Monday Mayhem: ₹32 Lakh Crore Wiped Out as Midcap, Smallcap Stocks Crash

The Nifty50 has breached all critical support levels, marking a significant decline in Monday’s trading session. After a 2.5% drop last week, the index continued its downward spiral, losing an additional 1.47%, equivalent to around 345 points. This marked the 4th consecutive session of losses. 

Broader Markets Face the Brunt

While the Nifty’s decline has been noteworthy, the broader markets have been hit the hardest.

The extensive sell-off has resulted in a staggering ₹32 lakh crore erosion in investor wealth over just 6 trading sessions.

Global Factors Driving the Sell-Off

The rout in Indian equities can largely be attributed to global developments, including:

Weak Handovers from Wall Street

A hotter-than-expected US jobs report released last Friday i.e. January 10, 2025, has shaken investor confidence. With higher-than-anticipated employment figures, expectations of a Federal Reserve rate cut in early 2025 have faded. 

US Dollar Strength and Rupee Weakness

The US Dollar Index has surged close to the 110 mark, pressuring emerging market currencies, including the Indian Rupee, which touched a new low of 86.59 against the dollar on Monday.

Rising Treasury Yields

The US 10-year Treasury yield is nearing the 5% threshold, levels last seen in October 2023 and before that in July 2007. The spike in yields signals higher borrowing costs globally, impacting investor sentiment and equity valuations.

Crude Oil Prices Above $80 Add to the Woes

Brent crude oil has climbed to its highest level in 5 months, crossing $80 per barrel. This surge in crude prices has negatively impacted sectors dependent on oil or its derivatives. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

FINNIFTY Declines Sharply; P/B Ratio Hits Multi-Year Lows

The Nifty Financial Services Index (FINNIFTY) is a benchmark index designed to represent the performance of India’s financial market. It includes a diverse range of companies such as banks, financial institutions, housing finance, insurance firms, and other financial services companies. The index is composed of 20 prominent stocks listed on the National Stock Exchange (NSE).

Recent Market Performance

As of 2:54 PM on January 13, 2025, the FINNIFTY index was down by 1.46%, trading below the 22,400 mark. This marks a significant decline of nearly 4.5% over the past 4 sessions, driven by heightened market volatility.

Volatility on the Rise

The volatility index, India VIX, has surged past the 16 mark, reflecting a 7% increase on January 13, 2025. The rise in volatility has amplified the pressure on financial stocks. 

Market Breadth

The market breadth within the Nifty Financial Services Index has been overwhelmingly negative, with 19 out of 20 constituent stocks trading in the red. The sole exception is Axis Bank, which managed to stay in the green.

Key Contributors to the Decline

HDFC Bank and ICICI Bank, which together account for 54% of the FINNIFTY index’s weight, have been major contributors to the index’s fall. These two stocks collectively pulled the index down by approximately 210 points, followed by State Bank of India (SBI) and Bajaj Finance.

Valuation Metrics: A Closer Look at the P/B Ratio

For financial stocks, particularly banks and insurance companies, the Price-to-Book (P/B) ratio is a more pertinent valuation metric than the Price-to-Earnings (P/E) ratio. As of January 10, 2025, the P/B ratio for the FINNIFTY index stands at 2.75.

  • This P/B ratio is at the lower end of its 1-year and 2-year range.
  • It is also below the average for the past 1, 3, and 6 months, as well as the 1, 2, and 5-year long-term averages.

Year-to-Date Performance

As of January 13, 2025, the FINNIFTY index has declined by 4.70% in the new calendar year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

BSE Sensex Sees 1% Dip Amid FII Outflows and Rupee Woes

The BSE Sensex witnessed a steep fall on January 13, 2025, declining by 1% or 770 points by 1:16 PM. The market sentiment was dented by a stronger-than-expected US jobs report, which reduced hopes of early interest rate cuts by the Federal Reserve. Coupled with concerns over slowing corporate earnings, the market began the week on a bearish note.

Market Capitalisation Erodes by ₹5.04 Lakh Crore

The downturn has had a pronounced impact on investor wealth, with the total market capitalisation of all BSE-listed companies plunging by ₹5.04 lakh crore to ₹224.63 lakh crore. This marks a significant erosion of value, reflecting the widespread selling pressure.

Advance-Decline Ratio Favors Declining Stocks

The market breadth tilted heavily towards declining stocks. Out of the 30 stocks in the Sensex, 25 were trading in red, leaving only 5 in green. Despite the overall weakness, TCS and Axis Bank emerged as top performers, both gaining over 1% as of 1:16 PM.

