A Historic Year: Samvat 2080 – A Year of Record-Breaking Gains | Weekly Update November 1st
Hello Readers!
As we ring in the festive season with great expectations for the new year, let’s take a small walk down memory lane and look at the past trading year. All after a few market highlights.
🧾In this Article
Cover story: War spooks market but bulls take charge
📈 Weekly Market Wrap-up
Even amidst the festive cheer, Sensex closed the week at 79,389.06, down 0.8% and Nifty closed the week at 23,205.35, down by 0.9%.
| Index | Change (%) |
| Nifty 50 | -0.9% |
| Nifty Bank | 0.5% |
| Nifty Midcap Select | -1.6% |
| Nifty 100 | -1% |
| Nifty Midcap 50 | -1.4% |
| Nifty Midcap 100 | -0.7% |
| Nifty Smallcap 50 | 2.3% |
| Nifty Smallcap 100 | 1.7% |
| Nifty IT | -4.3% |
| Nifty Pharma | 1.2% |
| Nifty PSU Bank | 5.9% |
| Nifty Private Bank | -0.6% |
Sector Spotlight
The IT index declined by 3.58%, dragged down by concerns over global economic slowdown and potential tech layoffs. The FMCG sector, on the other hand, gained 1.73%, benefiting from strong domestic demand and pricing power. The consumer durables sector also saw a rise of 1.71%, driven by festive season sales and pent-up demand. In contrast, the capital goods and healthcare sectors faced selling pressure, with declines of 3.58% and 2.38%, respectively.
Nifty 100 Top gainers
- Indian Railway Finance Corporation Ltd. = 155.96 (+11.9% ↑)
- Macrotech Developers Ltd. = 1,206.25 (+10.9% ↑)
- Union Bank Of India = 117.17 (+7.2% ↑)
- Bharat Heavy Electricals Ltd. = 239.00 (+6.8% ↑)
- Bharat Electronics Ltd. = 284.90 (+6.0% ↑)
Nifty 100 Top losers
- Indusind Bank Ltd. = 1055.6 (-17.2% ↓)
- Interglobe Aviation Ltd. = 4052.5 (-10.3% ↓)
- Cholamandalam Investment and Finance Company Ltd. = 1272.75 (-9.5% ↓)
- Zomato Ltd. = 241.75 (-8.4% ↓)
- Samvardhana Motherson International Ltd. = 180.95 (-8.4% ↓)
FII and DII Activity:
In a continued streak, Foreign Institutional Investors (FIIs) were net sellers again selling a total of 14,415.65 crores. Domestic Institutional Investors (DIIs) were net buyers, investing Rs 9786.52 crore in Indian equities.
| Date | FII Net Activity in crores | DII Net Activity in crores |
| 28-Oct-24 | -3228.08 | 1400.85 |
| 29-Oct-24 | -548.69 | 730.13 |
| 30-Oct-24 | -4613.65 | 4518.28 |
| 31-Oct-24 | -5813.30 | 3514.59 |
| 01-Nov-24 | -211.93 | -377.33 |
| Total | -14,415.65 | 9,786.52 |
Global Gossip
The Dow Jones and FTSE 100 experienced a slight decline of 0.15% and 0.93% respectively. The S&P 500 saw a more significant drop of 1.37%, while the CAC 40 fell 2.23%. In contrast, the Nasdaq Composite and DAX 40 remained bullish, with gains of 1.50% and 0.61% respectively. Among Asian indices, Nikkei 225 experienced declines of 4.07% and 3.92% respectively. The Straits Times, Hang Seng, and Taiwan Weighted indices saw slight decreases of 0.69%, 2.78%, and 0.53% respectively. The KOSPI fell 2.23%, while the SET Composite and Jakarta Composite declined by 0.40% and 0.20% respectively. The Shanghai Composite bucked the trend, closing 1.69% higher.
Rupee Report
The Indian Rupee (INR) appreciated slightly against the US Dollar (USD) this week. The USDINR closed at 84.033 on Friday, down from 84.078 the previous week. This represents a weekly decline of -0.05%.
Gold Dips
Gold prices closed the week at $2,747.60, down 0.11% from the previous week. The yellow metal traded in a range of $2,718.31 to $2,760.33 during the week. Over the past 52 weeks, gold has seen a low of $1,811.03 and a high of $2,762.18.
🍟 Quick Bites
📈 In September 2024, the total value of bank loans increased by 14.4% year-on-year, with agriculture loans up 16.4%, industrial loans rising 9.1%, service sector loans growing 15.2%, and personal loans increasing by 16.4%, according to RBI data.
