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<keyword id="21168903" type="General" weightage="20" keywordseo="Lemonn" source="keywords" meta.keywordsubtype="org" meta.entityname="Lemonn" meta.hostid="261" meta.entityid="Lemonn">Lemonn</keyword>, a platform launched by <keyword id="21168904" type="General" weightage="20" keywordseo="PeepalCo" source="keywords" meta.keywordsubtype="org" meta.entityname="PeepalCo" meta.hostid="261" meta.entityid="PeepalCo">PeepalCo</keyword>, has introduced a <keyword id="21747741" type="General" weightage="20" keywordseo="zero-commission" source="keywords">zero-commission</keyword> <keyword id="19929240" type="General" weightage="100" keywordseo="mutual-funds" source="keywords">Mutual Funds</keyword> <keyword id="19895437" type="General" weightage="20" keywordseo="investment" source="keywords">investment</keyword> service. This comes a fortnight after the platform launched Futures and Options trading with zero brokerage for 1 year and a lifetime free account. PeepalCo is founded by <keyword id="10180576" type="General" weightage="20" keywordseo="ashish-singhal" source="Orion">Ashish Singhal</keyword>, Govind Soni, and Vimal Sagar Tiwari — founders of Crypto platform <keyword id="10587326" type="General" weightage="20" keywordseo="coinswitch" source="Orion">CoinSwitch</keyword>. The company launched the Lemonn platform in April to simplify the investment process for investors. With this, the Bengaluru-based company has entered into direct competition with some of the top Indian stock broking apps including Zerodha, Groww and Upstox. With the zero-commission Mutual Funds, Lemonn aims to help new investors diversify their portfolios with ease. Users can now invest in mutual funds directly through the app, starting with as little as INR 100, and track investments made on third-party apps using the Portfolio Import feature. Lemonn offers schemes from over 40 fund houses, including major AMCs like HDFC, SBI, and Axis. Devam Sardana, Business Head at Lemonn, commented on the launch, “Our goal is to empower first-time investors to gain a deeper understanding of the investment landscape. Thus, Introducing mutual funds on Lemonn is a natural step forward for us. The rapid growth of India's mutual funds industry, outpacing countries like the US, Japan, and China, underscores a clear and growing demand. This demand can be further enhanced by offering simple, transparent, and affordable products.” This launch follows the recent introduction of Futures and Options (F&amp;O) trading on the platform, which also features zero trading brokerage for equity investors. The company claims that the user-centric design and intuitive app interface streamline the trading experience, enabling traders to execute F&amp;O trades with live trading charts in just four clicks. During its launch, Devam Sardana highlighted the surge in the Indian stock market and the opportunities it presents, expressing excitement about empowering users to capitalize on these prospects. Lemonn offers a lifetime free account with no opening or annual maintenance charges, and the zero-trading brokerage will be available for one year for all users. Additionally, the company is preparing to announce another new product within the next two months. The PeepalCo Group is backed by blue-chip investors including Andreessen Horowitz (a16z), Tiger Global, Peak XV Partners (formerly Sequoia Capital India), Ribbit Capital, Paradigm, and Coinbase Ventures. Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

After F&O trading platform, CoinSwitch's founders launch zero-commission Mutual Funds with Lemonn

<keyword id="19940291" type="General" weightage="20" keywordseo="Diwali" source="keywords">Diwali</keyword> is just around the corner, and most traders and stockbrokers are gearing up for <keyword id="23618998" type="General" weightage="100" keywordseo="Muhurat-trading" source="keywords">muhurat trading</keyword>, which will take place on Friday, November 1 this year, between 6 and 7 pm. The one-hour trading session will mark the beginning of the new year in the Hindu calendar, or Samvat 2081. Generally, markets don't see much trade or activity during this one-hour session, given that muhurat trading is largely symbolic. It stems from the Indian tradition of closing our annual financial accounts on the day of Diwali and then starting afresh with the upcoming new year. Investors look to make their first profitable transaction of the new year and believe that any new investments during this one-hour window will bring them long-term prosperity. Like with usual trades, settlement happens on a T+1 basis. Gaurav Garg, who heads the markets desk at Lemonn, a new-age <keyword id="20300872" type="General" weightage="20" keywordseo="stock-trading" source="keywords">stock trading</keyword> app, explains that retail investors usually make symbolic purchases of small quantities of stocks or invest in blue-chip stocks or large-cap stocks as part of their portfolio-building strategy during muhurat trading. "Here, it is less about immediate profits and more about its cultural and traditional aspects. The number of trades in this session also tends to be 20–30% lower, compared to a typical trading day, since institutional investors and high-frequency traders stay away from muhurat trading," he adds. <h2>How has the market performed during muhurat trading in the past?</h2>Much like us, the markets also put on a positive, festive outlook during this time. Data suggests that over 10 years, muhurat to muhurat returns, i.e., the performance of <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> or <keyword id="19896382" type="General" weightage="20" keywordseo="Sensex" source="keywords">Sensex</keyword> from one Diwali muhurat to that of next year's, has averaged around 11-13%. In fact, in the past decade, the average gain during muhurat trading has been approximately 0.5% to 1% on major indices. Over the last 10 years, 8 out of 10 muhurat sessions have yielded positive returns for investors. In fact, four of these 8 sessions have delivered double-digit returns. Some of these outliers include 2021, i.e., at the peak of the COVID-19 pandemic, where Nifty’s muhurat-to-muhurat returns were a staggering 40.19%. Sensex closely followed suit with 37.65%. 2022 saw the returns from these indices slip into the reds, despite a positive muhurat day performance. While returns on Nifty slipped 1.04% in negative, Sensex was also down by 0.39%. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Muhurat-to-Muhurat returns (in%) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sensex Muhurat-to-Muhurat returns (in%) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.13 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.07 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.04 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.39 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">40.19 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">37.65 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2017 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18.21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.96 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2014 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">27.29 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">26.43 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Lemonn Sectorally, consumer goods, automobiles, and <keyword id="19976433" type="General" weightage="20" keywordseo="financial-services" source="keywords">financial services</keyword> are sectors that do well during this time, benefiting from elevated consumer demand and festive momentum. <h2>What can we expect this year?</h2>So far, this hasn't been a great season. <keyword id="20052796" type="General" weightage="20" keywordseo="corporate-earnings" source="keywords">Corporate earnings</keyword> have been disappointing, valuations are elevated, and <keyword id="19900795" type="General" weightage="20" keywordseo="foreign-investors" source="keywords">foreign investors</keyword> are exiting India at a breakneck speed. In October so far, FIIs (foreign institutional investors) have withdrawn a massive Rs 92,142.97 crore from Indian markets. Over the last 24 days, FIIs have functioned on a single aim—sell, sell, and sell. So, expect the markets to remain muted. Overall, the markets seem to be entering a sombre, much-needed phase of recalibration. The same is evident in Nifty's annual growth. Between 2004 to 2021; Nifty was up 16% per annum. However, in the last three years, it's gone up only by 13%. Says Trivesh D, COO, Tradejini, "As we move into Samvat 2081, it’s clear that the euphoria seen in previous years is cooling. Markets are moving in a narrower range, and returns are likely to be more modest than in the past. The focus now shifts to sectors that can provide steady, long-term growth. Financials remain a favourite, with banks, market intermediaries, and exchanges offering stability. The IT sector is also expected to recover as companies adapt to new technologies like generative AI". As markets enter a phase of correction, even IPOs, which have generated wild returns for some investors, may also cool off as investors become wearier. But, for those looking to get in the market in the long haul, experts note that this is a good opportunity to accumulate good-quality stocks. So, happy Diwali, and happy investing this festive season.

