Monthly MarketWrap | Sept 2024

What’s Trending?

The US goes big with the first interest rate cut in four years.

The US central bank has lowered interest rates for the first time in more than four years with a bigger-than-usual cut. The Federal Reserve reduced the target for its key lending rate by 0.5 percentage points, to 4.75%-5%. Jerome Powell, the head of the bank, said the move was strong but needed as price rises ease and job market concerns grow.

ADB retains India's growth forecast at 7%; govt spending, agriculture to boost economy.

The Asian Development Bank (ADB) on Wednesday (September 25, 2024) retained India's growth forecast for the current fiscal at 7% and said that the economy is expected to accelerate in the coming quarters on improved farm output, and higher Government spending.

MCX Revises Transaction Fees On F&O Contracts After SEBI Mandates Uniform Charge Structure.

For futures contracts, MCX has fixed a transaction fee of Rs 2.1 per lakh of turnover value, an exchange filing stated. For the options contract, the cost has been revised to Rs 41.8 per lakh of premium turnover value. The new rates will come into effect from Oct. 1, 2024, the filing added.

MCX MCap crosses ₹30,000 crore.

Multi Commodity Exchange of India Ltd (MCX) - The first listed online commodities trading platform soared over 4.52% on Wednesday, peaking at a 52-week high at ₹5,908.8 and reaching the market cap to the ₹30,000 crore mark. Starting October 1, MCX will pay fixed annual maintenance charges (AMC) to TCS, eliminating the volatility seen in previous quarters and enhancing profitability.

Factors that will drive the market in October

RBI MPC Meet.

The RBI’s upcoming MPC meeting on October 9th takes centre stage as policymakers assess economic conditions amidst ongoing inflation concerns. The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meets to decide on monetary policy, including the benchmark interest rate (repo rate). The MPC's decisions are intended to help keep inflation within a target range. 

IIP Data.

The IIP data for September will be released in the middle of October. The data offers insights into the performance of sectors such as cement, steel, coal, natural gas, refined products, fertilizers and others.

Bank Credit Growth.

The bank credit growth data for September 2024 will be released by the end of October. Bank credit growth data is used to assess the potential of different sectors and industries. Strong credit expansion in a particular sector may indicate growth and profitability, making it an attractive investment option.