Markets closed lower than yesterday’s closing point.

IT stocks and FMCG stocks fell the most today. PSU Bank stocks and media stocks rose the most.

Global markets: US markets fell on Tuesday. Most Asian markets rose on Wednesday. European markets showed a mixed trend (as of 6 pm IST).

News

• India’s retail inflation rose 4.45% in July compared to 4.38% in June. Food inflation rose 5.52% in July (vs 5.32% in June).

• Net Direct Tax collection rose 23.09% year-on-year to Rs 8.11 lakh crore as of 10 August (compared to Rs 6.59 lakh crore a year ago).

• SEBI Chairman said that they have observed no market manipulation under the Closing Auction System yet but data is being monitored continuously; as per media reports.

IPO Corner

• Milky Mist’s IPO was subscribed 2.17 times on day 2. Retail subscription: 2.44 times. The IPO will close for subscription on 13 August.

• Shiprocket’s IPO was subscribed 0.97 times on day 1. Retail subscription: 3.34 times. IPO will close for subscription on 14 August.

• Dhoot Transmission’s IPO was subscribed 74.21 times on day 3. Retail subscription: 8.12 times. IPO closed for subscription.

• Molbio Diagnostics’ IPO was subscribed 70.26 times on day 3. Retail subscription: 12.96 times. IPO closed for subscription.

Stocks Updates

• SBI: completed a $500 million senior unsecured fixed-rate bond issue with 5-year maturity and 5.25% coupon, via its London branch.

• UltraTech: agreed to acquire a 26% stake in Solaris Horizon Energy Pvt Ltd for up to Rs 27.76 crore. The SPV will supply 91 MWp DC/65 MW AC of solar power to UltraTech’s plants in Chhattisgarh.

• HAL: net profit rose 14.88% year-on-year to Rs 1,589.68 crore in the April-June quarter.

• Coal India: signed a non-binding MoU with ArcelorMittal Nippon Steel India Pvt Ltd to explore use of syngas from a proposed coal gasification facility near AMNS’s Paradip pellet plant.

• Grasim: net profit rose 51.07% year-on-year to Rs 2,145.91 crore in the April-June quarter.

• Tata Motors: net profit rose 83.25% year-on-year to Rs 2,560 crore in the April-June quarter. The company also acquired an additional 18.1% stake in Freight Tiger for about Rs 96 crore, making Freight Tiger its subsidiary.

• JSW Energy: subsidiary JSW Neo Energy Ltd signed a shareholders’ agreement with Bhutan’s Druk Green Power Corporation Ltd to jointly develop the 920 MW Punatsangchhu-III hydro project in Bhutan, with JSW Neo Energy holding a 49% stake in the JV.

• Lenskart: net profit rose 269.24% year-on-year to Rs 221.84 crore in the April-June quarter. The board also approved the acquisition of an additional stake in JV, Baofeng Framekart Technology and the setting up of step-down subsidiaries in South Korea and China.

• Dixon: is setting up Adivistar Electronics India Pvt Ltd with 51% stake. The company will do OEM manufacturing of electronic devices, including smartphones.

Word of the Day

ISIN

It is a unique identification number given to each stock in the world

ISIN = International Securities Identification Number.

Just like how every person has a unique Aadhaar number in India, every stock (across different countries) is assigned a unique ISIN.

No two companies in the world can have the same ISIN.

Example: US0378331005 is the ISIN for Apple. INE090A01021 is the ISIN for ICICI Bank.

Your stocks details are stored in your demat account using the ISIN of each stock.

ISIN is different from ticker symbols.

Ticker symbols are more useful for trading since they are shortened names of companies that can be read very quickly.

6 Day Course

Theme: micro-cap investing

Day 3: Wednesday

Companies report their numbers for investors to see but how true are the numbers?

Is the company telling the truth about its business, operations, and metrics?

Are the proprietors and the management of the company reliable and trustworthy?

Many companies suffer from poor management and governance which is a huge risk in case of micro-cap companies.

In case of larger companies, scrutiny is greater.

Various investors (institutional as well as individual) are closely tracking and monitoring every aspect of these companies.

The same is not true in case of micro-cap companies.

Scrutiny is lower and investors should invest only if they’re sure of these aspects.

This is why many micro-cap companies’ shares are avoided even though they look good on paper.

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Featured Question

Q. “There were ample number of companies not listed and doing well. In that case, what is the benefit for companies to list in stock exchange?”

Companies go for an IPO and list on the share markets for two reasons:

- To raise more money

- To allow their older investors and proprietors to sell shares and exit

Often, it is a combination of both these factors.

If both these factors are not relevant, companies need not list themselves.

There are many healthy companies that are working perfectly fine that are not listed.

They do not need extra money to fund their growth or are able to meet that need via loans/debt.

Many family-owned businesses and companies operate like this.

Also, listing on the exchanges requires many extra steps that are recurring like audits, quarterly reports, etc.

Many companies are not able to justify the added work and expense to get the benefits of being listed.

There are a few other reasons too. Companies that are listed often find it easier to raise money via debt, offer ESOPs to employees, etc.

Markets closed lower than yesterday’s closing point.

Cement stocks and FMCG stocks fell the most today. Pharma stocks and IT stocks rose the most.

Global markets: US markets fell on Monday. Asian markets traded mixed on Tuesday. Most European markets rose (as of 6 pm IST).

News

• Equity mutual fund inflows fell 15% to Rs 24,697.39 crore in July compared to Rs 28,973 crore in June. Debt funds saw a net inflow of Rs 1.87 lakh crore compared to net outflow of Rs 1.09 lakh crore in June.

• Nifty 50 and Nifty 50 Equal Weight indices will be reshuffled on 30 September. Wipro will exit the index and the BSE Ltd stock will enter the index.

• SBI Capital Markets will now sell 8.78 million NSE shares in the exchange’s proposed IPO, without changing the overall issue size, as per an addendum to its DRHP.

• SEBI proposed widening the participation of FPIs in Exchange Traded Commodity Derivatives (ETCDs), including trade in non-agricultural and non-cash settled non-agricultural commodity derivatives.

• The government approved the RBI’s proposal for introduction of one billion plastic notes of Rs 10 and Rs 20 for field trials. Plastic bank notes are proposed to be issued along with paper notes.

• The government halved the incentives for electric two wheelers to Rs 2,500 per kWh from Rs 5,000 per kWh. The scheme has been extended by a year to 31 March 2028.

• SEBI proposed raising the number of unique identification numbers for securities (ISIN) that can mature in a year for privately placed debt securities to 17 from 14 to ease refinancing pressures.

• Milky Mist’s IPO was subscribed 0.79 times on day 1. Retail subscription: 0.96 times. The IPO will close for subscription on 13 August.

• LEAP India IPO was subscribed 8.38 times on day 3. Retail subscription: 1.71 times. IPO closed for subscription.

• Dhoot Transmission IPO was subscribed 3.94 times on day 2. Retail subscription: 2.97 times. IPO will close for subscription on 12 August.

• Molbio Diagnostics IPO was subscribed 3.11 times on day 2. Retail subscription: 3.18 times. IPO will close for subscription on 12 August.

Stocks Updates

• L&T: agreed to transfer its data centre and cloud services business to wholly owned subsidiary Vyoma.AI for Rs 1,400 crore. It will also transfer its entire stake in L&T Network Services Pvt Ltd to Vyoma for Rs 30 crore.

• Avenue Supermarts (DMart): allotted commercial paper worth Rs 300 crore with a 90-day tenure at a coupon rate of 6.70%, maturing on 9 Nov 2026.

• Grasim: started commercial production at its CPVC resin plant in Vilayat, Gujarat, developed in collaboration with Lubrizol Advanced Materials India. The plant has a planned capacity of about 50,000 tonnes per annum.

• Siemens: net profit rose 406.74% year-on-year to Rs 2,143 crore in the April-June quarter. The company also reported a Rs 2,099 crore provisional gain from the sale of its Low Voltage Motors business.

• Canara Bank: increased its MCLR by 5 basis points across tenures from one month to three years, effective 12 August. The one-year MCLR will rise to 8.80%, while the overnight MCLR remains unchanged at 7.95%.

• Zydus Lifesciences: net profit fell 35.93% year-on-year to Rs 939.80 crore in the April-June quarter. During the quarter, the company completed the acquisition of US-based Assertio Holdings for about $166.4 million.

• Godrej Consumer: appointed current CFO Aasif Malbari as Managing Director and CEO for five years effective 12 August, following the resignation of Sudhir Sitapati. Vishal Kedia was appointed interim CFO.

• Ashok Leyland: allotted unsecured NCDs worth Rs 300 crore on a private placement basis with a 7.5% per annum coupon rate and mature on August 10, 2028.

Word of the Day

Gross Profit

It is the profit calculated by deducting the cost of making a product from the revenue

Gross profit takes into account only the cost of products sold.

This includes raw materials, labour charges, assembling costs, rent of factory, depreciation of the machines used, etc.

It does not factor other charges of running the company like the cost of R&D of developing the product, marketing, salaries of other employees like accountants, etc.

This is opposed to net profit that is calculated by subtracting all costs from the revenue.

Net profit includes everything, right from the raw materials, labour, depreciation, R&D cost, salaries, rent, debt repayment, taxes etc.

6 Day Course

Theme: micro-cap investing

Day 2: Tuesday

For this course, we are considering anything outside the 500 biggest companies as micro-cap.

One of the first characteristics to understand about this category of stocks is liquidity.

These companies are small and often, there aren’t enough shares being bought and sold.

This means that it is possible that investors might not be able to buy or sell when they wish to.

So, when the stock’s price might be at a level that’s attractive to buy at, there might not be many sellers.

Similarly, when the price shoots up, there might not be many buyers.

To make matters worse, it is possible that liquidity is good when you’re buying but becomes poor when you’re selling.

Looking at the historical daily trading volume can help in such cases though it does not guarantee anything.

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Featured Question

Q. “I have shares of few compamies pocured years ago. I cannot remember the purchase price of these shares. How would I calculate LTCG if shares are sold now?. Is it my onus to pay LTGS while filing IT return?”

The question is, how long ago did you buy the shares?

If you bought shares 30-40 years ago, you will need to find the buying price somehow. It is necessary to calculate the tax you owe.

Do check out the 2018 tax change rule (Section 112A).

There is one potential relief in it.

Say you bought shares decades ago.

And say you are sure that the share price was much lower when you bought compared to the price on 31st January 2018.

Then, you will be able to use the share price on 31st January 2018 as your buying price.

Things get more complex if the selling price is lower than the price on 31st January 2018.

These calculations are a bit complicated. It is best to consult a Chartered Accountant (CA) for this.

If you bought some time in the last 20 or so years, chances are you bought the shares using a digital platform.

The buying price would most likely be recorded by your investment platform.

Most investment platforms automatically generate capital gains reports based on this buying price.

You can try to reach out to the platform to know this.

To answer your last question — yes, the onus to calculate and pay taxes is on you (the investor).

Markets closed higher than Friday’s closing point.

Realty stocks and private bank stocks rose the most today. PSU Bank stocks and oil & gas stocks fell the most.

Global markets: US markets rose on Friday. Most Asian markets rose on Monday. European markets showed a mixed trend (as of 6 pm IST).

News

• India’s imports of Russian crude oil rose 2.10% month-on-month in volume, with total import value of 5.50 billion euros in July and hit a record high for the second consecutive month.

• The government removed physical duty payment challans for exporters to ease compliance burden and save transaction cost, effective on voluntary duty payments from 1 August.

• Labour force participation stood at 54.60% in the April-June quarter compared to 55.50% in the previous quarter. The unemployment rate in urban areas was 6.70% (vs 6.60%) and the rural unemployment rate rose to 4.80% from 4.30%.

• India’s state fuel retailers revenue loss on sale of LPG narrowed to Rs 188 per cylinder in August from loss of Rs 500 per cylinder in July.

• LEAP India IPO was subscribed 0.49 times on day 2. Retail subscription: 0.41 times. IPO will close for subscription on 11 August.

• Dhoot Transmission IPO was subscribed 0.63 times. Retail subscription: 0.74 times. IPO will close for subscription on 12 August.

• Molbio Diagnostics IPO was subscribed 0.83 times. Retail subscription: 0.77 times. IPO will close for subscription on 12 August.

Stocks Updates

• SBI: raised $100 million by issuing floating-rate notes that will mature in July 2029. The interest rate is SOFR plus 100 basis points, and the notes were issued through its London branch.

• Bajaj Finance: allotted Rs 1,115 crore of secured NCDs through private placement at a coupon rate of 7.78% per annum. The NCDs mature in November 2029.

