Wah market wah!

Nifty50: 18,562 ▲ 50 (+0.2%)
Sensex: 62,504 ▲ 211 (+0.3%)

Namaste, people!

Indians are running to invest in the markets and guess who’s feeling the heat? Mercedes Benz! To beat volatility and get the best returns, Indians are parking their money in SIPs. Turns out a ₹50k investment in the markets means lesser disposable income for luxuries like a brand new Merc, at least that’s what the company chief believes. So, where are you ‘parking’ your hard-earned money — in a zooming stock market or flashy new wheels?

• Party on the bourses today!  Both benchmark indices — Nifty and Sensex touched fresh lifetime highs of 62,577 and 18,614 respectively. Why? We will tell you in a bit.
• In all, 25 of the Nifty50 stocks closed in the green.
• Meanwhile, the rupee closed flat at 81.66 against the US dollar.

Among the Nifty sectoral indices, Oil and Gas (+1.6%) and Auto (+0.6%) were the top winners, while Metal (-1.1%) and Financial Services (-0.09%) were the top losers.

What’s trending

⭐ OMCs on the rise as oil price dips

IOC (NSE): 75 ▲ 2.6 (+3.5%), BPCL (NSE): 340 ▲ 16 (+5.0%)

Oil prices fell on Monday as street protests against strict Covid curbs in China stoked concern on  the outlook for fuel demand. On cue, shares of oil marketing companies (OMCs) like IOC and BPCL surged over 4% intraday. Falling oil prices mean cheaper raw materials which is good news for OMC bottom lines. The Brent crude fell by $2.43 to $81.20 per barrel, its lowest since 4 January, 2022. While, US West Texas Intermediate crude fell by $2.16 to $73.60 per barrel, its lowest since 22 December, 2021.

⭐ Godrej Prop’s new luxe property

GODREJ (NSE): 1,290 ▲ 2.8 (+0.2%)

Godrej Properties plans to launch a luxury housing project at Ashok Vihar in New Delhi. The project will be launched in the March quarter. The company is eyeing ₹8,000 crore of sales revenue from this property. The land parcel belonged to the Rail Land Development Authority. The total development potential of the Ashok Vihar project would be around four million square feet.

⭐ Max Financial gets IRDAI nod

MFSL (NSE): 683 ▲ 17 (+2.6%)

Max Financial (MFSL) will acquire the remaining 5.17% stake in Max Life Insurance from Mitsui Sumitomo (MSI). The Insurance Regulatory and Development Authority of India (IRDAI) has granted approval to the transaction. This will take MFSL’s  stake in Max Life to 87%. MFSL will purchase 9.91 crore shares of Max Life at ₹85 per share to complete the transaction. Earlier, MFSL held a 72.52% stake in Max Life and MSI had 25.48% stake. 

⭐ HFCL bags order

HFCL (NSE): 80 ▲ 0.1 (+0.1%)

Homegrown fibre cable and radio components maker HFCL has secured an order worth ₹1,770 crore. The company will provide EPC services to lay fibre optic cables for the rural water supply network in Varanasi. The project will be executed by the company along with JWIL Infra as a consortium partner.

In Focus

Indian ‘Tiger’s’ burning bright

Early X’mas on the street? Certainly looks like that in India with the indices defying gravity. Both benchmark indices – the Nifty50 and Sensex – closed at their respective all-time highs on Monday. In November alone, the Nifty50 and Sensex are up around 3%. Here are 5 reasons for the meteoric rise of the Indian markets: 

1. Fed v/s Inflation: As the US Central bank took inflation head on, it hiked interest rates. Result: The dollar gained. US government bonds became an attractive bet, with the promise of higher returns. Which is why, big money aka FIIs or foreign institutional investors pulled out money from emerging markets like India. That’s what happened in the early part of this year. 

What’s changed? The inflation rate is cooling off in the US. So, Uncle Sam has hinted at slowing down the pace of rate hikes.

2. FIIs say Namaste India, again 

This means the US bonds could now offer lower interest rates or returns, pushing foreign investors back to Indian shores. In November till date, the Foreign Institutional Investors (FIIs) have already pumped in around $4 billion into the Indian markets.

3. Desi firepower boosts bourses

Domestic retail investors also aren’t shying away from Indian equities. In October 2022, the SIP inflows into mutual funds hit a monthly record high of ₹13,000 crore. 

4. Oil prices slide

Meanwhile oil is slipping. China, which is the largest importer of oil globally, is declaring  fresh lockdowns due to a rise in Covid cases again. As economic activity in China takes a beating, demand for crude is expected to fall. Falling crude oil prices is beneficial for Indian companies. The cost of raw material could be reduced, boosting profitability.  

5. Strong demand for loans in India

To top it all, India’s consumption remains robust. The country’s credit or loan growth has been strong despite the rising interest rates.

Most notably, India is shining bright when the rest of the world is in the grips of a slowdown. The IMF has gone on record, calling India a ‘bright spot on a dark global horizon.’ And why not? India is expected to be one of the fastest growing economies in 2022 and 2023. 

Already, traders are predicting the Sensex will hit 80k soon. Where do you think markets will close this year-end? Let us know. 

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Good to know

What are SIPs?

An Systematic Investment Plan (SIP) is a plan which is offered by mutual funds to their investors. An SIP allows you to invest small amounts on a periodic basis in a mutual fund. Usually, the pre-defined SIP intervals are on a weekly/monthly/quarterly/semi-annually or annual basis. With SIP, the investor invests in a time-bound manner without worrying about how the markets are performing. SIPs help you stay financially disciplined as you build your wealth for the future.

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