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Saturday,13-September-2025
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Market volatility to continue with some initial surge in markets

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4 years ago

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The week began with a bang with new closing highs recorded on both the BSESENSEX and NIFTY on the very first trading day of the week. Alas! The good news ended there and markets fell on each of the remaining four days to end with losses for the week. BSESENSEX lost 1,282.69 points or 2.14 per cent to close at 58,765.78 points while NIFTY lost 321.15 points or 1.80 per cent to close at 17,532.05 points. The broader indices saw BSE100, BSE200 and BSE500 lose 1.65 per cent, 1.38 per cent and 1.19 per cent, respectively. BSEMIDCAP gained 0.12 per cent, while BSESMALLCAP gained 0.69 per cent. The closing high recorded during the week was 60,077.88 made on September 27 while the intraday high made was in the previous week at, 60,412.32 points, also made the same day. On NIFTY, the closing high made on the same day was 17,855.10 points while the intra-day high made was on the previous September 24at 17,947.65 points.

The Indian Rupee lost 42 paisa or 0.57 per cent to close at Rs 74.12 to the US Dollar. Dow Jones lost 471.54 points or 1.36 per cent to close at 34,326.46 points. A large part of the losses was reversed on Friday when Dow Jones gained 482 points. Had that not happened, loses would have been close to 950 points.

September series expired on the last trading day of the month at 17,618.15 points, a gain of 981.25 points or 5.90 per cent for the month. Markets were under pressure this week and surrendered quite a bit and gave in to the bears.

The opening day of October series began on a weak note and continued with the prevailing weakness of the previous three days. NIFTY on the first day of the series lost 86.10 points and began on a weak note. The last time we saw such a trend was in the May 21 series which began on a weak note, losing 263 points on the opening day, April 30. The May series ended with gains of 442.95 points or 2.97 per cent. Using this as empirical evidence would suggest that though we began the first day of a new series on a weak note, we would in all probability end with gains for the series.

During the week we saw, bids for Air India being opened, and in all probability, it appears that the wheel has come a full circle. Air India which was nationalised way back in 1952-53, It is likely to be again owned and operated by the house of Tatas. While full details of the same are yet awaited, Tatas with their interest in newly acquired Air India which includes Air India, erstwhile Alliance Air, Air India Express and Indian Airlines along with their existing JV’s with Vistara and Air Asia would become a key and dominant player in aviation in India going forward.

In primary market news, the issue from Aditya Birla Sun Life AMC Limited closed for subscription and was subscribed 5.25 times. QIB portion was subscribed 10.36 times, HNI portion 4.39 times, Retail portion was subscribed 3.24 times and Shareholder preferential quota was subscribed 1.68 times. There were 15.66 lac applications.

On the side-lines of this issue, Standard Life sold 1.06 cr shares of HDFC AMC while this issue was on and garnered close to Rs 3,000 cr. The size of their sale was more than the amount raised by Aditya Birla AMC through their issue.

Shares of Paras Defence and Space Technologies Limited which is the highest response receiving issue since 2007, debuted on the bourses on Friday and had a lift-off on day one. Shares which were issued at Rs 175 closed at the upper circuit of Rs 498.75 on BSE, a gain of Rs 323.75 or 185 per cent. It’s a great start and the last time one saw anything near this kind of gains was in the case of IRCTC in October 2019.

Reserve Bank of India meets for its bi-monthly monetary policy review between Wednesday to Friday with the announcement on Friday. There maybe a minor hardening of repo rates

to reduce the excess liquidity in the system, but the expectation is not necessarily a consensus view. Barring this, the consensus is rates are expected to remain status-quo.

Calendar year 2021 has been the year of the primary markets but with one major difference. This year 75 per cent of the funds raised or more have been in the form of divestment by mainly the PE players and some portion of this by promoters. Growth capital or capital infusion into the company has been less than a fourth of the funds raised. PE investors invest money into a company through SPV’s where the name of the entity is different in each company where they invest and it is difficult for an investor to understand who is behind the company. In such a scenario like in the case of merchant bankers who give a track record of three years of their performance in new issues, a similar exercise should be mandated by SEBI for PE investors. This will help in a big way to make investors smarter and benefit in their understanding of value and valuations of a company. This will also give an idea in which PE Investor’s divestment is something left on the table.

