New Delhi: The SME IPO market in India saw a sharp surge in activity during the financial year 2023-24 (FY 2023-24) and FY 2024-25, supported by strong retail participation and favourable market sentiment, the latest Reserve Bank of India (RBI) October Bulletin has said. 

Small and medium enterprises had raised Rs 5,917.19 crore in FY24, to which Rs 5,660.93 crore (94.80 per cent) was raised issuing fresh shares and Rs 310.26 crore (5.19 per cent) through offer for sale (OFS).

The numbers soared significantly in FY25, with SMEs raising Rs 9,110.97 crore. Fresh issues (Rs 8,344.37 crore) contributed 91.5 per cent, while the OFS part was Rs 775.6 crore or 8.5 per cent.

Most of the SME IPOs, during this period, recorded high oversubscription levels and listing gains.

According to the Bulletin, Macroeconomic and policy factors like overall market buoyancy and advancement in payment and settlement mechanisms in the IPO market drove this boom.

The SME firms used most of the raised funds for capital enhancement or working capital. However, despite robust listing gains, post-listing performances of these SME stocks reveal both opportunities and risks for the investors.

“While the buzz around SME IPOs may seem exciting, investing solely on market sentiment can be risky. During bullish phases in the market, enthusiasm and investors’ appetite may cause investors to overlook due diligence. In this phase, demand for IPOs surges, and expectations of substantial listing gains can lead to inflated valuations,” the Bulletin said.

However, market reversals can quickly dampen this optimism. SME IPOs may offer impressive gains in favourable conditions but carry higher volatility and risk during downturns, making due diligence indispensable.

Investors should carefully evaluate the company’s fundamentals, growth prospects, and risk factors before committing capital, the bulletin suggested.

Meanwhile, given the strong growth of start-ups in India, most of which have innovative business models, the provision of risk capital for these firms becomes crucial.

Keeping in view the spurt of SME IPOs in recent months and the associated challenges from the perspective of investor protection, SEBI, in consultation with NSE, BSE and merchant bankers, had initiated the review of the IPO framework for the SME segment.

These measures aim to reduce information asymmetry and regulatory arbitrage, ensure proper utilisation of IPO proceeds, prevent market manipulation, and protect retail investors, the bulletin noted.

Diwali Muhurat Trading 2025 Time Live Updates: The special one-hour Muhurat trading session on both the BSE and the NSE will take place between 1:45 pm and 2:45 pm on October 21, with a pre-opening session from 1:30 pm to 1:45 pm, as per exchange notifications. The new session also ushers in Vikram Samvat 2082, the Hindu New Year that begins on Diwali. Traditionally, trading during the ‘Muhurat’ session, the auspicious hour, is believed to bring prosperity and financial growth to investors.

According to official schedules, all trades executed during the Muhurat session will carry regular settlement obligations, meaning delivery and payment duties for buyers and sellers will be settled as on any normal trading day.

V K Vijayakumar, chief investment strategist at Geojit Investments Ltd, said, “The important takeaway from Samvat 2081 is India’s huge underperformance. Even though there are many reasons, including Trump tariffs, for this underperformance, the single major factor is the sharp decline in India’s earnings growth to 5 per cent in FY25 from average 24 per cent during the three years before that. Since ‘in the long run, the market is a slave of earnings’ the major trend, going forward, will depend on how earnings growth pans out. The fiscal and monetary reforms implemented this year has started showing results.”

Particularly, the sales of automobiles and white goods have shot up early this festive season and, if this trend sustains, earnings growth will be good at around 8 per cent to 10 per cent in FY 26, accelerating to around 15 per cent in FY27. If this expectation materialises, the market will rally in Samvat 2082 compensating for the underperformance of Samvat 2081. In the short run the market may get a leg up from a possible India- US trade deal, but the long-term trend will be dictated by earnings growth, he added.

Muhurat trading is a long-standing Diwali tradition first introduced by the Bombay Stock Exchange (BSE) in 1957, and later adopted by the National Stock Exchange (NSE) in 1992.

Historically, brokers performed Chopda Pujan, a ritualistic worship of account books, during this auspicious hour to mark the beginning of the new financial year with prosperity and good fortune.

Technical View

Rupak De, senior technical analyst at LKP Securities, said, “The market started with a gap-up (in the previous session on Monday) and remained volatile throughout the day. On the higher end, Nifty touched a high of 25,926 before closing around 25,850. Though there was some profit-taking at higher levels, the overall sentiment is likely to remain strong, with the potential to reach 26,000-26,200 in the short term. The technical setup remains positive as long as the index stays above 25,700, below which it may move back into consolidation.”

Mumbai: Gold and silver prices fell on Tuesday as investors booked profits after both metals hit record highs in the previous session, even as festive jewellery sales during Dhanteras jumped 35–40 per cent across India.  

Silver Exchange Traded Funds (ETFs), which had delivered stellar one-year returns of around 65–70 per cent, also saw a sharp correction as global prices cooled following improved physical supply and easing safe-haven demand.

Silver had turned hot earlier this month when global spot prices surged past $40 an ounce amid concerns of a physical shortage. The rally extended further, crossing $50 in mid-October.

However, by the end of last week, prices began to retreat as easing trade tensions reduced safe-haven demand. On October 17, silver prices in the US fell by over 6 per cent, and the correction soon spilled over into Indian markets.

According to the India Bullion and Jewellers Association (IBJA), silver prices in India fell 7 per cent on October 20, slipping from Rs 1,71,275 per kg to Rs 1,60,100 per kg. The decline directly impacted silver ETFs, which mirror domestic silver prices.

Data from Ace MF shows that silver ETFs logged steep single-day losses, with most funds dropping up to 7 per cent on October 20.

Analysts noted that the ETFs are now trading at or below fair value — a sign that investor demand has started to cool after months of heavy inflows.

Meanwhile, in the international market, gold prices also softened after touching record highs on Monday. Spot gold was down 0.3 per cent at $4,340.29 per ounce as of 0248 GMT, after hitting an all-time high of $4,381.21 in the previous session.

US gold futures for December delivery eased 0.1 per cent to $4,356.40 per ounce, as investors booked profits amid expectations of further interest rate cuts by the US Federal Reserve.

The Multi Commodity Exchange (MCX) will also observe special Muhurat trading today, October 21, with a pre-open session from 1:30 p.m. to 1:44 p.m., followed by the Muhurat trading window from 1:45 p.m. to 2:45 p.m.

Despite the short-term correction, festive demand for gold and silver remains strong. The All India Gem & Jewellery Promotion Council, said that around 50 to 60 tonnes of jewellery were sold nationwide over the two days of Dhanteras, generating nearly Rs 85 crore in sales.

It added that while the sales volume was similar to last year, the overall value grew by 35–40 per cent due to higher prices and rising consumer interest.

“Silver, in particular, has seen a remarkable surge, with sales nearly doubling this season. With Dhanteras coinciding with the weekend and followed by Diwali and Bhau Beej, the five-day festive period is expected to deliver exceptional results,” it mentioned.

“We anticipate total jewellery sales reaching 100 to 120 tonnes, valued between Rs 1 lakh crore and Rs 1.35 lakh crore,” they said.