Summary of the Day's Market Performance

• Indian equity indices ended on a flat note in a volatile session on October 1.

• The Sensex closed down 33 points at 84,266, and the Nifty slipped 13 points to settle at 25,796.90.

• The BSE Midcap index was up 0.3%, and the Smallcap index gained 0.5%.

• The global shift towards cheaper Chinese stocks, driven by stimulus policies from China's central bank, is pulling funds away from Indian markets. Additionally, potential interest rate hikes by the Bank of Japan are expected to weigh on market sentiment.

Performance of Key Sectors

• Gainers: Media, Auto, IT

• Losers: Telecom, Power, FMCG, Oil & Gas, Realty

Market Transactions:

• Foreign Institutional Investors (FII): ₹-5,579.35 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹4,609.55 crore (Net Buyers)

Foreign investors aggressively sold off their holdings amidst global uncertainties, while domestic investors continued to buy.

• Global Shifts: Funds are moving out of expensive Indian markets into cheaper Chinese stocks following stimulus measures from the Chinese central bank.

• BoJ Impact: Possible interest rate hikes by the Bank of Japan, fueled by political changes, could pose risks to the Indian market.

• Domestic Focus: The market eagerly awaits the RBI’s upcoming policy meeting and Q2 earnings reports to gain insights on the future market trajectory.

Oil prices have been declining as OPEC signals production increases, which is providing some relief to industries heavily reliant on energy costs.

Key Stock Movements and News

• Top Gainers: IndusInd Bank, ONGC, Asian Paints, Bajaj Auto, Titan Company.

• Top Losers: Tech Mahindra, M&M, Britannia Industries, Adani Enterprises, Infosys.

• Tech Mahindra, M&M, Britannia Industries, Adani Enterprises, and Infosys were among the top losers on the Nifty.

• IndusInd Bank, ONGC, Asian Paints, Bajaj Auto, and Titan Company led the gainers.

• Tata Motors reported a 15% drop in domestic sales in September 2024, with 69,694 units sold compared to 82,023 units YoY.

• TVS Motor Company registered its highest-ever monthly sales with 4.82 lakh units, up 20% in September 2024.

• Ashok Leyland saw a 10% decline in total sales at 17,233 units YoY, while Eicher Motors reported a 5.7% increase in commercial vehicle sales.

• Bajaj Auto sales surged 20% to 4.69 lakh units in September 2024.

• Paytm soared 7% as Dolat Capital maintained a buy rating, projecting a 30% upside for the stock.

• Manappuram Finance and Muthoot Finance fell 4% after the RBI flagged irregular practices in the finance industry.

• Aviation stocks buzzed as the government cut jet fuel prices for the second time this month by 6.2%.

• Midwest Limited filed for a ₹650 crore IPO; the Hyderabad-based company is engaged in natural stone exploration and export.

• HDFC Mutual Fund acquired a 0.5% stake in Cyient DLM.

• NCC secured orders worth ₹2,327 crore in September.

• Paytm: Strong upside potential with a 30% growth projection by Dolat Capital.

• Bajaj Auto: Impressive 20% YoY sales growth in September 2024.

• TVS Motor Company: Record-breaking monthly sales growth of 20%.

• NCC: Secured significant orders worth ₹2,327 crore, boosting long-term growth prospects.

• No New Action on Derivatives Trading
  SEBI did not announce any changes to control the rise in derivatives trading (futures and options). Although many expected new rules, like limiting weekly options or increasing contract sizes, no such actions were introduced.

• Mutual Funds Lite (MF Lite)
  SEBI introduced a simplified version of mutual funds, called MF Lite, to make it easier for new players to enter the market. This framework lowers the barriers for mutual fund sponsors and aims to attract more investments by making it easier and cheaper for people to start and manage mutual funds.

• New Asset Class for Wealthy Investors (HNIs)
  SEBI approved a new investment category for high-net-worth individuals (HNIs) with a minimum investment of ₹10 lakh. These investments will be in riskier products, managed professionally, and will offer more flexibility for investors seeking higher returns with higher risks.

• Faster Rights Issues
  SEBI approved faster processing of rights issues (when a company offers more shares to existing shareholders). The process will now be completed in 23 working days, down from an average of 317 days, making it quicker for shareholders to invest.

• T+0 Settlement for Top 500 Stocks
  SEBI expanded the faster T+0 (same-day) settlement cycle from 25 stocks to the top 500 listed companies. This will be implemented step by step, aiming to speed up the settlement process for investors.

• Easier Rules for Investment Advisors and Research Analysts
  SEBI relaxed rules for investment advisors (IAs) and research analysts (RAs), making it simpler for them to get registered and reducing their compliance burdens. This will help cater to the growing number of investors in India.

• Insider Trading Rules Expanded
  SEBI expanded the definition of "connected persons" under insider trading rules. Now, it includes firms and partners associated with connected persons, as well as people living in the same household. This change aims to strengthen regulations around who can access confidential market information.

• New Trading Options for Investors
  Investors will now have the option to trade in the secondary market (buying/selling shares) using either a UPI block system (like ASBA used in IPOs) or a 3-in-1 trading account facility. These options will be mandatory for large stockbrokers to offer, providing more convenience to investors.

The Indian market ended flat amid a volatile trading session, with mixed sectoral performances. Global factors like the Chinese central bank’s stimulus and a potential BoJ interest rate hike contributed to uncertainty, alongside domestic concerns over manufacturing output and infrastructure fragility. However, investors are optimistic about upcoming Q2 earnings and the RBI's policy decisions, which could provide clarity and direction for the market in the near future.

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Disclaimer: The information provided in this newsletter is for informational purposes only and should not be considered financial advice.

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