On the covid-19 front, the world saw 23,54,35,786 patients, 48,11868 deaths and 21,22,44,299 patients who had recovered. In India we saw 3,38,13,903 patients, 4,48,846 deaths and 3,30,94,529 patients who had recovered. Compared to the previous week, the world saw 21,42,991 new patients, 54,291 deaths and 33,36,047 patients who had recovered. In India we saw 1,61,158 new patients, 1,898 deaths and 1,92,178 patients who had recovered. In terms of vaccinations, 88.94 cr vaccinations have been administered. This number includes the first and second vaccination combined.

Coming to markets in the week ahead, there should be some upward movement in the early part of the week on the back of sharp correction witnessed during the last week. This is also on account of the weakness in global markets led by Dow and the disturbing news coming from China on many fronts. The sharp rally witnessed on Dow on Friday should influence market opening on Monday but may not be enough for the rest of the week.

Considering the vulnerability and extreme volatility witnessed last week, it makes sense to continue the strategy of buy on sharp dips and sell on strong rallies. Keep some amount of money in cash as opportunities are available as was the case last week. Secondly with results reporting season beginning there would be higher stock specific action visible from next week onwards. On the back of results from the leaders, one would get a fair idea of how the sector is behaving. Use this analysis to play the markets.

Trade cautiously and curb temptation.

(Arun Kejriwal is the founder of Kejriwal Research and Investment Services. The views expressed are personal)

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Business

Adani Power signs pact to supply 2,400 MW power to Bihar

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15 hours ago

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September 13, 2025

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New Delhi, Sep 13: In a significant development, Adani Power Ltd (APL) has signed a 25-year power supply agreement with Bihar State Power Generation Company Ltd (BSPGCL) to supply 2,400 megawatt (MW) of power to the state, the Adani Group’s firm said on Saturday.

Under the agreement, the India’s largest private sector thermal power generator would supply the proposed power from a greenfield ultra super critical plant to be set up at Pirpainti in Bhagalpur district of Bihar.

The development came after a Letter of Award (LoA) by BSPGCL to APL, on behalf of North Bihar Power Distribution Company Ltd (NBPDCL) and South Bihar Power Distribution Company Ltd (SBPDCL) in August.

Adani Power won the project by offering the lowest supply rate at Rs 6.075 per kWh.

“The company is planning to invest approximately $3 billion to build the new plant (800 MW X 3) and its supporting infrastructure under the Design, Build, Finance, Own, and Operate (DBFOO) model,” the APL informed.

The coal linkage for the power plant has been allocated under the SHAKTI Policy of the government of India.

During the construction phase, the project will generate around 10,000 to 12,000 direct and indirect employment. Once it becomes operational, it will employ 3,000 people.

APL aims to commission the plant in 60 months.

Earlier, in a first-of-its-kind adoption of the greenshoe option in a thermal power tender in India, APL was awarded a total of 1,600 MW capacity by MP Power Management Company Limited (MPPMCL).

The company received a LoA from MPPMCL, awarding 800 MW additional capacity under the ‘Greenshoe Option’.

Both units (800MW x 2) in Anuppur district, Madhya Pradesh, will be commissioned within 60 months of the appointed date.

APL said that it will invest around Rs 21,000 crore towards setting up the plant and related infrastructure.

The project is expected to generate direct and indirect employment of 9,000-10,000 during the construction phase, and 2,000 once in operation.

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Business

Stock market ends week on positive note, clock 8 consecutive session gains despite uncertainties

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1 day ago

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September 12, 2025

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Mumbai, Sep 12: The Indian equity indices ended the week on a positive note on Friday, maintaining the winning streak for the eight consecutive trading sessions despite geo-political uncertainties.

Optimism over a potential rate cut by the US Fed, positive developments in India-US trade talks and buying in defence stocks fueled the market sentiment.