• Bharat Electronics: received additional orders worth Rs 541 crore since 31 July for communication equipment, electro-optics, ammunition fuzes, CBRN systems, spares and services.

• Hindustan Zinc: restrictions placed on the company under a promoter-group loan agreement of up to $80 million have been removed after the loan was repaid and the agreement was cancelled.

• TVS Motor: allotted Rs 1,000 crore of unsecured NCDs through private placement at a coupon rate of 7.28% per annum. The NCDs have a 39-month tenure and mature in November 2029.

• Lupin: received USFDA approval for Sodium Zirconium Cyclosilicate for Oral Suspension, used to treat hyperkalemia in adults. The reference drug Lokelma had estimated annual US sales of $568 million.

• Airtel: partnered with ITI Ltd to offer connectivity, data centres, sovereign cloud, IoT, AI and cybersecurity services. The companies did not disclose the deal value or its financial impact.

• Vodafone Idea (Vi): net loss reduced to Rs 3,754 crore in the April-June quarter from Rs 6,608 crore a year ago. The quarter included a net exceptional gain of Rs 1,611 crore, primarily from remeasurement of settlement assets.

• Lloyd Metals: net profit rose 164.87% year-on-year to Rs 1,726.59 crore in the April-June quarter. The board also approved investment of up to Rs 625 crore in subsidiary Thriveni Earthmovers and Infra Pvt Ltd and acquisition of at least 26% stake in renewable-energy projects.

• Bharat Forge: reported a net loss of Rs 89.73 crore in the April-June quarter, compared with a net profit of Rs 283.68 crore a year ago. The loss included Rs 358.01 crore of exceptional expenses, mainly related to restructuring its German subsidiary. The board also approved raising up to Rs 2,500 crore and setting up a semiconductor-related subsidiary in Malaysia.

Word of the Day

Line of Credit

It is an arrangement between a lender and a borrower which allows the borrower to take a loan and repay multiple times.

This arrangement has a pre-approved borrowing limit.

As long as the borrowed amount is below that limit, the loan is given without extra approvals.

Interest is charged only on the amount borrowed.

For example, many businesses maintain lines of credit with lenders for their operations.

Another example is a credit card.

Credit card holders are technically borrowing money from the bank.

As long as they are within the credit limit, they get the amount instantly and must pay back by the end of the month (usually).

6 Day Course

Theme: micro-cap investing

Day 1: Monday

By now, investors have become familiar with the 3 main categories of stocks based on size or their market cap:

Large-cap: 100 biggest companies

Mid-cap: next 150 biggest companies

Small-cap: the remaining 250 companies

That’s a total of 500 companies’ stocks. What’s beyond that?

Technically, they are also small-cap. But the small-cap companies index includes only 250.

So unofficially, companies that are beyond the biggest 500 companies are called micro-cap.

Some investors also consider companies beyond the 750 biggest companies to be nano-cap.

For reference, there are about 2,700 companies listed on the National Stock Exchange (NSE).

The number of companies listed on the Bombay Stock Exchange (BSE) is even higher — roughly 5,600 companies.

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What If

Over the last few years, sanctions have become more common in global politics.

But how they affect our markets is rarely clear when the news about sanctions break out.

When that happens, it might look severe on day one, but the real impact depends on how countries and companies respond. What initially feels like a major global shock can sometimes end up having a much smaller, or very different, impact over the following weeks.

In today’s What If, we looked at major sanction events and tried to understand how they affected markets and what they could have meant for investors.

Read the latest What If here

Markets closed lower than yesterday’s closing point. The difference between Nifty and Sensex was due to the closing auction system.

Private Bank stocks and consumer durable stocks fell the most today. Auto stocks and IT stocks rose the most.

Global markets: US markets fell on Thursday. Asian markets showed a mixed trend on Friday. Most European markets rose (as of 6 pm IST).

News

• India’s forex reserves rose by $10.51 billion to $692.87 billion in the week that ended on 31 July.

• Nine companies including Rediff.com India, Garuda Aerospace, and Playsimple Games Limited received Sebi approval for their proposed IPO.

• RBI proposed restrictions on NBFCs, barring them from offering revolving credit facilities and only offering term loans. This will not be applicable to NBFCs authorised to issue credit cards.

• SEBI streamlined inspection of market intermediaries by mandating joint inspections by stock exchanges and depositories.

• SEBI reiterated that the introduction of the closing auction system ensures enhanced price discovery, minimizing volatility and achieving cross-market consistency in its annual report.

Stocks Updates

• Airtel: subsidiary Nxtra Data agreed to acquire up to 85% each in Rochak Systems Pvt Ltd and Rovision Tech Hub Pvt Ltd.

• SBI: net profit rose 13.73% year-on-year to Rs 24,113 crore in the April-June quarter.

• Titan: net profit rose 62.88% year-on-year to Rs 1,777 crore in the April-June quarter.

• M&M: wholly owned subsidiary Mahindra Overseas Investment Company, along with Erkunt Traktor, divested its entire stake in Erkunt Sanayi Anonim Sirketi (Erkunt Foundry).

• Coal India: was selected as the preferred bidder for the Gadadharpur Iron Ore Block in Odisha, which has estimated resources of 288 million tonnes. The mining lease carries an auction premium of 114.05%.

• Hindalco: net profit rose 75.15% year-on-year to Rs 7,013 crore in the April-June quarter. It plans to expand capacity at its Kuppam unit by 10,000 tonnes per annum for Rs 768 crore by FY29. The US review of its AluChem acquisition has been delayed and is now expected to conclude by 2 Sept, subject to approval.

• Britannia Industries: net profit rose 13.56% year-on-year to Rs 591.35 crore in the April-June quarter.

• Lloyds Metals and Energy: allotted Rs 700 crore through secured NCDs via private placement at a coupon rate of 9.02%. The NCDs mature in August 2036.

• GMR Airports: agreed to acquire up to 49% in TIM Goa Airport Advertising Pvt Ltd for up to Rs 16.59 crore. The company will operate advertising at Manohar International Airport, subject to approvals.

• Godrej Consumer: net profit rose 11.51% year-on-year to Rs 504.52 crore in the April-June quarter. Interim dividend declared: Rs 5 per share, Record date: 13 August.

• Lupin: net profit rose 16.08% year-on-year to Rs 1,415 crore in the April-June quarter.

• JSW Energy: completed the acquisition of Maruti Clean Coal & Power Ltd for an enterprise value of Rs 1,410 crore. The company operates a 300 MW thermal power plant in Chhattisgarh, taking JSW Energy’s operating capacity to about 14.8 GW.

Word of the Day

Net Importer

It means that a country is importing more than it is exporting an item

A country may be exporting and importing the same item in different quantities.

When all imports are added, and all exports are subtracted from that number, we get the net import number.

In short, being a net importer of an item means we import more than we export that item.

6 Day Course

Theme: phases of stock markets

Day 5: Friday

The last phase is the bear phase.

It is also called the contraction or decline phase.

In this phase, some factor causes lots of stocks prices to fall significantly.

During such phases, the markets dip and pessimism spreads.

In a bid to prevent losses investors start selling their stocks.

This selling further worsens the fall making matters worse.

Institutional investors are also forced to sell in these periods as they come under pressure from their investors.

So many times, even if they would like to hold on to the stocks, they are forced to sell.

Emotionally, this phase is extremely difficult as watching investments turn red is not a good sight no matter how experienced an investor is.

This phase can be short or long — it is not easy to say how long it will last.

This only makes matters worse for investors.

After this phase, the next phase is the recovery phase. We already spoke about that phase in Tuesday’s course.

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Featured Question

Q. “If an individual investing Rs.20,000/- pm wef 1-1-2020for morethan 10 years (Invested Rs.24.00Lacs) in a MF company and later withdraws Rs.15,000/- pm (total value suppose 31 Lacs+) what will be effect on LTCG. Since he is withdrawing only his principle amount not LTCG?”

There is no concept of principal and interest in case of mutual fund investments.

Think of it like buying a house.

Say you bought a house worth Rs 1 crore in 2022.

You sold it for Rs 1.3 crore in 2025. So, in three years, you gained Rs 30 lakh.

You will have to pay a tax on this Rs 30 lakh profit.

Likewise, whenever you invest in a mutual fund, you are buying mutual fund units.

Think of buying many tiny homes.

The price of each unit is called its NAV.

So, if a mutual fund’s NAV is Rs 10, and you invest Rs 1000, you are buying 100 units of that mutual fund.

Say 5 years later, this investment has become Rs 1800.

So what happened is that each unit’s price went up from Rs 10 to Rs 18.

When you withdraw money from a mutual fund, you are selling these units.

When you withdraw a small portion of that entire investment, you are selling a small number of units.

So the tax applies accordingly.

Tax is calculated based on each unit and its price increase.

In case of SIPs, each month’s investment is bought at different NAV values. So their individual tax will be different.

You don’t have to calculate this amount yourself.

Most mutual fund platforms will automatically calculate and tell you your total capital gains per financial year.

You can simply pay a tax based on this capital gain.

Markets closed higher than yesterday’s closing point. The major difference between Nifty and Sensex this week was due to the closing auction system.

PSU Bank stocks and chemical stocks rose the most today. Realty stocks and media stocks fell the most.

Global markets: US markets closed mixed on Wednesday. Most Asian markets fell on Thursday. Most European markets rose (as of 6 pm IST).

News

• The government approved construction of a 135.87 km, four lane Guwahati-Tezpur Corridor along the NH-15 in Assam worth Rs 8,970.20 crore.

• The government approved Rs 23,731 crore for ‘GOBARdhan’-India’s national unified scheme for compressed biogas.

• The government clarified that India is neither importing nor intends to import ethanol from the US for fuel blending. The fuel blending programme and ethanol procurement is entirely from domestic producers.

• Coal production rose 7.51% year-on-year to 69.75 MT in July. Coal dispatch grew 18.03% in the same period to 86.85 MT.

• India remained a net importer of steel in July. Finished steel consumption rose 6.50% year-on-year to 14.40 MT in July. Steel production rose 1.40% to 13.70 MT in the same period.

• Indian retail automobile sales grew 25.89% year-on-year to 25.91 lakh units in July, according to Federation of Automobile Dealers Associations (FADA).

• Juniper Green Energy listed at Rs 245 on NSE, a premium of 8.89% over its issue price and closed 16.67% higher by the end of the day.

Stocks Updates

• LIC: net profit rose 23.98% year-on-year to Rs 13,584.25 crore in the April-June quarter.

• Power Grid: net profit fell 0.89% year-on-year to Rs 3,598.42 crore in the April-June quarter.

• Samvardhana Motherson: net profit rose 101.64% year-on-year to Rs 1,032.05 crore in the April-June quarter.

• Trent: net profit rose 20.79% year-on-year to Rs 519.01 crore in the April-June quarter.

• Aurobindo Pharma: net profit rose 25.20% year-on-year to Rs 1,032.56 crore in the April-June quarter. The board also approved merging its two step down subsidiaries into it’s wholly owned subsidiary Eugia Pharma Specialities Ltd.

• Persistent Systems: Launched a voluntary takeover offer to acquire Germany-based Nagarro at Euro 81 per share.

• Vedanta Aluminium Metal: stock exchanges sought clarification on a media report that the company may raise Rs 13,500 crore from Axis Bank, HDFC Bank and ICICI Bank. The company neither confirmed nor denied the report and said it regularly evaluates funding options.

Word of the Day

OFS

It is a process via which promoters or major shareholders sell their shares in a company to investors.

OFS stands for Offer For Sale.

In OFS, no new shares are created. Since the sellers of these shares are other major shareholders, the money goes to their pockets.

Hence, the company does not get any money from an OFS.

In an OFS, the share sellers define a floor price (minimum price) and then invite bids from investors.

The allocation of shares is done based on this bidding.

Many times, OFS is conducted along with the IPO procedure — which means a company can do an IPO with fresh issue shares, or with fresh issue shares + OFS shares or only OFS shares.

A company can also do an OFS after the IPO process.

6 Day Course

Theme: phases of stock markets

Day 4: Thursday

The next phase is called plateauing or topping out.

This usually happens when the bull run has extended for a long time pushing share prices up to astronomical levels.

In this phase, a common tug of war observed is that of pessimism vs optimism.

Many investors are preparing for a correction/fall. Many believe the markets are going to continue climbing.

Therefore, this phase is often marked by lots of trading but low price movement.

The markets and share prices tend to remain in a narrow range until some external event causes the situation to change.

Many people start commenting that various stocks are trading at overvalued levels.

Do note, this phase is sometimes skipped. It is entirely possible that a bull run is interrupted with a sudden negative news that has wide implications.

