The Nifty Financial Services Index (FINNIFTY) is designed to represent the behaviour and performance of India’s financial sector. It includes companies from banking, housing finance, insurance, and other financial services, making it a key benchmark for tracking the financial market’s movement.

The index is computed using the free-float market capitalisation method, meaning its value reflects the total free-float market value of all its constituent stocks relative to a predefined base market capitalisation. The Nifty Financial Services Total Returns Index (TRI) is also an available variant, which factors in dividends received from the index constituents.

Latest Market Update: March 10, 2025

As of 3:10 PM on March 10, 2025, the FINNIFTY index was down by 0.30%, trading at 23,065, after hitting an intraday high of 23,288. The index had fallen over 200 points from the day’s high.

Out of the 20 constituent stocks, 14 were in the red, while only 6 stocks were trading in positive territory, reflecting a broad-based decline in the financial sector.

Performance Comparison with Nifty 50

• On a month-to-date (MTD) basis, the Nifty Financial Services Index is up by 0.17%, whereas the Nifty 50 index has gained 1.57%, indicating relative underperformance in March.
• On a year-to-date (YTD) basis, the FINNIFTY is down by 1.94%, whereas the Nifty 50 has declined by 5.02%, showing that the financial services sector has outperformed the broader market so far this year.

Conclusion

The Nifty Financial Services Index plays a crucial role in tracking India’s financial sector and is widely used for portfolio benchmarking and investment products. While its performance fluctuates in response to market conditions, it remains a key barometer of financial sector trends. Investors and market participants closely monitor the index to gauge the financial industry’s overall health and momentum.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The Nifty Smallcap 100 Index is a benchmark that tracks the performance of 100 small-cap stocks listed on the National Stock Exchange (NSE). It reflects the behaviour of the small-cap segment, making it an important reference for investors evaluating smaller companies in the financial market.

The index is computed using the free-float market capitalisation method, meaning its level represents the total market value of all stocks in the index relative to a specific base market capitalisation. The Nifty Smallcap 100 is widely used for benchmarking fund portfolios, as well as for launching index funds, exchange-traded funds (ETFs), and structured products.

Sharpest Fall Since February 28: Market Performance on March 10, 2025

As of 2:38 PM on March 10, 2025, the Nifty Smallcap 100 Index is down 1.89%, marking its sharpest fall since February 28. The index initially surpassed the 15,600 level in early trade, but profit booking led to a reversal, pushing it into negative territory. Selling pressure intensified in the afternoon session, dragging the index further down.

Advance-Decline Ratio Highlights Broad Market Weakness

The market breadth reflects significant weakness in the small-cap segment, as indicated by the advance-decline ratio:

• 87 stocks within the index are declining
• 13 stocks are trading higher
• 6 stocks have registered a decline of over 5%

The widespread decline suggests broad-based selling pressure within the small-cap segment.

Year-to-Date and Monthly Performance

Despite a positive start to March, the index continues to face headwinds:

• Year-to-date (YTD) decline: 19% (as of March 10, 2025)
• March 2025 returns so far: +3.57%

The Nifty Smallcap 100 Index has significantly underperformed the Nifty50, reflecting ongoing challenges for the small-cap sector.

Final Thoughts

The Nifty Smallcap 100 Index serves as a crucial indicator of the small-cap market’s performance. While it showed some resilience earlier in March, the sharp fall on March 10—its steepest decline since 28 February—indicates continued volatility in the small-cap space. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India’s housing finance sector is poised for significant expansion, with projections indicating a doubling of its market size from ₹33 lakh crore (US$ 378 billion) to ₹81 lakh crore (US$ 928 billion) over the next 5 years. This growth is underpinned by structural demand, favourable policy incentives, and a shift towards higher-value housing loans.

Banks Lead, HFCs Maintain Steady Growth

Banks continue to dominate the housing finance market, accounting for 74.5% of total loans as of March 2024. Their competitive interest rates, extensive branch networks, and strategic portfolio acquisitions have enabled them to sustain leadership. Meanwhile, housing finance companies (HFCs) hold a stable 19% market share, with their loan portfolio growing by 13.2% in FY24 to ₹9.6 lakh crore (US$ 110.02 billion).

Impressive Growth Trajectory of Housing Loans

Between FY22 and FY24, housing loans witnessed a 17% compound annual growth rate (CAGR) in banks, while HFCs expanded at a 12% CAGR. The report forecasts that HFCs will continue to grow at 12.7% in FY25 and 13.5% in FY26, driven by increasing demand in the retail segment.

