Indian Stock Market Latest Updates : Focus on Sensex, Nifty, and Bank Nifty

Indian Stock Market

Indian Stock Market we'll discuss the current status of the Indian stock market. In today's trading, the Sensex closed with a 33-point drop at 84,266, while the Nifty fell by 14 points, closing at 25,797. Similarly, the Bank Nifty closed with a 55-point decline at 52,923. The market started flat today, and there was a strong recovery attempt within the first 15 minutes.

After Indian Stock Market that, the market saw some stability, and eventually, both the Nifty and Bank Nifty closed with slight declines. No major volatility was observed. Our market was also impacted by weakness in global markets.

Impact of U.S. Fed Chairman's Statement

Yesterday, after our markets closed, a significant statement was made by U.S. Federal Reserve Chairman Powell. He mentioned that the U.S. economy is strong, and there will be interest rate cuts. Typically, interest rates are cut when the economy is weak, but here the situation is opposite. After this statement, the U.S. markets saw a rise, and Gift Nifty also came into positive territory.

Effect of Large FII Sell-Off

Recently, Foreign Institutional Investors (FIIs) have withdrawn ₹9,792 crore from the Indian equity market. This is a substantial amount, and such a large sell-off should have led to a 3-4% market decline, but that didn't happen. One of the key reasons behind this is the fund flow from Domestic Institutional Investors (DIIs), which is providing support to the market.

In today's trading, the IT sector showed gains, primarily due to the rise in IT companies following the Fed Chairman's statement. However, small and mid-cap stocks witnessed declines, while large-cap stocks registered significant drops.

Impact of China's Market and Golden Week Holidays

Uncertainty in China's markets is also impacting the Indian market. From October 1st to 7th, China will have holidays called 'Golden Week,' during which investors may withdraw their funds from the market. During such holidays, a drop in fund flow can be observed. In such situations, FII selling may also put pressure on the Indian market.

Mega IPOs and Their Market Impact

Several large IPOs are set to launch soon, such as Hyundai Motors, NTPC Green Energy, and a ₹50,000 crore IPO from Swift. These large IPOs can lead to liquidity tightening in the market, creating pressure in the secondary market. Whenever large IPOs come in, retail investors tend to support them more, leading to reduced investments in the secondary market.

Developments in the IT Sector

Some important updates regarding IT companies have also come in. For instance, Indian Glycols today announced their capacity expansion. Their grain-based distillery capacity is being increased from 100 kiloliters per day to 500 kiloliters per day. Additionally, their plant that converts ethanol into biofuel is also expanding its capacity. These expansions will increase the company's production capacity, improving profits and cash flow.

Declining Market Share of Ola Electric

A drop in Ola Electric's market share has also been observed. In June, it was 49%, but by September, it had fallen to 27%. There could be several reasons behind this, such as customer complaints, hardware and software issues, and increasing competition from other companies like Bajaj Auto and TVS. This decline in Ola Electric's market share could also impact their future prospects.

Angel One and New STT Rules

The NSE (National Stock Exchange) has recently made changes to the Securities Transaction Tax (STT). In the last budget, STT on futures was increased, resulting in a ₹100 tax per lakh rupees on premium transactions. However, STT on equity options has been reduced from ₹50 to ₹35, providing some relief to investors.

Additionally, Angel One has also changed its fees. While no fees were previously charged on delivery trades, now a flat fee of ₹20 or 0.01% will be applied, which may burden small investors. Under the new NSE rules, all brokers will now have to charge the same fees, regardless of their size.

How to Handle Market Volatility?

In the midst of all these changes and uncertainties, market volatility will continue. Retail investors should always remain cautious and adopt a long-term investment strategy. Any fundamental or technical changes in the market can impact its performance, but in such times, patience and making the right investment decisions are crucial.

Yesterday, after our markets closed, after some time, the important changes released by CB were eagerly awaited. There will be new rules, there will be new changes, and there were expectations that seven proposals would be taken forward, but no update has been received. However, unofficially, according to information coming from sources, there are some updates related to FNO. Let’s talk about it in the end. What are the new changes that SEBI is bringing? From here, all the big brokers, like these qualified brokers, should provide two options to their customers. One option should be to provide a three-in-one broking account if the customers ask for it, i.e., a combination of their bank account, demat account, and trading account.

A trading account should be provided to the customer so that whatever money they have, whether they trade or invest, that money is normally in the demat account in all the broking accounts we have now. But in the three-in-one accounts, the money stays in the person's bank account because they can earn interest. Every single large broker should give the option of providing a three-in-one broking or trading account to the customers.

Brokers should provide the facility of blocking not only in the demat account but also in their own bank accounts. This is what SEBI has wanted to do for a long time and wants to implement. When you want to buy any stock, you place an order without the money going into the demat account. While placing the order, the mechanism to block the funds in your bank account should also be allowed by the brokers, so that the money does not go to the actual broker. The broker’s demat does not go to the person’s bank account. SEBI is saying that the brokers should also get used to the new changes. What is this? Do you block the IPO? Do you not add it to the demat account, or do you mandate the money? A mandate is given and the money is blocked. If the transaction is complete, through the bank account directly to the person who has entrusted you with the stocks, the money will go to that person’s bank account.

