The Indian stock market chose to remain subdued with the Sensex and Nifty 50 showing gains of just half a percent. Nifty Bank, however, gained more than three and a half percent. The midcap and smallcap indices also rose by one-and-a-half percent and fifty-two percent respectively. This is indicative of the general investor optimism about the boom. That is why Nifty did not leave 23500 (23501.10) and Sensex 77000 (77209.90) level despite profit recovery on the last day of the week.
Nifty touched its all-time high of 23667.10 in the morning session on Friday, though the market is trying to stay in a state of consolidation. Sensex and Bank Nifty also moved past 77000 and 51900 respectively. So it is expected that Nifty will cross 24000 this month.
The Indian market has been making up for the shock on June 4 when the actual results of the elections differed from the exit polls, with Modi becoming the prime minister. Nifty has gained 1617 points while Sensex has gained 5124 points in the last fifteen days. Along with the GDP growth forecast, expectations of interest rate cuts, prospects of satisfactory rains, the budget to be presented next month is keeping the market bullish. The bullish hopes have strengthened as FII inflows have shifted back to the Indian market. Last week too, FIIs made net purchases (Rs. 9102.87 crore) almost at par with DIIs.
Every year, at the beginning of monsoon, the shares of fertilizer companies rise. Shares of FACT (Fertilizers & Chemicals Travancore) rose 47 percent during the week. (Rs. 1134.45) Along with it, the following other fertilizer companies also registered a high of 52 Week High.
RCF – Rs. 202.79, Chambal – Rs. 517.10, Deepak Fertilizers & – Rs. 685.95
Shares of Serra Sanitary Ware rose 10.5 percent on Friday and 22 percent for the week. On September 1, 2023, he paid Rs. A high of 9740 was recorded. It was thought that it would cross the 10000 mark in a few days. Now once again it is moving towards 10000.
In the last few days we have seen a boom in railways, defense shares Modernization of railways is a priority issue on the agenda of Modi government. So these railway companies are getting good work orders. The ranking of railway companies based on the amount of these work orders has recently been published at one place. It is as follows:
1) RVNL – Rs. 85000 Cr CMP Rs. 409.90
2) Titagarh – Rs. 28076 Cr CMP Rs. 1595
3) Ircon – Rs. 27208 Cr CMP Rs. 276.95
4) Texmaco Rail – Rs. 8000 Cr CMP Rs. 216.00
5) Jupiter Wagons – Rs. 7101 Cr CMP Rs. 695.30
6) Rites – Rs. 5690 Cr CMP Rs. 706.80
7) Railtel – Rs. 4700 Cr CMP Rs. 475.70
8) Oriented Rail – Rs. 1549 Cr CMP Rs. 282.25
A report by global brokerage firm Macquarie has been released recently. In it, the firm has advised to avoid investments in government-owned banks, some non-banking, finance companies, insurance companies and fintech companies. Accordingly, the ratings of SBI, Bajaj, Finance, Cholamandalam and M & M Finace have been changed from Neutral to Underperform. At the same time, it is advised to avoid the entire life insurance sector completely. But SBI Life Insurance has made an exception. Not only this, but the stock will lead the sector by increasing the Outperform rating, it said. The rating of private banks has been increased to Outperform. They include Axis Bank, Bandhan Bank, City Union Bank, Kotak Bank, IndusInd Bank, ICICI Bank.
In the coming budget, some sectors will get a bust from the stock market perspective. Alongside this discussion is another discussion, which is the dire need to rein in derivatives trading.
One discussion that is gaining momentum is that currently the income from trading in futures and options is classified as Business Income, hence it is taxable as per the Investor's Tax Slab. Moreover, if there is a loss from it, it is also deducted from other income; But given the gambling nature of derivatives trading, the risky involvement of the young generation and the loss of 90 per cent of traders, both SEBI and the RBI feel an urgent need to rein in derivatives trading. Actually, it was done with many warnings; But the trending in this is increasing day by day. Derivatives worth Rs 250 crore were traded in March 2020. The same figure in March 2024 will be Rs. 7000 crores. Therefore, income from derivatives trading is likely to be categorized as income from lotteries and cryptocurrencies. As a result, the amount of tax on it will increase. Also TDS will be applicable.
As per regular rebalancing of Sensex, Adani Ports will replace Wipro in Sensex from Monday.
Now for an interesting news! BSE CEO Sundaram Ramamurthy's annual salary increased by a whopping 417 percent this year. In the financial year 2022-23 he drew a salary of Rs.1.05 crore, while in 2023-24 he drew a salary of Rs.5.40 crore.