Markets and Muhurat trading: How have Sensex and Nifty celebrated Diwali in the past?

Shares of food delivery and quick-commerce major Swiggy listed with a premium of nearly 8% against their issue price of Rs 390 on Wednesday. Swiggy's stock made its initial listing at Rs 412, reflecting a jump of 5.64% from the issue price on the BSE. At the NSE, shares of the firm made their market debut at Rs 420, rising by 7.69% The stock had spectacular first day on the bourses as well, closing 10% up at Rs 464 on the NSE, and inching up a significant 16.91% to close at Rs 455.95 on the BSE. The company's last traded GMP had slipped to Rs 1, denoting potentially weak listing day gains for shareholders. Gaurav Garg, Research Analyst at Lemonn Markets Desk, noted that Swiggy debuted at Rs 420, marking a listing gain of 7.6%, which was far ahead of its grey market premium (GMP) estimate of just 0.26%. "Retail investors showed modest interest, subscribing only 1.14 times, indicating low confidence. Current market conditions have kept many investors on the sidelines, especially as numerous high-quality companies remain 15-20% below their all-time highs.". "However, for those with a higher risk appetite, Swiggy could be an opportunity to capitalize on the valuation gap between Zomato and Swiggy, with potential gains hinging on Swiggy’s ability to enhance operational efficiency over time," he added. At close of trade today, Swiggy's total market cap stood at Rs 1,03,863.96 crore on NSE. The Rs 11,327 crore initial public offer of Swiggy got fully subscribed on the final day of the share sale on Friday, ending with a 3.59 times subscription. The initial share sale had a price range of Rs 371-390 a share. The company's IPO (Initial Public Offering) had a fresh issue of shares worth Rs 4,499 crore, along with an Offer-For-Sale (OFS) of Rs 6,828 crore. QIBs (qualified institutional buyers) made a beeline for the issue, subscribing 6.02x to it. Retail investors subscribed 1.14x to the total offer, while employees seemed far more enthusiastic, with a 1.65x subscription. Going by Swiggy's draft papers, the company plans to utilise proceeds from the fresh issue for investing in its technology and cloud infrastructure; brand marketing and business promotion; and debt payment. Some funds will also be allocated for inorganic growth and general corporate purposes. Thanks to this IPO, around 500 current and former employees of the food and grocery delivery behemoth have turned crorepatis. The issue had a reservation of up to 7,50,000 shares for employees, offered at a discount of Rs 25 to the issue price. Per media reports, this has unlocked Rs 9,000 crore worth of ESOPs (employee stock options) for around 5,000 of Swiggy's previous and present employees Earlier during the day, rival company Zomato's CEO Deepinder Goyal took to social media to welcome Swiggy on the Indian stock exchanges, with a picture showcasing two men, symbolic of Zomato and Swiggy, standing beside each other and facing the Bombay Stock Exchange (BSE) building with the words 'Now Listed...Swiggy'. Goyal further congratulated Swiggy, while highlighting that there is no better company Zomato could find to work towards serving India with.

