Welcome to our stock market Live trading article! In this article, we will provide you with valuable insights and up-to-date information on the stock market. With the election results out and clarity emerging on government formation, it is apparent that the VIX has also fallen sharply. From a high of 29.38, the VIX fell to 18.89 on Wednesday, marking one of the most rapid VIX reductions in a single day. VIX is also called the fear index and is a barometer of the fear in the market. As key allies of the NDA like the TDP and the JDU pledged their support to the formation of the Modi government, the markets breathed a sigh of relief, and the result was a sharp fall in the VIX levels.
BHEL gets a big order of Rs3,500 crore from Adani Power for a thermal power project. The order is for setting up a thermal power plant in Raipur in Chhattisgarh. BHEL will supply the boilers, turbines, and the generators for the project, apart from the supervision of the erection and commissioning of the plant. BHEL has confirmed the order and has also stated that the boilers and the turbine generators would be manufactured at its plants located at Trichy and Haridwar. This order is like to be value accretive for BHEL.
On Wednesday, the NSE set a world record of 1,971 crore single day orders and 28.06 crore trades in the system. On Wednesday, the markets showed a sharp bounce as there was clarity emerging on the political front with the NDA moving surely towards government formation for the third time in a row. Many market watchers also saw a lot of short covering in the markets because FPIs continued to be net sellers. The real story is that the NSE has demonstrated the technological finessed and the process stability to handle this.
In a significant move, SBI Mutual Fund (India’s largest AMC by AUM), became the first fund to cross Rs10 trillion in assets under management. SBI has leveraged its brand and its public trust, apart from the network of the SBI group to build an incomparable mutual fund franchise. What is surprising is the product mix of SBI MF. Nearly 36% of its AUM comes from passive & global products while 29% of its AUM comes from active equity funds. Of the balance, 18% comes from active debt funds and 16% from hybrid funds.
The political equations are still emerging even as Naidu and Nitish have pledged their unflinching support to the ruling NDA. The INDIA bloc had also sent feelers to these two leaders but that does not seem to have made much progress. Clearly, the two major NDA partners would prefer to go with the NDA, with whom they already had a pre-poll alliance. It may be recollected that the BJP fell about 32 short of the half way mark and has to depend on the allies like the TDP and the JDU to form the central government.
Food grain output for 2023-24 is estimated at 329 million tones (MT), which is slightly lower than the food grain output in the previous year. The cropping year in India is calculated from July to June. The food grain output in the previous season had been tad above 330 MT. While wheat output was higher yoy, the output of rice and pulses were lower compared to the previous year. The year 2023 was marked by deficient rainfall, which was followed by erratic flooding in several parts, impacting food grain production.
One thing that political watchers are worried about is that Special Status to Andhra Pradesh and Bihar could add to the fiscal burden of the government. This could have an adverse impact on the government plan to reduce the fiscal deficit to below 5.1% in FY25 and further to below 4.5% in FY26. When a state is given special status, they get more funding from the center to spend on welfare schemes, apart from grants and special tax incentives. Experts feel some of this can be cushioned in the RBI dividend largesse. Clix Capital plans to raise nearly Rs5,000 crore via debt in FY24 to boost its funding book. Clix Capital is largely a financer for MSMEs in India. While Clix Capital typically handles the client interface, risk review and the servicing part; it is the network of 43 banks and NBFCs that do the funding disbursement and the NPA management. In FY24, Clix Capital had reported 125% spike in net profits at Rs63 crore, with total AUM standing at Rs5,872 crore. Their average loan ticket size is around Rs18 lakhs, largely to the MSMEs.