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Featured Question

Q. “As individual invester if we buy stocks/shares of particular company, individual has to pay transaction charges, service charges, exchange charges etc., on the value of the shares bought likewise does AMCs will also have to pay while buying/selling of stocks...and brokerage who will get? And NAV of MSs includes all these charges on buy or sell?”

Yes, the same charges apply to AMCs buying and selling stocks as well.

This includes brokerage, STT, exchange transaction charges, stamp duty, GST, etc.

The brokerage is paid to the broker the AMC has tied up with to execute its trades.

Because of the high volume of transactions they carry out, AMCs negotiate extremely low brokerage charges.

These charges are included in the NAV. Investors do not have to pay them separately again.

The difference to note is that they do not have to pay any STCG tax or LTCG tax.

That applies to investors only when they withdraw money from the mutual fund.

Markets closed slightly higher than yesterday’s closing point. The rise at the end of the day was due to the closing auction system.

Metal stocks and auto stocks rose the most today. Media stocks and private banks’ stocks fell the most.

Global markets: US markets rose on Tuesday. Most Asian markets rose on Wednesday. European markets showed a mixed trend (as of 6 pm IST).

News

• RBI kept the repo rate unchanged at 5.25% and maintained a ‘neutral’ policy stance.

• The government operationalised the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy, 2023 for exports of goods manufactured or produced in India.

• RBI Governor Sanjay Malhotra said that plastic currency notes will be in circulation from next financial year.

• SEBI proposed allowing depository receipts to be issued against units of REITs and InvITs in a consultation paper. This is aimed at attracting foreign inflows.

• Manipal Health Enterprises listed at Rs 652 on NSE, a premium of 10.51% over its issue price and closed 12.40% higher by the end of the day.

• LIC’s about Rs 31,410 crore OFS was subscribed 1.22 times including the green shoe option. Institutional investors subscribed 1.28 times while retail investors portion was undersubscribed at 0.7 times.

Stocks Updates

• ONGC: net profit rose 21.37% year-on-year to Rs 11,898.93 crore in the April-June quarter.

• Power Grid: commissioned the transmission system to transfer power from the 20 GW renewable energy zone in Rajasthan under Phase-III Part-H.

• TVS Motor: Its subsidiaries approved a scheme to merge STPL Trading and Services Pvt Ltd into Home Credit India Finance Pvt Ltd. Home Credit India Finance Pvt Ltd and TVS Housing Finance Pvt Ltd will then merge into TVS Credit Services Ltd, subject to approvals.

• Samvardhana Motherson: subsidiary Samvardhana Motherson Adsys Tech Ltd incorporated Samvardhanan Motherson Adsys Tech Holland Holding B.V. to hold the Motherson Group’s international aerospace businesses.

• Cummins India: net profit rose 0.89% year-on-year to Rs 609.30 crore in the April-June quarter.

• BSE: net profit rose 62.03% year-on-year to Rs 874.02 crore in the April-June quarter. The board also approved acquiring additional shares in IIBH IFSC Ltd for Rs 50.50 crore, increasing BSE’s direct stake from 3.33% to 20%.

• Adani Enterprises: Subsidiary Adani Defence Systems & Technologies Ltd acquired the remaining 44.60% stake in Flight Simulation Solutions Pvt Ltd. Another subsidiary, Adani Airport Holdings Ltd, incorporated AAHL Global IFSC Ltd to operate a Global Treasury Centre under IFSCA regulations.

• Marico: net profit rose 25% year-on-year to Rs 630 crore in the April-June quarter.

• United Spirits: Received an FSSAI order over allegedly non-compliant labels on certain whisky products made at its third-party unit in Madhya Pradesh.

Auto Updates (July)

• Maruti Suzuki: sales stood at 2.41 lakh units. Domestic sales stood at 2 lakh units and exports stood at 30,056 units.

• M&M: sales grew 26% year-on-year to 1.03 lakh units. Domestic passenger vehicle sales grew 20% to 60,048 units while commercial vehicle sales grew 23% to 25,204 units.

• Tata Motors Passenger: sales grew 59% year-on-year to 63,760 units.

• Hyundai Motor: sales stood at 75,360 units including export sales of 21,150 units.

• Eicher Motors: sales grew 34% year-on-year to 1.18 lakh units.

• TVS Motor: sales grew 38% year-on-year to 6.29 lakh units. EV sales stood at 60,934 units.

• Ashok Leyland: sales grew 30% year-on-year to 19,590 units.

• Bajaj Auto: sales grew 30% year-on-year to 4.74 lakh units.

• Tata Motors: sales grew 37% to 39,641 units.

Word of the Day

Acquisition

It refers to one company taking over another company via share purchase.

Often, acquisitions need not involve taking over a company fully.

Acquiring over 50% of the company is enough to gain operational control over a company as it often means all voting rights are with the acquirer.

This does not work in cases where the voting rights are not even. Some companies have higher voting power shares that allow some key people to have greater voting power than others.

While acquiring, a company might buy shares by paying cash, or by giving shares in itself, or a combination of both.

6 Day Course

Theme: phases of stock markets

Day 3: Wednesday

The next phase is called the bull run.

This phase is also called the expansion, uptrend, rally, or markup phase.

In this phase, a lot of the doubt and worry about the markets reduce significantly.

Stocks rise consistently and markets recover from the previous crash or downturn. They may even touch new all time highs.

This period is marked by euphoria and buying.

Most retail investors are convinced about the recovery and also start putting money in the markets.

This also means that many stocks’ valuations get pushed upwards as more money chases the same stocks.

Investors who had invested in the previous phase would now be sitting on healthy returns.

This phase can sustain for a while, which means, many investors who started investing late in this phase might also be able to see good returns.

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Featured Question

Q. “Due to RBI's restrictions on Foreign Investments, the Indian ETFs investing in Foreign Stocks have become premium, although the Base Price of the underlying asset has not increased much. Does the same hold good if we buy Mutual Funds that invest in Foreign Stocks, (if any funds are still accepting investments), i.e., if we invest in those MFs, are we also buying them in premium?”

Great question.

Let us understand how ETFs and mutual funds work.

ETFs are traded on the markets. Every time the ETF’s demand goes up, its price goes up.

But for each unit of the ETF, there is supposed to be a corresponding asset behind it.

So, if you buy Rs 3,000 worth of a gold ETF, there is supposed to be Rs 3,000 worth of gold backing those ETF units.

What is a premium in ETFs?

When the price of each unit is greater than the asset it holds, the ETF is said to be trading at a premium.

Example: a unit of a gold ETF costs Rs 500 but each unit is backed by only Rs 450 worth of gold.

So, here Rs 50 is the premium.

ETF companies resolve this by buying additional gold.

So why do we still have ETF premiums then?

That happens when there is no asset to buy. Say investors keep buying ETF units but there is no gold in the market to buy.

In such a case, there will be a premium.

So, if an ETF invests in an international index but fresh investments in the index are paused, premium of the ETF will rise.

Mutual funds do not operate like this.

Mutual fund units are not traded on the markets.

When money is put in a mutual fund, it is considered invested in the underlying asset.

If a mutual fund is not able to invest in that asset, it is common for them to stop accepting fresh money.

So in the case of mutual funds, there are no premiums.

There is one complication here though.

Many mutual funds that invest in foreign assets do it via ETFs.

So the mutual fund would be investing in an ETF investing in a foreign country.

What happens in these cases?

It depends on the fund manager. They may choose to stop accepting fresh investments citing the premiums in ETFs or may continue investing despite the premiums if they feel it is ignorable.

Markets closed lower than yesterday’s closing point.

Realty stocks and oil & gas stocks fell the most today. Media stocks and metal stocks rose the most.

Global markets: US markets rose on Monday. Asian markets showed a mixed trend on Tuesday. European markets traded higher (as of 6 pm IST).

News

• The government increased windfall taxes on fuel exports. The export duty on petrol was increased to Rs 3.50 per litre. Diesel export duties increased to Rs 25.50 per litre. ATF exports were raised to Rs 22 per litre.

• LIC’s Rs 31,410 crore OFS was subscribed over 3.3 times from institutional investors on day 1. The government is selling up to 6.50% stake at a floor price of Rs 382 to comply with minimum public shareholding norms. The offer will open for retail investors tomorrow.

Stocks Updates

• Airtel: net profit rose 37.32% year-on-year to Rs 8,167.40 crore in the April-June quarter.

• L&T: subsidiary L&T Energy Hydrocarbon Offshore (LTEH Offshore) secured an ultra-mega order (more than Rs 15,000 crore) from ADNOC Offshore to develop multiple offshore facilities in the Middle East.

• Pidilite Industries: net profit rose 29.74% year-on-year to Rs 872.41 crore in the April-June quarter.

• Samvardhana Motherson: subsidiary MSSL Global RSA Module Engineering Ltd acquired the remaining 49% stake in Vacuform 2000 Proprietary Ltd, making it an indirect wholly owned subsidiary.

• Varun Beverages: subsidiary Varun Beverages (Zimbabwe) Pvt Ltd formed a 70:30 joint venture with Mega Market Pvt Ltd for activities in Zimbabwe.

• Billionbrains Garage Ventures (Groww): State Street Global Advisors’ investment in Groww Asset Management Ltd was completed after receiving required approvals.

• SBI Funds Management: net profit rose 3.70% year-on-year to Rs 880.26 crore in the April-June quarter. The board also approved an investment of up to Rs 25 crore in wholly owned subsidiary SBI Funds International (IFSC) Ltd.

• Zydus Lifesciences: received USFDA final approval for Indocyanine Green for Injection, with 180-day exclusivity. The drug has annual US sales of about $125.8 million.

• Cipla: subsidiary InvaGen Pharmaceuticals received a USFDA Establishment Inspection Report (EIR), confirming closure of inspection at its Hauppauge facility in New York.

• Nykaa: net profit rose 243.10% year-on-year to Rs 80.01 crore in the April-June quarter. The board also approved the acquisition of a 51% stake in skincare company Aminu Wellness Pvt Ltd for up to Rs 32 crore.

Word of the Day

Offshore

It refers to any entity that is registered in another country for financial benefits.

In finance, offshore is often used to describe low-tax or low scrutiny countries.

For example, offshore companies are often shell companies registered in island-countries like the Cayman Islands, Mauritius, Bahamas etc.

Offshore banks are bank accounts opened in countries where the details of the account openers required by banks is less.

Offshore investment funds are funds that might invest globally but are registered in low-tax countries.

6 Day Course

Theme: phases of stock markets

Day 2: Tuesday

Let’s start with the first phase: consolidation.

This phase is also often called the bottom out phase because it is that phase in the markets when a falling market starts showing signs of recovery.

Investors are generally very sceptical, and often scared during this phase having been hurt because of the past falls.

Everyone is being cautious and the mood is sombre.

It is at this stage that institutional investors notice that the stocks are available at very low valuations.

They start buying and accumulating stocks in large quantities. They often treat this phase as a good buying opportunity.

Stocks that usually remain very highly valued are often available for very low prices.

For this reason, many also call this phase the accumulation phase.

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Featured Question

Q. “Why is it difficult to make 1% consistent Monthly returns even after diversification in Stocks and Mutual funds?”

If you look at Nifty 50 index fund returns, you will see that 12% per annum returns over a period of a few years are easily possible.

Many good mutual funds have been able to give much higher returns than just that.

The problem comes with consistency.

The markets are never consistent. They move in lumps. Sometimes they move downward, sometimes upward, and sometimes they remain flat.

So making 12% per annum returns (over a few years) in the markets has so far been easily possible.

But making a guaranteed 12% per annum every year is hard. You will notice that in some years, the index even gives negative returns.

Now, you can imagine making 1% per month every single month, consistently, is going to be harder.

It is not impossible. There are highly skilled traders and investors who have been able to do it. Many are able to make even higher returns than that.

But it is not easy for sure.

Even the best investors and traders in the stock markets usually have negative and positive periods.

Markets closed significantly higher than yesterday’s closing point. The introduction of the Close Auction System (CAS) led to the spike at the end of the day.

All sectors’ stocks rose today except for the media stocks. IT stocks and cement stocks rose the most.

Global markets: US markets rose on Friday. Asian markets traded mixed on Monday. European markets showed a mixed trend (as of 6 pm IST).

News

• India’s gross GST collections rose 15.40% year-on-year to Rs 2.11 lakh crore in July 2026 compared to Rs 1.83 lakh crore a year ago.

• India reached near-universal banking coverage with 99.92% of inhabited villages served by a banking outlet within a 5 km radius.