An important future is to be brought by the brokers, and that too by February 2025. Expanding to 500 market cap stocks like being settled instantly. Does the settlement that is being sold by buy take up to now one day? So that it can still be settled on the same day. T+0 settlement is being expanded to the top 500 stocks. Regarding investment advisors and research analysts, I know that the existing rules have been simplified to a large extent, and after some time, we will have many SEBI-registered investment advisors and research analysts. Additionally, the time process for rights issues is being reduced, and within 23 working days, transfers will be made.

To make such decisions, promoters and a new asset class will be involved in portfolio management services (PMS), mutual funds, and that asset class will be involved in the form of strategies up to 25% of their entire AUM in derivatives, futures, and options. They are doing the same, so it will be interesting for those who want more returns and want to take more risks. If investors make investments in such a new asset class, those managing that asset class will play up to 25% asset allocation in derivatives, but what kind of strategies? I don’t understand these things, but overall, this fund would have taken exposure related to derivatives, futures, and options. This is a new asset class that SEBI is bringing in.

Whoever takes more risk and expects more reward, and those who understand the risk, will come into it. These are the important rules in all the rules that you are seeing. Have I told you about the FNO updates according to market sources? If you look at the above screen here, everyone is in a question mark as to why SEBI can’t take a decision related to FNO. But that question mark is unnecessary because there is no need for SEBI board approval to bring new norms related to FNO, and they are coming soon. They are near. In the coming times, SEBI has released a circular related to it. New FNO rules are related to unofficial updates, but we have talked to you about what SEBI has proposed and its process, so again I won’t repeat it.

Let’s talk about the next auto sales. First, Tata Motors, their overall sales, domestic sales in India, are down by almost 15%, especially in commercial vehicles. Sales are down by 23%, and passenger vehicle sales are down by 9%. Bajaj Auto numbers are better; overall total sales are up 20%, two-wheeler sales up 22%, and total domestic sales up 23%. Just like Bajaj Auto, TVS Motor is also top-notch, with overall sales up 20%, but EV sales alone are up 42%, and two-wheeler sales have increased by 22%. Next is Senko Gold, which will conduct its board meeting on October 4th to take a decision about a stock split and fund-raising, but the stock is on the bus today. They are telling all the gold financing institutions to do a comprehensive review by giving a three-month review period, as many entities are conducting malpractices in the regulated entities that provide loans.

Let’s talk about what is the market share and who has it. The RBI thinks that something is going wrong. The valuation of the gold related to the customer is not done while the customer is there. They are processing all the gold loans using a third party and, in the end, are following the correct norms for issuing the gold loan. RBI is of the opinion that this gold space has not followed proper norms and risk measures. Negative comments have been made in banks regarding gold loans. Federal Bank is in the top position in terms of market share; Bank of Baroda holds 4.6%, RBI has 3.8%, SBI has 3.5%, and ICICI Bank has 2%. Although 2% seems small for large banks, the main reason is that they provide other loans too, so gold loans seem small compared to them. Federal Bank will be the first to react when it comes to gold loans. Coming to NBFCs, Muthoot Finance is at the top, holding a 52.6% share, but with restrictions from the RBI, IFL Finance has recently fallen. Before that, it was a bit higher, currently at 21.2%, while SBFC has 16%, Sreeram Finance has 2%, and Bajaj Finance has a 16% share in gold loans related to their AUM. However, Muthoot Finance has fallen by 4%, and Manappuram Finance has not fallen because their gold loan percentage is 82.5%, while Manappuram holds 52.6% of the share.

Now let’s talk about Blue Dart. They spend a lot of time and effort to form a network, and they keep updating that they will increase their logistics costs from 9% to 12% on average from January 1st, 2025. When the same business prices increase, all customers have to pay more, leading to good revenue profitability. But the stock has settled down today, and crude oil prices have also fallen today, which is related to them. We also have to talk about aviation stocks. ATF, or Aviation Turbine Fuel, prices have been reduced in major cities by oil marketing companies, benefiting these companies as fuel costs account for 46% to 50% of their operational costs. The rest 50% includes salaries, pilots, cabin crew, and other running costs. Recently, crude oil has been falling, so when they are getting ATF at a low price, the margins and profitability of aviation companies will increase. So, in the upcoming quarter results, stocks have gained today. Now, let’s talk about SpiceJet.

As ATF fuel costs are coming down, they will benefit. After markets closed yesterday, Plutus Wealth Management, a famous wealth management company, bought ₹85 lakh worth of shares at an average price of ₹595 per share. Additionally, SpiceJet has communicated to its customers that they have faced some service challenges recently, but they are making new investments to improve. SpiceJet has also cleared close to ₹120 crore worth of salary dues for their employees, including four months of back pay. With all these updates, coupled with the advantage from falling crude oil prices, SpiceJet’s stock is on the rise after being stagnant for a long time. However, it remains to be seen if the company can sustain this revival.

Parallel to these events, LPG cylinder prices related to HPCL, BPCL, and Indian Oil have also increased. The price of a 19-kg LPG cylinder in Delhi has now increased to ₹1740 from ₹1691.50 earlier. This is the third straight month of price hikes. We understand that even though weddings are a big event across India, expenses related to weddings continue to rise.

This season, around 48 lakh weddings are expected to take place, and people are ready to spend close to ₹5.90 lakh crore, with ₹1.5 lakh crore spent in Delhi alone

Conclusion

Friends, in today's post, we discussed the current status of the market, FII sell-off, mega IPOs, and various company-related updates. We hope this information will help you make informed investment decisions. If you found this post useful, don't forget to like and share it.