Sensex settled the session at 81,904.70, up 355.97 points or 0.44 per cent. The 30-share index started trading with a decent gap-up at 81,758.95 against last day’s closing of 81,548.73. The index extended the momentum further amid positive global cues to hit an intraday high at 81,992.85.

Nifty closed at 25,114.0, up 108.50 points or 0.43 per cent.

The national market closed at a three-week high, supported by renewed global optimism over a potential Fed rate cut. Sentiments improved further on reports that the EU may reject U.S. tariff proposals on India for buying Russian oil, analysts said.

Progress in the US-India trade talks is also expected to keep the positive momentum intact in the near term. The defence sector outperformed, aided by the Indian procurement authorities beginning negotiations for six next-generation conventional submarines, analysts added.

BEL, Bajaj Finance, Bajaj FinServ, Axis Bank, Maruti, Tata Motors, ICICI Bank, L&T, Infosys, and PowerGrid were the top gainers from the Sensex basket. Eternal, Hindustan Unilever, Trent, Asian Paint, Bharati Airtel and ITC settled lower.

The majority of sectoral indices settled higher. Nifty Fin Services jumped 184 points or 0.70 per cent, Nifty Bank escalated 139 points or 0.26 per cent, Nifty Auto increased 122 points or 0.46 per cent, and Nifty IT settled the session 107 points or 0.3 per cent. Nifty FMCG fell.

Broader indices followed suit as well. Nifty Smallcap 100 moved 114 points or 0.64 per cent, Nifty Midcap 100 jumped 183 points or 0.32 per cent, and Nifty 100 closed 106 points or 0.41 per cent.

Rupee traded positively with gains of 0.18 per cent at 88.27 as mixed FII inflows supported sentiment.

“The dollar index remained weak below 98, providing additional strength to the rupee, while ongoing trade deal talks with the US also added optimism. Weakness in crude prices offered further minor support,” said Jateen Trivedi f LKP Securities.

Overall, the rupee looks set to gain some lost ground with scope to test 87.75 in the coming days, while 88.50 is seen as a reversal resistance zone, he added.

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Business

Icelandic collaboration to further boost India’s Blue Economy

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1 day ago

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September 12, 2025

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New Delhi, Sep 12: India and Iceland are set to enhance collaboration in fisheries and aquaculture, emphasising sustainable practices, zero-waste models, technology transfer and cluster-based development, the government said on Friday.

An Indian delegation, led by Dr. Abhilaksh Likhi, Secretary of the Department of Fisheries, completed a three-day official visit in Iceland’s Reykjavík to strengthen bilateral cooperation through strategic partnerships, investment promotion, and innovation exchange, an official statement said.

Likhi met with senior representatives of the Iceland Ocean Cluster and discussed cooperative innovation in fish processing, value addition, traceability, and certification. BRIM and Hampiðjan, leading Icelandic companies, provided insights into their advanced zero-waste models and cutting-edge processing technologies.

“Both sides explored investment opportunities for the Icelandic seafood processing industry in India, along with ways to deepen business-to-business (B2B) linkages,” the statement said.

The delegation also visited MATIS, Iceland’s top food and biotech R&D institute, to discuss cooperation in biotechnology, food safety, and marine resource utilisation. The visit opened new avenues for collaboration in research and technology transfer to bolster India’s fisheries value chain, the release added.

Emphasis was also laid on training and capacity building in deep-sea fishing technologies, alongside the adoption of advanced vessel monitoring and surveillance (VMS) systems, the ministry of Fisheries said.

The two sides explored opportunities in deep-sea fishing technologies, vessel monitoring systems, trout farming, and tuna innovations for India’s islands.

The government has adopted a cluster-based development model under the PMMSY, with 34 clusters notified so far. The cluster-based approach enhances competitiveness and efficiency by uniting geographically connected enterprises of all sizes – micro, small, medium, and large-across the entire value chain, from production to exports.

The country’s total fish production has grown by 104 per cent from 96 lakh tonnes in 2013–14 to 195 lakh tonnes in 2024–25, as inland fisheries expanded by 142 per cent for the same period from 61 lakh tonnes to 147.37 lakh tonnes, according to government data.

India stands as the second largest fish producing nation in the world, contributing around 8 per cent of global output.

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