Sensex and Nifty indices rallied to new peaks. The Sensex closed at 85,836.12 points, up by 666.25 points (0.78%), and the Nifty followed suit, closing at 26,216.05 points, registering a gain of 211.9 points (0.81%).
The auto sector led the gains, rising over 2%, driven by stocks like M&M, Maruti Suzuki, and Tata Motors. Maruti Suzuki surged 4.5% on news of an expanded dealership network by FY30.
Impact on the stock market
All 13 sectoral indices ended in the green, the broader market lagged behind, with the BSE Midcap index closing flat and the BSE Smallcap index slipping by 0.4%.
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| Sector/Index | Performance |
| IT & BPM sector | +0.48% |
| Healthcare sector | +0.17% |
| Oil & Gas sector | +0.29% |
| Real estate sector | +0.10% |
| PSU Bank in India | +1.02% |
Top gainers today
| Company | Price | Change (%) |
| Maruti Suzuki Share Price | 13,383.80 | 4.68 |
| Grasim Share Price | 2,745.85 | 3.15 |
| Tata Motors Share Price | 993.15 | 3.07 |
| Shriram Finance Share Price | 3,628.45 | 2.96 |
| M&M Share Price | 3,181.10 | 2.91 |
Top losers today
| Company | Price | Change (%) |
| Cipla Share Price | 1,621.80 | -1.30 |
| ONGC Share Price | 295.20 | -1.17 |
| Larsen Share Price | 3,762.15 | -0.84 |
| Hero Motocorp Share Price | 6,051.45 | -0.61 |
| NTPC Share Price | 434.60 | -0.34 |
Market aftermath: Impact on stocks
Vedanta rises 5%, nearing 1-year high
Vedanta Ltd continued its rally, with its stock price rising by 5% today, reaching an intraday high of ₹504.75, just shy of its 52-week high of ₹506.85. Over the past three trading sessions, Vedanta stock has risen by over 10%, making it one of the hottest stocks in the market.
Prices of aluminium have jumped from $2,300 per tonne on September 11 to $2,500 per tonne, and copper prices have also seen a significant rise from $8,800 per tonne to $9,600 per tonne. These price increases have directly boosted Vedanta’s stock value.
Vedanta is expected to announce its fourth interim dividend on October 8th, 2024, which has generated excitement among investors.
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Swan Energy surges; stock doubles in a year
Swan Energy saw a significant surge in its stock price today, rising 8% amid a sharp spike in trading volumes. Over 71 lakh shares of the company traded hands, compared to its one-month average volume of 13 lakh shares. The stock has gained 100% over the past year, making it a multibagger and doubling investors’ capital.
The company’s net profit jumped 85% in Q1FY25, further boosting investor confidence. Additionally, Swan Energy is in the process of selling its stake in a floating LNG terminal to Turkey’s state-run Botas for $399 million, a deal that has drawn significant market attention.
Samvardhana Motherson hits record high
Samvardhana Motherson hit a record high of ₹213 today, rising 3.5% amid heavy trading volumes. Over three crore shares changed hands, significantly higher than the monthly average of two crore shares. The stock’s upward movement was fueled by the company’s successful Qualified Institutional Placement (QIP), through which it raised $771 million (₹6,438 crore).
The funds raised will help repay debt and strengthen the company’s financial position, enabling it to seize future growth opportunities in the auto components sector. With a solid financial foundation, Samvardhana Motherson remains a favourite among investors bullish on the auto sector’s continued growth.
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Crude Oil
While the broader market surged, crude oil prices have been a point of concern. According to a report by ICRA, the recent decline in crude oil prices has created headroom for a reduction in petrol and diesel prices by ₹2-3 per litre. The price of India’s crude oil basket averaged $74 per barrel in September, down from $83-84 per barrel in March, when petrol and diesel prices were last reduced by ₹2 per litre.
This drop in crude prices has improved the profit margins of Indian Oil Marketing Companies (OMCs), such as IOC, BPCL, and HPCL. The improved margins may lead to a downward revision of fuel prices, which would provide some relief to consumers and reduce inflationary pressures.
However, the crude oil sector still faces challenges. The OPEC+ group’s production cuts and weak global demand, particularly from China, have kept oil prices volatile. Despite the recent decline in crude prices, OMCs could experience inventory losses, which may affect their profitability in the coming quarters.
Conclusion
September 26, 2024, was an eventful day for the Indian stock market, with strong sectoral performances in auto and IT, as well as notable stock movements like those of Vedanta and Swan Energy. The crude oil price drop, offering a potential reduction in fuel prices, further boosts market optimism.
For millennials and Gen Z investors, understanding these trends can help in making informed decisions. Investing in sectors like auto, IT, and commodities, which are experiencing strong tailwinds, could offer good opportunities. Similarly, keeping an eye on fuel prices and their impact on the broader economy could provide valuable insights for future investment strategies.
The stock market today has set a solid foundation for further growth, and young investors should stay tuned to these developments to capitalise on upcoming opportunities.
For more stock market insights, check out the StockGro blog.
