Markets opened above yesterday’s closing point.

All sectors’ stocks rose today except for the IT stocks. Pharma stocks and healthcare stocks rose the most.

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

News

• India’s wholesale inflation rose 8.3% year-on-year in April (vs 3.88% in March). Wholesale fuel and power inflation rose to 24.71% (vs 1.05% in March).

• SEBI has proposed changes to the municipal bond framework to make it easier for urban local bodies to raise funds from the bond market.

Stocks Updates

• L&T: partnered with France-based Exail to develop unmanned mine countermeasure systems for the Indian Navy, with L&T as prime contractor and Exail as technology partner.

• NTPC: subsidiary, NTPC Green Energy Limited, declared commercial operation of 62.5 MW solar capacity in Rajasthan, taking total group capacity to around 89,868 MW.

• Muthoot Finance: net profit rose 126.67% year-on-year to Rs 3,349.47 crore in the Jan-March quarter.

• IRFC: net profit rose 0.14% year-on-year to Rs 1,684 crore in the Jan-March quarter.

• M&M: wholly owned subsidiary, Mahindra Overseas Investment Company (Mauritius) sold the remaining 3.58% stake in CIE Automotive for about EUR 126 million.

• Tata Motors Passenger: net profit fell 31.72% year-on-year to Rs 5,783 crore in the Jan-March quarter. Dividend announced: Rs 3 per share.

• Siemens Energy: net profit fell 52.21% year-on-year to Rs 3,746 crore in the Jan-March quarter.

• HAL: net profit rose 5.52% year-on-year to Rs 4,196.08 crore in the Jan-March quarter.

• JSW Steel: net profit rose 989.15% year-on-year to Rs 16,370 crore in the Jan-March quarter. Dividend announced: Rs 7.10 per share, with 7 July as the record date.

• United Spirits: net profit rose 27.9% year-on-year to Rs 541 crore in the Jan-March quarter. Dividend announced: Rs 11 per share, with 8 July as the record date.

• Lupin: received USFDA approval for Famotidine Injection used for gastric and ulcer treatment. The product had estimated annual US sales of about $8.7 million.

Word of the Day

Debt-to-Equity Ratio

It is a financial ratio that compares a company’s total debt with its shareholders’ equity.

It shows how much of the company’s business is financed through debt versus owners’ funds.

A higher debt-to-equity ratio means the company relies more on debt, which can increase financial risk. A lower ratio generally indicates a more conservative financial structure.

Example: if a company has Rs 200 crore debt and Rs 100 crore equity, the debt-to-equity ratio is 2:1.

6 Day Course

Theme: making sense of MF returns

Day 4: Thursday

Different mutual fund managers structure their investments differently.

Some are more aggressive, some are more conservative, some try to strike a balance between the two.

This shows in the returns too.

Some mutual funds’ returns tend to be more volatile. They fall more in bad times, and rise more in good times.

This leads to those mutual funds appearing very bad in bearish times, and similarly, they appear very good in bullish times.

What this means is that if they are good, their long term returns will also be higher than other mutual funds in the same category.

But if things don’t work out well, the returns can be low even in the long run.

This is why mutual funds that show a long term history of poor performance must be avoided. They have a track record of non-performance and are not being careful.

Featured Question

Q. “what is the difference between bonds and NCDs then? from what im reading It seems as though NCDs act just like bonds”Yes.

NCDs are a type of bond.

There are many types of bonds. Some bonds allow the option to convert the bond to shares.

This allows the bond-holder to convert the bond to shares (if they want). So instead of being paid back the principal and interest, they would get shares in the company.

NCDs stand for Non Convertible Debentures. These are corporate bonds that do not have the option to convert to shares.

The payout is only in the form of principal + interest.

Markets opened above yesterday’s closing point.

Metal stocks and oil and gas stocks rose the most today. IT stocks and realty stocks fell the most.

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

News

• The government approved a scheme worth Rs 37,500 crore to support coal and lignite gasification projects, aiming to reduce India’s dependence on imports like LNG, urea, ammonia, and methanol.

• The government approved the Ahmedabad (Sarkhej) - Dholera semi high-speed double line project with an approx total cost of Rs 20,667 crore.

• India has signed an MoU with South Korea’s HD Korea Shipbuilding & Offshore Engineering to develop a mega greenfield shipyard at Thoothukudi, Tamil Nadu.

Stocks Updates

• Airtel: net profit fell 33% year-on-year to Rs 7,325 crore in the Jan-March quarter. Dividend announced: Rs 24 per share, with 2 June as the record date.

• TVS Motors: net profit rose 19.03% year-on-year to Rs 771.52 crore in the Jan-March quarter.

• Tata Motors: net profit rose 33.81% year-on-year to Rs 1,793 crore in the Jan-March quarter. Dividend announced: Rs 4 per share. It also incorporated ‘Teesta Renewable Energy’ SPV with 26% stake to develop renewable power projects.

• Power Finance: net profit rose 2.86% year-on-year to Rs 8,597.61 crore in the Jan-March quarter. Dividend announced: Rs 3.95 per share.

• Cipla: net profit fell 54.6% year-on-year to Rs 554.64 crore in the Jan-March quarter. Dividend announced: Rs 13 per share, with 5 June as the record date.

• Jio Financial: incorporated a joint venture, Jio Allianz General Insurance, with Allianz Europe for 50% stake at an initial investment of Rs 4.95 crore to enter the general insurance business in India.

• Max Healthcare: received request to reclassify Radiant Life Care Hospital Foundation from promoter group to public category.

• L&T: its Power Transmission & Distribution business won significant orders (Rs 1,000 crore to 2,500 crore) from clients in the Middle East for construction of one 380 kV substation and two 132 kV substations on a turnkey basis.

Word of the Day

NCDs

They are fixed-income debt instruments through which companies raise money from investors

It stands for Non-Convertible Debentures.

Unlike convertible debentures, NCDs cannot be converted into company shares.

Investors earn returns through regular interest payments (coupon payments) and receive the principal amount back at maturity.

NCDs usually offer higher returns than bank fixed deposits, but they also carry credit risk, which means the company issuing them may face financial problems or fail to repay.

6 Day Course

Theme: making sense of MF returns

Day 3: Wednesday

Within the same subcategory of mutual funds, each mutual fund will mostly have different holdings.

Example: one mid cap fund may have a bulk of its investments in pharma industry stocks. Another may have a bulk in auto sector stocks.

We know all too well that sectors and industries go through ups and downs individually also.

So, let’s say the pharma industry is going through a tough phase. Pharma sector stocks would be giving lower returns.

So a mutual fund with more pharma stocks will show lower short term returns than others.

Each sector goes through these ups and downs. And thus, different mutual funds will keep going through these ups and downs at different times.

Similarly, different mutual funds are also affected by different stocks’ performance due to factors affecting individual stocks.

Featured Question

Q. “Is Expense ratio accounted for when NAV is reported and in 3 year CAGRs?”

Yes.

All mutual fund returns we see are after expense ratio.

The returns we see are the returns we’d get. The only deduction from it would be taxes (if applicable).

Markets opened significantly below yesterday’s closing point.

Nifty 50 fell throughout the day. The fall can be attributed to negative global sentiments due to the US-Iran conflict and the rising crude oil prices, the fall of the Indian Rupee and a sharp fall in IT stocks.

All sectors’ stocks fell today. Realty stocks and IT stocks fell the most.

There are only 3 stocks in the Nifty 50 that rose today. Hence, there are only 3 stocks in the ‘Top Gainers’ section.

Global markets: US markets closed almost flat. Most Asian markets and European markets fell (as of 6 pm IST).

News

• India’s annual inflation rate rose marginally to 3.48% in April (vs 3.40% in March).

• The Indian Rupee reached an all-time low, falling beyond Rs 95.5 per USD.

• India’s equity mutual funds inflows rose 58% year-on-year to Rs 38,440.20 crore in April (vs an inflow of Rs 40,450 crore in March). Debt funds inflows rose 12.9% to Rs 2.47 lakh crore (vs an outflow of Rs 2.94 lakh crore in March): AMFI

• BofA Securities India settled its case with SEBI by paying Rs 58.5 lakh following the alleged insider trading and merchant banking rule violations.

• The RBI and the European Central Bank (ECB) have signed an MoU to increase cooperation through regular information exchange and policy dialogue, updating the 2015 framework.

• The US annual inflation rate rose to 3.8% in April (vs 3.3% in March).

Stocks Updates

• Bajaj Finance: allotted NCDs worth Rs 2,892 crore via private placement. Option I: Rs 1,070.42 crore at 7.77% per annum, maturing 17 April 2029. Option II: Rs 1,822 crore at 8.00% per annum, maturing 12 May 2031.

• Adani Ports: company’s marine arm, Astro Offshore, has partnered with Oceaneering International to pursue specialised offshore and subsea opportunities in Europe.

• Coal India: wholly owned subsidiary, CIL Solar PV, has been struck off and dissolved by the Ministry of Corporate Affairs.

• Hindustan Zinc: signed an MoU with Group Nirmal to set up a zinc wire manufacturing facility in Khankhala, Bhilwara, Rajasthan.