Swiggy makes a grand debut, stock surges 10% on first day of listing

It was an all-red show on both the bourses today, with Sensex tanking 941.88 points to close the day at 78,782.24 points. <keyword id="19896381" type="General" weightage="100" keywordseo="nifty" source="keywords">Nifty</keyword> followed suit, dipping around 309 points to close at 23,995.35 points, hitting a 4-month low. <keyword id="20110975" type="General" weightage="20" keywordseo="india-vix" source="keywords">India VIX</keyword>, which gauges volatility and fear prevalent in the market, rose by over 5% during the day. Out of the 50 stocks in Nifty, 42 declined during the day, while 8 advanced. A similar bloodbath was seen on Sensex, which saw only 6 of its constituents inch up today, while another 24 dipped by as much as 3%. Says Aditya Gaggar, Director of Progressive Shares, “The bears dominated today's trade. In the opening trade itself, the index breached its psychological support of 24,000 with ease and continued to trade lower; however, in the last trading session, a meaningful recovery was seen that helped the index to settle the trade at 23,995.35 points.”. “All the sectors ended the day in red, with <keyword id="20304716" type="General" weightage="20" keywordseo="realty" source="keywords">Realty</keyword> (down by 2.93%) and Energy (down by 2.48%) being corrected the most. In the broader markets, the disparity was observed where the midcap moved in line with the frontline index while small-caps underperformed.” Amidst broader indices, the midcap 100 fell by 1.26%, while the smallcap 100 index dipped by 1.97%. Other smallcap indices, specifically the smallcap 50 index, fell by over 2% today. Clearly, the markets are on tenterhooks ahead of the US presidential election results due tomorrow and the US Fed’s meeting, scheduled for November 7, 2024. While it remains too close a call to declare anyone a straight winner at the moment, polls suggest that <keyword id="19918985" type="General" weightage="20" keywordseo="donald-trump" source="keywords">Donald Trump</keyword> is ahead of <keyword id="20307089" type="General" weightage="20" keywordseo="kamala-harris" source="keywords">Kamala Harris</keyword> in all 7 swing states (Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin). Both <keyword id="19906203" type="General" weightage="20" keywordseo="trump" source="keywords">Trump</keyword> and <keyword id="19919589" type="General" weightage="20" keywordseo="harris" source="keywords">Harris</keyword> are set to close their campaigns today with rallies in Pennsylvania. It is largely believed that results in these states will be instrumental in deciding who makes it to the White House this time around. The FII exodus and weak corporate Q2 earnings are further pushing the Indian market down. In November so far, FIIs have offloaded Rs 211.93 crore in the cash segment Indian markets. DIIs (domestic institutional investors), which had been net buyers in October, making purchases worth Rs 1,07,254.68 crore, also turned net sellers during the first 4 days of November, selling off Rs 377.33 crore in the cash segment so far Says Lemonn’s Gaurav Garg, “From a fundamentals perspective, Indian market outlook in the short term remains weak as Q2 earnings disappointed while valuations are still not in an attractive zone despite the ~8% climbdown from all-time highs hit in late September. On a 12-month forward P/E basis, Nifty 50 is still trading at 21.2x, at about 15.7% premium to its 10-year average of 18.3x. FII selling remained a key factor even after record outflows of 1.14 lakh crores in October. Global markets are bracing for volatility post-US elections, and we are seeing the impact of these safe haven flows ahead of the event.” The Indian markets are also bracing for a 25-basis point rate cut by the <keyword id="19901377" type="General" weightage="20" keywordseo="us-federal-reserve" source="keywords">US Federal Reserve</keyword> on November 7, 2024. Per the CME Fed Watch, a staggering 98.1% believe that a 25 basis point reduction in interest rates is on the cards. Osho Krishan, Senior Analyst, Technical &amp; Derivatives, Angel One Ltd. notes that the US election, which is due in a day, is likely to raise the volatility bar and needs to be tracked closely for the intermediate trend analysis. “For now, one must stay light on positions as India VIX heads northward to the 17-odd zone and maintain a stock-centric approach," he adds.

Sensex down by over 900 points, Nifty tanks 300 points ahead of US election results

It was complete mayhem on the bourses today, as <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> and <keyword id="19896382" type="General" weightage="100" keywordseo="Sensex" source="keywords">Sensex</keyword> slumped by over 1% each. While Nifty ended the day at 24,472.10 points, down by 1.25%, Sensex tumbled a massive 930 points to close the day at 80,220.72 points. The pullback was majorly caused by large stocks such as <keyword id="20146941" type="General" weightage="20" keywordseo="Bharat-Electronics-Limited" source="keywords" meta.keywordsubtype="org" meta.entityname="Bharat Electronics Limited" meta.hostid="261" meta.entityid="Bharat Electronics Limited">Bharat Electronics Limited</keyword>, <keyword id="20480977" type="General" weightage="20" keywordseo="Mahindra-and-Mahindra" source="keywords" meta.keywordsubtype="org" meta.entityname="Mahindra and Mahindra" meta.hostid="261" meta.entityid="Mahindra and Mahindra">Mahindra and Mahindra</keyword>, <keyword id="19903245" type="General" weightage="20" keywordseo="Coal-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Coal India" meta.hostid="261" meta.entityid="Coal India">Coal India</keyword>, and <keyword id="22754225" type="General" weightage="20" keywordseo="Adani-Entertainment" source="keywords" meta.keywordsubtype="org" meta.entityname="Adani Entertainment" meta.hostid="261" meta.entityid="Adani Entertainment">Adani Entertainment</keyword>, which fell by more than 3%, and SBI, which dipped by 2.97%. Both midcap and smallcap indices also witnessed significant bloodshed, with midcap 50 falling by 2.45% during the day, midcap 100 dipping by 2.61%, smallcap 100 tumbling by 3.92%, smallcap 50 falling by 3.7%, and microcaps plummeting 4.14%. Amidst the constituents of Nifty50, only 3 stocks advanced today, while 47 others saw declines. Aditya Gaggar, Director of Progressive Shares, highlights that almost all the sectors ended in the red, with PSU Banks and Realty being the major laggards. "The weak link of the markets, i.e., mid- and small-caps, tumbled by 2.61% and 3.92% and underperformed the frontline index. Considering the oversold conditions in the mid- and small-cap segments, a short-term bounce can be expected in the markets, which may push the index higher, but the upside seems to be capped at 24,670". Rajesh Bhosale, equity technical analyst at Angel One, cautions traders against taking long positions until there are clear signs of a bullish reversal. "The midcap space, in particular, saw a sharp decline, breaking below key support levels, signaling more pain ahead—bottom-fishing in this sector should be avoided for now," he added. Investor wealth worth Rs 8.98 lakh crore was wiped off the markets today, with the BSE m-cap dipping from Rs 453.65 lakh crore yesterday to Rs 444.66 crore today. Broader mid- and small-cap indices saw their worst losses since August, riding on the back of disappointing earnings and cautious management guidance for the upcoming quarters. As such, hefty profit-booking ensued to make the most of still elevated valuations. <h2>FIIs on a heavy selling spree</h2> The massacre in the markets comes amidst heavy offloading of stakes by FIIs (<keyword id="19932515" type="General" weightage="20" keywordseo="foreign-institutional-investors" source="keywords">foreign institutional investors</keyword>). Data suggests so far this month, FIIs have offloaded a staggering Rs 82,479.73 crore in Indian markets. DIIs (<keyword id="20234284" type="General" weightage="20" keywordseo="domestic-institutional-investors" source="keywords">domestic institutional investors</keyword>) have been trying to maintain some semblance and balance in the markets, having bought 77,402.11 crore worth of assets in the Indian markets. However, that has proved insufficient for maintaining the positive momentum of the markets. The last time Indian markets had witnessed such intense selling was in 2021–22, i.e., during the peak of the COVID-19 pandemic. Data from NSDL suggests that during this period, FPIs had sold Rs 1,22,242 crore worth of assets in the Indian markets. Gaurav Garg, Research Analyst at Lemonn Markets Desk, highlights that mid- and small-caps bore the brunt of earnings disappointments, as these are also the segments most stretched on many valuation metrics. "Growth slowdown concerns, along with uncertainty on rate cut timing, act as a double whammy for equity markets, especially after recent inflation data surprised sharply to the upside," he added. Looking ahead, the markets will continue to focus on the earnings announcements. Investors will look to the RBI's monetary policy meeting minutes tomorrow and the HSBC Manufacturing, Services, and Composite PMI data on Thursday for further signals to act upon.