Foreign Outflows and Rupee Depreciation Compound Woes

A significant factor behind the market turmoil is the heavy selling by Foreign Institutional Investors (FIIs). Although Domestic Institutional Investors (DIIs) attempted to counterbalance the outflows, their efforts failed to stem the market’s slide.

The rupee’s sharp depreciation to a record low on January 13 exacerbated the situation. A weakening rupee inflates import bills, particularly oil prices, which amplifies inflationary pressures domestically. For FIIs, the declining rupee reduces rupee-denominated returns, making Indian markets less attractive and prompting further outflows.

Ripple Effect on the Economy

The depreciation of the rupee creates a cascading impact on the economy. Higher import costs increase inflationary pressures, affecting industries reliant on imported raw materials. Moreover, rising oil prices strain both the economy and consumer spending.

Sensex Performance in January 2025

So far in January as of January 13, 2025, the Sensex has declined by 2.05%. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Windlas Biotech Gets GMP Certification for Its Injectable Facility

Windlas Biotech, an esteemed pharmaceutical enterprise headquartered in India, excels in the manufacturing and distribution of a diverse portfolio of generic pharmaceutical products, over-the-counter (OTC) medicines, and active pharmaceutical ingredients (APIs). 

Received GMP Certification

The prestigious certification, bestowed by the Food Safety & Drugs Administration Authority of Uttarakhand, follows a meticulous inspection conducted in December 2024. In a regulatory filing, the company affirmed that the certification acknowledges its adherence to Good Manufacturing Practices (GMP) in line with the World Health Organization’s (WHO) TRS Guidelines.

Windlas Biotech Management Stated

Hitesh Windlass, Managing Director of Windlas Biotech, remarked, “This certification heralds a transformative chapter in Windlas Biotech’s growth journey, enhancing our stature as a trusted leader in the pharmaceutical manufacturing domain. It underscores our steadfast commitment to quality, innovation, and compliance with the most rigorous regulatory standards. 

The GMP accreditation for our injectable facility not only validates our dedication to stringent manufacturing protocols but also fortifies our capability to address the burgeoning demand for premium injectable pharmaceutical products across domestic and global markets.”

Windlas Biotech CDMO

With this latest GMP-certified injectable facility, all 5 manufacturing plants operated by Windlas Biotech now conform to this gold standard. The company is strategically poised to broaden its product portfolio within the CDMO (Contract Development and Manufacturing Organisation) sector, enabling it to address a wider array of therapeutic areas. 

This pivotal advancement enhances access to essential medicines, improves patient outcomes, and positions Windlas Biotech as a pivotal player in the global pharmaceutical landscape.

Share Price Performance 

Windlas Biotech Ltd shares were traded at ₹920.70 per share on the NSE at 2:00 PM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Signature Global Purchases 16.12 Acre Land Parcel in Gurugram

Signature Global has completed the acquisition of a 16.12-acre land parcel in Sector 71, Southern Peripheral Road, Gurugram, Haryana, at a cost of approximately ₹300 crores. The real estate company plans to develop a premium residential project on this site, with a total saleable area potential of 27-28 lakh square feet. 

Previously under a joint development agreement, the land is now wholly owned by Signature Global following the cancellation of the earlier arrangement​​​.

Transition to Premium Housing

Known initially for its focus on affordable housing, Signature Global has decided to move toward mid-income, luxury homes. Over the years, the company has delivered 120 lakh square feet of residential projects. Additionally, 158 lakh square feet are currently under construction.

Sales Growth and Financial Position

The company’s numbers show why it’s doubling down on premium housing. Earlier this month company reported more than two-fold growth in sales bookings worth ₹2,770 Crores. Signature Global is closing in on its annual sales target of ₹10,000 crore, with 87% of the target achieved. On the financial side, the company’s net debt dropped to ₹7.2 billion​.

Signature Global (India) Ltd’s stock traded at ₹1,172.80 as of 2:12 PM on January 13, marking a drop of ₹80.10 (6.39%) for the day, a decline of 21.99% over the past six months, but up 2.87% over the past year.

All Eyes on the Future

The Gurugram project isn’t just a one-off. The company has its sights set on expanding into Noida and Greater Noida next. With this acquisition funded entirely through internal accruals, Signature Global’s expansion in the premium housing market​ will be interesting to watch. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

SEBI to Introduce ₹250 SIPs to Encourage Small Investments

The Securities and Exchange Board of India (SEBI) has taken a significant step towards enhancing financial inclusion in India. Speaking at a recent symposium, SEBI Chairperson Madhabi Puri Buch unveiled plans to introduce a ₹250 minimum systematic investment plan (SIP). 

As per news reports, this initiative aims to encourage small-scale investments in mutual funds, thereby widening the participation of retail investors in the financial markets.