💰 ACME Solar has set a price band of ₹275 to ₹289 per share for its ₹2,900 crore IPO, which will be open from November 6 to November 8.
🏭 India’s production in eight core sectors grew by 2% year-on-year in September, reversing a 1.6% decline in August.
📊 Swiggy has announced its IPO price band at ₹371 to ₹390 per share, aiming to raise ₹11,327.43 crore through the offering.
📉 Godavari Biorefineries’ IPO listed at a price 12.5% lower than its initial issue price.
📱 According to a Bloomberg report, India exported $6 billion worth of iPhones, marking a 33% increase from April to September 2024 compared to the same period in 2023.
🔎 Stocks in news
🚆 RVNL received a ₹283.69 crore order from East Coast Railway in Angul district, Odisha.
🏦 HDFC Bank’s subsidiary, HDB Financial Services, has filed draft IPO papers with SEBI to raise ₹3,500 crore through a fresh issue and offer-for-sale.
⚡ Adani Power signed a 25-year power purchase agreement for 1,496 MW with MSEDCL.
🏨 Brigade Enterprises’ subsidiary, Brigade Hotel Ventures, has filed draft IPO papers with SEBI to raise ₹900 crore through a fresh issue.
🏗️ L&T secured major orders to develop electrical grids in Saudi Arabia, Qatar, and Africa, with orders valued between ₹5,000 crore and ₹10,000 crore.
🧴 Colgate-Palmolive received a ₹254.27 crore tax order for the assessment year 2021-22 and plans to appeal before a tribunal.
🔆 Tata Power’s subsidiary, Tata Power Renewable Energy, partnered with IndusInd Bank to provide MSEs with loans for solar energy facilities.
🏭 JSW Group signed an MoU with South Korea’s POSCO to develop steel, battery materials, and renewable energy in India, including a 5 MTPA steel plant.
Earnings corner
📱 Airtel reported a 168% year-on-year rise in net profit to ₹3,593.20 crore for the July-September quarter, with average revenue per user (ARPU) increasing by 15% to ₹233.
💊 Sun Pharma reported a 27.98% year-on-year rise in net profit to ₹3,040.16 crore for the July-September quarter.
⚡ Adani Power reported a 49.47% year-on-year increase in net profit to ₹3,331.80 crore for the July-September quarter, and the board approved raising ₹5,000 crore through non-convertible debentures.
🛢️ IOCL reported a net loss of ₹169.58 crore in the July-September quarter, compared to a net profit of ₹13,114.30 crore in the same quarter last year.
🏗️ Ambuja Cements experienced a 42.50% year-on-year decline in net profit to ₹455.96 crore for the July-September quarter, although sales volume of clinker and cement rose 9% to 14.2 million tonnes.
🏦 PNB reported a 136.87% year-on-year increase in net profit to ₹4,714.14 crore for the July-September quarter, with net interest income rising 5.99% to ₹10,517 crore.
🌬️ Suzlon Energy reported a 95.72% year-on-year increase in net profit to ₹200.20 crore for the July-September quarter, with its order book reaching an all-time high of 5.1 GW, including India’s largest wind energy order from NTPC.
⚙️ BHEL reported a net profit of ₹106.15 crore for the July-September quarter, compared to a net loss of ₹63.01 crore in the same quarter last year.
📞 Bharti Hexacom reported a net profit of ₹253 crore for the July-September quarter, reversing a net loss of ₹184 crore in the same quarter last year.
🏦 Indian Bank reported a 36% year-on-year increase in net profit to ₹2,707 crore for the July-September quarter, with net interest income rising 8% to ₹6,194 crore.
📈 Aditya Birla Capital reported a 641.96% year-on-year rise in net profit to ₹1,000.9 crore for the July-September quarter, with a 27% growth in its overall lending portfolio.
🧼 P&G Hygiene reported a 0.57% year-on-year increase in net profit to ₹211.90 crore for the July-September quarter.
🚗 Maruti Suzuki reported an 18.06% year-on-year decline in net profit to ₹3,102.50 crore for the July-September quarter and approved the amalgamation of its subsidiary, Suzuki Motor Gujarat.
🔋 Tata Power reported a 5.83% year-on-year increase in net profit to ₹926.53 crore for the July-September quarter
🪴 Dabur reported a 17.48% year-on-year decline in net profit to ₹425 crore for the July-September quarter, with a dividend of ₹2.75 per share declared for the record date of November 8.
🏢 Adani Enterprises reported a 664.53% year-on-year increase in net profit to ₹1,741.75 crore for the July-September quarter and approved raising ₹2,000 crore from non-convertible debentures.
