Tale of the Tape 

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Nifty and Sensex gave up early gains and closed flat after a volatile session. PS - The Stocktwits India Momentum Index dropped -1.2%. Midcaps (+0.3%) and Smallcaps (+0.8%) saw decent gains. The advance-decline ratio was evenly split.

It was a mixed-bag kinda day for sectors. IT (+1.2%) was the top gainer, while Oil & Gas (-0.7%) saw the most selling.

SEBI’s board meeting ended with a weak climax for now. Read our story on the top takeaways.

This chemical stock could see +12% upside in the next year. More details below.

BSE, NALCO and Blue Dart Express saw big movements today. Check out their charts below to find out why. PS - huge round of applause for Peyush aka Chase Equity for catching the breakout in Nalco early.

Tech Mahindra (+3%) was the top Nifty gainer after CLSA upgraded the stock and hiked its target price to Rs 1,749 vs Rs 1,626 earlier.

Aviation stocks were buzzing after the GOI cut jet fuel prices by 6.2%. PS - this is the second reduction in two months. Indigo was up +2%, while SpiceJet gained +7%.

Godrej Properties (+3%) gained after announcing a Rs 6,000 cr fundraise.

Muthoot Finance cracked -4% a day after the RBI flagged irregular practices in the industry and asked all regulated entities to conduct a review.

India Glycols jumped +11% after expanding the production capacity of its grain distilleries and biofuel ethanol plants in Uttarakhand and Uttar Pradesh.

PC Jewellers was locked in a +5% upper circuit after approving a 1:10 stock split and said its promoters would infuse Rs 646 cr in the firm.

Here are the closing prints:

Market
No News Is Good News!

The much-feared SEBI board meeting came and went with a whimper! ICYMI - many experts feared the regulator would announce its crackdown on retail F&O trading. Analysts feel that the proposed tougher rules could lead to lesser liquidity and India’s markets becoming shallow. 

But to everyone’s surprise, it did not announce any such measures. We don’t know why. But before you celebrate too early, reports say that SEBI can choose to roll out the new rules at any point and that it doesn’t really need board approval. So, we’ll wait and watch for that to happen. 

Until then, here’s a quick roundup of things that SEBI did announce:

1) Two new asset classes: The regulator says new investment products will be allowed in a category between mutual funds and portfolio management services. The minimum investment here will be Rs 10 lakh across all strategies. SEBI also announced that ‘mutual fund lite’ has been approved. FYI - this is only for passive schemes but will reduce capital & disclosure requirements for asset management companies that choose to open one! In short, good news for AMC and broker stocks!

2) Speeding up issues: Rights issues will now become a LOT faster says SEBI. They will be completed in 23 working days from the company’s board approving the issue vs the current timeline of 317 days. This should let existing shareholders participate more regularly!

3) RA requirements: The regulator has relaxed requirements for those who can become a SEBI-registered investment adviser or research analyst. Yes, this could be an issue but for the most part, a lot of the existing rules were nonsense. For instance, now a graduate degree is enough and you’re also allowed to take up other jobs while you build your RA/IA career. More easily available advice is the key to a better informed market!

Stocktwits Specials
5 Stocks To Buy In October - By SEBI RAs

Markets are at all-time highs but don’t know where to invest? In this video, we cover 5 mid & smallcap stocks which can give up to 30% returns from current levels.