Bluestone IPO listed at 1.35% loss, Vedanta's 2nd interim dividend, & more — Daily Digest
Tuesday, 19 August 2025
Markets opened above yesterday’s closing point.
Nifty 50 rose and closed in green today. The rise was mainly due to rise in large auto stocks after GST cut proposals and hopes of China addressing rare earth supply to India.
All sectors’ stocks rose today except for the pharma stocks and healthcare stocks. Oil and gas stocks and media stocks rose the most.
Global markets: US markets closed flat. Asian markets fell. European markets rose (as of 6 pm IST).
News
India has suspended the 11% import duty on cotton from 19 Aug to 30 Sept, to ease costs for the garment industry after the US tariffs on Indian goods.
Overseas assets of Indian mutual funds fell 5.6% to $8.3 billion and foreign liabilities rose 19.9% to $30.5 billion in FY 25 according RBI data. This means mutual funds in India invested less abroad but received more money from foreign investors.
The central government approved the construction of a 6-lane Capital Region Ring Road (Bhubaneswar Bypass - 110.87 km) in Odisha for Rs 8,307.74 crore.
The central government approved the building of an airport at Kota-Bundi in Rajasthan at a cost of Rs 1,507 crore.
Bluestone Jewellery was listed on the stock exchanges at a loss of 1.35% on its issue price and closed 5.61% up at the end of the day.
Vikram Solar IPO has been subscribed 1.52 times. Retail subscription: 1.37 times. IPO open till 21 Aug.
Captain Fresh applied for an IPO with SEBI through the confidential route.
Stocks Updates
M&M: subscribed to the rights issue of Mahindra Logistics, acquiring 1.73 crore shares at Rs 277 per share, increasing its stake from 57.97% to 59.60%.
Bajaj Auto: company subsidiary, Bajaj Auto Credit, raised Rs 500 crore via commercial paper at 6.25% interest rate, maturing on 17 Nov 2025.
Vedanta: fixed 27 August as the record date for an interim dividend for FY 2025-26. This dividend will be decided in a board meeting on 21 Aug.
Indian Oil: signed an MoU with Air India for the supply of Sustainable Aviation Fuel (SAF) to the company.
Mankind Pharma: incorporated a wholly owned subsidiary in Russia named Mankind Pharma LLC.
TCS: opened a new AI-driven operations center in Mexico City to expand its Latin America presence.
Word of the Day
Over-the-Counter (OTC)
It is a market where people trade securities that are not listed on the formal exchanges (like NSE or BSE)
Instead of a single platform, the trades happen directly between parties, through a network of brokers and dealers. This makes it a decentralised market, since there is no central exchange overseeing the transactions.
The market gives unlisted companies the opportunity to raise money.
Example: shares of early-stage startups, regional firms, pre-IPO companies, etc.
6 Day Course
Theme: how demat works
Day 2: Tuesday
To understand demat better, we need to understand how accounts are set up for investing.
Bank account: this is where money is stored. When you want to invest, money will be taken from this account.
When you sell, money will come to this account. Other related payouts like dividends will also come to this account.
Trading account: this account is where the buying/selling occurs.
Demat account: this is where the bought securities (shares, ETFs, etc) are stored.
In India, there are two central depositories: NSDL and CDSL.
No matter which platform you use to buy securities (shares, ETFs, etc), they will be stored in one of these two central depositories.
Every stockbroker is linked to either NSDL or CDSL.
Featured Question
Q. “In the Gift question given in the Featured Question , whether the Type of gain (short-term or long-term) will be decided based on the combined holding period or holding of the son alone?”
For calculating tax, the original date of purchase and price is considered.
So, let’s say a father bought:
No: 100 shares of XYZ
Buying price: Rs 350 per share
Date: 23 June 2019
2 years later, he gifts it to his son:
No: 100 shares of XYZ
Price when gifting: Rs 376 per share
Date: 23 June 2021
3 years later, the son sells these shares for a profit:
No: 100 shares of XYZ
Price when selling: Rs 500 per share
Date: 23 June 2024
So, in this case:
Total gains = Rs (500 - 350) = Rs 150 per share
Total duration = 23 June 2024 - 23 June 2019 = 5 years
This tax has to be paid by the son (the person who sells the shares).
The father will not have to pay any tax.
We already wrote about this yesterday but we will repeat anyway: in case of close relatives, there are no taxes on receiving gifts.
If the gift giver and gift receiver are not close relatives, there will be a tax on the gift receiver.
This tax will be based on the value of the shares at the time of gifting.
If the amount is below Rs 50,000, there will be no tax.
If above Rs 50,000, the tax will be as per the income tax slab.
Capital gains tax will still apply, as explained above.
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