• United Spirits: amended share purchase agreement for sale of stake in Royal Challengers Sports Pvt Ltd, with deal value unchanged at Rs 16,660 crore.

• Shree Cement: received GST demand order of around Rs 39.2 lakh plus interest and penalty, which it will challenge.

• Tata Capital: allotted NCDs worth Rs 765 crore via private placement at a coupon rate of 8%.

• Tata Power: net profit fell 4.5% year-on-year to Rs 995.91 crore in the Jan-March quarter. Dividend announced: Rs 2.50 per share, with 23 June as the record date.

• Dr Reddy’s: net profit fell 86% year-on-year to Rs 220.9 crore in the Jan-March quarter. Dividend announced: Rs 8 per share, with 10 July as the record date.

• Tata Consumer: fixed 25 May as the record date for its Rs 10 dividend.

• Indian Hotels: net profit rose 14.8% year-on-year to Rs 599.86 crore in the Jan-March quarter. Dividend announced: Rs 3.25 per share.

Word of the Day

Consumer Price Index (CPI)

It is a measure of inflation of a country.

CPI tracks the change in prices of a fixed basket of goods and services over time.

This basket is representative of the spending habits of an average household.

It includes essentials like food, clothing, and housing, as well as transportation, electricity, healthcare, etc.

CPI reflects the change in cost of living and purchasing power.

The rate at which the cost of this basket changes in a certain period of time is called the inflation rate.

6 Day Course

Theme: making sense of MF returns

Day 2: Tuesday

Mutual fund returns from different categories should not be compared.

Different categories of mutual funds aim towards different goals and therefore have different risk levels associated.

Example: a debt fund with a history of around 8% per annum returns does not aspire to give returns like 15%. Instead, it aims to keep the risk low instead.

So mutual fund returns from the same category should be compared more often.

Within each category (example: mid cap funds), comparisons must be done, but done carefully.

Just because one mutual fund’s recent returns are lower than another’s does not automatically mean it is a lower quality mutual fund.

This is because every mutual fund invests money differently and different investments grow at different times.

This is one reason why only longer term returns must be compared.

Featured Question

Q. “Who takes the money whch bse and nse earns.”

Yes.

All mutual fund returns we see are after expense ratio.

The returns we see are the returns we’d get. The only deduction from it would be taxes (if applicable).

Markets opened significantly below Friday’s closing point.

Healthcare stocks and pharma stocks rose the most today. Consumer durables stocks and realty stocks fell the most.

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

News

• SEBI has proposed changes to buyback rules, including completing open market buybacks within 66 working days, removing the separate trading window, sending electronic notification to shareholders, etc.

• India’s urban unemployment rate fell marginally to 6.6% in the Jan-March quarter (vs 6.7% in the previous quarter). Rural unemployment rate rose to 4.3% (vs 4% in the previous quarter).

• China’s annual inflation rate rose to 1.2% in April (vs 1% in March).

Stocks Updates

• Canara Bank: net profit fell 9.78% year-on-year to Rs 4,574.23 crore in the Jan-March quarter. Dividend announced: Rs 4.20 per share, with 12 June as the record date.

• Vodafone-Idea (Vi): following clarification sought by the exchanges on the sudden stock movement, the company said it has not received any communication from the Vodafone Group regarding any stake transfer to the company as treasury stock.

• JSW Energy: net profit fell 8.94% year-on-year to Rs 371.57 crore in the Jan-March quarter. Dividend announced: Rs 2 per share, with 5 June as the record date.

Word of the Day

Provisioning

It is the practice where banks set aside a portion of their profits to cover possible future losses, especially from bad loans (NPAs)

This amount is treated as an expense in the books, even though no actual cash is spent immediately.

This acts as a financial safety cushion. If a borrower fails to repay, the bank already has money kept aside to absorb the loss.

The RBI has set strict provisioning norms to ensure that banks stay safe and stable.

6 Day Course

Theme: India’s relation with USD

Day 1: Monday

Mutual Fund (MF) investors often simply chase the mutual funds with the highest returns.

Many times, this can be a bad strategy to invest money. In this week’s course, we will look at how investors can analyse mutual fund returns.

The very first step is to not chase mutual funds with the highest short-term returns.

Many times mutual funds outperform over short periods of time (last 6 months, 1 year, etc).

This can be due to luck or one-off reasons.

Often, the reason may not last long enough and the mutual fund’s high returns would likely not sustain.

As a rule of thumb, very short-term returns of mutual funds must be given low-priority while analysing.

Markets opened below yesterday’s closing point.

IT stocks and consumer durables stocks rose the most. PSU bank stocks and oil and gas stocks fell the most.

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

News

• India’s forex reserves fell by $7.79 billion to $690.69 billion in the week that ended on 1 March.

• Onemi Technology Solutions (Kissht) IPO listed on the stock exchanges at a premium of 11.11% over the issue price and closed 22.01% up at the end of the day.

• Zepto has received SEBI’s approval for its IPO.

• InCred Holdings has filed an updated DRHP (Draft Red Herring Prospectus) with SEBI for a Rs 1,250 crore IPO.

Stocks Updates

• Tata Consumer: will invest up to Rs 160 crore to set up a 2,000 MT instant tea manufacturing facility in India.

• Tata Power: partnered with Bhutan’s DGPC to develop 404 MW Nyera Amari hydropower project, taking the total pipeline to around 5,033 MW.

• Power Finance: subsidiary incorporated ‘Pune West Power Transmission’ SPV to a develop transmission project in Maharashtra.

• TVS Motor: received NCLT approval for merger of Sundaram Auto Components into the company.

• L&T: won significant order (Rs 1,000 crore to 2,500 crore) from BCGCL and BHEL for a Coal-to-Ammonium-Nitrate project in Odisha.

• Pidilite: net profit rose 37.15% year-on-year to Rs 579.27 crore in the Jan-March quarter. Dividend announced: Rs 11.50 per share.

• Britannia: net profit rose 21.14% year-on-year to 678.34 crore in the Jan-March quarter. Dividend announced: Rs 90.50 per share, with 31 July as the record date.

• SBI: net profit rose 1.1% year-on-year to Rs 20,161.30 crore in the Jan-Mar quarter. Dividend announced: Rs 17.35 per share, with 16 May as the record date.

• Bank of Baroda: profit rose 6.4% year-on-year to Rs 5647.96 crore in the Jan-March quarter. Net Interest Income rose 8.7% to Rs 12,494 crore. Dividend announced: Rs 8.50 per share.

• Hyundai Motors: net profit fell 22% to Rs 1255.63 crore in Jan-March quarter. Dividend announced: Rs 21 per share.

Word of the Day

Derivatives

It is a financial contract whose value is based on an underlying asset like stocks, commodities, currencies, or bonds.

Derivatives are primarily used for hedging (managing risk) or for speculation (betting on price movements for profit).

Their prices change based on the value of the underlying asset.

Common types of derivatives are futures, options, forwards, and swaps.

Example: an investor can buy a futures contract to purchase gold at a fixed price in the future, to protect (hedge) against price changes.

6 Day Course

Theme: India’s relation with USD

Day 5: Friday

How does the RBI ensure there are no sudden spikes in the USD-INR exchange rate?

One tool is to use the foreign exchange reserves.

The RBI has about ~$650 to $700 billion worth of USD in reserve.

It sells this USD to stabilise the prices when the volatility is too high.

When the INR starts appreciating and becoming strong, the RBI starts buying USD causing the price of USD to go up.

They also sell government bonds to reduce liquidity of the INR in the markets.

The RBI also brings out schemes for NRIs to make it attractive for them to park money in India (USD to INR).

Another tool in their toolbox is to increase/decrease the repo rate in India (interest rate).

This makes deposits in India attractive or unattractive based on what the RBI wants. A higher interest rate attracts more investment, and lower interest rates tend to cause money to flow out.

Featured Question

Q. “How does BSE, NSE or any other stock markets make money?”

Stock exchanges like BSE and NSE make money via charges.

When companies list themselves on the stock exchange, they are required to pay a fee.

They are also required to pay an annual fee to remain listed.

They charge transaction and trading fees (to brokers).

Exchanges also provide data services and information/insights to buyers.

Many exchanges offer co-location services wherein their own servers might host programs of HFTs and hedge funds for trading.

This allows for faster trading. They charge rent for such services.

Markets opened above yesterday’s closing point.

Auto stocks and realty stocks rose the most. Consumer durables stocks and IT stocks fell the most.

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

News

• The RBI has revised the foreign exchange regulations for authorised dealers and money changers, effective 30 April, 2026. The rules mandate RBI approval for authorised forex dealers and introduce revised eligibility, net worth, and operational requirements across categories.

• Royal Enfield will set up its first manufacturing plant outside Tamil Nadu, in Andhra Pradesh with an investment of Rs 2,200 crore.

Stocks Updates

• Reliance: will not proceed with acquisition of 100% equity stake in Kandla GHA Transmission from PFC Consulting after the bidding process was annulled.

• HDFC: received RBI approval to acquire up to 9.95% stake in ICICI Bank and Kotak Mahindra Bank via group entities, valid till 5 May 2027.