Carnage on D-Street as Sensex and Nifty tumble by over 1%, investors lose Rs 13 lakh crore in 2 days

The IPO (initial public offer) of food and grocery delivery behemoth Swiggy is set to open tomorrow and conclude on November 8, 2024. The entire issue is worth Rs 11,327.43 crore and has a fresh issue component of Rs 4,499 crore and an OFS (offer for sale) of about Rs 6,828.43 crore. With a price band of Rs 371-390, retail investors will be required to invest a minimum of Rs 14,820 to get their hands on Swiggy's shares. Swiggy, which will tentatively list on the bourses on November 13, 2024, is seeking to raise Rs 1,952.43 crore more than its rival <keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword>, which went public in July 2021 and was looking to raise Rs 9,375 crore. Zomato's offer was oversubscribed around 38.25 times, with retail investors subscribing 7.45x to the issue. Notably, only around 15% of Swiggy's total issue will be made available to retail investors. Moreover, Swiggy's IPO is not garnering the same buzz if its present GMP (<keyword id="938640" type="General" weightage="20" keywordseo="grey-market-premium" source="Orion">grey market premium</keyword>) trends are to be believed. The company's last traded GMP was Rs 7, taking its estimated listing price to Rs 397 (upper end of its price band, i.e., Rs 390 + Rs 7), and its potential listing gains per share at a minimal 1.79%. Last week, Swiggy's GMP was at Rs 25, before tumbling to Rs 18, and then momentarily stabilizing at Rs 22 before its steep fall to present levels of Rs 7. <h2>Strengths and weaknesses</h2> Since its inception in 2014, Swiggy's bottom line has been in red, unlike that of its rival Zomato, which turned profitable in the first quarter of FY24. In FY22, its total income was Rs. 6119.78 crore with a net loss of Rs. 3628.90 crore. While the company's total income increased to Rs. 8714.45 crore in FY23, it also spelled a corresponding rise in its net losses, which surged to Rs. 4179.31 crore. The trend varied a little in FY24 when Swiggy's total income rose to Rs 11,634.35 crore while its net loss reduced to Rs. 2,350.24 crore. However, in the first quarter of FY25, ending June 30, 2024, the company's total income stood at Rs 3,310.11 crore and a net loss of Rs. 611.01 crore. While Swiggy did achieve 42.4% revenue growth between FY2022-223, most of its revenue is sourced from the top 50 of the 500 Indian cities it is currently operational in. Even in this regard, Zomato, which operates in around 1,000 cities across India, has an edge. <h2>Some say invest, some say avoid</h2> Some experts are advising against subscribing to this IPO. Per SAMCO Securities, "As of FY 2024, Swiggy Limited continues to operate at a loss, in contrast to its competitor, Zomato Limited, which has recently achieved profitability. Given Swiggy’s current financial position, competitive pressures, associated risks, and valuation, its IPO appears overvalued. Therefore, investors should avoid this IPO until the company’s financial performance and growth outlook improve. Waiting until Swiggy demonstrates improved financial results and a clearer path to sustainable growth would be a more prudent investment approach. Per Bajaj Broking's IPO note, Swiggy's IPO can be subscribed to from a long-term perspective. However, it also highlights that Swiggy's offer document is missing PAT (profit after tax) and RoCE (returns on capital employed) data. "For the last three fiscals, the company has reported an average EPS of Rs - (14.90) and an average RoNW of - (35.39%). The issue is priced at a P/BV of 11.60 based on its NAV of Rs. 33.61 as of June 30, 2024, and is at a P/BV of 7.31 based on its post-IPO NAV of Rs. 53.36 per share (at upper cap). If we attribute annualized FY25 earnings to a post-IPO fully diluted equity base, then the asking price is at a negative P/E, and based on FY24 earnings also, it is at a negative P/E, as the company has posted losses for those periods. On other parameters, the issue appears aggressively priced," it further adds. Gaurav Garg, research analyst at Lemonn Markets Desk, notes that it might take some time for Swiggy to reach Zomato's level, both in terms of valuation and AOV (average order value). Swiggy's valuation has been pegged at about Rs 95,000 crore, at the upper price band, while Zomato has a market valuation of Rs 2.13 lakh crore. "Almost 50% valuation compared to Zomato gives some comfort, although it should not be considered an arbitrage in valuation. If Swiggy’s EBITDA catches up to 3-4% in the food delivery business, which is currently at 1%, and Average Order Value (AOV) improves to Rs. 550-600 levels in quick commerce with a higher non-grocery share, we can see bridging in the valuation gap. However, this should not be expected in the near term," he adds.

Swiggy's IPO set to open tomorrow. Should you subscribe?