• Coal production from captive and commercial mines rose 9.61% year-on-year in July 2026. Coal production for the month was 14.78 MT while dispatch was 17.49 MT.

• Juniper Green Energy’s IPO was subscribed 7.97 times on day 3. Retail subscription: 0.93 times. The IPO closed for subscription.

Stocks Updates

• Reliance: step-down subsidiary Radisys Cayman Ltd merged with its holding company, Radisys International LLC, effective from 31 July.

• HCLTech: completed the acquisition of Guardian India Operations Pvt Ltd and Hewlett Packard Enterprise’s Telco Solutions Business.

• ITC: completed the acquisition of the Century Pulp and Paper business of Aditya Birla Real Estate Ltd, along with its assets, liabilities, contracts and employees, on a slump-sale basis.

• UltraTech Cement: allotted unsecured NCDs worth Rs 5,000 crore on private placement basis at coupon rates of 7.22% to 7.25%.

• JSW Steel: merger of wholly owned subsidiaries Amba River Coke, Monnet Cement and JSW Retail and Distribution with the company became effective from 1 August.

• Divi’s Labs: net profit rose 65.50% year-on-year to Rs 902 crore in the April-June quarter.

• Varun Beverages: subsidiary VBL Industries (Kenya) Ltd completed the $32 million acquisition of the value-added dairy beverages, juices and packaged drinking-water business of Devyani Food Industries (Kenya) Ltd.

• PFC: subsidiary PFC Consulting Ltd transferred Ananthpuram Transmission Ltd to Apraava Energy Pvt Ltd for Rs 19.62 crore and Krishnagiri REZ Transmission Ltd to Power Grid for Rs 19.82 crore.

• Tata Power: electricity appeals body, APTEL, asked the Maharashtra Electricity Regulatory Commission (MERC) to reconsider its decision rejecting Tata Power’s tax-related claims worth about Rs 268 crore. The final decision is still pending.

• Zydus Lifesciences: received an Establishment Inspection Report from the USFDA for its injectable facility at Zydus Biotech Park, Ahmedabad, with Voluntary Action Indicated classification.

• United Spirits: filed a petition in the Bombay High Court challenging an FSSAI order related to the labelling of a product manufactured at its Baramati plant.

• DLF: net profit rose 4.09% year-on-year to Rs 793.90 crore in the April-June quarter.

Word of the Day

XIRR

It is a way to measure returns when there are multiple instances of investments and withdrawal.

XIRR stands for Extended Internal Rate of Return.

Most other kinds of measurements of returns (CAGR, absolute returns, etc) do not account for multiple investments and withdrawals.

XIRR tells us how investments have performed after accounting for multiple investments and withdrawals.

One example where it is useful is in the case of SIP where new money gets invested every month.

6 Day Course

Theme: phases of stock markets

Day 1: Monday

There are many different ways of classifying the phases of the markets.

In this week’s course, we will discuss one of the most commonly spoken about set of phases.

Something to keep a note of is that the market never has phases that are distinct or absolutely clear. There is no formula to determine this with ease.

The phases also do not follow a fixed duration. Which means, a phase can be much longer than the one before or after it.

Yet another thing to note about these phases is that they are not consistent. One phase might be having many smaller periods of ups and downs.

This is why phases tend to get described more clearly after they are over, not during the phase itself.

The phases are: consolidation, bull run, plateauing, and bear run. We’ll get into each phase tomorrow.

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Check out the full report here.

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Markets closed higher than yesterday’s closing point. Nifty and Sensex rose 2.6% this week.

Media stocks and auto stocks rose the most today. IT stocks and FMCG stocks fell the most.

Global markets: US markets rose on Thursday. Most Asian markets rose on Friday. European markets showed a mixed trend (as of 6 pm IST).

News

• India’s forex reserves rose by $6.11 billion to $682.35 billion in the week that ended on 24 July.

• India’s fiscal deficit widened to Rs 3.07 lakh crore in the April-June quarter compared to Rs 2.81 lakh crore in the same period a year ago.

• The government approved Rs 84,084 crore for the National Offshore Exploration Scheme of the Ministry of Petroleum and Natural Gas up to FY30-31.

• The government approved Rs 5,070 crore for development of 5,000 MW floating solar photovoltaic projects with energy storage systems.

• SEBI introduced the ‘GARUDA’ framework to simplify and expedite the launch of AIFs effective from 30 July. This allows AIFs to launch 10 day after filing Private Placement Memorandum (PPM).

• Manipal Health Enterprises Limited’s IPO was subscribed 4.92 times on day 3. Retail subscription: 0.93 times. The IPO closed for subscription.

• Juniper Green Energy’s IPO was subscribed 0.47 times on day 2. Retail subscription: 0.22 times. The IPO will close for subscription on 3 August.

Stocks Updates

• L&T: signed a six-year EPC framework agreement with Petroleum Development Oman (PDO).

• Maruti Suzuki: net profit fell 9.11% year-on-year to Rs 3,446.90 crore in the April-June quarter.

• ITC: net profit fell 16.21% year-on-year to Rs 4,394.13 crore in the April-June quarter.

• Sun Pharma: net profit rose 27.04% year-on-year to Rs 2,894.79 crore in the April-June quarter.

• Bajaj Finserv: net profit rose 12.31% year-on-year to Rs 3,132.35 crore in the April-June quarter. The board also approved entering the reinsurance business through a new subsidiary, subject to IRDAI and other approvals.

• Dixon Tech: net profit rose 194.89% year-on-year to Rs 663.42 crore in the April-June quarter.

• M&M: subsidiary MLMML will raise about Rs 322 crore through an equity issue to Lightrock Cayman Holdings Ltd, along with existing investors. It also incorporated step-down subsidiary Novavayu Aerospace Ltd (NAL) to manufacture aircraft and aerospace products and provide related services.

• BEL: received additional orders worth Rs 847 crore since its last disclosure on 13 July. The orders cover electro optics, security operation centre, seekers, components, spares and services.

• Indian Oil: reported a net loss of Rs 1,630.74 crore in the April-June quarter, compared with a net profit of Rs 6,813.71 crore in the year-ago period.

• BSE: acquired a 3.33% stake in India International Bullion Holding IFSC Ltd (IIBH) for Rs 10.10 crore.

• Bajaj Holdings: net profit fell 22.37% year-on-year to Rs 2,706.45 crore in the April-June quarter. The year-ago quarter included a Rs 1,521.88 crore profit from the sale of Bajaj Finserv shares.

• GAIL: net profit rose 96.92% year-on-year to Rs 4,665.36 crore in the April-June quarter.

• Lupin: received USFDA approval for diazepam injection (used for treating anxiety disorders). The product’s estimated annual sales in the US are $77.9 million.

• Aditya Birla Capital: net profit rose 40.07% year-on-year to Rs 1,174.70 crore in the April-June quarter.

• Shree Cement: net profit fell 17.66% year-on-year to Rs 529.19 crore in the April-June quarter.

• Lenskart: incorporated a joint venture company, Lenskart Metalframes Pvt Ltd, with China’s Mingfeng Glassesworld Ltd (MGL) to manufacture metal spectacle frames and allied optical products in India.

• ICICI Bank: completed the issuance of $1 billion senior unsecured fixed-rate notes through its IFSC Banking Unit under its $7.5 billion Global Medium-Term Note programme.

• Airtel: received a Rs 6.3 lakh financial penalty from TRAI for alleged violations of mobile-number portability regulations. The company will pay the penalty.

Word of the Day

MoU

It is a document signed by two or more parties that expresses intent to work together

Unlike agreements, MoUs are not always legally binding.

Signing an MoU is the step that usually occurs before an agreement is signed and allows both parties to define the roles and intentions of the work they will do together.

6 Day Course

Theme: bonds

Day 5: Friday

So far, we were talking about bonds of one kind: fixed interest rate.

You must remember that even in the bond market, there are several different types of bonds being traded.

Depending on the type of bond, each type would be priced differently.

And different factors would affect each of them though largely, they are similar.

For example, government bonds are usually trusted more and therefore have lower interest rates.

Some bonds’ interest rate is tied to a benchmark and changes from time to time (floating interest rate).

Some bonds pay the interest only upon maturity. Some pay in a fixed interval.

Some bonds are callable — the issuer can choose to pay the bond before the tenure is over.

Junk bonds are low-priced bonds that offer higher interest rates but carry extreme risk of defaulting.

There are many more types.

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Featured Question

Q. “When a person buying share from exchange does a portion of shares kept for buying or selling from the company which is only for trading role. If a certain selling happens who is actually buying and vice versa.”

The exchange’s job is to match buyers and sellers.

It does not stock shares to sell to anyone.

So when you buy shares someone somewhere is selling those shares to you.

When you sell shares, someone is buying from you.

We never know who the buyer/seller on the other side of the trade is.

Of course, these trades are happening at a price that everyone considers “fair”.

If you set a limit buy order at a very low price, nobody might want to sell and your order will not get executed.

Whenever there is no buyer/seller for shares, the shares cannot be bought/sold.

In such a condition, the shares are said to be illiquid.

It is rare for shares of large companies to be illiquid. Smaller companies’ shares do become illiquid more often.

Markets closed higher than yesterday’s closing point.

Auto stocks and oil & gas stocks rose the most today. Realty stocks and chemical stocks fell the most.

Global markets: US markets fell on Wednesday. Asian markets showed a mixed trend on Thursday. Most European markets traded higher (as of 6 pm IST).

News

• The US Federal Reserve kept the benchmark interest rate unchanged at 3.50%-3.75%.

• The government said that the Ethanol Blended Petrol programme trials confirmed that E20 is safe for use under prescribed standards and legacy vehicles do not exhibit any significant variation in performance or abnormal wear and tear due to E20.

• The Bank of England kept interest rates unchanged at 3.75%.

• Manipal Health Enterprises Limited’s IPO was subscribed 0.45 times on day 2. Retail subscription: 0.45 times. The IPO will close for subscription on 31 July.

• Juniper Green Energy’s IPO was subscribed 0.36 times on day 1. Retail subscription: 0.12 times. The IPO will close for subscription on 3 August.

• Veritas Finance re-filed for an IPO with SEBI. The IPO will comprise a fresh issue of Rs 900 crore and an offer for sale of 1.28 crore shares. The company had earlier filed for an IPO in January 2025.

• INDO-MIM Limited listed at Rs 700 on NSE, a premium of 44.33% over its issue price and closed 53.61% higher by the end of the day.

• Lohia Corp Limited listed at Rs 461 on NSE, a premium of 8.47% over its issue price and closed 16.07% higher by the end of the day.

Stocks Updates

• Bajaj Finance: net profit rose 27.37% year-on-year to Rs 5,985.75 crore in the April-June quarter.

• L&T: received a limited notice to proceed from NTPC for the 1,600 MW thermal power project in Chhattisgarh, classified as a mega order (Rs 10,000 crore - Rs 15,000 crore). The full notice will be issued after the project receives environmental clearance.

• SBI: raised Rs 4,691 crore by issuing perpetual Basel III-compliant Additional Tier 1 bonds at an annual interest rate of 7.75%. The bonds were allotted on 30 July.

• M&M: net profit rose 33.58% year-on-year to Rs 5,454.54 crore in the April-June quarter. The board also approved the merger of wholly owned subsidiary Mahindra Investment Company (Mauritius) with M&M, subject to approvals.

• NTPC: a group company of subsidiary NTPC Green Energy commenced commercial operations of 50 MW solar capacity in Rajasthan.

• REC/Power Grid: REC subsidiary RECPDCL sold Bhadla Ramgarh Power Transmission to Power Grid for Rs 12.86 crore, Shongtong Power Transmission to Terralight Solar Energy Tinwari for Rs 20.41 crore and Ryapte Power Transmission to Tata Power for Rs 10.87 crore.

• Eicher Motors: net profit rose 21.35% year-on-year to Rs 1,462.52 crore in the April-June quarter.

• Torrent Pharma: net profit rose 3.28% year-on-year to Rs 566 crore in the April-June quarter.

• Vedanta Aluminium Metal: net profit rose 216.06% year-on-year to Rs 5,629 crore in the April-June quarter. It also approved an agreement with Serentica Renewables to add a 150 MW battery-storage system to its existing 600 MW solar-power arrangement and will invest Rs 165 crore for a 26% stake in the project.

• Hyundai Motor India: net profit fell 35.10% year-on-year to Rs 888.62 crore in the April-June quarter.. Record date for the final dividend of Rs 21 per share (declared earlier on 8 May 2026) fixed as 5 August 2026.

• Tata Power: subsidiary Tata Power Renewable Energy also started construction of an 800 MW renewable-energy project in Andhra Pradesh with Rs 5,750 crore investment.

