeted, Israel has pledged to make Iran “pay” for the attack on its territory. Israel also declared that it had started small-scale land operations in Lebanon to attack the Hezbollah group, which is supported by Iran.

According to the most recent information, an Israeli attack on a medical facility in the heart of Beirut resulted in at least six fatalities and seven injuries, according to the Guardian.

SEBI F&O Regulations
The equity derivatives trading regulations were tightened by market regulator Sebi, which increased the entry barrier and increased the cost of trading in the asset class. Sebi published a number of new criteria in its most recent circular, including a nearly three-fold increase in the minimum trading amount and a limit on the number of weekly options contracts that can be traded on any given exchange.

The CEO and fund manager of Whitespace Alpha, Puneet Sharma, thinks that although these barriers can increase market resiliency, they also present difficulties.

According to him, the issue now is for market participants to conform with these higher compliance criteria while attempting to sustain innovation and growth.

Crude Oil Prices
Crude oil prices traded higher as worries of a further escalation in the Middle East deepened, fuelling anxieties that oil supplies from the world’s largest producing region may be jeopardised if the conflict develops. An increase in the price of oil is detrimental to countries that import the commodity, such as India, since crude accounts for a large portion of the import cost.

US West Texas Intermediate crude prices increased 1.03% to $70.82 a barrel, while Brent crude futures up 0.87% to $74.54 a barrel.

FII Selling
The foreign institutional investors (FIIs) extended their selling as they sold equities worth ₹5,579.35 crore on October 1, while domestic institutional investors extended their purchasing as they bought equities worth ₹4,609.55 crore on the same day.

Technicals
The Nifty 50 broke through the 25,700 and 25,500 downward support levels.

“A break below these levels could trigger additional selling of 300 – 500 points. Traders with long positions are advised to book profits near resistance zones and wait for dips to re-enter buying positions,” said Hardik Matalia, Derivative Analyst at Choice Broking.

The Securities and Exchange Board of India adopted several revisions on Monday that will make it easier for mutual funds to offer passively managed schemes, streamline regulatory compliance, and establish a new asset class.

SEBI Board’s Key Decisions:

• Investors can now trade utilising the ASBA-like UPI block system or the 3-in-1 trading facility in addition to the currently available methods.
• Qualified stock brokers must offer one of these two options. Eventually, trading under the optional T+0 settlement will be available for the top 500 scrips in terms of market capitalisation, beginning with the top 25. Investors can use any regulated broker to opt into the T+0 settlement cycle.
• A new regulatory framework was implemented for a new class of asset or investment product.Introduction of the Mutual Funds Lite framework for programs with passive management.
• SEBI will no longer accept documents that have been notarised or gazetted officer certified in favour of self-attestation.

New Delhi: A number of significant developments that will take effect on October 1, 2024, should be noted by investors as the Indian markets continue their recent bull run. The Securities Transaction Tax (STT) has increased, stock exchange transaction fees have been amended, and new share buyback taxation regulations have been implemented. Below is a summary of the changes that will take effect on tomorrow.

Revised Transaction Charges for NSE and BSE
The transaction fees for the cash and futures and options (F&O) divisions have been revised, according to announcements made by the stock exchanges BSE and NSE. These adjustments are in response to SEBI’s instruction to all market infrastructure organisations to adopt a single, flat charge structure.

Transaction fees for Sensex and Bankex equities derivatives options contracts on the BSE would be Rs 3,250 for each crore of premium turnover. Other equity derivative contracts continue to have the same fees.
The transaction charge for the cash market has been established by the NSE at Rs 2.97 per lakh of traded value. The cost will be Rs 1.73 per lakh of traded value for equities futures and Rs 35.03 per lakh of premium value for equity options.
The currency derivatives segment charges Rs 0.35 per lakh of traded value for futures and Rs 31.10 per lakh of premium value for options, including interest rate options.

Hike in STT
The STT increase for trading in futures and options was announced earlier this year by Finance Minister Nirmala Sitharaman, and it will likewise take effect on October 1.
– The STT for futures trading has increased from 0.0125 percent to 0.02 percent. The STT for trading options will increase to 0.1%.

New Buyback Taxation

Share buyback revenue will be subject to shareholder taxation, much like dividend income, as of October 1. This indicates that the tax will be levied in accordance with the applicable income tax slab of the taxpayer.