• L&T: buildings & factories business won multiple large orders (Rs 2,500 crore to 5,000 crore each) across multiple states. Projects include 10 high-rise towers in Hyderabad, a luxury tower in Mumbai, and villa & hotel projects in Karnataka.

• ITC: NCLT has approved the merger of Sresta Natural Bioproducts and Wimco into ITC, effective 1 June 2026. After this, both companies will be dissolved and stop existing separately.

• NTPC: has signed an agreement with MCD to acquire the remaining 26% stake in NTPC EDMC Waste Solutions (NEWS) for Rs 5.20 lakh, making NEWS a wholly owned subsidiary.

• UltraTech: received income tax demand of Rs 808.78 crore (including interest) for AY24, which it will challenge.

• Bajaj Auto: net profit rose 102.7% year-on-year to Rs 3,661.92 crore in the Jan-March quarter. Dividend declared: Rs 150 per share, with 29 May as the record date. The board also approved a buyback of Rs 5,633 crore.

• Bajaj Holdings: net profit rose 49.2% year-on-year to Rs 2,575 crore in the Jan-March quarter. Dividend declared: Rs 130 per share, with 30 June as the record date.

• Jio Financial: invested Rs 300 crore in subsidiary Jio Finance Platform and Service, taking total investment to Rs 335 crore.

• Adani Green: subsidiary, Adani Renewable Energy Sixty Four Ltd, incorporated two wholly owned step-down subsidiaries to expand the renewable energy business.

• Power Finance: subsidiary, PFC Consulting Ltd, incorporated SPV, Fatehgarh II Transmission, to develop a power transmission project.

• BSE: net profit rose 61.13% year-on-year to Rs 795.47 crore in the Jan-March quarter. Dividend announced: Rs 10 per share, with 10 July as the record date.

• Waaree Energies: step-down subsidiary, Waaree Forever Energies Four Pvt Ltd, signed a Power Purchase Agreement with Solar Energy Corporation of India for a 300 MW wind power project in Dwarka, Gujarat.

Word of the Day

Anchor Investors

They are institutional investors who buy a large portion of shares before an IPO opens to the public.

They invest one day before the regular investors and buy shares at a fixed price within the IPO’s price range.

Anchor investors cannot sell these shares immediately. They must hold them for a certain period of time.

Anchor investors can include mutual funds, foreign portfolio investors, insurance companies, pension funds, etc.

Their early investment aims to build trust and encourage more people to invest in the IPO.

6 Day Course

Theme: India’s relation with USD

Day 4: Thursday

- Case 1: Exchange rate is Rs 95/USD
- Case 2: Exchange rate is Rs 90/USD

Case 2 means it is cheaper to import crude oil and other items we regularly import.

Case 1 means our import bills increase (including that of crude oil).

But, case 1 also means exports increase because everything seems cheaper in India (to foreign buyers).

This is why neither case 1 nor case 2 is perfect.

In fact, many developing countries have deliberately devalued their currency in the past in order to increase their economic activity.

This is good when the economy is heavily export dependent. India is not export dependent but wants to export more.

RBI generally feels it is better to let market forces (natural demand and supply for USD and INR) determine the exchange rate.

They do not try to influence the exchange rate much. They do work towards ensuring that there are no sudden surprises.

Featured Question

Q. “what is Free float market cap?”

Market cap or ‘market capitalisation’ or ‘m cap’ is the total value of the company.

Formula:

M Cap = total number of shares x price of one share

This is the size of the company.

It includes every single share of the company in its calculation.

Free float market cap does not include shares that are locked in or are not readily available to trade on the stock markets.

This means, it does not include shares owned by the promoters, govt stake, insiders, etc.

Shares owned by individual investors, institutional investors, mutual funds, pension funds, etc are included in it.

So, formula:

Free float m cap = total non-locked shares x price of one share

Markets opened above yesterday’s closing point.

All sectors’ stocks rose today except for the FMCG stocks. PSU bank stocks and realty stocks rose the most.

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

News

• The government approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, providing 100% government credit guarantee for MSMEs and 90% for the non-MSMEs as well as the airline sector to boost liquidity amid the disruptions due to the West Asia conflict.

• India’s composite PMI (manufacturing + services) rose to 58.2 in April (vs 57.0 in March). Services PMI rose to 58.8 (vs 57.5 in March). This means economic activity rose more in April than in March.

• India and Vietnam have upgraded their ties to an Enhanced Comprehensive Strategic Partnership and set a $25 billion trade target by 2030. They also signed multiple MoUs across various sectors like rare earth, digital payments, medical regulation, etc.

• SEBI has defined ‘significant indices’ as those that are tracked and benchmarked by mutual funds with the cumulative AUM exceeding Rs 20,000 crore. Index providers managing such indices must now register with SEBI within 6 months.

Stocks Updates

• Bank of Baroda: received PFRDA approval to act as a sponsor for pension fund and plans to set up a pension fund management company, subject to regulatory approvals.

• Cholamandalam Investment: allotted NCDs worth Rs 500 crore on a private placement basis at a coupon rate of 8.08% per annum, maturing 5 June 2029.

• Polycab: net profit rose 32.28% year-on-year to Rs 2,672 crore in the Jan-March quarter. Dividend announced: Rs 47 per share.

• Hero Moto: net profit rose 25.72% year-on-year to Rs 1,460 crore in the Jan-March quarter. Dividend announced: Rs 75 per share, with 24 July as the record date.

• CG Power: net profit rose 34.39% year-on-year to Rs 365.49 crore in the Jan-March quarter.

• Godrej Consumer: net profit rose 9.68% year-on-year to Rs 451.77 crore in the Jan-March quarter. Dividend announced: Rs 5 per share, with 12 May as the record date.

• Trent: revised the record date for its 1:2 bonus share issuance from 29 May to 4 June. It also revised the record date for the dividend from 10 June to 12 June.

Word of the Day

Asset Reconstruction Company (ARC)

It is a company that buys bad loans (NPAs) from banks and tries to recover the money.

Banks sell these bad loans to ARCs at a discount to clean up their balance sheets and reduce risk.

The ARC then recovers money by restructuring the loan, coming to terms of settlement, selling the borrower’s assets, or taking legal action.

Example: A Rs 100 loan becomes bad. The bank sells the loan to the ARC for Rs 60 to avoid complete loss. The ARC works to recover more than Rs 60 and make a profit.

6 Day Course

Theme: India’s relation with USD

Day 3: Wednesday

Something to note is that the exchange rate is generally getting weaker.

Which means, over the last few decades, we have only needed more and more INR to get 1 USD.

Why is this?

The main reasons for this are our big crude import bill, our trade deficit, and US interest rates.

We spend a lot of money importing crude oil. This means demand for USD goes up, increasing its price.

Similarly, we tend to import more than we export. Again, this means we need more USD. This increases its price.

Another factor is the interest rates. When the US increases its interest rates, more money moves to the US since its bonds are considered very safe.

This results in more money flowing from all over the world to the US, increasing the price of the USD.

The RBI does not try to control it but does try to reduce the sudden ups/downs in the exchange rate.

Featured Question

Q. “After rebalancing of nifty 50 index, suppose a stocks comes out of Nifty. But then it would become the biggest stock in the Nifty Next 50 index, as it is no. 51 company by market cap. Is the above statement true?”

Simple answer: not necessarily.

Index rebalancing occurs only twice a year.

So, a company could have become smaller and its rank might have fallen much below the 51st rank before it might be removed from Nifty 50.

Many factors are at play when deciding which companies will be in the Nifty 50.

Free float market cap is used to decide the rankings of companies for Nifty 50.

This means it is possible for larger companies with higher promoter holdings to be ranked below a company with a lower total market cap but higher free float market cap.

Markets opened below yesterday’s closing point.

FMCG stocks and auto stocks rose the most. Realty stocks and consumer durables stocks fell the most.

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

News

• SEBI has proposed allowing online bond platforms to offer overseas-listed debt securities regulated by the International Financial ​Services Centres Authority (IFSCA), as part of ease-of-doing-business measures.

• Onemi Technology Solutions (Kissht) IPO has been subscribed 9.50 times. Retail subscription: 2.03 times. IPO is closed for subscription.

Stocks Updates

• BEL: received a Rs 1,251 crore order from the Ministry of Defence to supply Ground Based Mobile ELINT System (GBMES) to the Indian Army.

• Coal India: received the commissioning certificate from Gujarat Energy Development Agency (GEDA) for a 100 MW solar power plant in Banaskantha, Gujarat.

• Shriram Finance: allotted NCDs worth Rs 100 crore on a private placement basis at a coupon rate of 9.15% per annum, maturing on 19 Jan 2029.

• Tata Power: Dorjilung Hydro Power Limited, a joint venture in which Tata Power holds a 40% stake, secured $515 million financing from World Bank for the 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan.

• Lupin: received USFDA approval for Glycerol Phenylbutyrate oral liquid used to treat rare metabolic disorders.

• L&T: net profit fell 3.1% year-on-year to Rs 5,325.6 crore in the Jan-March quarter. Dividend announced: Rs 38 per share, with 22 May as the record date. L&T Energy Hydrocarbon Onshore won a large order (Rs 2,500 to 5,000 crore) from Bharat Coal Gasification and Chemicals Ltd (BCGCL) for a coal-to-ammonia-nitrate project in Odisha.

