India – September Market Update

India’s economy in September reflected a mix of resilience and challenges. While there are concerns around core sector performance and widening trade deficits, the stock markets showed solid gains, and several industries made strategic moves to push toward growth and sustainability. Let’s explore the major developments in India this past month.

Economic Updates

  • India’s core sector output declined by 1.8% in August, down from a 6.1% increase in July, with six of the eight core industries experiencing negative growth due to a high base effect from last year’s 13.4% expansion, according to provisional data from the commerce ministry.
  • India’s current account deficit widened to $9.7 billion (1.1% of GDP) in Q1 FY25, up from a surplus of $8.9 billion last quarter, driven by a rising merchandise trade gap of $65.1 billion. The Reserve Bank of India cited strong domestic demand and weak exports as key factors behind this shift.
  • Former Reserve Bank of India governor Raghuram Rajan stated on September 29 that India is failing to create enough jobs despite a 7% GDP growth, as reflected in the low number of applications for vacant positions in several states. He attributed this shortfall to the capital-intensive nature of the manufacturing sector.
  • India has lifted the blanket ban on non-basmati white rice exports and set a minimum export price of $490 per tonne, amending its export policy on September 28. The ban, in place since July 20, 2023, aimed to enhance domestic supply.
  • The Ministry of Environment, Forest and Climate Change has sanctioned 111 Nagar Vans (city forests) in six states and one Union territory as part of its 100-day action plan. This initiative aims to develop 1,000 city forests by 2027 to combat climate change and biodiversity loss.
  • India has signed two new agreements under the Indo-Pacific Economic Framework (IPEF) during Prime Minister Narendra Modi’s US visit, focusing on clean energy and trade transparency, making it a signatory to three of the four IPEF pillars.

India Stock Market Updates

 September brought positive momentum to the Indian markets! The BSE SENSEX climbed 2.11% to reach ₹84,299.78, while the NIFTY 50 mirrored this growth with a 2.11% rise to ₹25,810.85. A month of solid gains for investors!

  • Hindustan Unilever has set up a committee to evaluate the future of its ice cream business in light of its parent company’s global restructuring. The committee will recommend the best course of action for stakeholders.
  • Maruti Suzuki India Ltd. launched the Swift S-CNG, claiming it as the most fuel-efficient hatchback with 32.85 km per kg. The model supports the company’s focus on sustainability and green mobility.
  • Adani Power and Adani Green Energy won a 25-year deal to supply 6,600 MW of power to Maharashtra, with 5,000 MW from solar and 1,600 MW from thermal sources.
  • Ambuja Cements has become the first cement company to join the Alliance for Industry Decarbonisation (AFID), committing to Net Zero by 2050. It plans to invest INR 100 billion in renewable energy projects, aiming to power 60% of its capacity with green energy by FY2028.
  • Indian e-scooter maker Ather Energy has filed for a $536 million IPO, aiming for a $2.5 billion valuation, following rival Ola Electric’s public debut
  • Lupin Ltd has signed a non-exclusive patent license agreement with Takeda Pharmaceutical to commercialize Vonoprazan tablets in India, marketed as Lupivon in 10 mg and 20 mg strengths.

Top gainer and top loser Halal stocks in India for September

Summary

India’s economic growth is being tested by sectoral slowdowns and trade imbalances. However, a focus on innovation, green initiatives, and corporate restructuring offers hope for continued recovery. With strong market performance and policy adjustments, India remains on track for progress, despite short-term setbacks.

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