• IRFC: net profit rose 10.40% year-on-year to Rs 1,927.21 crore in the April-June quarter.

• GAIL: signed an MoU with Rashtriya Chemicals and Fertilizers to jointly set up a 1.27 million tonne per year urea plant in Maharashtra’s Vidarbha region through an SPV.

• Mankind Pharma: net profit rose 29.61% year-on-year to Rs 568.06 crore in the April-June quarter. The board also approved a corporate guarantee of up to Rs 150 crore for wholly owned subsidiary Bharat Serums and Vaccines.

• Vedanta: net profit rose 71.84% year-on-year to Rs 5,473 crore in the April-June quarter. Note: the comparison is not directly comparable because four businesses were demerged from 1 May. The board also approved the demerger of its surplus real-estate business into Vedanta Property Platforms, subject to approvals, with shareholders to receive 1 share of the new company for every 20 Vedanta shares.

• Sun Pharma: got approval to make and sell semaglutide injections in Brazil for adults with poorly controlled type-2 diabetes. It plans to launch the product in partnership with Hypera Pharma.

• Maruti Suzuki: started commercial production at its fourth Hansalpur plant. This increased the Hansalpur facility’s capacity to 10 lakh vehicles and Maruti Suzuki’s total annual capacity to 29 lakh vehicles.

• Swiggy: net loss narrowed 33.92% year-on-year to Rs 791 crore in the April-June quarter. Amitesh Kumar Jha resigned as CEO of Instamart with effect from 28 July.

• Mazagon Dock Shipbuilders: net profit rose 21.51% year-on-year to Rs 549.41 crore in the April-June quarter.

• LIC: received a GST demand of Rs 99.10 crore in GST plus a penalty of Rs 9.91 crore for alleged early use of input tax credit.

• Airtel: received a Rs 2.2 lakh penalty from the DoT for alleged violations of subscriber-verification rules in Kerala. The company will pay the penalty.

Word of the Day

Price Discovery

It is a process by which supply and demand determines the price of something

Example: a company might think their share price should be Rs 45.

But they’ll know how much each share should be priced only after they do an IPO and let investors buy and sell the shares.

Then, the price will reach a level that investors think is right for the company’s share.

This process is called price discovery.

Many times, companies tend to underprice themselves. Their share price rises when they do an IPO.

The opposite also happens.

Price discovery can happen with all kinds of assets, products, and services, not just stocks.

6 Day Course

Theme: bonds

Day 4: Thursday

So, what affects the bond prices on the bond markets?

One of the biggest factors is interest rates. We know that countries’ central banks (example: RBI in India) change interest rates from time to time.

Depending on this interest rate, existing bonds’ demand can go up or down.

Example: the central bank reduces interest rates. This would make older bonds with higher rates more attractive.

Thus, their price in the bond markets would go up, and vice versa.

Another factor is the bond issuer’s ability to pay back.

Let’s say a company issued bonds. If that company is going through tough periods, many investors might feel nervous that the company might go bankrupt. Which could potentially mean the bondholders do not get paid upon maturity.

So investors might start selling this bond resulting in its price falling.

Yet another factor is the duration. The longer the duration of payment, the more the things that can go wrong. So it can make investors nervous.

Other factors like inflation expectations, and liquidity also play a role.

Just like shares, the actual number of factors that can affect prices are many. The above are some of the main factors.

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Featured Question

Q. “What is fundamental difference between RSU and ESOP? how company decide they should give RSU or ESOP to employees? I see vested RSU units but not price, but for ESOP I see vested units and price both. Why such difference?”

RSU = Restricted Stock Units

ESOP = Employee Stock Option Plan

RSUs promise to give employees a certain number of shares as a part of their salary.

ESOPs promise to give employees the option to buy shares at a fixed price later on.

RSUs are usually preferred by mature listed companies.

ESOPs are usually preferred by early-stage start ups that are not listed.

Example 1: Company A will give its senior director 600 RSUs over a period of 4 years.

The value of these RSUs depends entirely on the live share price. It cannot be decided beforehand.

Example 2: Company B will give its senior director the option to buy 600 shares (ESOPs) in the future for a fixed price of Rs 2.

This means, in the future, the employee can buy each share for Rs 2 even if the actual share price is much higher.

ESOPs are usually given by start ups that are not listed yet with the promise that the employee will be able to get shares for very cheap once the share actually lists on the share markets.

This fixed price is called strike price.

The taxation is different in both cases.

RSUs are taxed as and when they are received by the employee.

ESOPs are taxed only when the employee buys shares (vested) using their allocated ESOPs.

Thus, ESOPs can give the employee more control over their taxation.

Markets closed higher than yesterday’s closing point.

All sectors’ stocks rose today except for the auto stocks and realty stocks. IT stocks and metal stocks rose the most.

Global markets: US markets closed mixed on Tuesday. Most Asian markets fell on Wednesday. European markets showed a mixed trend (as of 6 pm IST).

News

• The government released Index of Services Production (ISP) data for May 2026. 16 out of 19 sub-sectors grew, with accommodation & food and real estate growing the most. Air Transport, postal & courier and information and broadcasting were the only ones that fell.

• SEBI will replace the current volume-weighted average price method and use the Close Auction System to calculate the closing prices of shares that have F&O contracts from Monday (3 August).

Stocks Updates

• L&T: received a major EPC order (worth Rs 5,000 crore- Rs10,000 crore) from Kuwait Oil Company for Jurassic Light Oil (JLO) export facilities and upgrades to its existing export network.

• Hindustan Unilever: net profit fell 3.01% year-on-year to Rs 2,673 crore in the April-June quarter.

• Asian Paints: net profit rose 39.96% year-on-year to Rs 1,539.25 crore in the April-June quarter.

• Adani Enterprises: reported a net loss of Rs 1,160.23 crore in the April-June quarter, compared with a net profit of Rs 885.23 crore in the year-ago period.

• Adani Ports: net profit rose 9.23% year-on-year to Rs 3,620.40 crore in the April-June quarter.

• M&M: approved the sale of its Truck and Bus Division to subsidiary SML Mahindra for Rs 525 crore, subject to approvals.

• BHEL: in a clarification to the stock exchanges, said recent reports about its development of a 1,200 kV transformer refer to projects completed in 2011 and 2014, and the news being circulated is more than a decade old.

Word of the Day

Generic Medicines

These are medicines whose patents have expired and thus can be made by other companies cheaply.

When pharma companies make new drugs/medicines, the formula or process or both are patented.

This results in higher priced medicines since only one company makes those medicines/drugs.

Once the patent expires after a few years, other pharma companies can copy and make it. Such medicines are called generic medicines/drugs. They must still meet the regulatory standards.

This often results in the drugs/medicine’s price falling.

Indian pharma companies are famous for making such generic medicines.

6 Day Course

Theme: bonds

Day 3: Wednesday

Now, we spoke about how bonds are also traded on the bond markets, much like shares.

But how is the price of a bond decided?

The first thing to understand is the concept of ‘present value’.

The bond is expected to pay the principal + interest on a certain date in the future.

How much would you pay for such a bond today? Different investors have different ways of thinking about this.

Say, a bond will pay a total sum of Rs 110 a year from now.

Will you pay Rs 110 for this bond today? No. That’s a poor investment.

But if this bond is available in the bond markets for Rs 100?

Then maybe it makes sense. You will pay Rs 100 today and a year later, the bond will pay Rs 110 on maturity. That is a return of 10% per annum.

This is just one simple example. Lots of complex factors affect the demand and supply for bonds.

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Featured Question

Q. “Many companies (e.g.,oil companies) in India declare net losses in their results yet pay out dividends. How can they afford to do that?”

Yes, many loss-making companies also pay dividends.

Many companies build a reputation for paying regular dividends and investors rely on them for their dividends.

When such companies scale down their dividends or not pay dividends, investors lose confidence in them and start selling the shares. This can cause the share price to fall.

To prevent this, companies continue paying dividends despite losses.

They are trying to signal that the losses are temporary and that they are confident that their profits will be good in the future.

Hence, they are trying to signal that paying dividends is not a problem for them.

How do they pay dividends in such cases?

Many companies have healthy cash flows despite losses. They are easily able to pay dividends.

Some may use retained earnings from previous quarters to pay the dividends.

In rare cases, companies may borrow money to pay dividends. This is generally not considered a good option.

Markets closed slightly lower than yesterday’s closing point.

IT stocks and realty stocks rose the most today. FMCG stocks and chemical stocks fell the most.

Global markets: US markets closed mixed on Monday. Most Asian markets fell on Tuesday. European markets showed a mixed trend (as of 6 pm IST).

News

• India’s Industrial Output rose 7.3% in June (vs 5.1% in May). This is the fastest pace of growth since July 2024. Manufacturing output increased 7.8% year-on-year in June (vs 5.2% in May).

• India’s exports rose to the highest ever at $863.10 billion in FY25-26. Merchandise exports stood at $441.80 billion and services exports increased to $421.30 billion. FTA’s with UAE, UK and Australia were the core drivers of growth.

• Regional Rural Banks reported the highest ever net profit of Rs 10,177 crore in FY25-26. Credit Deposit Ratio improved to 75.2% (vs 73.4% in FY25). Net NPA stood at 2.1% (vs 2% in FY25).

• India launches its first 40-wagon, direct commercial container freight train to Nepal under the revised India-Nepal Rail Transit protocol.

• Public Sector Banks’ net profit is at record high of Rs 1.98 lakh crore. Gross NPA was at a record low of 1.9% in FY25-26.

Stocks Updates

• L&T: net profit rose 13.98% year-on-year to Rs 4,123 crore in the April-June quarter. The board approved the merger of wholly owned subsidiary L&T Power Development with the company, subject to approvals. It also signed an Ultra-Mega framework agreement worth over Rs 15,000 crore with TenneT for 6 offshore wind projects and future opportunities.

• Hindalco: subsidiary, Novelis Inc, signed an agreement for a $500 million short-term unsecured term-loan facility.

• Tata Capital: net profit rose 56.32% year-on-year to Rs 1,547.38 crore in the April-June quarter.

• Cholamandalam Investment: net profit rose 45.56% year-on-year to Rs 1,656.22 crore in the April-June quarter. The board also approved raising up to Rs 55,000 crore through secured and/or unsecured NCDs on a private-placement basis, in one or more tranches.

• Varun Beverages: net profit rose 15.47% year-on-year to Rs 1,520.80 crore in the April-June quarter. Dividend announced: Rs 0.50 per share, with 1 August as the record date.

• Power Finance: subsidiary, PFC Consulting Limited, created a new company called Benchigere Transmission Limited. It will develop a 400 kV power transmission system in Tumakuru district, Karnataka.

• Bank of Baroda: reported a possible cyber-security breach involving its business email. The bank does not expect it to have a major impact on its operations, finances or business continuity.

• Tata Motors Passenger: operations at its Sanand plants and nearby supplier facilities were severely disrupted by flooding caused by heavy rainfall. The company expects normal operations to resume over the next few days.

• Cipla: received US FDA approval for its generic version of Advair Diskus (used to treat asthma). The product’s US market is around $908 million.

• Ambuja Cements: net profit fell 33.60% year-on-year to Rs 577 crore in the April-June quarter.

• Indus Towers: net profit rose 0.52% year-on-year to Rs 1,745.8 crore in the April-June quarter.

Word of the Day

Floor Price

It is the minimum price at which a sale can occur.

It applies to all kinds of assets where the price is not fixed and can go up/down depending on the demand for it.

The floor price in case of IPOs is the minimum price a company is willing to accept for its shares (in the book building process).

Example: a family might want to auction their house to see just how high its price goes. So they can set a floor price (the minimum price at which they will sell) and accept bids for higher prices.

6 Day Course

Theme: bonds

Day 2: Tuesday

Now, let’s look at the key points to check in bonds.

Face value or principal: this is the amount the bond issuer is borrowing from the investor (you).

Coupon rate: it is the interest rate per annum that is being offered.

Tenure: it is the period after which the bond matures.

Maturity date: the date on which the bond matures.

Coupon frequency: this is the frequency at which the interest would be paid. Example: annually, quarterly, only at the time of maturity, etc.

Price: the price at which the bond is trading.

This is important to understand. Price is how much others are willing to pay to buy the bond from the current bond owner.

The face value, coupon rate, tenure, and coupon frequency are decided at the time of issuing the bond.

But the price changes in real time (like share price) based on supply and demand for a specific bond.

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Featured Question

Q. “In the company’s balance sheet fixed assets are shown (e.g building, machinery, etc.). So when the company makes any purchase of machinery/land, where it is shown in P&L statement, is it in expenses ?”

