Stock Market Weekly Recap - 16 Sep to 20 Sep

Nifty and Sensex saw significant gains due to several positive factors. A major driver was the global optimism fueled by the U.S. Federal Reserve's interest rate cut, which sparked a rally in global markets, including India. Additionally, Foreign Institutional Investors (FIIs) turned net buyers, and strong buying activity from Domestic Institutional Investors (DIIs) further supported the upward momentum.

On Friday, September 20th, the Nifty 50 closed at 25,790.95, after touching an all-time high of 25,849.25, marking a 1.74% weekly increase, while the Sensex closed at 84,544.31, after touching an all-time high of 84,694.46, marking a 1.88% weekly increase.

Nifty 50: Top Gainers and Losers

Top Gainers

Top Losers

Important Highlights between 09 Sep to 13 Sep

Mankind Pharma Board Approves ?10,000 Cr Fundraising

Mankind Pharma's board has approved a plan to raise up to Rs.10,000 crore through the issuance of Non-Convertible Debentures (NCDs) and Commercial Papers (CPs) via private placement. A newly formed Fund Raising Committee will oversee and finalize the details of the issuance. Additionally, the board approved corporate guarantees for subsidiaries, including Mankind Agritech Private, Appian Properties, Copmed Pharmaceuticals Private, and Lifestar Pharma LLC, to support their financial needs.

Tata Steel Commissions India’s Largest Blast Furnace in Odisha

Tata Steel has successfully commissioned India’s largest blast furnace at its Kalinganagar plant in Odisha, as part of its Phase II expansion. With an investment of ?27,000 crore, this expansion boosts the plant’s production capacity from 3 MTPA to 8 MTPA. The new facility, inaugurated by CEO T.V. Narendran, will enhance Tata Steel’s ability to meet the growing demand across industries like automotive, infrastructure, and power. Over the past decade, Tata Steel has invested over ?1,00,000 crore in Odisha, making it the company's largest investment destination in India.

SEBI Approves Mutual Funds to Trade in Credit Default Swaps

SEBI has approved mutual funds to buy and sell Credit Default Swaps (CDS), aiming to boost liquidity in the corporate bond market and enhance risk management. This move allows mutual funds to hedge credit risk on corporate bonds and engage in synthetic debt investments. Key regulations include ensuring CDS exposure does not exceed the value of the protected securities, linking CDS to investment-grade bonds, and capping the exposure to 10% of a fund’s assets under management. This change provides mutual funds with an additional tool for diversifying and managing credit risk in their debt portfolios.

US Federal Reserve Cuts Interest Rates by 50 Basis Points

On September 18, 2024, the US Federal Reserve unexpectedly reduced its benchmark interest rate by 50 basis points, bringing it down to a range of 4.75%-5%. This marked the Fed's first rate cut since the early COVID-19 pandemic, surprising markets that had anticipated a smaller 25 basis point cut. The decision, made by an 11-1 vote of the Federal Open Market Committee (FOMC), was driven by progress in controlling inflation and balancing risks to the economy. While inflation is approaching the Fed’s 2% target, it remains somewhat elevated. The move signals a shift toward easing monetary policy and could prompt other central banks, including the Reserve Bank of India (RBI), to follow suit