SEBI’s ₹250 SIP Initiative: Widening Accessibility

The Securities and Exchange Board of India (SEBI) has announced plans to introduce a ₹250 minimum systematic investment plan (SIP) to make mutual funds more accessible to small investors. This landmark announcement was made by SEBI Chairperson Madhabi Puri Buch during a symposium held in collaboration with stock exchanges and depositories.

Buch underscored the significance of this move in increasing participation in the mutual fund sector and lauded the governance and disclosure standards achieved by the industry. She also commended Challa Sreenivasalu Setty, Chairperson of the State Bank of India, for extending support to this initiative.

The ₹250 SIP is expected to democratise investments in mutual funds, enabling individuals from varied economic backgrounds to adopt a disciplined approach towards wealth creation.

Read More About What is SIP Investment?

Mutual Fund Growth and Market Performance

India’s mutual fund industry has seen remarkable growth over the last decade. As of December 31, 2024, the assets under management (AUM) stood at ₹66.93 lakh crore, a sixfold increase from ₹10.51 lakh crore in 2014. Over the past five years alone, the AUM has more than doubled, rising from ₹26.54 lakh crore in 2019, as per data from the Association of Mutual Funds in India (AMFI).

Moreover, equity and debt markets have demonstrated significant expansion. In FY 2025, ₹14.27 lakh crore was raised through securities, representing a 21% growth compared to the previous year. Of this, ₹3.3 lakh crore was raised via equity markets, while ₹7.3 lakh crore came from debt markets. Buch projected that the total funds raised during the year could reach ₹14 lakh crore.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

Adani Group To Invest ₹75,000 Crore In Chhattisgarh

The Adani Group stands as one of India’s most dynamic and diversified multinational conglomerates, renowned for its unwavering commitment to nation-building and sustainable growth. Founded in 1988 by visionary entrepreneur Gautam Adani, the Group has grown exponentially, making its mark across key sectors including energy, infrastructure, logistics, agribusiness, aerospace, and more.

Gautam Adani is investing ₹65,000 crore in Chhattisgarh

In a remarkable demonstration of his visionary leadership, industrial magnate Gautam Adani has unveiled plans to pump a staggering ₹65,000 crore into Chhattisgarh’s burgeoning energy and cement industries. 

As per news reports, this transformative initiative was announced at the Chhattisgarh Investors’ Meet 2025, organised by the state government in Raipur, solidifying the region’s position as a key player in India’s industrial landscape.

Strategic Investment

Adani, the Chairman of the Adani Group, revealed the strategic investment roadmap aimed at bolstering the state’s industrial ecosystem. The lion’s share of this capital infusion will be channelled towards the renewable energy sector, aligning seamlessly with India’s ambitious goal of becoming a global leader in green energy. 

Simultaneously, significant funds will be earmarked for cement production facilities, reinforcing the Group’s commitment to supporting infrastructure development.

Statement from Gautam Adani

Speaking at the event, Adani expressed his unwavering confidence in Chhattisgarh’s potential as an economic powerhouse. “This investment underscores our dedication to creating sustainable, future-ready industries while generating countless employment opportunities for the local population,” he stated.

The majority of the ₹60,000 crore investment will be directed towards expanding Adani Group’s power plants in Raipur, Korba, and Raigarh. An additional ₹5,000 crore has been allocated for the development and expansion of the group’s cement plants in the state. The Adani Group has also pledged ₹10,000 crore over the next four years for projects in education, skill development, healthcare, and tourism.

Adani Group Renewable Energy Segment 

The renewable energy segment of the Adani Group has already made substantial strides in establishing cutting-edge solar and wind energy facilities. With this new investment, the conglomerate aims to further enhance its capacity to meet the growing energy demands of the state and the nation. 

Adani Group Cement Segment

The cement industry, a cornerstone of India’s rapid infrastructure expansion, will also receive a significant boost. The Adani Group plans to establish world-class manufacturing facilities equipped with state-of-the-art technology to meet the rising demand for construction materials.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

NBCC Signs ₹3,500 Crore MoU for Phase 1 Development in Lucknow

NBCC (India) Limited, a government-owned construction major, has announced a significant collaboration with Sarkari Awas Nirman Avam Vitt Nigam Ltd. The two entities have signed a Memorandum of Understanding (MoU) for the development of Poorvi Vihar in Lucknow. This project spans approximately 588 acres, with NBCC taking on the role of Project Management Consultant.

The share price of NBCC opened at ₹81.12 on the NSE and reached an intraday high of ₹84.15. However, the price has significantly declined from its intraday high and is now trading below ₹80 at ₹79.34, down by 6.10%, as of 2:26 PM on January 13, 2025.