Machinery, land, building, etc are shown in the cashflow statement.

You will be able to see how the money was spent and in that list, you will be able to see money used for other such purchases.

The equipment/machinery/etc are depreciating assets. They show up in the P&L statement in the form of depreciation of the value of these items.

Land is not depreciating. So it never shows up in the P&L statement.

Markets closed higher than Friday’s closing point (the highest gain in two weeks). The rise may be due to easing geopolitical tensions as the US halted attacks on Iran over the weekend and led to fall in oil prices.

All sector stocks rose today, led by media stocks and IT stocks.

Global markets: US markets closed mixed on Friday. Most Asian markets rose on Monday. European markets traded higher (as of 6 pm IST).

News

• India received foreign capital worth $32 billion so far after measures announced on 5 June, said RBI Governor in media interviews. The current scheme has surpassed the 2013 level of $26 billion in 45 days. Majority of the inflows are through FCNR(B) deposits.

• India’s engineering goods exports rose 21% year-on-year in June to $11.48 billion. Shipments to China increased 74% to $361.47 million from a year ago. The US was the largest market for engineering goods at $1.95 billion in June.

• Indo MIM IPO was subscribed 72.34 times on day 3. Retail subscription: 6.67 times. IPO closed for subscription.

• Lohia Corp IPO was subscribed 7.25 times on day 3. Retail subscription: 2.77 times. IPO closed for subscription.

Stocks Updates

• HDFC Bank: completed an internal review of its deposit arrangement with MSRDC in 2017 and 2021. The board imposed a Rs 1 lakh penalty and issued warning letters to the MD & CEO, CFO and other employees involved.

• L&T: received a major order worth Rs 5,000 crore -10,000 crore for a housing redevelopment project in Mumbai. The project includes the design and construction of 26 high-rise residential towers, each up to 120 metres tall.

• ONGC: commenced drilling its first deepwater exploratory well under the Samudra Manthan mission in the Mahanadi Offshore Basin, located around 23 nautical miles from Konark, Odisha.

• BEL: net profit rose 8.70% year-on-year to Rs 1,054.34 crore in the April-June quarter. The board also approved increasing the authorised share capital from Rs 750 crore to Rs 1,000 crore, subject to shareholder approval.

• Coal India: net profit rose 0.63% year-on-year to Rs 8,852.11 crore in the April-June quarter. Interim dividend announced: Rs 5.50 per share. Record date: 31 July.

• Adani Energy: opened its qualified institutional placement (QIP) with a floor price of Rs 1,698.15 per share. The company may offer a discount of up to 5% on the floor price.

• PFC: subsidiary, PFC Consulting Ltd, incorporated a wholly owned SPV, Kushtagi Transmission Ltd, to build a 765kV transmission system in Koppal district, Karnataka.

• Tata Power: net profit rose 10.95% year-on-year to Rs 1,175.93 crore in the April-June quarter.

• Canara Bank: net profit rose 62.15% year-on-year to Rs 5,180.71 crore in the April-June quarter.

• Ashok Leyland: associate, Ashok Leyland John Deere Construction Equipment Company, was voluntarily liquidated after receiving the final dissolution order from the NCLT.

• SRF: the Income Tax Department reduced the company’s tax demand for assessment year 2022-23 from Rs 327.44 crore to Rs 9.46 crore after correcting a technical error. The company is considering legal action against the remaining demand..

Word of the Day

Amortisation

It refers to spreading of a cost over a certain period.

Say a company bought a new software license for Rs 100 crore. This license will be used for the next 10 years.

The company may actually spend Rs 100 cr buying the software license.

But in its books, it will show the cost spread over 10 years (for example) so as to ensure the accounting remains even across many years.

Amortisation for accounting purposes is used for intangibles like licenses, patents, rights, etc.

6 Day Course

Theme: bonds

Day 1: Monday

Many investors have started exploring investing in bonds. This week, we’ll try to understand them better.

One of the first things we need to understand as investors is that they are loans.

The bond issuer is essentially borrowing money from you and offering to pay back the entire amount with interest after a certain period.

You (the investor) are giving a loan to the bond issuer (the borrower).

But, bonds are also tradable. This means, you can sell the bond to someone else much before the maturity of the bond. You don’t have to wait for the entire period.

This means, just like shares, you can easily buy/sell existing bonds.

So, just like shares in an IPO, you can subscribe to newly issued bonds.

And, also just like shares, you can buy/sell bonds in the bond markets.

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We explored the question "What if you picked stocks using only their cash flow?"

Check out the full report here.

Markets closed lower than yesterday’s closing point and fell for the fifth consecutive session. Both indices fell over 2% this week. This may have been due to a sharp rise in oil prices as US-Iran tensions escalated.

Auto stocks and metal stocks fell the most today. Media stocks and IT stocks rose the most.

Global markets: US markets fell on Thursday. Most Asian markets fell on Friday. Most European markets rose (as of 6 pm IST).

News

• India’s forex reserves rose by $1.08 billion to $676.24 billion in the week that ended on 17 July.

• The government approved two additional railway lines in Karnataka and Andhra Pradesh (46 km network) with a total cost of Rs 1,264 crore.

• India’s services exports rose 8.72% to $421.3 billion in FY25-26, compared to last year. Telecommunications, computer & information services, and business services contributed the most to the growth.

• Indo MIM IPO was subscribed 3.07 times on day 2. Retail subscription : 1.89 times. IPO closes on 27 July.

• Lohia Corp IPO was subscribed 0.59 times on day 2. Retail subscription : 1.08 times. IPO closes on 27 July.

Stocks Updates

• Airtel: received a DoT penalty notice of Rs 2.06 lakh for alleged violation of subscriber verification norms in Karnataka and will not contest the penalty.

• ICICI Bank: raised $1 billion through senior unsecured notes at a coupon rate of 5.459%. The notes have a 5-year tenure and will mature on 30 July 2031.

• L&T: heavy engineering arm won large orders (Rs 2,500 cr - Rs 5,000 cr) in international markets. These include refinery and fertiliser projects for Dangote Group in Nigeria and Ethiopia, along with equipment orders from customers in Japan, Spain, the US, and Brazil.

• Sun Pharma: Organon shareholders approved Sun Pharma’s proposed acquisition of the company. Organon will become a wholly owned subsidiary of Sun Pharmaceutical Holdings USA, subject to regulatory approvals.

• NTPC: subsidiary NTPC Green Energy Ltd declared commercial operation of the first 64.76 MW capacity of the 225 MW GSECL RE Park, Khavda Solar PV Project in Gujarat.

• Shriram Finance: net profit rose 59.89% year-on-year to Rs 3,452.77 crore in the Apr-June quarter.

• Hindustan Zinc: net profit rose 144.81% year-on-year to Rs 5,469 crore in the Apr-June quarter.

• Adani Energy: won an inter-state transmission project worth around Rs 8,500 crore in Andhra Pradesh to supply power to proposed green hydrogen and green ammonia projects in the Vizag area.

• SBI Life: net profit rose 21.97% year-on-year to Rs 724.93 crore in the Apr-June quarter.

• CG Power: net profit rose 16.26% year-on-year to Rs 313.01 crore in the Apr-June quarter. It also approved a Rs 35.17 crore brownfield expansion of its extra-high-voltage gas-insulated switchgear facility in Nashik.

• Bank of Baroda: net profit fell 48.60% year-on-year to Rs 1,783.29 crore in the Apr-June quarter. It paid $600 million (around Rs 5,680 crore) to settle disputes with NMC Group entities. The amount was charged to the Apr-June quarter, and the related court cases were closed.

• Tata Consumer: net profit rose 27.78% year-on-year to Rs 426.98 crore in the Apr-June quarter.

• REC: net profit fell 6.11% year-on-year to Rs 4,192.76 crore in the Apr-June quarter. Interim dividend announced: Rs 4.25 per share. Record date: 31 July.

• Aurobindo Pharma: subsidiary Apitoria Pharma Pvt Ltd approved the acquisition of an 80% stake in the contract research services business of A1 Biochem Group for $13.6 million.

• Laurus Labs: net profit rose 125.49% year-on-year to Rs 367.60 crore in the Apr-June quarter.

Word of the Day

Interim Dividend

It is the dividend a company pays while the financial year is still ongoing

Companies usually announce dividends around the same time as quarterly reports.

This is opposed to the final dividend that is paid after the end of the financial year.

The final dividend does not include the interim dividends paid.

It is in addition to the interim dividends paid.

Total dividend is a sum of all interim dividends and the final dividend paid in a financial year.

6 Day Course

Theme: understanding PEG

Day 5: Friday

In the case of companies that are stable and growing consistently, it is a better idea to use a trailing PEG ratio.

In case of companies where the future growth is much greater than present growth, it makes sense to use forward PEG ratio.

Investors must keep in mind that when using forward PEG ratio, many assumptions are being made.

The future earnings, which have not yet happened, are being assumed.

Mistakes and overestimation can creep in here making calculations biased in one direction.

Many investors use both trailing and forward PEG ratios to get a better understanding of the company and its future prospects.

As with PE ratio, PEG ratio is not absolute and can mislead when the company is exceptionally good or bad.

This is why subjective analysis of a company is a must.

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Featured Question

Q. “As a retail investor, can I short a stock listed on the BSE?”Exit load is a fee charged by mutual funds if the investor withdraws too fast.

Yes, it is possible.

Not all shares are available for shorting, though.

There might be restrictions on the stocks that can be shorted depending on the stockbroker you are using, liquidity, surveillance, etc.

But yes, to summarize, individual and institutional traders can short stocks in India.

This is possible via intra-day (for the same day).

Only shares traded in the F&O segment can be shorted beyond one trading day via SLB.

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Markets closed lower than yesterday’s closing point as the US-Iran conflict escalated and pushed oil prices close to the $100 mark. Nifty and Sensex declined for the fourth consecutive session.

Chemical stocks and realty stocks fell the most today. Only auto stocks and media stocks rose.

Global markets: US markets fell on Wednesday. Most Asian markets rose on Thursday. Most European markets fell (as of 6 pm IST).

News

• The government approved construction of a 14.52 km line between Nimpura and Midnapur, West Bengal for Rs 440 crore. The project is expected to support additional 3.52 MTPA traffic on the freight corridor to transport coal, iron ore, steel etc.

• Indo MIM IPO was subscribed 1.13 times on day 1. Retail subscription : 0.86 times. IPO closes on 27 July.

• Lohia Corp IPO was subscribed 0.39 times on day 1. Retail subscription : 0.66 times. IPO closes on 27 July.

Stocks Updates

• Bajaj Finance: allotted secured NCDs worth Rs 1,152.64 crore through private placement at a coupon rate of 7.93%, mature on 12 June 2029.

• Infosys: net profit rose 12.25% year-on-year to Rs 7,769 crore in the Apr-June quarter. It appointed Ashiss Kumar Dash as the CEO, effective from 23 July.

• Hindustan Zinc: promoter group entity Twin Star Holdings Ltd entered into a facility agreement for a maximum commitment of $2.25 billion, guaranteed by other Vedanta promoter group entities (Vedanta and Vedanta Aluminium Metal).

• InterGlobe (IndiGo): reported a net loss of Rs 237.60 crore in the Apr-June quarter, compared to a net profit of Rs 2,176.30 crore a year earlier.

• Samvardhana Motherson: issued a corporate guarantee of up to Rs 240 crore, along with interest, for a credit facility availed by indirect wholly owned subsidiary Motherson Electro Components Ltd from HDFC Bank.

• Cipla: net profit fell 39.19% year-on-year to Rs 789.05 crore in the Apr-June quarter.

• Zydus Lifesciences: received approval to conduct a Phase III clinical trial of Desidustat for treating anaemia in collaboration with ICMR.

• Godrej Consumer: invested Rs 200 crore in wholly owned subsidiary Godrej Pet Care Ltd through a rights issue to fund its operations, growth plans and capital requirements.

• Bharat Forge: subsidiary, Kalyani Powertrain Ltd will sell its entire 50% stake in joint venture REFU Drive GmbH to REFU Elektronik GmbH for EUR 12,500. REFU will cease to be a JV of KPTL.

• United Spirits: approved an investment of Rs 2.69 crore in Nuvola Spirits Pvt Ltd for a 10.08% stake on a fully diluted basis. Nuvola Spirits sells craft liqueurs under the Mikiamo and Seoulmate brands.

• Meesho: net loss narrowed 54.09% year-on-year to Rs 132.84 crore in the Apr-June quarter. The company also approved investing up to Rs 75 crore in wholly owned subsidiary Meesho Grocery through a rights or further issue of shares.