Premiumisation and Higher Loan Ticket Sizes

A growing preference for premium housing has led to a notable increase in the average loan ticket size. This shift aligns with the broader premiumisation trend in India’s real estate sector, where homebuyers are opting for larger and more expensive properties, necessitating bigger loans.

Government Support and Market Drivers

Favourable government policies, including interest rate subsidies, incentives for affordable housing, and regulatory support, have played a crucial role in boosting housing finance. Additionally, urbanisation, rising disposable incomes, and evolving homeownership aspirations continue to fuel demand for housing loans.

Conclusion

India’s housing finance market is on an upward trajectory, with sustained growth anticipated over the next 5 years. The interplay of structural demand, increasing loan values, and policy support will be key in shaping the sector’s evolution. While banks maintain a stronghold, HFCs are expected to capitalise on niche segments, ensuring a balanced expansion across the industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India’s semiconductor industry is poised for substantial growth, with projections indicating a market size of ₹3,47,800 crore (US$ 40 billion) by 2030. This expansion is primarily driven by developments in the supply chain ecosystem, particularly the availability of chemicals and gases essential for chip manufacturing.

According to the India Electronics and Semiconductor Association (IESA), the global semiconductor supply chain market is expected to reach ₹36,51,700 crore (US$ 420 billion) by 2030. India aims to capture a 10% share of this lucrative sector, marking a significant leap in the country’s technological ambitions.

Supply Chain and Ecosystem Development: A Key Focus

Speaking at the IESA Vision Summit, IESA President, Mr Ashok Chandak, underscored the importance of learning from established global semiconductor hubs. Given the complexity of semiconductor manufacturing—often involving over ten countries in the value chain—India needs to establish a robust local supply chain.

Key components such as gases, chemicals, and raw materials play a crucial role in semiconductor fabrication. To become a competitive player, India must ensure adequate local production and seamless supply of these critical materials.

A Growing Demand for Skilled Workforce

The semiconductor sector’s expansion will also require a significant skilled workforce. The IESA report forecasts that India will need:

• 1.50 million skilled workers
• 5 million semi-skilled workers

This workforce demand is expected to materialise by 2026-27, highlighting the need for substantial training and education initiatives in semiconductor-related disciplines.

Strategic Partnerships and Industry Collaboration

To accelerate India’s semiconductor aspirations, over 30 Memoranda of Understanding (MoUs) were signed at the IESA Vision Summit. Notably, Tata Electronics entered into agreements with:

• Powerchip Semiconductor Manufacturing Corporation (PSMC)
• Himax Technologies

These collaborations aim to strengthen India’s semiconductor manufacturing ecosystem, attracting global expertise and investment.

Conclusion

India’s semiconductor industry is on the path to becoming a significant global player, with supply chain development, workforce training, and strategic partnerships serving as crucial pillars of growth. While challenges remain, India’s commitment to expanding its semiconductor capabilities signals a promising future for the industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

With the formal setup of the 8th Central Pay Commission (CPC) on the horizon, central government employees are eagerly awaiting an increase in their Dearness Allowance (DA), as per news report. The hike, which is typically announced in March and implemented from January, is determined by the All India Consumer Price Index for Industrial Workers (AICPI-IW). Based on recent data, a 2% increase in DA is expected, taking it to 55% of the basic pay.

Expected DA Hike Based on AICPI-IW Trends

The DA rate is calculated using the AICPI-IW data released by the Labour Bureau in Shimla. The latest figures indicate a 0.8% decline in the index, dropping to 143.7 in December 2024. Given this slowdown in CPI inflation for industrial workers, analysts and employee representatives anticipate a 2% increase in DA.

Rupak Sarkar, president of the Confederation of Central Government Employees and Workers, has stated that their calculations also indicate a 2% rise. Similarly, Shiv Gopal Mishra, secretary of the NC-JCM (Staff Side), has acknowledged the probability of such an increment. If implemented, this hike will elevate the DA rate from 53% to 55% of the basic pay.

Formation of the 8th Pay Commission Underway

Meanwhile, the establishment of the 8th Pay Commission is progressing, with its chairperson and members expected to be finalised in the coming weeks. Once formed, the commission will begin its work in April 2025, focusing on revising pay structures and allowances for central government employees.

The final decision on the DA hike rests with the Union Cabinet, chaired by Prime Minister Narendra Modi. While the government has yet to make an official announcement, employees remain hopeful that the expected increment will soon be confirmed.

Conclusion

As central government employees await an official confirmation on the DA hike, the broader discussion around pay revisions continues with the upcoming 8th Pay Commission. The expected 2% DA increment, though modest, will provide some relief amidst inflationary pressures. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.