Bloodbath on the D-Street entered its fifth straight day today, with <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> dipping by 218 points to close the day at 24,180.80, much below the 25,000-mark. <keyword id="19896382" type="General" weightage="100" keywordseo="Sensex" source="keywords">Sensex</keyword> also dropped a massive 662 points to close the week at 79,402.29 points. Notably, this was the worst weekly run experienced by the markets over the last 14 months. Clearly, the markets are not in the mood to embrace the impending festivities. Only 12 out of 50 stocks on the Nifty50 advanced today, while the other 38 declined. It was no different on the BSE, where an astounding 3,101 stocks slipped during the day, while just 841 inched up. Smallcaps bore the biggest brunt of this drawdown, with the smallcap 100, 50, 250, and microcaps each sliding by over 2% during the day. Amidst sectors, media, metal, PSU banks, consumer durables, and oil and gas skidded over 2% each today. Gaurav Garg, Research Analyst at Lemonn Markets Desk, explains that on a weekly basis, benchmarks had recorded five consecutive daily losses. Markets appear oversold, with RSI (Relative Strength Index) falling to 27 levels, its lowest in more than a year. Persistent foreign outflows with a record ~97000 crores so far in October, along with disappointing <keyword id="23378466" type="General" weightage="20" keywordseo="Q2-earnings" source="keywords">Q2 earnings</keyword>, have led to sharp valuation corrections in stocks with high multiples as investors adjust their expectations for future growth. Per media reports, investors saw their wealth diminish by a massive Rs 6.80 lakh crore today, largely due to a sharp, 18% dip in the shares of <keyword id="19901053" type="General" weightage="20" keywordseo="IndusInd-Bank" source="keywords">IndusInd Bank</keyword> and uncontrolled exodus of <keyword id="19900795" type="General" weightage="20" keywordseo="foreign-investors" source="keywords">foreign investors</keyword>. Reportedly, IndusInd Bank reported a 40% decline in its net profits for the quarter ended September 30, 2024. "Another major factor contributing to this dip is disappointing earnings reports from Indian companies, especially in the consumption sector, which signal an economic slowdown, particularly in urban consumption," Santosh Meena, Head of Research at Swastika Investmart, said. Mahindra &amp; Mahindra, Larsen &amp; Toubro, NTPC, Adani Ports, Tata Steel, Maruti, Bajaj Finance and Titan were also among the laggards. "Markets continued its downward trajectory as a broader selloff pulled down key benchmarks with Sensex ending below the crucial 80k mark. The dismal Q2 earnings so far has aggravated the investors' woes while persistent <keyword id="21360658" type="General" weightage="20" keywordseo="FII-selling" source="keywords">FII selling</keyword> continued to create havoc in the market," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. On October 24, 2024, i.e. yesterday, foreign investors offloaded a massive Rs 5,062.45 worth of equities, while domestic investors remained net buyers, purchasing around Rs 3,620.47 crore worth of shares. Thus far in October, foreign investors have pulled out a record Rs 97,205.42 crore from Indian markets. Shrikant Chouhan, Head Equity Research, Kotak Securities expects that the "market sentiment will continue to be weighed down by weaker-than-expected Q2FY25 earnings prints and continued weak commentary. FPI flows are expected to remain volatile in the days to come". "Indian equity markets corrected sharply this week as FII continued with selling in Indian markets. Benchmark indices (Nifty 50 and Sensex 30) declined between 2-3% this week. The midcap and the <keyword id="20187540" type="General" weightage="20" keywordseo="smallcap-stocks" source="keywords">smallcap stocks</keyword> witnessed selling pressure. As a result, the BSE Midcap and the BSE Smallcap indices underperformed the larger peers and were down between 5-8% on a weekly basis. All the sectoral indices ended the week in the red with multiple indices seeing a weekly fall in excess of 6%", added Chouhan Per Chouhan, in the coming weeks, key events that will determine the market's course of action include the US elections and the US FOMC meet. Stock specific action will continue based on Q2FY25 financial performance and management commentary. Garg also anticipates that in the near term, the markets will trade rangebound. Market veteran Raamdeo Agrawal, who heads Motilal Oswal Financial Services, called the ongoing <keyword id="22528556" type="General" weightage="20" keywordseo="market-downturn" source="keywords">market downturn</keyword> the "healthiest possible correction".

Massacre continues on Sensex and Nifty as foreign investors withdraw Rs 97,205.42 crore in October

Around the world, all eyes will be on the US <keyword id="19904332" type="General" weightage="100" keywordseo="Federal-Reserve" source="keywords">Federal Reserve</keyword> meeting, which starts today, and will announce changes in <keyword id="19950650" type="General" weightage="20" keywordseo="interest-rates" source="keywords">interest rates</keyword>, if any, after concluding its two-day meet tomorrow i.e. on 18th September. Most experts are anticipating a 25 basis point <keyword id="19920203" type="General" weightage="20" keywordseo="rate-cut" source="keywords">rate cut</keyword>, while some suggest a sharper, 50 basis point rate cut might also be possible. According to the <keyword id="19950992" type="General" weightage="20" keywordseo="CME-FedWatch" source="keywords" meta.keywordsubtype="org" meta.entityname="CME FedWatch" meta.hostid="261" meta.entityid="CME FedWatch">CME FedWatch</keyword> tool, there is an 85% probability of a 25 basis point rate cut in September. However, the firmer-than-expected core inflation reading will perhaps make it more difficult for Fed chairman <keyword id="20058769" type="General" weightage="20" keywordseo="Jerome-Powell" source="keywords">Jerome Powell</keyword> to justify a 50 basis point cut in September. However, as Gaurav Garg from Lemonn, a trading and investing platform explains, “a bold 50-basis-points (bps) rate cut could ignite optimism leading to weaker dollar and further inflows into emerging markets like India, while a cautious 25 bps move may trigger disappointment, with markets currently pricing increasing odds for a bigger cut”. Historically, a rate cut fuels optimism in the domestic markets, as it reduces corporate borrowing costs and increases consumer spending power. Lower interest rates also implies cheaper borrowing, which is advantageous for homeowners looking for lower mortgage rates. “The reduction in borrowing costs may promote demand in the home market as well as encourage refinancing activity”, says Swapnil Aggarwal, Director, VSRK Capital “However, the market’s reaction will depend on the motivations behind the Fed’s decision. If the rate cut is in response to concerns about a slowing economy or rising unemployment, the positive market effect could be muted. But if the Fed is cutting rates due to low inflation and a stable growth outlook, markets may rally in response to the more favorable borrowing environment”, Agarwal continued. After this, the Fed would convene between November 5-7. Two key employment reports, which are due before the Fed announces its November outcome, are likely to impact this. However, as experts see it, there is a slight leaning towards a 50 basis point rate cut in November, with the probability currently at 52.4%, as per CME FedWatch For December, the likelihood of another 50 basis point rate cut increases significantly, with the probability standing at 80.4%. “Given the higher probability, if November sees only a 25 basis point cut, it is likely that a 50 basis point cut will follow in December”, says Alex Volkov, a market analyst at VT Markets.