• M&M: net profit rose 41.6% year-on-year to Rs 4,667.57 crore in the Jan-March quarter. Dividend announced: Rs 33 per share, with 3 July as the record date.

• Punjab National Bank: net profit rose 12.5% year-on-year to Rs 5,225.12 crore in the Jan-March quarter. Dividend announced: Rs 3 per share, with 13 June as the record date. Net Interest Income fell 3.5% to Rs 10,757 crore.

• Marico: net profit rose 13.99% year-on-year to Rs 391 crore in the Jan-March quarter. Dividend announced: Rs 4 per share, with 30 July as the record date.

Word of the Day

Loan Restructuring

It means changing the original terms of a loan to make it easier for the borrower to repay.

Sometimes, borrowers may have trouble paying their loans on time due to various reasons.

To avoid the risk of a default by the borrower, banks may lower the interest rate, give more time to repay, or reduce the monthly payments to ease the financial burden.

This may cause a temporary drop in the borrower’s credit score and may lead to an increase in the overall interest payments if the loan tenure is extended.

6 Day Course

Theme: India’s relation with USD

Day 2: Tuesday

If you notice, the exchange rate for USD-INR is changing every day.

This is because the currencies are being bought and sold real time, similar to any commodity or shares.

If you are a foreign investor wanting to set up a factory in India, you will buy Indian Rupees by spending your US dollars.

If you are importing some commodity (like crude oil), you will be using your Indian Rupees to buy US dollars to be able to pay the foreign seller.

Let’s say the exchange rate is Rs 95 per USD.

If suddenly a lot of people are trying to buy Indian Rupees (convert USD to INR), the demand for INR will be up.

This causes the exchange rate to fall.

Example: it might fall from Rs 95 to Rs 94.

If a foreign company operating in India is taking its profits back to its home country, it will convert INR to USD. So the demand for USD will be higher.

Example: it might rise from Rs 95 to Rs 96.

Many such parallel trades are always happening. The net of all these trades determine the live exchange rate.

Markets opened above Friday’s closing point.

Realty stocks and metal stocks rose the most. IT stocks and media stocks fell the most.

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

News

• India’s manufacturing PMI rose to 54.7 in April (vs 53.9 in March). This means manufacturing activity grew more in April than in March.

• India’s LPG consumption fell 16.2% year-on-year in April (vs a fall of 12.3% in March): Ministry of Petroleum and Natural Gas

• Onemi Technology Solutions (Kissht) IPO has been subscribed 0.60 times. Retail subscription: 0.16 times. IPO closes tomorrow (5 May).

Stocks Updates

• Kotak Mahindra: net profit rose 10.04% year-on-year to Rs 5,401.55 crore in the Jan-March quarter. Dividend announced: Rs 0.65 per share.

• Avenue Supermarts: net profit rose 19.19% year-on-year to Rs 656.59 crore in the Jan-March quarter.

• Ambuja Cement: net profit rose 78.47% year-on-year to Rs 1,830.15 crore in the Jan-March quarter. Dividend announced: Rs 2 per share, with a 12 June record date.

• BHEL: net profit rose 155.8% year-on-year to Rs 1290.47 crore in the Jan-March quarter. Dividend announced: Rs 1.40 per share.

• NTPC: has started commercial operations of 100 MW from its 176 MW solar project in Ramagundam, Telangana, taking total group capacity to 89,805 MW.

Auto Updates (April)

• Maruti Suzuki: sales grew by 33.2% year-on-year to 2.40 lakh units. Domestic sales stood at 1.99 lakh units and exports stood at 40,054 units.

• M&M: sales grew 14% year-on-year to 94,627 units. Domestic passenger vehicle sales grew 8% to 56,331 units while commercial vehicle sales stood at 23,427 units.

• Tata Motors Passenger: sales grew 31.1% year-on-year to 59,701 units.

• Hyundai Motor: sales grew 17% year-on-year to 51,902 units including export sales of 13,708 units.

• Eicher Motors: sales grew 31% year-on-year to 1.13 lakh units. Exports fell 14% to 9,035 units.

• TVS Motor: sales grew 7% year-on-year to 4.74 lakh units. EV sales grew 36% to 37,771 units.

• Ashok Leyland: sales grew 9% year-on-year to 14,646 units.

• Escorts Kubota: sales grew 24.4% year-on-year to 10,857 units.

• Bajaj Auto: sales grew 40% year-on-year to 5.14 lakh units.

Word of the Day

Index Rebalancing

It is the process of updating the composition of an index to maintain its defined criteria.

Indices are reviewed at regular intervals. Stocks may be added or removed based on factors like market capitalization and liquidity.

This ensures the index continues to reflect the current market accurately.

After the rebalancing of an index, funds that track the index buy/sell to follow the composition, which may impact stock prices in the short term.

Example: the Nifty 50 index is updated bi-annually, in March and September, where stocks may be added or removed based on eligibility criteria.

6 Day Course

Theme: India’s relation with USD

Day 1: Monday

Many of us are aware that the US dollar is one of the most accepted currencies of the globe.

It is considered the reserve currency of the world.

When we in India buy crude oil, we often pay in USD. We also get paid in USD for some of our exports.

We also receive investments from foreign companies in USD.

This is why USD is important to us. It is also why the USD-INR relation is even more critical to us.

In this week’s course, we will try to understand this relation between our currency and the US dollar.

At present, the exchange rate is around Rs 95/USD. This means, we need to pay Rs 95 in Indian Rupees to get 1 USD.

This is called the exchange rate and it changes every day similar to how the price of shares change.

Featured Question

Q. “If a mutual fund company raises their total expense ratio for an ongoing fund, will current NAV also go down? Affecting past investment? Or does it only affect the NAV the day after?”

The past is not affected. It is applied from the point the new expense ratio comes into effect.

Its impact is on the present and the future, not on the past.

Expense ratio is deducted on a daily basis.

So once it is deducted for a day, that matter is closed. It will not be re-deducted for that day.

Think of it like this: if they increase the toll for a highway, you will not have to pay a higher toll for all the past trips you made. You will only pay the higher toll for the newer trips you will make.

Hence, there won’t be any updates on the Nifty 50, Sensex, Top Gainers, and Top Losers sections today.

Global markets: most US markets rose. Asian markets and European markets showed a mixed trend (as of 6 pm IST).

News

• India’s forex reserves fell by $4.82 billion to Rs 698.49 billion in the week that ended on 24 April.

• India’s gross GST collections rose 8.7% year-on-year to Rs 2.43 lakh crore in April. Net collections rose 7.3% to Rs 2.11 lakh crore.

• The commercial LPG prices in India have been raised for the third time since February, with a hike of around Rs 993: as per media sources

• Since the Comprehensive Economic Partnership Agreement (CEPA), the India-UAE trade has crossed $100 billion: Minister of Commerce and Industry

Stocks Updates

• Bajaj Finserv: approved renaming two wholly owned subsidiaries, Bajaj Finserv Asset Management to Bajaj Asset Management and Bajaj Finserv Mutual Fund Trustee to Bajaj Mutual Fund Trustee as part of rebranding exercise.

• Tech Mahindra: will acquire Avant, a Canada-based payments modernization and wealth platform firm for around CAD 28 million to strengthen BFSI and payments capabilities.

• PFC: subsidiary incorporated 5 SPV subsidiaries to develop power transmission projects under competitive bidding.

• Samvardhana Motherson: incorporated wholly owned subsidiary Motherson Digital Technologies to expand IT services business. It also completed acquisition of a 51% equity stake in Nissin India from Nissin Electric Co Ltd, Japan, making Nissin India an indirect wholly owned subsidiary.

Word of the Day

Disinvestment

It is when the government sells/reduces its stake in a business

Disinvestment can be partial or full, depending on how much stake is sold.

Example: the government sells its stake in a Public Sector Undertaking (PSU) to private investors or the public.

The goal is to raise funds, improve efficiency, and reduce government involvement in business.

6 Day Course

Theme: fund manager role

Day 4: Thursday

Many fund managers rise to become CIOs or Chief Investment Officers.

A CIO is the head of investment at an AMC. This is the person to whom all fund managers report to.

The CIO dictates the investment style and philosophy to a great extent.

Which is why when a CIO retires or leaves, some advisors become alert since a change in investing style might be possible.

Many senior fund managers also leave their jobs to start their own AMC or offer Portfolio Management Services (PMS), etc.

This is why whenever fund managers change roles or retire, they often do so over a certain time period wherein a replacement fund manager spends considerable time also managing the fund or role.

This aims to ensure the transition is smooth and without surprises for investors.

This period can last anywhere from a few months to even years.

Featured Question

Q. “Why the expense ratio of commodities MFs is lesser compared to the equity and debt Mutual funds ? Even though they will give high return (In long term)”

Hence, their expense ratio (or mutual fund fees) is much lower too.

Also, commodities funds’ returns vary a lot.

It is incorrect to assume these commodity mutual funds will give higher returns than equity mutual funds.

