We’d like to inform you about an important update in our Margin Pledge facility. Previously, you could pledge your Mutual Fund holdings to obtain collateral margin for Option Buying. However, we’re temporarily rolling back this feature.
– You will no longer be able to avail collateral margin against Mutual Funds for Option Buying
– Pledging Mutual Funds will still be allowed for Option Selling, Futures Buying and Selling and Intraday Trades
– You can continue to pledge Stocks, ETFs, and SGBs for Option Buying and Selling, Futures Buying and Selling and Intraday Trades
Any Mutual Funds currently pledged for Option Buying will cease to provide margin from 3 January 2025 onwards.
Goldman Sachs has projected India to be among the best-performing emerging markets in 2025, given the country’s robust macroeconomic stability backed by improving terms of trade, effective inflation targeting, and reliable domestic risk capital.
The global investment bank has forecast an earnings growth of 18-20 per cent annually over the next 4-5 years, driven by an emerging private capex cycle, corporate balance sheet re-leveraging, and a structural rise in discretionary consumption.
These factors have reduced India’s beta to emerging markets to approximately 0.4, justifying its premium valuation multiples, the report stated.
Its investment earnings estimates remain ahead of consensus, and they highlight a declining correlation of Indian equities with global markets. However, global factors such as policy actions in the US and China, as well as geopolitical developments, will continue to influence Indian markets, the report added.
Goldman expects macro stability to be further strengthened through fiscal consolidation, increased private investment, and a positive real growth-real rates gap. They assume robust domestic growth, no US recession, benign oil prices, modest rate cuts, and a supportive liquidity environment. Sensex earnings are projected to compound at 17.3 per cent annually through FY27, which is 15 per cent above consensus.
IANS
In terms of portfolio strategy, Goldman favours cyclicals over defensives and SMID caps over large caps, recommending overweight positions in Financials, Consumer Discretionary, Industrials, and Technology.
Goldman Sachs Research stated in a report last month that it expects the Indian economy to be relatively insulated against global shocks over the coming year — including tariffs levied by the new administration of US President-elect Donald Trump. India’s GDP will keep growing strongly in the long term — but with a speed bump next year as government spending and credit growth slow, according the forecast.
“The structural long-term growth story for India remains intact driven by favourable demographics and stable governance,” Santanu Sengupta, chief India economist at Goldman Sachs Research, writes in his team’s report.
Our economists expect India’s economy to grow at an average of 6.5 per cent between 2025 and 2030, the report said.
Goldman Sachs expects headline inflation in India to average 4.2 per cent year-on-year in the 2025 calendar year, with food inflation at 4.6 per cent — much lower than our analysts’ estimate of 7 per cent-plus for 2024, thanks to adequate rainfall, and good sowing of the summer crop.
“Food supply shocks due to weather-related disruptions remain the key risk to this forecast. Thus far, elevated and volatile food inflation, mainly driven by vegetable prices due to weather shocks, has kept the RBI from easing monetary policy,” the report added.
As per SEBI’s Quarterly Fund Settlement rule, please keep the following in mind –
Any funds in your Upstox account that haven’t been utilised will be returned to your registered bank account by Saturday, 4 January 2025.
What you should do: – Please check your bank statement to verify and view the returned funds – To ensure you can trade on Monday, 6 January 2025, please add funds to your Upstox account in advance, as your account balance may be zero on that day. Know more: How can I transfer funds? – If you’re using NEFT/RTGS, please add Upstox as a beneficiary at least 24 hours in advance, ideally by Friday, 3 January. Below are the beneficiary details:
For Equity, F&O, or Currency trading: – Bank Name: HDFC Bank – Account Name: Upstox Securities Pvt Ltd – USCNB A/C – Account Number: 57500001411011 – Account Type: Current Account – IFSC Code: HDFC0000060
For Commodity trading: – Bank: HDFC Bank – Account Name: RKSV Commodities India Pvt.Ltd. – Account Number: 15770340022236 – Account Type: Current Account – IFSC Code: HDFC0000060
Due to the high volume of transactions on this day, there might be a delay in receiving your funds. Rest assured, you should receive your funds within two working days and this process won’t affect your current orders, holdings, or positions.