Fed meeting starts today, rate cut on the cards. Here’s what experts are saying

<ul><li>Nifty crossed the 26k mark today, and <keyword id="19896382" type="General" weightage="20" keywordseo="Sensex" source="keywords">Sensex</keyword> also over 85,000</li><li>Continue with SIPs in small, and mid-caps, but focus on large-cap funds</li><li>The bullish trend to possibly continue till November, 2024</li></ul> The BSE Sensex hit the 85k mark yesterday, and closed today at 85,182.29 points, up by 255 points. Nifty followed suit, closing the day at 26,013.15 points, inching up by 72 points during the day, and breaching the 26k in the history of the index. Clearly, the bulls are are favor at the moment, thanks to the resilience and confidence of domestic investors, and a 50-basis point cut in interest rates announced by the <keyword id="19951097" type="General" weightage="20" keywordseo="us-fed" source="keywords">US Fed</keyword> last week. Even foreign investors are enthused, making September the month that received the highest foreign inflows during 2024. As of September 24, 2024, foreign investors have poured in about Rs 84,723 crore in Indian markets. With the markets continuing their bullish momentum, it could be difficult for retail investors to position themselves correctly. What makes this even more crucial is the sustained continuance of this upward momentum, at least for the time being. Per Gaurav Garg, Lemonn Markets Desk, markets are getting excited about the chances of another large 50 bps cut from the US Fed in the next meeting in early November. "Current market bets suggest a ~60% chance for the same, compared to less than 25% probability given last week", says Garg. So, how can investors make the most of this uptrend? We decode that for you. <h2>SIP on DIP, but keep SIP-ing</h2>Despite experts currently pegging the market to be in over-brought category, with elevated valuations, India will continue to be amongst the world's fastest growing economies in the medium term. Per Goldman Sach's India strategy, companies operating in the <keyword id="32870" type="General" weightage="20" keywordseo="auto" source="Orion">auto</keyword>, chemicals, real estate, FMCG and other <keyword id="6369091" type="General" weightage="20" keywordseo="consumer-durables" source="Orion">consumer durables</keyword> may observe a large surge in their profits, with consumer durables registering the highest growth in this cycle. Says Vishnu Kant Upadhyay, AVP, Research and Advisory at Master Capital Services Ltd, "The Indian market remain attractive, largely supported by potential increased foreign inflows and robust monthly <keyword id="20675888" type="General" weightage="20" keywordseo="Systematic-Investment-Plan" source="keywords">Systematic Investment Plan</keyword> (SIP) contributions. The market appears to be in a "one step back, two steps forward" phase, consistently trading above key moving averages. Given these strong technical and fundamental indicators, we anticipate the Sensex to reach the 1,00,000 mark by the first half of next year. "Investors are advised to adopt a "SIP on DIP" strategy to capitalize on market dips while benefiting from the ongoing bullish trend", says Upadhyay. He is referring to the age-old market strategy of buying more mutual fund units when the market is down or undervalued. What this does is let investors avail more units or quantum of a mutual fund scheme at lower prices. Hence, when the markets begin rising, investors stand to earn higher returns. However, timing the market for dips is a herculean task, and is certainly not for the regular investor. Hence, while you can certainly buy more MF units whenever the market is down, you should not discontinue your existing SIPs. You can also utilise the ongoing market momentum to your benefit by rebalancing your portfolio, weeding out any underperforming stocks or mutual fund schemes. Swapnil Aggarwal, Director, VSRK Capital strongly advises mutual fund investors to begin focusing on quality, large-cap stocks. However, if you have ongoing SIPs in small and mid-caps, maintaining those SIPs would be wise, given you have a long investment horizon of 15-20 years, which should yield good returns in those segments. "For large-cap exposure, consider parking funds in liquid funds and initiating a systematic transfer plan (STP) over the next 4 to 6 months. This strategy will allow you to average out their purchases at varying NAVs, as it's impossible to time the market perfectly", notes Aggarwal. Another possible investing avenue within <keyword id="19929240" type="General" weightage="100" keywordseo="mutual-funds" source="keywords">mutual funds</keyword> could putting funds in long-duration funds, as they respond strongly to interest rate changes, benefiting from declining yields. Thematic funds operating in specific sectors such as FMCG, auto etc., albeit risky, can also generate good returns in the long run.

With markets hitting all-time highs, how should you position yourself as an mutual fund investor?