Over longer periods of time, many equity mutual funds have managed to give higher returns when compared to many commodity mutual funds.

Currently, gold and silver prices have shot up to astronomical levels. Hence the returns of many silver and gold funds are skewed.

Markets opened below yesterday’s closing point.

All sectors’ stocks fell today except for IT stocks and pharma stocks. Metal stocks and PSU bank stocks fell the most.

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

News

• The US Fed kept the interest rate unchanged in the 3.5% to 3.75% range for the third consecutive time.

• Onemi Technology Solutions (Kissht) IPO has been subscribed 0.24 times. Retail subscription: 0.06 times. IPO closes on 5 May.

Stocks Updates

• Bharat Forge: will acquire a 30% stake in Fortuna Engineering for Rs 129.6 crore, with an option to increase the stake to a majority.

• Tata Power: subsidiary, Tata Power Renewable Energy approved entry into a new line of business, solar PV ingot and wafer manufacturing, with an investment of around Rs 6,500 crore.

• HCL Tech: has partnered with the DP World Tour (a global professional golf tour) as a digital experience partner to drive global platform transformation.

• Reliance: subsidiary Reliance Retail acquired Priyanka Chopra’s haircare brand, Anomaly, to expand their beauty portfolio.

• Adani Ports: net profit rose 55.64% year-on-year to Rs 4,567.63 crore in the Jan-March quarter. Dividend announced: Rs 7.5 per share.

• Hindustan Unilever: net profit rose 32.15% year-on-year to Rs 3,227 crore in the Jan-March quarter. Dividend announced: Rs 22 per share, with 23 June as the record date.

• Bajaj Finserv: net profit rose 5.05% year-on-year to Rs 2,538.67 crore in the Jan-March quarter. Dividend announced: Rs 1.50 per share.

• Adani Enterprises: incurred a net loss of Rs 166.79 crore, a fall of 104% year-on-year in the Jan-March quarter. Dividend announced: Rs 1.30 per share.

• Adani Power: net profit rose 51.59% year-on-year to Rs 4,016.3 crore in the Jan-March quarter.

• Indian Bank: net profit rose 6.4% to Rs 3,173.05 crore in the Jan-March quarter. Dividend announced: Rs.18.25 per share, with 10 June as the record date.

• Cholamandalam Investment: net profit rose 30.6% year-on-year to Rs 1,645.20 crore in the Jan-March quarter. Dividend announced: Rs 0.70 per share, with 21 July as the record date.

• Waaree Energies: net profit rose 71.4% year-on-year to Rs 1,061.10 crore in the Jan-March quarter. Dividend announced Rs 2 per share.

Word of the Day

Public Sector Undertaking (PSU)

It is a company that is owned and controlled by the government (centre or state).

The government usually holds a majority stake, more than 50%, giving it control over decisions.

PSUs operate in sectors like banking, oil, power, and infrastructure.

They are created to serve public interest while also earning profits.

6 Day Course

Theme: fund manager role

Day 4: Thursday

In India, most fund managers lean towards fundamental analysis.

They look at the asset, its fundamentals, future scope, etc to form an opinion.

Now, with the emergence of various kinds of funds, newer kinds of fund managers can be seen in the industry.

For example, there are quant fund managers who specialise in quant and technical analysis based investments.

With the rise of passive funds, many fund managers are starting to manage only passive funds in which the level of decision making required is far lesser. It is more about managing inflows and outflows than about investment choices.

The emergence of passive funds has also led to more pressure on fund managers to perform and give better returns than these passive funds.

Failing to beat the passive funds is often seen as the mutual fund being unable to perform.

If non-performance continues for a long while, a fund manager might be removed from the mutual fund and allocated to lesser important funds only.

For all the stress and hard work they undertake, they are paid well.

Salaries can easily range above Rs 1 crore per annum. Very senior fund managers may also make more than Rs 10 crore per annum.

Featured Question

Q. “What is ‘buy back’ of a stock and what is the effect of this on a share price?”

A buyback is an indirect method used by companies to share profits with investors.

This is opposed to the more direct method of paying dividends.

In case of dividends, the company literally deposits the money in the investors’ accounts.

This could mean you are liable to pay tax if eligible.

The company can instead use this money to do share buybacks.

Companies buy shares from the share markets and destroy/cancel them. This leads to a reduction in the total number of shares in the market.

But since the company is still the same, the earnings per share, revenue per share, etc are all higher now.

This often leads to an increase in the share price.

So, instead of giving dividends, the company uses buybacks to increase the share price.

The share price increase is not guaranteed though. It still depends on the market conditions.

According to the latest regulations, buybacks are also being taxed now. The tax needs to be paid by the companies performing the buyback.

This would prevent immediate taxation for the investor.

In the case of a buyback, the investor would have to pay a tax only when he/she sells the shares.

Markets opened above yesterday’s closing point.

FMCG stocks and realty stocks rose the most today. Media stocks and PSU bank stocks fell the most.

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

News

• India is accelerating negotiations for an FTA with Canada while talks with the Gulf Cooperation Council (GCC) have been paused due to geopolitical tensions in West Asia: Minister of Commerce and Industry

Stocks Updates

• L&T: will sell its entire stake in L&T Metro Rail (Hyderabad) for Rs 1,461.47 crore.

• Bajaj Finance: net profit rose 27.8% year-on-year to Rs 5,483.68 crore in the Jan-March quarter. Dividend announced: Rs 6 per share.

• Vedanta: net profit rose 88.5% year-on-year to Rs 9,352 crore during the Jan-March quarter.

• Indus Towers: incorporated a wholly owned subsidiary, Indus Towers Global Ventures IFSC, at GIFT City, Gujarat.

• Indian Bank: net profit rose 6.4% year-on-year to Rs 3,115.2 crore during the Jan-March quarter. Dividend announced Rs 18.25 per share

• Adani Power: net profit rose 64.3% year-on-year to Rs 4,271.4 crore during the Jan-March quarter.

• Dr Reddy’s: received Health Canada approval for its generic Semaglutide Injection, enabling launch in the Canadian market.

Word of the Day

Funding Round

It is a stage where a startup raises money from investors to grow its business.

In return for money, investors usually get ownership (equity) in the company.

Startups raise money in different stages like Pre-Seed, Seed, Series A, Series B, and so on.

Each round signifies a different stage of the company as it grows and helps in determining the company’s valuation.

6 Day Course

Theme: fund manager role

Day 3: Wednesday

Fund managers are subject to regulations to ensure investors’ money is safe and free from any malpractice.

Fund managers’ communications may be tracked during market hours.

They need clearance from their compliance departments to speak about individual stocks.

All their communications (calls, emails, WhatsApp, social media, etc) can be monitored by SEBI if they feel the need to.

They are usually restricted from buying individual stocks. They must invest their personal money in mutual funds and ETFs.

20% of fund managers’ salary must be paid in the form of units in mutual funds they manage to ensure the investors’ and fund managers’ interests are aligned.

This amount is locked in for 3 years.

Fund managers must also declare if they have key relations with key persons in other companies (like a brother who is a senior executive at a listed company, etc).

Even investment accounts of relatives and close relations may be tracked to ensure there is no insider trading./CFA degree is not mandatory.

Featured Question

Q. “How are dividends processed and credited? Additionally, please clarify the difference and the typical time interval between the ex-dividend date and the record date.”

It all starts with a company announcing dividends.

A company declares the dividend amount and the ex dividend date.

On the ex dividend date, the share price is reduced by the dividend amount.

Record date is the date before which you need to own the shares to be eligible for the dividend.

The ex dividend date and the record date are usually the same date.

If your name is not on the company’s ledger on this date, you will not be eligible for the dividend.

By regulation, the gap between the dividend declaration and the record date must be at least 7 working days.

Payment date is the date on which the dividend actually reaches the shareholders’ accounts.

It usually occurs 10-20 days after the record date.

Markets opened below yesterday’s closing point.

Oil and gas stocks and chemicals stocks rose the most today. PSU bank stocks and private bank stocks fell the most.

Global markets: Most US markets closed flat. Most Asian markets and most European markets fell (as of 6 pm IST).

News

• India’s industrial output rose 4.1% year-on-year in March (vs 5.2% in Feb).

• The RBI issued final norms on asset classification, provisioning, and income recognition for banks, introducing a new Expected Credit Loss (ECL) framework, effective April 2027. The new rules require banks to set aside money in advance for loans that might go bad in the future, instead of waiting for defaults to happen.

• The United Arab Emirates has announced it will leave OPEC (Organization of the Petroleum Exporting Countries) effective 1 May 2026, which would cause a major shift in oil markets.

Stocks Updates

• Bajaj Holdings: acquired Bajaj Finserv shares worth Rs 370.53 crore via a block deal, raising stake to around 38.41%.

• Samvardhana Motherson: will acquire a 51% stake in Nissin Advanced Coating Indo Co Pvt Ltd from Nissin Electric Co Ltd, Japan, for Rs 9.23 crore, making it an indirect wholly owned subsidiary. It also approved the acquisition of a 49% stake in Vacuform for ZAR 45.18 million (around Rs 25.3 crore), making it a wholly owned subsidiary.

