Indian Stock Market Report: Small-cap and Mid-cap Stocks Shine, Pharma and FMCG Lead Gainers

In a dynamic day of trading on the Indian stock market, small-cap and mid-cap stocks emerged as the stars of the day. Investors witnessed a surge in these stocks, contributing to the overall positive sentiment in the market. Additionally, the pharma and FMCG sectors took the lead among gainers, showcasing a robust performance. Let’s delve into the key highlights of today’s trading session.

Stock Market Top Gainers (Nifty 50)

1. L&T (Larsen & Toubro): L&T secured the top position among gainers on the Nifty 50 index. The stock closed at Rs 2,965.05, marking an impressive increase of 1.80% from the previous day’s close.
2. Coal India: Coal India, a prominent player in the mining sector, posted substantial gains, closing at Rs 291.55 with a rise of 1.67%.
3. ITC: ITC, a major player in the FMCG (Fast-Moving Consumer Goods) industry, also saw a significant increase, ending the day at Rs 449.15, up by 1.51%.
4. Cipla: Cipla, a renowned pharmaceutical company, closed at Rs 1,180.50, reflecting a gain of 1.45%.
5. LTIMindtree: LTIMindtree, part of the IT sector, showed strength with a 1.38% increase, closing at Rs 5,436.90.

Stock Market Top Losers (Nifty 50)

While the overall market sentiment was positive, there were a few stocks that faced downward pressure:

1. Titan: Titan, a leading name in the jewelry and watch industry, closed at Rs 3,214.55, down by 1.47%.
2. Grasim: Grasim, a prominent player in the textiles and cement sectors, saw a 1.37% decline, closing at Rs 1,931.10.
3. Hero Moto: Hero MotoCorp, a significant player in the two-wheeler industry, experienced a 0.92% drop, closing at Rs 3,006.35.
4. SBI (State Bank of India): SBI, one of India’s largest banks, faced a slight setback, ending the day at Rs 589.75, down by 0.78%.
5. BPCL (Bharat Petroleum Corporation Limited): BPCL, a key player in the energy sector, recorded a 0.75% decrease, closing at Rs 349.00.

Stock Market News

• SEBI’s Nominee Deadline Extension: The Securities and Exchange Board of India (SEBI) has granted an extension until the end of December for adding nominees to demat accounts. This move aims to provide investors with ample time to make necessary arrangements.
• Government Borrowing Update: The Indian government is set to borrow Rs 6.55 lakh crore in the second half of the financial year 2023-24, which constitutes 42.45% of the total budgeted amount of Rs 15.43 lakh crore for the fiscal year. This information comes from the Finance Ministry.
• RBI’s Ways and Means Advances Limit: The Reserve Bank of India (RBI) has set the limit for Ways and Means Advances, a lending facility for the government, at Rs 50,000 crore for the second half of the financial year 2023-24.

Stocks in Focus

Several companies made headlines today:

• Canara Bank and PNB Fundraising: Canara Bank and PNB (Punjab National Bank) successfully raised funds worth Rs 8,000 crore through various debt instruments.
• IL&FS Payout: Infrastructure Leasing & Financial Services (IL&FS) approved an interim distribution payout of Rs 807 crore to its creditors.
• Dhanlaxmi Bank Chairman Appointment: The Reserve Bank of India (RBI) cleared the appointment of KN Madhusoodanan as the part-time chairman of Dhanlaxmi Bank.
• Aditya Birla Capital Investment: Aditya Birla Capital infused Rs 750 crore into its subsidiary AB Finance, signifying its commitment to the financial sector.
• REC and PNB MoU: Rural Electrification Corporation (REC) signed a memorandum of understanding (MoU) with Punjab National Bank (PNB) to jointly fund projects in the power sector, infrastructure, and logistics sector.

IPO Corner

Subscription:

• JSW Infra IPO: The JSW Infrastructure IPO was highly subscribed, with an impressive 37.37 times subscription rate. Retail investors showed strong interest with a subscription rate of 10.32 times.
• Updater Services IPO: Updater Services’ IPO garnered 2.90 times subscription, with retail investors subscribing 1.39 times.
• Valiant Labs IPO: Valiant Labs IPO has seen a subscription rate of 0.33 times, while retail investors have subscribed 0.62 times. The IPO remains open until October 3rd.

Listing:

• Signature Global Premium Listing: Signature Global made a notable debut on the stock exchange, listing at a 15.58% premium.
• Sai Silks Listing: Sai Silks also had a successful listing, with a 4% premium.

Approval:

• Fincare Small Finance Bank IPO Approval: Fincare Small Finance Bank received SEBI’s approval for its upcoming IPO, signaling an exciting development in the banking sector.

Word of the Day: Ways and Means Advances (WMA)

Ways and Means Advances (WMA) serve as a temporary lending facility for the government, introduced in 1997. This mechanism enables the government to secure immediate cash from the Reserve Bank of India (RBI) at the prevailing repo rate. However, the government is obligated to repay the borrowed amount within 90 days.

In essence, WMA offers the government a short-term financial solution to meet urgent funding needs and maintain fiscal stability.

Understanding Float in Stocks

Float represents the shares of a company that are available for purchase and sale in the stock market. To comprehend this concept, let’s illustrate it with an example:

Consider ABC Ltd’s shareholding structure:

• 20,000 shares are held by individual investors.
• 10,000 shares are owned by institutional investors such as banks and mutual funds.
• 10,000 shares are held by insiders, including founders, CEOs, and top executives.

The outstanding shares encompass the total shares in existence, which in this case is:

Outstanding shares = 20,000 + 10,000 + 10,000 = 40,000 shares.

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Market Indices

1 Day Change:

• Gold: Gold prices declined by 0.96% to reach Rs 58,040 at 6 PM.
• Silver: Silver prices decreased by 1.02% to Rs 71,180 at 6 PM.
• USD-INR Exchange Rate: The USD-INR exchange rate stood at Rs 83.23 per USD, marking a 0.06% decrease.

Global Indices:

• Dow Jones: The Dow Jones index closed at 33,618.88, experiencing a 1.14% drop on September 26th.
• Nasdaq: The Nasdaq index closed at 13,063.61, with a 1.57% decrease on September 26th.

Long-Term Returns

Sensex: Over the last 20 years, Sensex has delivered an annualized return of 14.49%.

Nifty: The Nifty index has provided an annualized return of 14.12% over the past two decades.

Dow Jones: In contrast, Dow Jones has seen a 6.63% annualized return.