Word of the Day

YTD Returns

It is the return given by an asset since the start of the year.

YTD stands for Year-to-Date.

When we speak of 1-year returns, 3-year returns, 5-year returns, etc. we are comparing the returns over that period matching the start and end date.

Example: 3-year returns would mean the returns of an investment between 23 Jul 2023 and 23 Jul 2026.

YTD returns always measure from 1 January of the current year.

The period is not fixed. The start date is fixed. The end date is the current date.

Most investors tend to rely more on 1, 3, 5, etc year returns and those are better long-term measures.

The difference between 1-year return and YTD return:

-1-year return is the return between 23 Jul 2025 and 23 Jul 2026
-YTD returns is the return between 1 Jan 2026 and 23 Jul 2026

YTD returns are better used to understand the performance of an investment in the current year only.

6 Day Course

Theme: understanding PEG

Day 4: Thursday

So we now know how PEG ratio is calculated.

The challenge is that the PE ratio changes day-to-day (since the price of the share changes everyday).

This can bias the PEG ratio on a day to day bias. Which makes decision making tougher.

To address this challenge, investors often use a 12-month average PE ratio value.

So instead of 1 day’s PE ratio, they use an average value spanning the previous 12 months.

This PE ratio is called the 12-month trailing PE ratio. And the PEG ratio calculated using this is called 12-month trailing PEG ratio.

Some investors believe this does not account for the fact that the company’s future is even brighter.

So some investors try to predict the future earnings over the next 12 months.

Based on those earnings, they calculate the 12-month forward PE ratio.

The PEG ratio calculated using this is called 12-month forward PEG ratio.

This is a bit riskier since the investor has to estimate and predict future earnings and nobody can do that with 100% accuracy.

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Featured Question

Q. “Is exit load is constant or variable, if variable does it apply to investors of the M Fund who invested in the units before the change announced?”

Exit load is a fee charged by mutual funds if the investor withdraws too fast.

This is a percentage applied to the value being withdrawn.

Example: a certain mutual fund may charge 1% exit load till 12 months.

This means, if you withdraw within 12 months of investing, they will cut 1% of the withdrawal amount as exit load.

After the 12-month period, the exit load becomes 0%.

This is done to discourage investors from withdrawing money too fast.

Different mutual funds apply different exit load percentages and for different periods.

Example: ABC mutual funds charges 0.2% for 3 months, XYZ mutual fund charges 0.5% for 6 months, etc.

Mutual fund companies may announce changes in the exit load sometimes. It is not very common.

The new and updated exit load applies to all investors uniformly.

Markets closed lower than yesterday’s closing point after US President Donald Trump made fresh tariff threats on non-US pharma companies.

Realty stocks and media stocks fell the most today. Only FMCG stocks and auto stocks rose.

Global markets: US markets rose on Tuesday. Asian markets showed a mixed trend. Most European markets rose (as of 6 pm IST).

News

• US President Donald Trump said that all imported generic drugs will have 100% tariff in 2028 and 200% a year after that. There will be no tariff for 2 years starting 1 August. This is done to reshore generic pharmaceutical production into America.

• The government approved two Electronics Manufacturing Clusters (EMCs) worth Rs 1,012 crore in Manallur and Pillapaikkam, Tamil Nadu.

Stocks Updates

• Adani Power: net profit rose 41.98% year-on-year to Rs 4,805.69 crore in the Apr-June quarter.

• Nestle India: net profit rose 48.27% year-on-year to Rs 958.68 crore in the Apr-June quarter.

• Eternal (Zomato): net profit rose 268% year-on-year to Rs 92 crore in the Apr-June quarter. It will transfer its Nugget by Zomato business to wholly owned subsidiary Carthero Technologies Pvt Ltd for Rs 35 crore as part of an internal restructuring.

• Adani Green: net profit rose 18.5% year-on-year to Rs 845 crore in the Apr-June quarter.

• Adani Energy: net profit rose 124.22% year-on-year to Rs 1,149.06 crore in the Apr-June quarter.

• Pidilite: received a GST penalty order of Rs 46.98 lakh from the CGST Assistant Commissioner, Indore, which it plans to challenge.

• Samvardhana Motherson: completed the acquisition of an 81% voting stake in Japan-based Yutaka Giken through subsidiary Motherson Global Investments BV. Honda Motor will hold the remaining 19% stake after Yutaka Giken bought back its shares.

• Tata Capital: allotted $400 million senior unsecured notes at a fixed coupon rate of 5.332%. The notes have a 3.5-year tenure and will mature on 21 Jan 2030.

• BPCL: reported a net loss of Rs 1,872.70 crore in the Apr-June quarter, compared to a net profit of Rs 6,839.02 crore a year earlier. Company subsidiary BPRL Ventures acquired the remaining stake in Brazil-based IBV Brasil Petroleo from Videocon Energy Brazil for Rs 2,312 crore, making it an indirect wholly owned subsidiary.

• HPCL: reported a net loss of Rs 12,264.67 crore in the Apr-June quarter, compared to a net profit of Rs 4,110.93 crore a year earlier.

• Bharat Forge: signed an MoU with French-Canadian firm Flying Whales to jointly develop and manufacture heavy-lift airships in India.

• Oracle Financial Services Software Limited: net profit rose 120.52% year-on-year to Rs 1,415.50 crore in the Apr-June quarter.

• Dr. Reddy’s: net profit fell 68.67% year-on-year to Rs 444.30 crore in the Apr-June quarter.

• SRF Limited: net profit rose 75.53% year-on-year to Rs 758.87 crore in the Apr-June quarter. Dividend announced: Rs 5 per share.

• IndusInd Bank: net profit rose 71.68% year-on-year to Rs 1,037.05 crore in the Apr-June quarter. Board also approved raising up to Rs 20,000 crore through debt securities and up to Rs 10,000 crore through equity instruments or convertible debt securities, subject to approvals.

Word of the Day

Corporate Lending

Banks and financial companies lending money to corporate companies.

Corporate lending is one kind of lending banks and financial institutions take part in.

This lending could be for funding day to day operations, purchasing machinery, acquisition, etc.

These loans may or may not have a collateral involved.

The rate of interest applicable also depends heavily on the profile of the company, its likelihood of paying back, duration of the loan, etc.

6 Day Course

Theme: understanding PEG

Day 3: Wednesday

The central idea behind PEG ratio is this: it is okay for a share to have a higher PE ratio if it is growing faster.

The way to calculate it is: PE ratio divided by annual growth in EPS.

Example: if a company’s PE ratio is 45 and its annual earnings-per-share is growing at 30%, it’s PEG will be: 45/30‎ = 1.5

So, a lower PEG would be considered as the share being undervalued. A higher PEG would be considered as overvalued.

There is no correct PE ratio. It is subjective and depends on each investor.

Likewise, there is no correct PEG ratio either. It is subjective and depends on the investors’ thinking.

Many investors tend to say that a PEG ratio of 1 is the most ideal PEG ratio and anything above it starts feeling overvalued.

But that’s just a commonly held belief. Many investors do invest in shares with a higher PEG if they feel optimistic about the company’s future.

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Featured Question

Q. “Why GMP is considered while deciding the listing price ? GMP is like black market price and I feel unethical and helps only the MFs and big investors who dump them at higher prices for the small investors who didn’t get allotment. If GMP is correct, then why the listing price collapses within 2 or 3 days after the listing day ? I say it is a way of cheating small investors”

In case of IPOs, GMP or Grey Market Premium is the share price before the listing takes place.

It is completely informal and unofficial. It is not regulated by SEBI or any other regulatory body.

It is the price at which some investors and traders are buying/selling directly with each other. There is no exchange (BSE/NSE) involved.

It is not always accurate since the price is purely based on observation of some trades, not all trades.

Relying on GMP to predict the future price of a share after listing is a bad strategy.

There are enough examples where the share price went down or up compared to the GMP.

Large institutional anchor investors like mutual funds are usually locked in for 30 to 90 days. So they cannot sell within a few days after the IPO listing.

Markets closed lower than yesterday’s closing point.

Chemicals stocks and cement stocks rose the most today. PSU bank stocks and IT stocks fell the most.

Global markets: US markets fell on Monday. Most Asian and European markets rose (as of 6 pm IST).

News

• The government will sign an Implementation Agreement with Germany on 22 July to strengthen institutional capacity, facilitate knowledge sharing and foster technical cooperation. The agreement will be signed during the release of ‘AAROH-Annual Report on Mine Closure’.

• Sebi directed depositories to issue operational guidelines for freezing promoter holdings at the ISIN level during buybacks by 1 August.

• SBI Funds Management listed at Rs 613.3 on NSE, a premium of 6.85% over its issue price and closed 6.23% higher at the end of the day.

Stocks Updates

• Maruti Suzuki: will increase prices across its model portfolio by up to Rs 30,000 with effect from August 2026 due to higher input costs. The exact increase will vary by model.

• Bajaj Auto: net profit rose 45.93% year-on-year to Rs 3,225.63 crore in the Apr-June quarter.

• Adani Energy: net profit rose 124.22% year-on-year to Rs 1,149 crore in the Apr-June quarter.

• InterGlobe (IndiGo): signed an MoU with CFM International for 1,000+ engines. The MoU also covers support for IndiGo’s upcoming engine MRO facility.

• TVS Motor: net profit rose 67.11% year-on-year to Rs 1,019.43 crore in the Apr-June quarter.

• Lupin: subsidiary Lupin Inc U.S.A. granted an exclusive perpetual license for two oncology programs to Kaveri Therapeutics, Inc. in exchange for an 82.2% equity stake valued at $1.6 million.

• Aditya Birla Capital: invested Rs 123.89 crore in associate Aditya Birla Health Insurance through a rights issue to meet solvency margin requirements. Its stake remains unchanged at 45.89%.

• Indian Hotels (IHCL): net profit rose 20.76% year-on-year to Rs 357.90 crore in the Apr-June quarter.

• JSW Energy: completed acquisition of additional equity shares in Toshiba JSW Power Systems Pvt Ltd from Toshiba Corporation, Japan for Rs 150 crore, raising its stake to 20.7% from 4.6% on a non-diluted basis.

• Aurobindo Pharma: subsidiary CuraTeQ Biologics Pvt Ltd received ANVISA approval from Brazil’s national health surveillance agency for its biosimilars manufacturing facility in Hyderabad.

• One 97 (Paytm): net profit rose 78.86% year-on-year to Rs 220 crore in the Apr-June quarter.

Word of the Day

Leverage

In finance, leverage refers to investing using borrowed money or debt.

Many traders and investors use leverage, they try to amplify their returns since the money they borrowed has a fixed interest rate.

Example: you have Rs 10,000 and you borrow another Rs 10,000 (total Rs 20,000). This money is invested in a stock.

In a day, this stock gains 5%.

So, the total amount invested has grown from Rs 20,000 to Rs 21,000.

But since you used borrowed money, you actually made Rs 1,000 using only Rs 10,000 of your own money. So your actual return was 10%, not 5%.

This is called a leveraged trade.

It is extremely risky since if the stock falls, the entire debt/borrowed money would have to be paid back using your own money.

6 Day Course

Theme: understanding PEG

Day 2: Tuesday

Before going ahead to understand what PEG ratio aims to address, let’s understand the flaw in PE ratio.

The PE ratio was explained in yesterday’s course.

What does a high PE ratio tell us?

It tells us that a stock’s current share price is too high compared to its current earnings. And vice versa.

We know that investors tend to be willing to pay a price not based on current earnings but future earnings.

This means that despite current earnings, companies with a bright future attract more investors.

This pushes its PE ratio up.

Conversely, fewer investors want shares of a company with poor future prospects.

This causes its PE ratio to dip.

So in effect, poor companies’ PE ratio becomes lower (thus making them seem undervalued and a better investment option).

Good companies’ PE ratio becomes higher (thus making them seem overvalued and a poorer investment option).

But this is the opposite of what is actually happening.

So, what PEG ratio tries to do is compare PE ratio but also factor in the growth of the company.

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We explored the question “"What if you invested in the biggest IPOs of the year?"

Check out the full report here.

Markets closed lower than Friday’s closing point.

PSU Bank stocks and pharma stocks rose the most. Private bank stocks fell the most after they announced results over the weekend.

Global markets: US markets fell on Friday. Asian markets showed a mixed trend. Most European markets fell (as of 6 pm IST).

News

• India’s Infrastructure output rose to a five month high of 5% year-on- year in June. (vs 3.2% in May). The Index of Core Industries for June is the first data released with a revised base year of 2022-23.