ITC Limited has declared to the Exchange the issuance and allotment of 1 equity share of ITC Hotels for every 10 equity shares of ITC Limited held by existing shareholders. The record date to determine which shareholders will be eligible for this is 6 January 2025.
Due to this corporate action, keep in mind the following impact on your F&O contracts
1. All existing contracts in the underlying ITC with expiry dates of 30 January, 27 February, and 27 March shall expire on 3 January 2025 and shall be physically settled as per the Exchange rules
2. The methodology of settlement shall be separately intimated by respective Clearing Corporations.
3. To take physical delivery of shares for your ITC position (or to cover a short position), you need to maintain the contract’s full value by the end of 2 January 2025.
4. No fresh position will be allowed under the F&O segment in ITC from 2 January 2025
5. ITC positions with insufficient fund value or stock (in case of a short position) will be squared off anytime after 10 AM on 3 January 2025 on a best-effort basis
6. Collateral Margins (Margin Pledge) on ITC will be subject to a 50% haircut value from 3 January 2025, onwards
7. All MTF positions in ITC will be either squared off or converted to delivery, based on the availability of funds post 10 AM on 3 January 2025 on a best effort basis
8. Derivatives contracts on ITC shall be introduced again (with an expiry of 30 January 2025, 27 February 2025 and 27 March 2025) from 6 January 2025 onwards
As per a recent Exchange circular, the expiry days for F&O index contracts have been revised. Starting January 2025: – NSE index F&O contracts will expire on the last Thursday of each month. – BSE index F&O contracts will expire on the last Tuesday of each month.
Here’s a detailed table for your reference:
Keep in mind – There is no change in expiry day for NIFTY monthly, weekly, quarterly & half yearly F&O contracts. They will continue to expire on Thursdays. – There will be no change in the existing SENSEX weekly F&O contracts expiring on 3 January 2025. – New F&O BSE Index contracts placed after 1 January 2025, will have an expiry day of Tuesday
India’s equity markets soared to record highs, firmly establishing the nation with a market capitalisation of $5.29 trillion this year, which was the fourth largest market cap globally after the US, China and Japan, a report said on Thursday.
Benchmark indices Nifty and Sensex hit all-time highs of 26,277.35 and 85,978.25, respectively, this year, according to the report by Pantomath Group, a leading financial services conglomerate.
GDP growth stood at 8.2 per cent in FY24, surpassing expectations, although inflation and weak consumption slowed growth in first half of FY25.
“A rebound is anticipated, driven by government spending, private investments, and rural growth revival,” the report mentioned.
According to Madhu Lunawat, CIO and Fund Manager, Bharat Value Fund, there are many opportunities available for both domestic and global investors such as AIF, PMS, Mutual Funds, etc. for medium-term investments perspectives, to participate in India’s long term growth story.
“The investor’s preference towards equity as an investment avenue based on their Risk appetite is constantly increasing in the last couple of years as compared to earlier. Such kind of sustainable fund flow from different investors is a positive sign and this liquidity will help market to support in any kind of correction or declines,” Lunawat noted.
IANS
The Indian agriculture sector is set for growth, driven by the ‘Vision 2047; roadmap that promotes sustainable farming, crop diversification (especially millets), and climate-resilient seeds.
The automobile sector grew 10 per cent to Rs. 6.14 lakh crore, with a sharp focus on EV adoption and exports projected at $30 billion by FY26, the report mentioned.
India remains committed to net-zero emissions by 2070 and 50 per cent renewable energy by 2030, supported by the National Green Hydrogen Mission and 100 per cent FDI in renewables.
“Indian corporate earnings are expected to show further improvement. The capex spending by government will lead to revival in overall GDP growth and companies benefiting from a softening in commodity prices, leading to enhanced profitability and margins,” said Devang Shah, Head Retail Research, ACMIIL.
Companies are expected to continue strong performance in the upcoming quarters, driven by a robust domestic demand environment, positive macroeconomic factors and private capex revival, Shah added.
Indian markets to deliver positive returns for 9th year in a row, outperform USIANS
Driven by strong fundamental and robust economic growth, the domestic benchmark indices are set to give positive returns in 2024 for the ninth consecutive year.
As per a report by Standard Chartered bank, 2024 was a year of two distinct halves for Indian equities and bonds. While the first half saw strong growth, supported by robust economic activity and corporate earnings, second half was marked by volatility amid consolidation.
