Market Overview
Today’s stock market opened on a weak note but has shown signs of recovery with light buying activity. As of now, the Nifty index is trading around 25,850, and the Bank Nifty has improved significantly, gaining about 150 points from lower levels. Notably, smallcap and midcap stocks are outpacing the larger indices, with particular strength observed in the IT and capital goods sectors, both of which are trading up by more than 0.50%.
In the capital goods sector, Crypton has emerged as a top gainer, with a remarkable jump of around 4%. However, after seven consecutive days of gains, the metal sector is experiencing slight profit booking today. Meanwhile, the Reserve Bank of India (RBI) has adopted a strict approach to address irregularities in gold loan practices, giving commercial banks, non-banking financial companies (NBFCs), and cooperative banks a three-month ultimatum to implement necessary reforms. This news has led to a decline in shares of Muthoot, which fell by approximately 4%, along with similar pressure on Mannapuram.
Bluedart Announces Price Increase
In significant news for the logistics and delivery sector, Bluedart has announced that it will implement a general price increase ranging from 9-12 percent effective January 1, 2025. Notably, customers registering between October 1 and December 31, 2024, will be exempt from this price hike. The price adjustment aims to offset rising operational costs. This announcement follows a similar move by Allcargo Gati, which recently revealed a 10.2 percent increase in average normal prices starting January 1, 2025.
Following this announcement, Bluedart’s stock has seen a significant uptick, trading around ₹8,640, up ₹427.30 or 5.21%. The stock hit an all-time high of ₹8,792.50 today, with a trading volume of 238,556 shares. Bluedart’s market capitalization stands at ₹20,519 crores, reflecting strong investor sentiment as the stock has gained 5.49% over the past week, 7.46% over the month, and a remarkable 29.26% over the last year.
Kalpataru Projects Secures New Orders
Kalpataru Projects International Limited (KPIL), a major player in India’s engineering and construction sector, has successfully secured new orders worth ₹1,241 crores in the Transmission and Distribution (T&D) sector, as well as residential and commercial projects both domestically and internationally. Following this positive news, Kalpataru’s stock has also seen an increase, trading at approximately ₹1,395 on the NSE, up by ₹28.75 or 2.10%.
Impact of RBI Regulations on Gold Loan Companies
The RBI’s stringent stance on gold loan irregularities poses challenges for key players like Muthoot Finance and Mannapuram Finance. The central bank has issued a three-month ultimatum for these institutions to rectify existing issues related to the gold loan process, highlighting negligence and lack of scrutiny. While both companies are positioned relatively well, analysts suggest a cautious outlook as regulatory pressures may decelerate loan growth.
According to Morgan Stanley, the firms may face regulatory action if improvements are not observed within the specified timeframe. Jefferies reiterated that while the new regulations might slow down growth rates, Muthoot and Mannapuram are better equipped to handle these challenges.
Stock Performance
| Company | Current Price (₹) | Change (%) |
|---|---|---|
| IIFL Finance | 466 | +0.75% |
| Muthoot Finance | 1960 | -3.4% |
| Mannapuram Finance | 195 | -2.69% |