Tomorrow, <keyword id="19908548" type="General" weightage="20" keywordseo="Hyundai-Motor-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyundai Motor India" meta.hostid="261" meta.entityid="Hyundai Motor India">Hyundai Motor India</keyword>, the subsidiary of global automobile behemoth <keyword id="20104772" type="General" weightage="20" keywordseo="Hyundai-Motors" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyundai Motors" meta.hostid="261" meta.entityid="Hyundai Motors">Hyundai Motors</keyword>, is set to launch the <keyword id="23541197" type="General" weightage="20" keywordseo="biggest-IPO-India" source="keywords">biggest IPO India</keyword> has ever seen, worth Rs 27,856 crore. However, over the last week, the Indian markets have been giving the country's biggest automobile seller a heavy cold shoulder. The result? Hyundai's GMP (<keyword id="19905703" type="General" weightage="20" keywordseo="grey-market-premium" source="keywords">grey market premium</keyword>) has been rappelling down at breakneck speed. As of 4:30 pm today, Hyundai Motors India's GMP was a mere Rs 45, having dipped massively from Rs 570, where it was at, as of September 27,2024. Consequently, its estimated listing day gains also toppled to a minuscule 2.3%, data from IPO website Chittorgarh reflected. Yes, grey market premiums, which are commonplace in India are unofficial and unregulated. But what does it mean for <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword> like yourself? Should it impact your decision to participate in Hyundai Motor India's IPO, which most experts are recommending to subscribe from a long-term perspective? We decode this for you. <h2>What do you mean by GMP?</h2>Think of GMP as an unofficial gauge of the investors perception of how valuable and sought-after a stock is, ahead of its listing on the bourses. Simply put, GMP is the premium, or the additional price at which the shares of IPO-bound company are trading at in the grey markets, before they are officially listed on the stock exchange. So, say company A fixes an IPO price of Rs 100/share, and its GMP in the markets is presently at Rs 20. This means that the share will probably list at about Rs 120 on the bourses. Generally, a higher GMP is seen as a positive sign, indicating that there is increased demand and optimism for the company's shares in the market. This also means that investors are potentially expecting hefty listing day gains. But a lower, or negative GMP reflects diminished demand for the company's share in the markets. It also shows that investors, too, are not very gung-ho on achieving good listing day gains. Hyundai's GMP, and its estimated listing price has been falling since October 10, 2024. From an expected listing price of Rs 2,092 and a GMP of Rs 132, the company's GMP in has come down to Rs 45, with an expected listing price of Rs 2,005. Talk about dips! <table class="redcator-table-advance se-table-size-auto" style="border-width: initial; border-style: none;"><tbody><tr><td style="border-left:solid #d4d4d4 2.25pt;border-right:solid #d4d4d4 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #d4d4d4 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">GMP Date </td><td style="border-left:solid #d4d4d4 2.25pt;border-right:solid #d4d4d4 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #d4d4d4 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">GMP (In Rs)</td><td style="border-left:solid #d4d4d4 2.25pt;border-right:solid #d4d4d4 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #d4d4d4 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IPO Price (Upper end of price band) (In Rs)</td><td style="border-left:solid #d4d4d4 2.25pt;border-right:solid #d4d4d4 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #d4d4d4 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Estimated Listing Price (In Rs)</td><td style="border-left:solid #d4d4d4 2.25pt;border-right:solid #d4d4d4 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #d4d4d4 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" class="se-table-selected-cell">Estimated Listing Gains (In %) </td></tr><tr><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14 October, 2024 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">45 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,960</td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,005 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.3 </td></tr><tr><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13 October, 2024 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">65 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,960</td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,025 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.32 </td></tr><tr><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11 October, 2024 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">75 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,960</td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,035 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.83 </td></tr><tr><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10 October, 2024 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">132 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,960</td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,092 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.73 </td></tr><tr><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9 October, 2024 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">175 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,960</td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,135 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.93 </td></tr><tr><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8 October, 2024 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">147 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,960</td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,107 </td><td style="border-left:solid #444242 2.25pt;border-right:solid #444242 2.25pt;border-bottom:solid #444242 2.25pt;border-top:solid #444242 2.25pt;vertical-align:top;background-color:#ffffff;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.5 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Chittorgarh <h2>Why the dip? </h2>Multiple reasons. First off, this IPO, seen as the mother of all IPOs in Indian history, is entirely an <keyword id="19951016" type="General" weightage="20" keywordseo="OFS" source="keywords">OFS</keyword> (offer for sale). This means that there is no fresh issue here, and all the funds raised will be directed towards the company's South Korea-based promoters, who are offloading their stakes in this IPO. Even Hyundai's Indian entity will not receive any proceeds from this issue. As such, investors are on tenterhooks, given that an IPO of such magnitude can suck away significant liquidity from Indian markets. Secondly, things don't really look bright for automobile sales in the country at the moment, even as we step into the festive season. Recent data from SIAM (Society of Indian Automobile Manufacturers) shows that sales of passenger vehicles (PV) are in a freefall. The domestic PV sales dipped by 1.4% YoY in September, down to 3,56,752 units. SIAM president has also noted that sales of passenger vehicles are set to remain below the 5% mark in FY24-25, indicating a damp season. Moreover, many believe that this IPO is on the expensive side, per its PE. Price to Earnings, or PE helps in judging whether any stock is overvalued or undervalued, as compared to its peers, and if its current price is commensurate its expected earnings growth. What is also noteworthy is that Hyundai India's current PE (price to earning) valuation, per its FY25 earnings is at 26x, which is higher than its listed peer Maruti Suzuki, which stands at 22x (per its FY25 earnings). In fact, Hyundai's PE is also higher than the industry's average PE of 24.41x. However, the company still presents an attractive investment opportunity in the long-run, says Gaurav Garg, research analyst at Lemonn Markets Desk, "Hyundai has showcased remarkable operational efficiency, sourcing about 90% of its parts locally. This has significantly contributed to its robust financial performance, highlighted by a revenue CAGR of 19.4% over FY21-24, and an impressive return on capital employed (RoCE) exceeding 50% in FY24. With strong financials and a diverse product lineup, Hyundai will make for good long-term investment, even if initial listing gains may be modest". <h2>Should I invest?</h2>If you are expecting heavy listing day gains, its possible you'd be disappointed, since the market is largely preparing for muted listing day gains. In the long run, it certainly is a good bet, but Amar Nandu, Research Analyst, SAMCO Securities believes that this IPO can be altogether avoided as well. "Due to the large size of the IPO—Rs. 27,870.16 crore, the largest to date—there is a high chance of allotment to most applicants, so post-issue demand for the shares is not expected to surge. Furthermore, the promoter is offering a 17.5% stake in the issue, and an additional 7.5% stake sale is anticipated within three years to meet regulatory requirements, which will create selling pressure. Considering these factors, investors may choose to avoid this IPO", he signs off.

Ahead of its mega IPO, why is Hyundai Motor India's GMP tanking?