Phase 1 Highlights

The MoU outlines the initial focus on Phase 1, which involves the planning, designing, and development of a 50-acre encumbrance-free site. This phase is valued at approximately ₹3,500 crore. NBCC has committed to delivering this project under the agreed terms and conditions set forth in the MoU.

The execution model follows a “deposit work” basis, where NBCC will charge a 10% agency fee on the actual project cost, along with applicable GST and taxes.

Scope of the Project

The broader development of Poorvi Vihar is envisioned as a mixed-use land development initiative. NBCC’s responsibilities include:

  • Securing possession of the designated land.
  • Preparing and executing comprehensive project plans.
  • Ensuring compliance with design and development standards.

This project falls under NBCC’s routine course of business and aligns with its expertise in large-scale urban development projects.

Financial Framework

As per the MoU, the project adheres to a “deposit work” financial model, ensuring transparency and accountability. NBCC will earn agency charges based on the actual project expenditure, incentivising cost-effective project management.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Nippon India Mutual Fund Declares Income Distribution for Balanced Advantage Fund

Nippon India Mutual Fund has announced an income distribution of ₹0.20 per unit under the IDCW (Income Distribution cum Capital Withdrawal) option of its Nippon India Balanced Advantage Fund. This income distribution applies to both the regular and direct plans of the fund. The record date for this distribution is January 13, 2025.

Fund Overview

The Nippon India Balanced Advantage Fund operates as a hybrid fund, allocating investments between a mix of equity and equity-related instruments, debt, money market securities, and derivatives.  This strategy aims to provide a balance between growth and income.

Tax Implications 

Taxation varies depending on how long the investment is held. Gains from units sold after one year are taxed at a rate of 12.5% on amounts exceeding ₹1.25 lakh in a financial year, while gains up to ₹1.25 lakh are tax-free. If units are sold within a year, the entire gain is taxed at 20%. However, no tax is incurred while holding the units.

For dividends, these are added to the investor’s income and taxed according to the individual’s tax slab. If the dividend income surpasses ₹5,000 in a financial year, a 10% TDS is deducted by the fund house before distribution.

Understanding the IDCW Option

The IDCW option allows investors to receive periodic payouts from their investments, subject to the availability of distributable surplus. It is important for investors to ensure their holdings are aligned with the record date to benefit from such payouts.

Points to Note

Investors should verify their holdings and understand the implications of the IDCW option in terms of taxation and reinvestment, depending on their financial goals. The announcement is relevant for existing investors in the Nippon India Balanced Advantage Fund who have chosen the IDCW option, as they can expect to receive ₹0.20 per unit as income distribution.

Plan your SBI SIP investments better! Use our easy-to-use SBI SIP Calculator and estimate future returns with just a few clicks. Your financial growth starts here.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Oberoi Realty Selected as a Developer for Bandra Reclamation Slum Redevelopment Project

Oberoi Realty’s share price dropped by 2% in the early hours of trading on January 13. At 9:44 AM, the stock was trading at ₹2,068.45 on BSE, showing a decline of ₹58.10 or 2.73%. 

Details of the Slum Rehabilitation Project

The Slum Rehabilitation Authority (SRA), Brihanmumbai, confirmed the appointment of Oberoi Realty as the developer for a slum rehabilitation scheme on January 10, 2025. The project involves land measuring approximately 10,300 square meters at Bandra Reclamation, Mumbai. The land, owned by the Maharashtra Housing and Area Development Authority (MHADA), will be developed under the provisions of the Development Control & Promotion Regulations for Greater Mumbai, 2034.

The company is expected to receive a free sale component of approximately 3.2 lakh square feet (RERA carpet area) from the redevelopment.

Previous Developments in December 2024

In December 2024, Oberoi Realty signed a development agreement for land measuring around 81.05 acres (equivalent to 3,28,010 square meters) in Alibaug, Maharashtra. Of this, 8.6 acres (34,803 square meters) is set for a high-end luxury five-star hotel/resort with an FSI of 30,000 square meters. The remaining 72.45 acres (2,93,207 square meters) will host approximately 150 high-end luxury villas, utilizing an FSI of 1,20,000 square meters.

Project Confirmation and Regulatory Details

Oberoi Realty officially announced the SRA’s approval in an exchange filing, reiterating the development specifics. The company emphasized compliance with Mumbai’s Development Control Regulations and its entitlement to a major free sale component from the project.

As of 1:51 PM on January 13, Oberoi Realty’s share price stood at ₹2,022.95, marking a drop of ₹105.35 or 4.95% for the day. Over the past year, the stock has gained 28.84%, with a 17.93% rise in the last six months.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing