Summary of the Day's Market Performance

Market Overview

• Sensex: Down 56.74 points (-0.07%) to close at 81,709.12.

• Nifty: Fell 30.60 points (-0.12%) to settle at 24,677.80.

• Midcap & Smallcap Indices: Posted gains of 0.3% and 0.6%, respectively.

• Sectoral Highlights:

  • Top Gainers: Auto, Metal, FMCG, Telecom, PSU Bank (up 0.3-1%).

  • Top Losers: IT and Media sectors.

💸 Market Transactions:

• Foreign Institutional Investors (FII): ₹-1,830.31 crore (Net Sellers)

• Domestic Institutional Investors (DII): ₹1,659.06 crore (Net Buyers)

Domestic investors provided support amidst cautious sentiment.

• RBI Monetary Policy Update:

  • Policy Rates: Held steady at 6.5% for the 11th consecutive time.

  • CRR Cut: Reduced to 4% (previously 4.5%), injecting ₹1.16 lakh crore liquidity into the financial system.

  • Growth Projections: FY25 GDP growth outlook reduced to 6.6% from 7.2%.

  • Inflation Outlook: Revised slightly upwards to 4.8% from 4.5%.

  • Takeaway: The RBI signals resilience but acknowledges growth challenges. Dovish tones hint at a possible rate cut in February 2025.

• Governor's Tenure:

  • Shaktikanta Das is set to retire next week unless extended. Widely praised for his tenure, the final verdict awaits clarity on the FY25 policy execution.

• Sector Trends:

  • Auto and FMCG stocks gained on optimism from policy stability.

  • PSU Banks cheered the liquidity injection, with potential gains in net interest income.

What is CRR (Cash Reserve Ratio)?

• CRR is the percentage of a bank's total deposits that must be kept as reserves with the Reserve Bank of India (RBI).

• A CRR cut increases the money available for banks to lend, boosting economic liquidity.

Key Stock Movements and News

• Biggest Nifty Gainers: Bajaj Auto, Axis Bank, SBI Life, Tata Motors, Maruti Suzuki.

• Biggest Nifty Losers: Adani Ports, Cipla, Bharti Airtel, HDFC Life, Asian Paints.

1. LG Electronics India: Filed DRHP for a ₹15,000-crore public issue.

2. Vedanta: Shares surged after redeeming $1.2 billion bonds and releasing encumbered shares.

3. Mobikwik IPO: The IPO size was reduced to ₹572 crore, and the price band was set at ₹265-279 per share.

4. Samvardhana Motherson: Acquired Japan-based Atsumitec for $57 million.

5. Mishtann Foods: Shares tanked 20% after SEBI notice over alleged fund misappropriation.

6. RITES: Stock jumped 5% after securing a ₹148.25 crore order from IIM Raipur.

7. Vishal Mega Mart IPO: The price band finalized at ₹74-78 per share for the ₹8,000-crore IPO.

• Vedanta: Positive outlook after bond redemption and deleveraging.

• Samvardhana Motherson: Expected synergy from its recent acquisition in Japan.

• RITES: Bullish momentum following order win.

• Vishal Mega Mart: Potentially lucrative IPO opportunity in the retail sector.

• Mobikwik: Strategic IPO adjustments could offer upside post-listing.

Indian markets exhibited a cautious stance amidst a volatile session, with broader indices and sectoral rotation lending support. RBI’s monetary policy highlighted resilience but acknowledged the challenges ahead. Investors now look toward global cues and potential developments around RBI’s leadership and FY25 economic outlook.

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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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