• Trent: board fixed 29 May as the record date for the issuance of bonus equity shares in the ratio of 1:2 (one bonus share for every two held), subject to shareholder approval.

• Maruti Suzuki: net profit fell 6.4% year-on-year to Rs 3,659 crore in the Jan-March quarter. Dividend announced: Rs 140 per share, with 7 Aug as the record date.

• Coal India: net profit rose 11.9% year-on-year to Rs 14,626.75 crore in the Jan-March quarter. Dividend announced: Rs 5.25 per share.

• Eternal (Zomato): net profit rose 346.2% year-on-year to Rs 174 crore in the Jan-March quarter.

• REC: net profit fell 19.6% year-on-year to Rs 4,414.54 crore in the Jan-March quarter. Dividend announced: Rs 1.55 per share.

Word of the Day

Yield to Maturity (YTM)

It is the total return an investor can expect if they buy a bond and hold it until it matures.

It is assumed that all interest generated is reinvested in the same bond till its maturity.

A higher YTM usually means more profit, but it can also mean higher risk.

YTM helps you compare how much you could earn from different bonds.

It considers the bond’s current market price, face value, coupon interest payments, and the time remaining until maturity.

If the investor sells the bond before it matures, the actual return might be different.

6 Day Course

Theme: fund manager role

Day 2: Tuesday

In India, most fund managers either have an MBA, are CAs, or have an engineering + MBA degree.

These are common qualifications.

Qualifications like CFA, degree in economics, and other such related qualifications can also be seen with some fund managers.

Some fund managers also have less commonly seen degrees like maths degrees, data and technical degrees, risk management degrees, etc.

In addition to these qualifications, fund managers must clear some exams by NISM (National Institute of Securities Management).

Do note, technically speaking, an MBA/CA/CFA degree is not mandatory.

Featured Question

Q. “Why does a company payment dividends and can they backout from paying a dividend”

Companies pay dividends as a means of sharing profits the company is making.

Since shareholders are also owners of the company, they also deserve profits for their part of the ownership.

Companies keep aside money for future operations, growth, R&D, etc.

If they are still left with money that they do not have any use for, they give it to shareholders as dividends.

Many companies do not give dividends since they use that money for future growth.

Technically, companies can skip giving dividends. But many choose not to skip.

Every quarter, a company can announce dividends. Once a dividend is announced, they are legally liable to pay it.

But in case they choose not to announce, there is no legal requirement for them to continue paying dividends.

Most dividend giving companies try to stay consistent in giving dividends.

It is a way of showing investors that everything is stable and predictable in the company’s business.

Markets opened above Friday’s closing point.

All sectors’ stocks rose today. Pharma stocks and consumer durables stocks rose the most.

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

News

• India and New Zealand have signed a Free Trade Agreement to boost trade by reducing tariffs and improving market access.

• The RBI has cancelled the banking licence of Paytm Payments Bank due to regulatory non-compliance and governance issues.

Stocks Updates

• L&T: subsidiary, L&T Realty Properties, acquired 100% stake in International Green Scapes, Delhi, gaining 20 acres land in Gurugram for real estate development.

• Sun Pharma: will acquire 100% of Organon & Co in an all-cash deal valued at ~$11.75 billion to expand global pharma business, subject to regulatory and stockholder approvals.

• UltraTech: net profit rose 20.17% year-on-year to Rs 2,982.76 crore during the Jan-March quarter. Dividend approved: Rs 240 per share.

• Polycab: incorporated a wholly owned subsidiary, Polycon Infra Projects Pvt Ltd, to undertake EPC projects in the power distribution, transmission, and telecom sectors.

• Zydus Lifesciences: received DCGI approval to start two Phase III trials of anti-malarial drug Zintrodiazine.

• TCS: signed two MoUs with Siemens Energy AG and Siemens Energy India Ltd for building AI infrastructure. Siemens Energy India will also support TCS’s AI data centre business with power and grid solutions.

• Axis Bank: net profit rose 1.7% year-on-year to Rs 7,602.63 crore in the Jan-March quarter.

• Varun Beverages: net profit rose 20% year-on-year to Rs 872.35 crore in the Jan-March quarter. Dividend announced: Rs 0.50 per share, with 1 May as the record date.

Word of the Day

Market Capitalisation

It is the total value of a company’s shares on the stock market.

Market Cap = Share Price × Total Number of Shares

It helps investors compare companies. The categorization of large cap, mid cap, and small cap companies is based on their market cap.

Example: if a company has 10 crore shares and each share is Rs 100,

Market Cap = Rs 100 × 10 crore = Rs 1,000 crore.

The market cap changes with the share price.

6 Day Course

Theme: fund manager role

Day 1: Monday

Since we talk about mutual funds, it is inevitable we ask about the people managing these funds.

This week’s course is about fund managers, and everything we might want to know about them.

Most fund managers start off as equity research analysts. Or, as credit analysts.

This is a starting role available to fresh-out-of-college graduates. Most would spend a few years in a role like this.

The next step would be that of a senior analyst which would last anywhere from 4-8 years.

At this stage the person has ~10 years of work experience as a senior analyst.

Then they can be promoted to co-fund manager where a fund manager with more experience would manage a fund alongside them.

A role like this would usually last about 8-10 years after which they may be promoted to a fund manager role.

Many AMCs skip the co-fund manager role and instead have longer periods of analyst and senior analyst roles.

This indirectly means that a fund manager at any time would have many analysts, senior analysts, and 1-2 co-fund managers in his or her team.

This is a common path for fund managers though there are a few other paths to fund manager roles too.

Markets opened below yesterday’s closing point. The fall is being attributed to the continued tensions between US and Iran and rising crude oil prices.

All sectors’ stocks fell today. IT stocks and pharma stocks fell the most.

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

News

• India’s forex reserves rose by $2.36 billion to $703.31 billion in the week that ended on 17 April.

• India and New Zealand are set to sign a Free Trade Agreement (FTA) on 27 April, with the aim to more than double bilateral trade to $5 billion in five years.

• India’s net FDI turned positive to $4.6 billion in Feb after six months of outflows.

Stocks Updates

• L&T: entered the B2B industrial electronics space with the commencement of manufacturing at its Coimbatore facility under a new vertical, L&T Electronic Products & Systems (LTEPS). It will include power electronics, industrial robotics, electronics systems design & manufacturing (ESDM), etc.

• Sun Pharma: incorporated a new wholly owned subsidiary, Sun Pharma America, Inc, as a part of the company’s internal group structuring.

• M&M: executed a Novation and Amendment Agreement with Manulife. Manulife transferred all its rights and obligations in their life insurance JV to its wholly owned subsidiary, Manulife Holdings (Bermuda) Ltd. Other terms of the JV remain unchanged.

• JSW Steel: along with Japan’s JFE Steel Corporation formally unveiled their 50:50 joint venture JSW JFE Steel Ltd which will oversee integrated steel operations in Odisha.

• BSE Limited: completed the merger of its wholly-owned subsidiaries, BSE Investments Ltd and BSE Administration & Supervision Ltd, with BSE Technologies Private Ltd. As part of the merger, BSE Ltd will receive 27.74 crore new equity shares of BSE Technologies Private Ltd, with a face value of Rs 1 per share.

• Hindustan Zinc: net profit rose 67.6% year-on-year to Rs 5,033 crore during the Jan-March quarter. Dividend announced: Rs 11 per share, with 30 April as the record date.

• Adani Green: net profit rose 34.4% year-on-year to Rs 514 crore during the Jan-March quarter.

• Adani Energy Solutions: net profit rose 1.26% year-on-year to Rs 722.65 crore during the Jan-March quarter.

• Shriram Finance: net profit rose 40.9% year-on-year to Rs 3,020.95 crore in the Jan-March quarter. Final dividend announced: Rs 6 per share, with 3 July as the record date.

Word of the Day

Dividend Payout Ratio

It is the percentage of a company’s profits that is paid out as dividends to shareholders.

A company earns profit and it may distribute a portion of these profits to shareholders as dividends.

A higher ratio means more dividends are paid out, while a lower ratio means the company is reinvesting more into the business.

For example: if a company earns Rs 1,000 and pays Rs 40 as dividends, its payout ratio is 4%.

6 Day Course

Theme: automation in investing

Day 5: Friday

Now that we are talking about software led automation, let’s discuss the various tools.

Investors and traders use APIs to read and process vast amounts of metrics and signals from different sources.

Based on these, they build information gathering tools that are then used to make buy/sell/track decisions.

In many cases, the software they build gathers various info and even suggests the trades to make. The investor would then simply have to approve the buy/sell order.

The final level of automation is where the investor simply builds a software model that takes entire decisions on its own. It does not take approvals from the investor.

These models are highly sophisticated and react extremely fast.

In such cases, the investor’s skill is not in using the software models but in building these models.

Most large institutional investors use such models.

Featured Question

Q. “How to deploy strategy using api”

This can be done using multiple ways.

You could have the code/model running on your computer. The code will run on your own device and use APIs to interact with the broker to place orders.

Another method which is considered more reliable is to use cloud services.