“2024 was a year of two halves with H1 seeing strong performance of Indian equities and bonds on strong economic growth and corporate earnings delivery. However, H2 witnessed a surge in volatility,” according to the report.
Despite this, Nifty 50 index has gained 9.21 per cent while the Sensex index rose by 8.62 per cent.
Another report by Motilal Oswal said that Indian equities have outperformed US markets over the past 35 years, as investments in the Indian equity markets growing by nearly 95 times since 1990.
If someone had invested Rs 100 in Indian stock markets in 1990, it would have grown to Rs 9,500 by November 2024. In comparison, Rs 100 invested in US stock markets during the same period would have grown to Rs 8,400, according to the report.
Moreover, gold delivered a return of 32 times during the same period.
Gold delivered a return of 32 times during the same periodIANS
According to another report by Motilal Oswal Wealth Management, after a subdued earnings performance in the first half of FY25, earnings are expected to recover in H2, driven by increased rural spending, a buoyant wedding season, and pickup in government spending.
“We further expect earnings to gain momentum, delivering a 16 per cent CAGR over FY25-27E. Moreover, the recent market correction and the moderation in valuations offer an opportunity to add selective bottom-up stock ideas,” it mentioned.
“We remain optimistic about the long-term trend, given the strength of corporate India’s balance sheets and the prospects for robust, profitable growth,” the report noted.
On account of Christmas, there will be a trading holiday on Wednesday, 25 December 2024.
Keep in mind:
🔸Equity, Derivative and Commodity markets will be closed on 25 December. Trading will resume on 26 December. 🔸Standard Fund Withdrawal requests placed after 8 AM on 24 December will be processed on 26 December 🔸Instant Fund Withdrawal facility will not be available on 25 December
Please note, the following securities will be removed from SEBI’s list of approved securities for Margin Pledge.
As a result, you will not receive margins for F&O trading against these scrips starting Tuesday, 31 December 2024 :
NOTE: If you have pledged any of the above, starting 31 December 2024, you will not receive margins pledge benefit and you will be required to fulfil the full margin requirement. If you’re unable to pay, we will have to automatically square off your positions to recover the amount by 1 January 2025. We have attached a list of these stocks for your reference.
Please review your portfolio and make necessary adjustments to avoid any inconvenience. Thank you for your understanding and cooperation.
As per our previous communication, we would like to remind you about the lot size revisions and subsequent actions for BANKNIFTY, NIFTY, and SENSEX quarterly and half-yearly contracts. The revised lot sizes are detailed in the following table:
Which contracts are impacted by this? The quarterly/half-yearly contracts expiring from March 2025 onwards are getting impacted.
What action is required from you? If your existing quarterly/half-yearly positions are not in multiples of the revised lot size, you would be required to square off the existing position or purchase more lots.
Example: If you hold an existing position with 1 lot of NIFTY (March 2025 expiry and later) and the current lot size is 25, you have two options to align with the revised lot size of 75: 1. Add 2 more lots 2. Square off your existing 1-lot
Why is this recommended? Post revision, if your existing positions aren’t in multiples of the new lot size, you won’t be able to close/square off the position or book profit / losses.
IMPORTANT: Such a position may be worthless on the day of expiry
What actions shall be taken by Upstox?
1. If you don’t have existing Futures positions with quarterly/half-yearly expiry, you won’t be able to place fresh orders in such contracts. Fresh orders shall be permitted only after the expiry of the existing December 2024 contract.
2. If you have a long (Option Buy) position with quarterly/half-yearly expiry of March 2025 and later, no action shall be taken by Upstox. You can either exit the position or purchase further lots to match it to the new lot size. Otherwise, such positions may become worthless.
3. If you have a short(Option Sell) position with quarterly/half-yearly expiry of March 2025 and later, you shall be permitted to trade in such contracts until restricted by Upstox.
4. If your existing short positions are not in multiples of the revised lot size by the below deadline, margin and MTM requirements will apply. As we won’t be able to square off such positions in case there is a margin shortfall post revision of lot size, we will fully or partially square off the existing short position in December itself.
The permitted timeline for matching short positions in the revised multiples is as follows:
Please take cognisance of all your positions and plan your trade accordingly.