⚓ Adani Ports reported a 39.89% year-on-year rise in net profit to ₹2,445 crore for the July-September quarter, with cargo volume reaching 220 MMT, a 9% increase year-on-year.
💊 Cipla reported a 15.18% year-on-year increase in net profit to ₹1,302.53 crore for the July-September quarter, with its North America segment growing 4% to $237 million.
🏦 Canara Bank reported a 10.27% year-on-year rise in net profit to ₹4,187.76 crore for the July-September quarter.
🧴 Marico reported a 19.83% year-on-year increase in net profit to ₹423 crore for the July-September quarter.
Sustainability news:
☀️️ Tata power approved an investment of ₹5,666 crore for a 1,000 MW pumped storage hydro project in Bhivpuri, Maharashtra.
🚀 IPO corner
- Subscriptions:
- Afcons Infrastructure IPO was subscribed 0.61 times.
Upcoming IPOs:
- Sagility India Limited IPO (Nov 05, 2024 to Nov 07, 2024)
- ACME Solar Holdings Limited IPO (Nov 06, 2024 to Nov 08, 2024)
- Swiggy Limited IPO (Nov 06, 2024 to Nov 08, 2024)
- Neelam Linens and Garments (India) Ltd IPO (Nov 08, 2024 to Nov 12, 2024)
- Niva Bupa Health Insurance Company Limited IPO (Nov 08, 2024 to Nov 12, 2024)
News:
✅ SEBI has approved NTPC Green Energy’s IPO worth ₹10,000 crore.
A Historic Year: Samvat 2080 – A Year of Record-Breaking Gains
Samvat 2080 will undoubtedly go down in history as one of the most prosperous years for Indian equities. The Nifty 50 index ended the year with a remarkable 25% gain, and numerous stocks in the broader market delivered multibagger returns. As a result, the total market capitalization of all BSE-listed stocks surged by an astonishing Rs 128 lakh crore, or approximately $1.5 trillion, since the last Diwali.
Key Drivers of the Rally
Several factors contributed to this stellar performance:
- Strong Corporate Earnings: Robust corporate earnings, especially from sectors like banking, financials, and consumer durables, fueled investor optimism.
- Improved GST Collections: Higher GST collections indicated a strengthening economy and improved consumer spending.
- Revival in Capex Cycle: Increased investments in infrastructure and manufacturing boosted economic growth and corporate profits.
- Favorable Monsoon Conditions: A good monsoon season supported agricultural growth and rural demand
- High Domestic Demand: Strong domestic demand, driven by factors like rising incomes and a growing middle class, underpinned economic growth.
- Liquidity Inflows: Significant inflows from mutual funds and positive global cues provided additional support to the market.
A Growing Investor Base
The Indian stock market witnessed a surge in investor participation during Samvat 2080. The NSE’s investor base surpassed the 20 crore mark, while the mutual fund industry’s managed assets reached approximately Rs 68 lakh crore. Monthly SIP inflows also reached a record high of nearly Rs 25,000 crore.
Global Synchronized Rally
It’s worth noting that the Indian market’s performance was part of a broader global rally. US indices also posted impressive gains of 27% to 35% during this period, reflecting a synchronized uptrend in global equity markets.
Looking Ahead
While Samvat 2080 was a historic year, it’s important to maintain a long-term perspective. As we enter a new Samvat year, investors should continue to exercise caution and conduct thorough research before making investment decisions. While the outlook for the Indian economy remains positive, global economic uncertainties and geopolitical risks could impact market sentiment.
Investor Takeaways:
Stay Informed: Stay updated with the latest news, market trends, and company-specific developments.
Diversify Your Portfolio: Spread your investments across different asset classes to mitigate risk.
Consult a Financial Advisor: Seek professional advice to tailor your investment strategy to your specific goals and risk tolerance.
Long-Term Perspective: Maintain a long-term investment horizon and avoid short-term speculation.
By adopting a disciplined investment approach and focusing on long-term goals, investors can continue to benefit from the growth potential of the Indian equity market.
Upcoming key financial events for the week:
| Date | Event |
| 01-Nov-24 | – USD ISM Manufacturing PMI
– USD Average Hourly Earnings m/m – USD Non-Farm Employment Change – USD Unemployment Rate – INR Nikkei S&P Global Manufacturing PMI (Oct) – INR FX Reserves, USD |
| 05-Nov-24 | – USD ISM Services PMI
– USD Presidential Election |
| 06-Nov-24 | – INR Nikkei Services PMI (Oct) |
| 07-Nov-24 | – USD Monetary Policy Summary
– USD Unemployment Claims |
| 08-Nov-24 | – USD Federal Funds Rate
– INR FX Reserves, USD |