Investors build the software model and deploy it to a cloud server via a service like AWS, Azure, GCP, etc.

Some trading platforms also offer their own cloud servers for deploying traders’ code to ensure minimal lag.

Markets opened below yesterday’s closing point.

Chemicals stocks and FMCG stocks rose the most today. IT stocks and private bank stocks fell the most.

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

News

• India’s manufacturing PMI rose to 55.9 in April vs (53.9 in March) as per preliminary estimates. Services PMI rose to 57.9 (vs 57.5 in March). Composite PMI (manufacturing + services) rose to 58.30 (vs 57.0 in March). This means economic activity rose more in April than in March.

Stocks Updates

• Infosys: net profit rose 20.87% year-on-year to Rs 8,501 crore during the Jan-March quarter. Dividend announced: Rs 25 per share, with 10 June as the record date.

• LTIMindtree: net profit rose 23.38% year-on-year to Rs 1,392.3 crore during the Jan-March quarter. Dividend announced: Rs 53 per share.

• Tata Capital: net profit rose 46.65% year-on-year to Rs 1,466.27 crore during the Jan-March quarter. Dividend announced: Rs 0.57 per share.

• Union Bank: net profit rose 9.8% year-on-year to Rs 5,503.61 crore during the Jan-March quarter. Dividend announced: Rs 5 per share.

• Adani Energy: net profit rose 5.6% year-on-year to Rs 683.78 crore during the Jan-March quarter.

• Reliance: subsidiary Jiostar India merged its wholly owned subsidiary, IndiaCast Media Distribution, into itself.

• Tata Power: incorporated a wholly owned subsidiary, TP Urja, to expand its power and energy business.

• Cipla: has received USFDA approval for a generic version of Ventolin HFA inhaler. The drug is used for asthma and breathing-related conditions.

• L&T: won significant orders (Rs 1,000 crore to Rs 2,500 crore) in the buildings and factories segment, including 7 high-rise towers for Oberoi Realty (Gurugram) and a proving ground facility in Haryana. The company also incorporated a wholly owned subsidiary, Vyoma.AI to build data centres and AI infrastructure.

Word of the Day

Active Funds

They are investment funds where a fund manager actively selects and manages investments

Their goal is to beat the market or benchmark index through research, stock picking, and timing decisions.

These funds buy and sell stocks frequently based on the market.

They usually have higher management fees because of active decision-making.

On the other hand, a passive fund replicates the performance of an index.

6 Day Course

Theme: automation in investing

Day 4: Thursday

We must also mention commonly used tools like SIP, STP, and SWP.

SIP lets investors automate investing in a stock (or mutual fund) every month.

Similarly, STP lets investors transfer from one asset to another at a fixed interval. Similarly, SWP lets investors withdraw money at a fixed interval.

Then we have more advanced features that are more customisable.

Let’s say a person wants to start selling a stock once its PE ratio is above a certain level (ignoring the price).

This is possible using trigger based tools. These tools are rare in India. Most platforms do not offer these.

Someone wanting this level of control would have to use code/software tools.

This brings us to API based automation tools.

APIs allow a code or software written by investors to buy/sell/monitor stocks.

This means an investor can write practically any condition to buy/sell/monitor a stock.

It allows for a very high degree of customisation and automation.

Featured Question

Q. “Please elaborate what is Social Stock Exchange”

It is similar to a stock exchange but for social causes.

The stock markets allow companies to raise money from investors and expand their operations, growth, revenues, and earnings.

Similarly, the Social Stock Exchange (SSE) is an exchange that allows Social Enterprises (SE) and Non-Profit Organisations (NPO) to raise money.

For a person going on the SSE, the aim is not to earn more money, but to have a greater impact or good deed done in a society.

In the stock markets you analyse different types of companies and their metrics/fundamentals to decide which company would give you the best return on your invested money.

On the SSE, you would be able to analyse different organisations to give your money to, to have the maximum impact on society.

There are some profit-making social impact oriented companies too.

Such companies can give investors returns similar to a stock on the stock exchange.

Markets opened below yesterday’s closing point.

Chemicals stocks and FMCG stocks rose the most today. IT stocks and private bank stocks fell the most.

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

News

• The RBI has issued new rules for recurring digital payments (e-mandates) allowing auto-debits up to Rs 15,000 without extra authentication after one-time approval. It also included pre and post payment alerts, security checks, and better control over subscriptions and auto-debits.

• A SEBI panel has recommended that the National Stock Exchange (NSE) pay about Rs 1,800 crore to settle its long-pending regulatory cases: as per media reports.

Stocks Updates

• SBI Life: net profit fell 1.09% year-on-year to Rs 804.6 crore during the Jan-March quarter.

• Trent: net profit rose 32.6% year-on-year to Rs 413.10 crore during the Jan-March quarter. Dividend announced: Rs 6 per share. Company has also announced 1 bonus share for every 2 shares held.

• Jio Financial: signed a 50:50 joint venture with Allianz Europe BV to enter the general insurance business in India.

• Tech Mahindra: net profit rose 18.8% year-on-year to Rs 1,356.4 crore during the Jan-March quarter. Dividend announced: Rs 36 per share, with 3 July as the record date.

• Bharat Electronics: received orders worth Rs 569 crore across defence and communication systems.

• Tata Steel: acquired a 26% stake in TP Adarsh Ltd (Tata Power renewable subsidiary) for around Rs 5.9 crore, making it an associate company.

• HDFC Life: board approved the re-appointment of Vibha Padalkar as MD and CEO for a further 5-year term effective 12 Sept 2026, subject to shareholder and IRDAI approval.

• Samvardhana Motherson: merged its Spain-based subsidiary, Modulos Ribera Alta SL, into its holding company, Celulosa Fabril SA (another indirect subsidiary). After the merger, MRA will cease to exist and its assets will move into CEFA.

• L&T: subsidiary, L&T Energy GreenTech, signed a long-term deal with Japan’s ITOCHU to supply 3,00,000 tonnes of green ammonia annually from its proposed facility at Kandla, Gujarat.

• Lupin: launched Dapagliflozin and Metformin Hydrochloride extended-release tablets (diabetes drug) in the US.

Word of the Day

Depreciation

It is the fall in the value of an asset over time due to wear and tear, usage, or because it becomes outdated.

Example: a machine loses value every year as it is used in production.

Companies account for depreciation in their financial statements by spreading the cost of the asset over its useful life instead of showing it all at once. This yearly portion is the depreciation.

Depreciation is a non-cash expense, meaning no actual cash goes out, but it reduces profit.

This helps show a more realistic picture of profit and the cost of using assets over time.

6 Day Course

Theme: automation in investing

Day 3: Wednesday

The next order type is GTT or Good Till Triggered.

Most other order types expire at the end of the trading day. This means if you want to buy or sell at a certain price (or better), you would have to place a fresh order everyday.

GTT takes care of that.

Once placed, a GTT order is valid for 1 year. This allows investors to not log in to their investment accounts everyday.

OCO or One Cancels the Other.

This is a type of GTT order where if your profit target price is hit, the stop loss order is automatically cancelled.

Or, if the stop loss target is hit, the profit booking order is automatically cancelled.

Featured Question

Q. “You often mention that when assessing a stock price, a single term should not be used in isolation to judge performance. Can you please list all relevant terms in order of priority so we can understand their comparative importance ,in better way?”

There are way too many factors. In fact, many key metrics depend on the company type and the industry it operates in.

First, let’s talk about the numbers that matter broadly.

Revenue, earnings or loss, profit margin, growth (revenue, earnings, customers, etc), debt, PE ratio, PB ratio, PEG, ROCE, ROE, debt to equity ratio, free cash flow, etc are some of the most common metrics to check across stocks of different sectors.

Do note, there is no single right or wrong number for each of these metrics.

Many times, what’s right in the case of one type of company may not be right for another.

Example: it is acceptable for infra companies to have large debt. But IT companies usually have very small or no debt.

It is not always an apples to apples comparison.

As an investor, you will have to understand how each of these metrics should be for companies of different sizes and sectors.

Then of course there are metrics that apply to individual industries.

Example: PB ratio is more important than PE ratio in case of banking stocks and the lending industry.

And above all else, subjective factors that cannot be covered by metrics alone can have a significant impact.

Examples of this are: reliability, management quality, future growth prospects, compliance, corporate governance, industry’s future potential, etc.

Markets opened above yesterday’s closing point.

All sectors’ stocks rose today except for the pharma stocks and consumer durables stocks. FMCG stocks and realty stocks rose the most.

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

News

• The Ministry of Defence signed contracts worth Rs 975 crore with Bharat Earth Movers Limited (BEML) and Electro Pneumatics and Hydraulics (India) Private Limited for the procurement of TRAWL Assembly for T-72 and T-90 tanks.

• SEBI has reduced the minimum investment in social impact funds from Rs 2 lakh to Rs 1,000 to widen retail participation on the Social Stock Exchange.

Stocks Updates

• HCL Tech: net profit rose 4.2% year-on-year to Rs 4,488 crore during the Jan-March quarter. Dividend announced: Rs 24 per share, with 5 May as the record date.

