Back home, the Securities and Exchange Board of India (SEBI) on Tuesday introduced new regulations for futures and options (F&O) trading. While the implementation timeline has been staggered, experts fear that these changes could reduce liquidity and depth in India’s markets.

In the barometer index, the S&P BSE Sensex slumped 1,769.19 points or 2.10% to 82,497.10. The Nifty 50 index tumbled 546.80 points or 2.12% to 25,250.10.

Larsen & Toubro (down 4.18%), Reliance Industries (down 3.91%) and HDFC Bank (down 2.55%) were major drags.

In the broader market, the S&P BSE Mid-Cap index slumped 2.27% and the S&P BSE Small-Cap index slipped 1.84%.

The market breadth was weak. On the BSE, 1,118 shares rose and 2,868 shares fell. A total of 90 shares were unchanged.

The NSE’s India VIX, a gauge of the market’s expectation of volatility over the near term, zoomed 9.86% to 13.17.

SEBI’s new F&O rules:

SEBI introduced a six-step plan to curtail retail participation in speculative index derivatives. This could result in a significant decline in trading volumes. New regulations require traders to maintain higher margins, potentially hindering their ability to take on larger leveraged positions.

Moreover, the reduction of weekly options expiries to one per exchange could lead to decreased revenues for exchanges and brokers. This change means that each exchange will only offer weekly contracts for one benchmark index instead of the current two to four. These measures are designed to reduce excessive speculation in the futures and options (F&O) segment, where retail investors often find themselves on the losing end of trades.

Numbers to Track:

The yield on India’s 10-year benchmark federal paper advanced 2.27% to 6.885 as compared with previous close 6.732.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9775, compared with its close of 83.8275 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement fell 0.56% to Rs 75,960.

The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, was up 0.22% to 101.89.

The United States 10-year bond yield gained 0.67% to 3.813.

In the commodities market, Brent crude for December 2024 settlement advanced $1.50 or 2.03% to $75.40 a barrel.

Global Markets:

The Dow Jones index futures were down 78 points, indicating a negative opening in the US stocks today.

Shares in Europe and Asia were mixed on Thursday, mirroring a cautious sentiment across global markets amid escalating tensions in the Middle East.

Markets in China and South Korea remained closed for a holiday. Taiwan markets were shut for a second day as Typhoon Krathon brings torrential rain on the island.

Geopolitical tensions in the Middle East have spiked following Iran’s missile attack on Israel on October 1. Israel’s subsequent ground incursions into Lebanon targeting Hezbollah, an Iran-backed militia group, have exacerbated concerns about potential oil supply disruptions and increased uncertainty in global financial markets.

In the United States, stock markets closed with modest gains on Wednesday. The tech-heavy Nasdaq Composite rose slightly by 0.08%, while the S&P 500 and Dow Jones Industrial Average inched up by 0.01% and 0.09%, respectively. Investor caution persisted, however, due to Middle East tensions and the anticipation of additional US labor data.

Key US tech stocks witnessed mixed performance. Nvidia gained 1.6%, while Tesla experienced a 3.5% decline. Humana Inc. and Nike faced significant losses, with drops of 11.8% and nearly 7%, respectively.

The ADP National Employment Report indicated that US private payrolls grew more than expected in September, adding 143,000 jobs. This surpassed economists’ forecasts and highlighted the strength of the US labor market despite broader economic uncertainties.

The US job market’s resilience was further underscored by the unexpected increase in job openings in August. The Job Openings and Labor Turnover Survey (JOLTS) revealed a rebound of 329,000 job openings, exceeding analysts’ expectations. While hiring declined slightly, layoffs decreased.

Stocks in Spotlight:

Dabur India dropped 6.19% after posting a disappointing Q2 biz update. Co. says its revenue will fall in mid-single digit, its profitability will be impacted and it expects operating margins to decline in the mid to high teens.

Suzlon Energy tanked 5% after receiving advisory cum warning letters from BSE & NSE for non-compliance with SEBIs LODR.

Vipul Organics jumped 1% on receiving approval from the Maharashtra Pollution Control Board for its new factory in Ambernath. The facility will increase pigment preparations manufacturing capacity by 3X.

Maruti Suzuki India slipped 4%. The company has recorded total sales increased 1.87% to 1,84,727 units in September 2024 as against 1,81,343 units sold in September 2023. Total sales
in the month include domestic sales of 148,061 units, sales to other OEM of 8,938 units and exports of 27,728 units.

Hero MotoCorp fell 1.52%.The two-wheeler majors total motorcycle and scooter sales jumped 18.74% to 637,050 units in September 2024 as compared with sales of 536,499 units recorded in September 2023.

Baazar Style Retail soared 6.57% on strong Q2FY25 business update. Topline is up 65% YoY, same store sales growth is up 41%. The company’s rapid expansion fuels the momentum.

ITD Cementation India soared 20% after the firm secured a new contract worth Rs 1,937 for constructing a multi-storied commercial building in Uttar Pradesh.

NMDC slipped 1.80%. The state-owned miner’s iron ore production increased by 1.33% to 3.04 million tonnes (MT) in September 2024 as against 3 MT produced in September 2023.

NBCC (India) tumbled 5.27%. The company informed that it has received orders from Small Industrial Development Bank of India (SIDBI) and Ministry of Textiles, aggregating to Rs 47.04 crore.

REC slipped 3.43%. The companys said that it has disbursed loans amounting to Rs 47,303 crore in Q2 FY24-25, which is higher by 13.71% as compared with Rs 41,598 crore disbursed in Q2 FY23-24.

JSW Energy fell 2.04%. The company said that its wholly owned subsidiary, JSW Neo Energy received a letter of Intent (LoI) from Maharashtra State Electricity Distribution Company (MSEDCL) for procurement of 1,500 MW /12,000 MWh of pumped hydro energy storage.

Adani Ports and Special Economic Zone (APSEZ) declined 2.74%. The company said that it has handled a total cargo volume of 37.5 million metric tonnes (MMT) in September 2024, which is higher by 14% on YoY basis.

Aurobindo Pharma added 1.38% after the company announced that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Cephalexin Tablets USP, 250 mg.

New Listing:

Shares of KRN Heat Exchanger and Refrigeration settled at Rs 478.45 on the BSE, a premium of 117.48% as compared with the issue price of Rs 480.

The scrip was listed at Rs 470, exhibiting a premium of 113.64% to the issue price. The stock has hit a high of 513.40 and a low of 450. On the BSE, over 26.50 lakh shares of the company were traded in the counter.

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