Markets closed significantly higher compared to yesterday’s closing point.
The fall in global AI stocks, especially Asian tech stocks due to higher interest rate expectations in the US, could have improved investor sentiment towards India.
The difference between the gains in Sensex and Nifty 50 could be due to weekly expiry of BSE contracts.
Private bank stocks and IT stocks rose the most today. PSU Bank stocks and media stocks fell the most.
Global markets: US markets fell on Wednesday. Most Asian markets fell on Thursday. European markets showed a mixed trend (as of 6 pm IST).
News
Jio Platforms filed its RHP with SEBI for an IPO to raise around Rs 28,755- 30,000 crore, making it the biggest IPO in India. The IPO comprises a fresh issue of 27 crore shares with no offer for sale.
India’s exports rose 13.84% year-on-year to $476.20 billion between April and September, compared to $418.31 billion in the same period last year.
The government signed contracts worth Rs 4,106 crore with NewSpace India Limited and Bharat Dynamics for a dedicated communication satellite capability and heavy weight torpedoes.
India’s unemployment rate remained at 5% in September; the same level as August. Urban unemployment rose to 6.9% (vs 6.8%) and rural unemployment rose to 4.2% (vs 4.1%).
Passenger vehicle sales grew 30.7% to 1.36 million units in the July-Sept quarter. Two wheeler sales: up 15.2% to 6.43 million units, commercial vehicle sales: up 28.7% to 3.09 lakh units: SIAM.
India’s net direct tax collections rose 13.21% year-on-year to Rs 13.38 lakh crore as of 14 Oct.
IPO Corner
HD Fire Protect’s Rs 712 crore IPO was subscribed 131.70 times on day 3. Retail subscription: 30.49 times. The IPO closed for subscription.
Fusion CX’s Rs 702 crore IPO was subscribed 1.10 times on day 2. Retail subscription: 3.73 times. The IPO will close for subscription on 16 Oct.
Zetwerk Manufacturing Business’s Rs 5,012 crore IPO was subscribed 0.23 times on day 1. Retail subscription: 0.22 times. The IPO will close for subscription on 19 Oct.
Bonfiglioli Transmissions Ltd’s Rs 2,533.81 crore IPO was subscribed 0.48 times on day 1. Retail subscription: 0.57 times. The IPO will close for subscription on 19 Oct.
Tonbo Imaging India Ltd’s Rs 852 crore IPO was subscribed 4.00 times on day 1. Retail subscription: 3.20 times. The IPO will close for subscription on 19 Oct.
Stock Updates
Nestle India: net profit rose 35.85% year-on-year to Rs 1,009.61 crore in the July-Sept quarter.
Wipro: net profit fell 1.40% year-on-year to Rs 3,200.60 crore in the July-Sept quarter.
Tech Mahindra: net profit rose 32.74% year-on-year to Rs 1,585.60 crore in the July-Sept quarter. The board proposed a 1:1 bonus issue, subject to approvals. Dividend declared: Rs 15 per share. Record date: 23 Oct.
LTM: secured a multi-million-dollar managed services agreement from an unnamed North American specialty engineering and construction company.
Polycab: net profit rose 42.59% year-on-year to Rs 977.37 crore in the July-Sept quarter.
HDFC Life: net profit rose 16.35% year-on-year to Rs 521.60 crore in the July-Sept quarter. The board also gave in-principle approval to raise up to Rs 500 crore through subordinated NCDs.
Indian Bank: net profit rose 13.92% year-on-year to Rs 3,540.71 crore in the July-Sept quarter. The board also approved raising up to Rs 7,000 crore through bonds.
Laurus Labs: invested Rs 107.80 crore in its joint venture KRKA Pharma Pvt Ltd, with its ownership remaining unchanged at 49%.
IRFC: net profit rose 10.21% year-on-year to Rs 1,958.48 crore in the July-Sept quarter. Dividend declared: Rs 1.15 per share. Record date: 23 Oct.
HDFC AMC: net profit rose 4.22% year-on-year to Rs 748.73 crore in the July-September quarter.
Persistent Systems: net profit fell 25.44% year-on-year to Rs 351.51 crore in the July-Sept quarter. The quarter included Rs 185.34 crore of expenses related to the Nagarro acquisition.
Shree Cement: its UAE subsidiary Shree Global FZE approved plans to incorporate Shree International Trading (Shanghai) Ltd in China for trading machinery and industrial equipment.
Word of the Day
Liquid Assets
It is the part of your investments/holdings that is stored as cash or can be converted to cash quickly and without losing value
Stocks and bonds can be sold very easily so they are considered liquid.
The same goes for commodities like gold and silver (held in the digital form or ETF form).
Cash is obviously considered liquid.
More tangible assets take more time to sell and are considered as not liquid assets.
Real estate is a prime example of this.
Investments that have a lock in, vehicles, machinery, artwork, collectibles, etc are all not considered as liquid assets.
6 Day Course
Theme: understanding bond pricing
Day 4: Thursday
Yesterday, we spoke about the effect of interest rates set by central banks.
Now, let’s understand another extremely crucial factor: credit quality of bond issuer.
Interest rates are set based on the perception and reputation of the bond issuer.
A higher trust organisation is able to offer lower interest rates. A lower trust organisation needs to offer higher interest rates to be able to justify the higher risk.
Likewise, the bond prices on the bond markets tend to fluctuate based on the credit quality too.
A lower credit quality bond’s price is more sensitive to market conditions. Therefore, their bond prices can be more volatile.
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Featured Question
Q. “Type of bonds like A, BBB- etc. They give fixed return or it may be change due to financial condition of company?”
AAA, A, BBB-, etc are ratings given to different bonds by bond-rating agencies.
These ratings are based on the credit worthiness of the bond.
Most corporate bonds offer fixed interest rates. So they will give the same interest rates as promised in the bond.
The risk comes from not being able to pay back at all or defaulting.
The ratings help us understand the chance of default.
AAA is given to the best quality bonds. A is given to bonds of a lower quality. BBB- is given to bonds of even lower quality, and so on.
There are different bond rating agencies and they rate bonds differently. The rating nomenclature also differs.
The above rating nomenclature is used by S&P Global. Fitch Ratings also uses the same. India based agencies like CRISIL and ICRA also use the same.
Moody’s rates bonds using a different nomenclature: Aaa, Aa1, Aa2, etc.
The information presented in this post has been compiled and prepared by Groww Invest Tech Pvt Ltd and is intended solely for informational purposes. It is not tailored to any specific investment objectives, financial situations, or needs of any individual investor. The content should not be construed as investment, financial, legal, or tax advice and should not be relied upon as a substitute for professional consultation.
Investing in securities markets involves inherent risks. Investors are advised to carefully review all relevant documents and consider their own risk tolerance before making any investment decisions.
Mutual fund investments are subject to market risks; please read all scheme-related documents carefully. Past performance of financial instruments, schemes, or markets is not indicative of future results.
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Nestlé India is the detail that stands out here, with profit up 36% in the headline and yet the stock was the biggest Nifty 50 loser at 7.76%. A print that strong getting sold that hard suggests expectations sat well above the reported growth, or that margins and volume mix disappointed beneath the headline number. Showing consensus next to the actual figure in issues like this would make that gap visible without anyone digging for it.