• The government clarified that there is no proposal to remove long-term capital gains tax on equities for domestic investors in the parliament. The clarification was followed by the decision to exempt FPIs from LTCG tax on investments in government securities last month.

Stocks Updates

• HDFC Bank: net profit rose 18.4% year-on-year to Rs 19,245 crore in the Apr-June quarter.

• ICICI Bank: net profit rose 13.9% year-on-year to Rs 15,440 crore in the Apr-June quarter.

• L&T: metals & minerals business won mega orders (Rs 10,000 crore - Rs 15,000 crore) across iron ore handling, steel plant expansion and zinc processing projects in Chhattisgarh and West Bengal.

• Axis Bank: net profit rose 22.2% year-on-year to Rs 7,632 crore in the Apr-June quarter.

• Kotak Mahindra: net profit rose 22.5% year-on-year to Rs 5,480 crore in the Apr-June quarter.

• UltraTech: net profit rose 16.8% year-on-year to Rs 2,599 crore in the Apr-June quarter.

• Tech Mahindra: is proceeding with a proposed merger of three wholly owned subsidiaries (Zen3 Infosolutions, Tech Mahindra Enterprise Services and BeGig Pvt Ltd) into itself.

• Tata Power: received a Letter of Award from SECI to provide storage services from a 324 MW/2,592 MWh pumped storage plant for 40 years, with annual fixed charges of Rs 351.3 crore.

• PNB: net profit rose 174.3% year-on-year to Rs 5,815 crore in the Apr-June quarter.

• Cipla: US FDA completed a routine inspection at subsidiary InvaGen’s Central Islip facility in New York. The company said it will respond within the required timeline.

• Vedanta: promoter group entity Twin Star Holdings entered into a $1 billion facility agreement. Vedanta is not a party to the agreement, but some covenants and share encumbrances apply to it.

• IDBI Bank: net profit rose 5.3% year-on-year to Rs 2,127 crore in the Apr-June quarter.

• REC: subsidiary RECPDCL incorporated two wholly owned subsidiaries, Beed Parli Power Transmission Ltd and Yavatmal Power Transmission Ltd as wholly owned subsidiaries for transmission projects in Maharashtra.

Word of the Day

Confidential DRHP

It is a method of filing for IPO where the details of the company are not revealed to the public during application

Every IPO must be checked by SEBI before being launched.

During this process, SEBI might ask for more information, revelations, compliance, etc. Companies may need more time to finish this procedure. This can delay the launch of the IPO.

In this time, a company’s competitors may get some early advantages over the company.

Filing for an IPO via the confidential DRHP route allows companies to keep their details private from the public until the IPO is launched.

Companies have to reveal all details before the IPO is launched for subscribing.

6 Day Course

Theme: understanding PEG

Day 1:Monday

PEG stands for PE-to-growth ratio.

In other words, it compares a company’s PE ratio with its growth.

Let’s first understand why we need this at all.

Many investors would already know, PE ratio is the ratio of a company’s share price to its earnings (per share).

So, it compares how much the company earns vs how much its share costs.

Many investors use this to determine if a stock is underpriced, overpriced, or fairly priced.

Remember, a company can be an excellent business and still be a bad investment. If investors buy the share at overvalued levels, the return can be poor.

This is why we use PE ratio.

But any experienced investor will tell you, relying only on the PE ratio to determine if a share is undervalued/overvalued/fairly valued is a bad strategy.

In the practical investing world, often, we see good companies tend to have higher PE ratios and give good returns despite that.

Some companies with low PE ratios end up being poor investments also.

PEG aims to address this.

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Featured Question

Q. “We hear many terms of investors, like angel investors, early investors, series C investors etc. Can you explain what each such types mean and how they affect the company ?”

These are mostly different kinds of startup investors and investment stages.

Startups go through many rounds of investment.

Many successful startups get acquired by other companies, or go for an IPO.

Before that stage a company goes through many rounds of investment:

Angel round: in this, individuals invest money in the startup. This is usually the very first investment round the startup company has. Some investors specialise in investing in start-ups at this stage. They are called angel investors.

Seed round: this is the next round. In this, individuals or institutional investors like venture capital firms might invest. Sometimes, there may be a pre-seed round before this round where other angel investors invest.

Series A: this is the next round. In this, usually institutional investors invest (venture capital firms).

After that, all rounds are termed alphabetically — series A, B, C, etc.

It depends on the number of times the start up raises money and is based on the progress the company has made.

Often, in later rounds, bigger institutional investors like private equity funds, sovereign wealth funds, etc might also invest.

This format is largely common. But it is not mandatory to follow this exact format.

Angel investors, venture capital firms, and private equity funds are often called early-stage investors because they invest relatively early in the life of a company.

Not all private equity funds are early stage investors. But some are.

While specifically talking about individual companies’ funding round, the investors might be labelled based on the round they are investing in. Example: an investor who invested in a Series B round will be called a ‘Series B investor’ for that company.

Markets closed higher today.

Nifty 50 opened higher, and the rise may have been mainly due to optimism and a rise across major IT stocks.

Private bank stocks and IT stocks rose the most today. Pharma stocks and healthcare stocks fell the most.

Global markets: US markets fell on Thursday. Most Asian markets closed significantly lower today. Most European markets fell. (as of 6 pm IST).

News

• India’s forex reserves rose $964 million to $675.16 billion for the week ended on July 10.

• The government will revise the series of the Index of Core Industries (ICI) with the base year 2022-23 on 20 July. The number of core industries has increased to 9 from 8 with the addition of iron ore.

• MakeMyTrip’s Indian subsidiary confidentially filed for an IPO with SEBI. The company and its subsidiary, ibibo Holdings, will sell shares in the IPO, as per its filing to the U.S. SEC.

Stocks Updates

• Adani Enterprises: subsidiary Adani Defence Systems & Technologies Ltd (ADSTL) will acquire the remaining 44.6% stake in Flight Simulation Solutions Pvt Ltd (FSSPL) for Rs 820 crore, taking its stake from 55.40% to 100% and its effective stake in FSSPL from 72.80% to 100%.

• JSW Steel: net profit rose 113% year-on-year to Rs 4,651 crore in the Apr-June quarter. The board also approved selling shares worth up to Rs 811 crore in JSW One Platforms Ltd (JOPL) through an offer for sale in its proposed IPO.

• Waaree Energies: received an additional 212 MW solar module order from an international renewable energy customer, taking the total order from the customer to 562 MW. The modules will be supplied in FY27.

• Federal Bank: net profit rose 36.78% year-on-year to Rs 1,256 crore in the Apr-June quarter..

• Airtel: received a Rs 6.59 lakh penalty notice from DoT for alleged violation of subscriber verification rules in Andhra Pradesh. The company will pay the penalty and not contest it.

Word of the Day

Institutional Investor

An institutional investor is a large organisation that invests money on behalf of investors

Such investors are not individually operated. They are professionally managed by dedicated teams.

Some examples of institutional investors are mutual funds, pension funds, hedge funds, insurance companies, etc.

Even large family offices are often classified as ‘institutional investors’ owing to their organisational structure and the large amounts of money they manage.

6 Day Course

Theme: companies with extra cash

Day 5:Friday

We have covered most of the things companies do with extra cash.

Some more that are left are: increasing working capital and employee rewards) bonuses and employee share option buybacks, etc.

Something to understand about this is that different companies treat their cash differently.

Some always pay dividends to maintain their reputation even if they should ideally pre-pay their debt before that.

Some companies are very careful about debt and choose to keep that to a minimum before all else.

Some are comfortable with debt and pour as much money as they can into future growth.

Some choose to return the money to shareholders via dividends and share buybacks because they do not wish to retain the cash for any purpose.

Some simply build a cash reserve as a measure to fight difficult times in the future.

Many do a combination of the above.

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Featured Question

Q. “What is private placement?”

Public issue = offered to the public

Private placement = offered to a private group of investors

For example, an IPO is a public issue where a company offers its shares to the public.

A private placement would be a case where a company offers its shares to a select group of investors. Usually, this would be a group of institutional investors like pension funds, private equity funds, etc.

Private placement does not always mean shares are being offered. Bonds too can be offered via private placement.

Private placement is usually a faster way for companies to raise money since the scrutiny and paper work required is lesser.

Public issue is usually better for getting a better price/deal (price discovery) since it gives access to a wider set of investors.

Many companies opt for private placement if they want to raise money fast and with less work.

Markets closed flat today after some volatility.

Realty stocks and PSU Bank stocks fell the most today. Consumer durables stocks and chemicals stocks rose the most.

Global markets: US markets rose on Wednesday. Asian markets showed a mixed trend today. Most European markets fell (as of 6 pm IST).

News

• The government increased windfall taxes on diesel and Aviation Turbine Fuel (ATF) exports effective today. Diesel export duties increased to Rs 15.5 per litre (vs Rs 8.5 per litre). ATF exports were raised to Rs 14.5 per litre (vs Rs 7.5 per litre). The export duty on petrol, however, was reduced to Rs 2.5 per litre (vs Rs 4 per litre).

• India’s first hydrogen-powered train with a capacity of around 2,600 passengers, will begin operations tomorrow. The train will run on the Jind-Sonipat section of Haryana.

• SBI Funds Management IPO was subscribed 41.66 times. Retail subscription: 3.60 times. IPO closed for subscription.

Stocks Updates

• HCLTech: signed a 7-year expanded partnership with The Guardian Life Insurance Company of America. It will also acquire a 100% stake in Guardian India Operations Pvt Ltd for $10.5 million.

• Coal India: received the commissioning certificate from the Gujarat Energy Development Agency for 200 MW of solar capacity out of its 300 MW Solar Power Project at Khavda, Gujarat.

• Wipro: net profit rose 0.65% year-on-year to Rs 3,352 crore in the Apr-June quarter. Interim dividend announced: Rs 2 per share. Record date: 27 July.

• Tata Motors: clarified that its MoU with UCO Bank for commercial vehicle financing is a routine business agreement with no binding commercial terms.

• Tata Capital: raised $400 million through 3.5-year senior unsecured bonds at a 5.332% coupon rate, maturing in January 2030.

• Tech Mahindra: net profit rose 28.45% year-on-year to Rs 1,465 crore in the Apr-June quarter.

• BHEL: turned profitable in the Apr-June quarter with a net profit of Rs 376.71 crore, compared to a loss of Rs 456 crore a year earlier.

• Polycab India: net profit rose 32.46% year-on-year to Rs 784.34 crore in the Apr-June quarter.

• Hero Moto: Ather Energy board approved the allotment of convertible warrants worth Rs 959.99 crore to Hero MotoCorp. After full conversion, Hero’s stake in Ather will rise from 29.48% to 30.68%.

• Waaree Energies: subsidiary Waaree Energy Storage Solutions started operations at its 5.15 GWh battery energy storage container manufacturing facility.

• UltraTech: clarified that the sharp movement in its share price on 15 July was market-driven and not due to any undisclosed company event.

Word of the Day

Legally Binding

It means that two or more parties are legally required to follow the terms of the agreement they have signed

In such cases, not following the terms of the agreement can lead to the matter being taken to court.

The court will hold both parties accountable to the terms of the agreement.

6 Day Course

Theme: companies with extra cash

Day 4:Thursday

What else do they do with earnings companies make?

Many businesses use debt to fund their operations. In certain years, the cash flow might be low, leading to difficulty paying back their debt.

In good years, companies like that tend to prepay their debt or store the money for paying back debt later.

This helps them reduce their interest burden and prepare for the next time their cash flow is lower.

Besides pre-paying their debt, they also just store cash for future uses that are not necessarily for paying back debt.

These are called cash reserves and might be used for anything from growth, R&D, working capital, etc.

The storing of this money can happen in different ways. It might be kept as deposits in a bank account, or invested in government bonds that offer fixed interest, or invested in liquid funds/overnight funds.

Companies may also invest them in other short term and long term investment options like any other institutional investor.

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Featured Question

Q. “What is private equity and investment banking? Please differentiate between the two roles.”

Private equity funds are similar to mutual funds.

They accept and pool money from investors.

But these are not individual investors. These investors are mostly institutional in nature (pension funds, family offices, etc).

They also often have lock-in periods that last a couple of years.

Unlike mutual funds, private equity funds invest mainly in unlisted/private companies.

Mutual funds invest in companies but do not try to influence their day-to-day operations.

Private equity funds might buy enough stake in a company to influence their management and strategy. They might even control their day-to-day operations if they feel it necessary.

Often, they take over companies and try to turn them around (to sell their shares later).

Investment banking is more about advising companies with their finances.

Investment bankers might help companies raise money from investors or from lenders, take the company for IPO, help in acquiring another company, help in selling stake in their own company, evaluate companies, etc.