As of November 1, 2024, the Indian stock market is buzzing with activity due to several key developments and special trading sessions:
Muhurat Trading Session for Diwali (Samvat 2081)
The market held a special Muhurat Trading session from 6:00 PM to 7:00 PM IST to celebrate Diwali and the start of Samvat 2081, symbolizing a prosperous new financial year. This ceremonial trading session is an auspicious occasion for investors, who often make token purchases to bring good fortune. Historically, the Muhurat session reflects positive sentiment, with indices typically showing gains as market participants embrace an optimistic outlook.
Key Market Developments
- Swiggy’s IPO Draws High Investor Interest
Swiggy, India’s top food and grocery delivery platform, is set to launch a $1.35 billion IPO next week. Despite lowering its valuation from $15 billion to $11.3 billion due to market conditions, Swiggy attracted bids exceeding $15 billion from big-name investors like Norges Bank Investment Management, Fidelity International, and BlackRock. This strong interest underlines the rapid growth of India’s quick-commerce market, expected to reach $6 billion in 2024. - HDB Financial Services’ Upcoming IPO
HDB Financial Services, part of HDFC Bank, has filed for a ₹125 billion ($1.49 billion) IPO. This includes ₹100 billion in shares from HDFC Bank and ₹25 billion in fresh shares from HDB Financial, aimed at capital growth and regulatory compliance. This IPO meets the regulatory mandate for large NBFCs to go public by September 2025. - Larsen & Toubro’s Impressive Q2 Results
Larsen & Toubro (L&T) shares surged by almost 7% after a strong second-quarter performance, with international business now contributing 52% of its revenue. The company has maintained its full-year order growth forecast, underscoring the effectiveness of its international strategy and less dependence on the domestic market. - SEBI’s New Derivatives Trading Regulations
Effective November 20, 2024, SEBI is tightening regulations on equity derivatives trading to reduce speculative trading risks. Key changes include limiting weekly options contracts to one per exchange and increasing the minimum trading amount to ₹1.5-2 million. These measures aim to curb financial risks tied to high speculative volumes. - Adani Enterprises’ Profits Soar
Adani Enterprises reported a seven-fold increase in profits, reaching ₹17.4 billion ($207 million), driven by growth in airport operations and green energy, now accounting for a third of its profit before interest and tax. Conversely, its coal division saw a 30% decline in pre-tax profits, reflecting reduced volumes and lower electricity demand in India. - Global Investment Inflows Amid Market Volatility
As global markets face uncertainties, particularly with the U.S. presidential election approaching, India has attracted steady foreign investments, boosting its bonds to the top among developing markets. India’s record-high stock market and stable political and economic conditions have made it a favorable option for investors seeking stability. - Hyundai Motor India’s Record IPO
Hyundai Motor India raised $3.3 billion in what became India’s largest IPO. While its share value dipped by 4% initially, the success of Hyundai’s IPO and its 15% market share in India underscore the appeal for other foreign companies eyeing listings in India.
Anticipated Market Movements
The Indian stock market is poised for further action as Swiggy’s IPO and HDB Financial’s listing are set to draw attention, while investors anticipate the impact of SEBI’s new regulations on derivatives trading. The Muhurat session today is a vibrant reminder of India’s growing market potential, enhanced by a steady influx of foreign capital and strong domestic liquidity.