In a massive blow to most stock broking firms, market regulator SEBI has directed all stock exchanges, depositories, and clearing corporations (collectively known as market infrastructure institutions or MIIs) to charge transaction fees from brokers on a uniform basis, doing away with the current system where these charges varied greatly and depended heavily on broker's trading volume or activity. The new rules will be in effect starting October 1, 2024. Generally, stock exchanges like BSE and NSE charge a specific, slab-based transaction fees from brokers like <keyword id="19947165" type="General" weightage="20" keywordseo="FYERS" source="keywords" meta.keywordsubtype="org" meta.entityname="FYERS" meta.hostid="261" meta.entityid="FYERS">FYERS</keyword>, <keyword id="19913826" type="General" weightage="20" keywordseo="zerodha" source="keywords">Zerodha</keyword>, Groww and Upstox, depending on the slab within which their overall trading turnover falls into. The higher the broker's turnover or trade volume, the lower the transaction fee they end up paying. With SEBIs new guidelines, firms like Zerodha and Upstox will have to bear a significant financial brunt going ahead. The same was very visible in the market's movement today, with stocks of most stock broking firms taking a serious hit. Stocks of Angel One tanked by 8.72%, while Geojit Financial Services dipped by 6.68%. Following their close lead was Motilal Oswal Financial Services, which shed 4.19% following the announcement. The difference between what brokers charge the customers, and what the exchanges charges the broker is known as a rebate, and it makes for a significant revenue source for most brokers. As per Nithin Kamath, who heads Zerodha, "We earn about 10% of our revenue from such rebates. For us, this has increased from 3% to 10% in the last four years because of the massive increase in options turnover". <h2>Options Trading: Of losses, heavy trades and addiction</h2>If option trading were a sea, you'd find it full of Indians trying to make through, despite its strong, uncertain, and erratic currents. In 2023, Indian investors traded around 85 billion contract options, far more than any other country in the world. No wonder, 90% of revenue that Zerodha generated from such rebates were attributable to options trading alone. However, for a novice investor, options trading is no easy endeavor, and as SEBI pointed out in 2022, only 1 out of 10 F&amp;O traders managed to make profits. The average loss amount was a staggering Rs 1.1 lakh. But amidst soaring trading volumes post Covid, brokers made merry with high rebates and hefty profits, which is why this move comes as an unpleasant surprise to many. According to Tejas Khoday , co-founder and CEO of FYERS, this model threatens to destabilize the discount brokerage business completely. "This revenue stream, which constitutes between 15-30% of the larger brokers' revenues and over 50% for deep discount brokerages, is crucial for sustainability. Without this income, many brokers may have to introduce brokerage fees to remain viable". "In the short term, traders may benefit from reduced costs. However, in the long term, brokerage fees will likely rise as intermediaries attempt to recover revenue losses. While retail customers are charged the standard slab rate, brokers benefit from a lower fee due to high turnover. For instance, the base exchange transaction charge for options is 5,000 rupees per crore, but a broker with high turnover might be charged only 4,000 rupees per crore. The 1,000 rupees per crore difference constitutes the broker's income, which stands jeopardized", he continued. In his blog post, Zerodha's Kamath also hinted at a possible fee hike after this mandate. "As a business, we may have to introduce a brokerage fee for equity delivery investments, which is currently free, or/and increase F&amp;O brokerage. In all likelihood, we will probably have to let go of the zero brokerage structure for equity delivery trades which we have been able to offer for the past 9 years", he said. As Devam Sardana, Business Head of Lemonn, a new-age stock broking firm notes, this move will definitely hit brokers' revenue streams especially those with scale. "With scale, many brokers enjoyed the benefit of charging users a certain amount of transaction fees and eventually gaining a rebate from exchanges based on their turnover. This essentially created arbitrage and created a growth flywheel for brokers". As bigger brokers' revenues became higher, he explains, it allowed them to subsidize certain products and gain even higher market share. But this move does 2 things: it levels the playing field for all brokers and puts pressure on brokerage fees across the board. <h2>Chance for small brokerages to shine</h2>But Trivesh D, COO of <keyword id="20031469" type="General" weightage="20" keywordseo="TRADEJINI" source="keywords" meta.keywordsubtype="org" meta.entityname="TRADEJINI" meta.hostid="261" meta.entityid="TRADEJINI">Tradejini</keyword>, a Bengaluru-based stock broking firm, calls this a watershed moment for small and midsized brokers. "For years, small and mid-sized brokers have struggled to compete with larger brokers who enjoy significant discounts on transaction charges, particularly in the Futures &amp; Options (F&amp;O) segment. Now, they will finally get a level playing field. This will likely have a profound impact on brokers with high turnover. These brokers, who previously benefited from hefty discounts, will now face a more equitable charge structure. This change promotes fairness and transparency in the market, ensuring that no single entity has an undue advantage based on volume alone," he continued. However, Nilesh Sharma, President &amp; Executive Director of SAMCO Securities, sees it as an adverse move, one that will disincentivize brokers from working towards generating huge turnovers, thereby impacting market making. "We estimate the broking industry revenue (and, in turn, profitability) to be hit by around Rs 2,000 crores. This will lead to an increase in brokerage rates, as it will become unsustainable for the broking companies to take such a big hit on their profitability. Thus, this will lead to a drastic reduction in trading volume and the resultant price discovery," he cautions. <h2> How does the customer benefit?</h2>SEBI has asked MIIs to ensure that the charges that are recovered from end client remain "true to label." This means that MIIs should receive the exact amount that was levied by brokers on individual traders or end clients. While brokers recover these charges daily, MIIs are paid on a monthly basis, depending on the trade volume slab a broker falls into, leaving grounds for broker members to tinker around or confusing the end client that the actual fees charged by MIIs are high. But, as Tradejini's COO explains, "for end customers, this move promises several benefits. A uniform fee structure means that the savings from transaction charges are more likely to be passed on to clients rather than being pocketed by large brokers.". All in all, this could mean a sharp reduction in transaction costs for end investors, thereby making trading financially accessible and affordable. It will also foster a competitive landscape where brokers are encouraged to compete on service quality and pricing rather than simply relying on their ability to secure <keyword id="22262361" type="General" weightage="20" keywordseo="volume-based-discounts" source="keywords">volume-based discounts</keyword>," he signs off.

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