Weekly Wrap-Up: October Week 1, 2023

Weekly Wrap Up

The 4-day trading week ended mostly flat with marginal positive returns from the index. The market saw a steep downward movement at open, taking resistance midweek, followed by a steady recovery until market close today.

• The Nifty50 broke even at 0.06% for the week; Nifty500 saw a similar performance with a negative return of 0.01%.
• Indian equity markets expressed concerns about a slowdown, heightened interest rates, and valuation issues.
• Nifty Reality, Nifty IT, Media, and Consumption sectors saw gains, whereas Bank Nifty, Nifty Pharma, Energy, Auto, and Metals sectors experienced losses on a WoW basis.
• The top gainers within the Nifty Index were Bajaj Finserve, Titan, and Bajaj Finance, while ONGC, NTPC, and Hindalco were the top losers.
• Foreign Portfolio Investors (FPIs) were net sellers during the week, in line with trends seen in other emerging markets, while Domestic Institutional Investors (DIIs) were net buyers.
• GST collections for August (collected in September) showed a 10.2% YoY increase at Rs 1.63 trillion, compared to Rs 1.59 trillion in July.

Leaders & Laggards:

‌‌In the first week of October, 'High Five' and 'Sector Superstars' were the top performers with 3.17% & 2.11% returns, respectively.

On the other hand, 'Back Up' and 'Nightcrawler' were two of the underperformers, with negative 3.77% and 0.60% returns in the same period.

• BSE, or Bombay Stock Exchange Limited, is India's oldest and one of the largest stock exchanges. It was among the top performers with 8.50% returns as a part of the 'Alpha Ally' model. ‌‌
• J&K BANK, or Jammu & Kashmir Bank, is a prominent banking institution in India, primarily operating in the Union Territory of Jammu and Kashmir. It was next in the list of top performers, with a 7.99% return, as a part of the 'Sector Superstars' model.

• PNB, or Punjab National Bank, is one of India's major public sector banks and was among the underperformers, with a negative 5.57%, as a part of the 'Alpha Ally' model.
• RESPONIND, or Responsive Industries Ltd., is a leading manufacturer and exporter of PVC flooring, artificial leather, and vinyl flooring products. The stock is second in the list with a negative 1.08% return as a part of the 'Sector Superstar' model.

Reads On The Internet:

Here's how the Indian banks are making $64 billion from a freebie

‌‌‌‌Indian banks are generating $64 billion by charging a 1.1% fee on mobile wallet transactions over $24 since April. Despite concerns, India's payment revenue surged, propelled by online transactions and digital commerce growth, positioning the nation among the top revenue-generating countries.

FII selling shows no signs of abating, offload over ₹4,000 crore in Indian stocks; DIIs are net buyers‌‌

Foreign institutional investors (FIIs) are expected to sustain selling in October due to high US bond yields, influencing Indian stock market declines. Domestic institutional investors (DIIs) continue to buy. FIIs' net selling in September amounted to ₹4,424.02 crore, influenced by global factors like high US bond yields and soaring crude oil prices.

Bajaj Finance to raise Rs 10,000 crore via QIP, preferential issue‌‌

Bajaj Finance gained board approval for a record Rs 10,000 crore capital raise through qualified institutions placement (QIP) and preferential share issuance. The funds comprise Rs 8,800 crore through QIP and Rs 1,200 crore via preferential shares to parent company Bajaj Finserv.

'Junk rally' in Indian small-caps sparks fears of frothy valuations‌‌‌‌

Indian mid and small-cap stocks have surged, up 39% since March, raising concerns of market frothiness driven by retail investors, mutual funds, and WhatsApp share tip groups. Some liken the trend to the US's meme stock frenzy of 2021, prompting caution and selectivity in the mid and small-cap sector.

Just five commercial banks hold 50% of all deposits in India‌‌

In India, just five commercial banks hold 50% of all deposits, with the top 10, including 7 government banks, accounting for 75%. State Bank of India is the largest, securing 23% of total commercial bank deposits, followed by private giant HDFC Bank with 9%.

Fintech startup Slice to merge with North East Small Finance Bank

Fintech credit and payments startup Slice and North East Small Finance Bank (NESFB) plan to merge, with the Reserve Bank of India granting approval. This marks a first for the fintech and banking space. Slice was last valued at around $1.8 billion and holds a 5% stake in NESFB.

The Amazon Great Indian Festival and Flipkart Big Billion Days are just around the corner, live from 8th October 2023. This is the time to don your shopping hats and get ready to snag amazing deals on items that have been sitting pretty on your wishlist!

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