• Nestle: net profit rose 6.9% year-on-year to Rs 3,544.6 crore during the Jan-March quarter. Dividend announced: Rs 5 per share, with 10 July as the record date.

• Coal India: Ministry of Corporate Affairs (MCA) proposed striking off subsidiary CIL Solar PV Ltd under Companies Act provisions.

• TVS Motor: signed an agreement with Hyundai to develop and commercialise electric three-wheelers. TVS will hold exclusive worldwide manufacturing rights and handle India sales, while Hyundai will lead design and manage sales in Korea. TVS also entered the Zambian market with a multi-product launch to expand its African presence.

• Tata Steel: partnered with Paul Wurth S.A. (part of SMS Group) to implement the world’s first EASyMelt technology in Jamshedpur.

• Adani Power: subsidiary, Adani Atomic Energy Ltd, incorporated a wholly owned subsidiary, Rawatbhata-Raj Atomic Energy Ltd, to generate, transmit, and distribute nuclear/atomic energy-derived power.

Word of the Day

EBITDA

It is a measure of a company’s operating performance and profitability

It stands for earnings before interest, taxes, depreciation, and amortisation.

It helps investors understand how the core business is performing, without the impact of financing and accounting decisions.

A higher EBITDA generally indicates stronger operational efficiency.

6 Day Course

Theme: automation in investing

Day 2: Tuesday

Now, let’s talk about some automation tools that are similar to the ones we spoke about yesterday, but a bit more advanced.

Trailing stop loss: So, let’s say a stock is rising fast. To prevent loss but also not miss out on the newly made gains, investors keep moving the stop loss price higher as the price moves higher.

This can be done with a trailing stop loss.

Bracket orders: this is a combination of some tools we discussed.

In it, investors can define:

- the price at which (or below) the buying will happen

- the price at which profit will be booked (selling price if stock goes up)

- the price at which the loss will be cut (selling price if stock goes down)

Time based order: as the name sounds. In this, investors place an order with certain conditions (buying/selling price), and define the period when this order will expire.

If the buy/sell conditions are not met in that time period, the order gets canceled.

Featured Question

Q. “Wipro announces buyback @250 and if i buy it on current cmp which is much lower then will i be in a profit ? easy money right?”

If you bought at a price much lower (let’s say Rs 200), then you can take part in the buyback.

Easy money — yes.

But there are some conditions which prevent it from being easy.

Usually, for being eligible, investors must own the shares on or before a certain date. This is called the record date.

If the current share price is lower but an investor has missed buying before the record date, they are ineligible for the buyback.

Also, when a buyback is taking place, other investors also start buying quickly. This causes the share price to rise.

This new price can be similar or higher than the current price. This removes the opportunity to make a profit.

Also, companies perform buybacks for a certain number of shares only. Once that is done, they stop buying.

So if you are unable to sell in that chunk, you will not get the buyback price.

This is called the acceptance ratio.

For example: you might want to sell 200 shares in the buyback. But they might buy only 10 shares from you. In this case, the acceptance ratio is 5%.

Markets opened below Friday’s closing point.

Media stocks and PSU bank stocks rose the most today. IT stocks and chemicals stocks fell the most.

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

News

• India’s infrastructure output of core industries fell by 0.4% year-on-year in March. Coal, crude oil, fertilisers and electricity output fell while natural gas, steel, cement and petroleum refinery products output rose.

• India and South Korea signed 15 agreements to boost cooperation in areas like trade, AI, and shipbuilding, and aim to double bilateral trade to $50 billion by 2030.

• The Multi Commodity Exchange received SEBI’s approval to invest in a proposed Coal Exchange company.

Stocks Updates

• Jio Financial: net profit fell 14.5% year-on-year to Rs 338.53 crore during the Jan-March quarter. Dividend announced: Rs 0.60 per share.

• Vedanta: will make its demerger effective from 1 May and fixed the same date as the record date for share allotment. The company will split into 4 separate businesses (aluminium, power, oil & gas, and iron & steel). Shareholders will receive 1 share in each new company for every 1 Vedanta share held. The company also approved the transfer of its BALCO stake to Vedanta Aluminium Metal.

• Groww: net profit rose 122.06% year-on-year to Rs 686.35 crore in the Jan-March quarter.

• ICICI Bank: net profit rose 9.28% year-on-year to Rs 14,755.06 crore in the Jan-March quarter. Dividend announced: Rs 12 per share.

• HDFC Bank: net profit rose 8.05% year-on-year to Rs 20,350.76 crore in the Jan-March quarter. Dividend announced: Rs 13 per share, with 19 June as the record date.

• Adani Enterprises: subsidiary Adani Airport City Ltd incorporated 3 airport city subsidiaries in Navi Mumbai, Guwahati, and Ahmedabad to expand its real estate and infrastructure business.

• Lupin: received 3 observations from USFDA after inspection at its manufacturing facility in Somerset, New Jersey.

Word of the Day

Institutional Holdings

It refers to the portion of a company’s shares owned by large institutions.

These institutions include mutual funds, insurance companies, banks, pension funds, foreign investors, etc.

Higher institutional holdings often indicate greater confidence in the company’s prospects.

Changes in the institutional holdings can impact stock prices, as these investors deal in large volumes.

6 Day Course

Theme:

Day 1: Monday

In our present times, it is very easy to use different levels of automation tools to buy/sell stocks.

This allows us to buy/sell without having to constantly keep an eye on the price movements.

In this week’s course, we will look at the most simple to most advanced automation options in buying/selling of stocks, ETFs, etc.

The very first option that comes to mind is of course stop loss.

If the price of a certain stock falls below a limit defined by you, the stock is sold.

Next, limit order.

You can place an order and define a price below/above which the buying/selling happens.

These options are offered by nearly every investment platform. They do not require highly technical knowledge to use.

Markets opened below yesterday’s closing point.

All sectors’ stocks rose today except for the IT stocks. FMCG stocks and oil and gas stocks rose the most.

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

News

• India’s forex reserves rose by $3.83 billion to $700.95 billion in the week that ended on 10 April.

• The RBI has withdrawn Rs 2 lakh crore from the banking system through a 7-day variable rate reverse repo (VRRR) auction to absorb short term surplus liquidity and keep interest rates stable.

Stocks Updates

• JSW Steel: entered into a 50:50 joint venture with South Korea’s POSCO Group through its subsidiary Saffron Resources Private Ltd to set up a 6 MTPA integrated steel plant in Odisha.

• Hyundai Motor India: received no-objection from NSE and BSE to reclassify Hyundai Motor Investment, Inc from promoter group to public category.

• Cipla: received 2 observations from USFDA after inspection at its Goa manufacturing facility.

• Lupin: incorporated a wholly owned subsidiary in Thailand called Lupin (Thailand) Ltd. The company’s US subsidiary, Lupin Pharmaceuticals USA, agreed to pay $30 million to settle an antitrust litigation, stating it does not admit any wrongdoing.

• TVS Motor: increased its stake in subsidiary DriveX Mobility (used 2-wheeler platform) to 92.41% from 87.38%.

Word of the Day

Coupon Rate

It is the fixed annual interest rate paid on a bond by the issuer to the investor.

It is calculated on the face value of the bond, not the market price.

The effective interest is usually paid periodically (half-yearly or annually) until maturity.

A higher coupon rate means higher regular income for investors.

Example: if a bond has a face value of Rs 1,000 and a coupon rate of 7%, the investor earns Rs 70 per year.

6 Day Course

Theme: sector rotation

Day 5: Friday

Now let’s talk about sectors.

During the recovery phase, sectors like banking, consumer durables, auto, and other consumption based sectors start to see gains. Industrial sector also starts picking up.

Sectors like FMCG and pharmaceuticals tend to not be star performers in this period.

Next, the expansion phase. During this phase, similar sector stocks (like banking, consumer durables, auto, etc) tend to start picking up more as consumers’ confidence grows.

Sectors like industry and real estate also continue performing.

Next, the peak or euphoria phase. As inflation peaks thanks to previous low interest rates, sectors like minerals, energy, commodities start doing well.

Next, the crash phase. This period sees many sectors suffer as confidence and money vanishes.

Essential items’ sectors do well in this phase. So the FMCG and pharma sector does well.

These are broader trends. There are exceptions in each sector and each phase.

Also, the phases do not always repeat in exact patterns, which makes picking stocks that much harder.

Investors practicing sector rotation try to match the phases and pick stocks accordingly.

It doesn’t work perfectly but skilled investors/managers can get it right to a great extent.

Featured Question

Q. “FIIs are leaving Indian Market while domestic investors keep on investing, keeping the market stable. Is it a big risk since once people start taking the money out, we might see a rash?”

These dynamics are always at play.

FIIs selling does not always mean a crash is coming. In fact, many times, FIIs sell after a crash has already started.

Many times FIIs also sell due to other external factors even while the Indian markets are doing well.

Each kind of investor is always dealing with different factors and they invest accordingly.

Also, FIIs are not more “correct” than DIIs.

Think about it. While FIIs are selling, DIIs are buying. Which implies that DIIs would be seeing buying opportunities instead of selling opportunities.

As an investor, you cannot depend only on FII or DII buying/selling to predict a crash or rise.