Markets ended lower compared to yesterday’s closing point. Nifty and Sensex rose during the day but closed in red.
Healthcare stocks and pharma stocks fell the most today. Media stocks and realty stocks rose the most.
Global markets: US markets fell on Tuesday. Most Asian markets rose on Wednesday. European markets showed a mixed trend (as of 6 pm IST).
News
India’s fiscal deficit widened to 41.9% of the annual budget estimates between April and August, from 38.1% in the same period last year.
The government approved Rs 1.86 lakh crore under the Green Energy Corridor Phase-III scheme to build infrastructure for up to 135 GW of renewable energy.
Elevate Campuses listed at Rs 355.10 on NSE, a discount of 1.91% below its issue price and closed 11.69% lower.
Jewellery maker Royal Chain filed a DRHP for an IPO that will consist of a fresh issue of Rs 850 crore and an offer for sale of Rs 150 crore.
Stock Updates
L&T: won two road-infrastructure contracts in Dubai (a large order worth Rs 2,500 cr to 5,000 cr and a significant order worth Rs 1,000 cr to 2,500 cr). The projects include roads, bridges, tunnels and an interchange.
Infosys: extended its partnership with ABN AMRO Bank to help develop, test and modernise the Dutch bank’s IT systems using AI.
Maruti Suzuki: received an income-tax penalty order of Rs 14.96 crore relating to FY23. The company plans to appeal.
NTPC: NTPC Green Energy will start commercial operations of another 153.94 MW of its Kalasar solar project in Rajasthan from 1 Oct.
Avenue Supermarts (DMart): raised Rs 500 crore through 90-day commercial paper at 6.12% interest.
Ambuja Cements: shareholders approved the proposed merger of ACC into Ambuja. Final NCLT approval is still required.
Solar Industries: overseas subsidiary set up Solar Explochem Proprietary Ltd in Botswana to expand its explosives business and invested $325,000 in the new company.
Jio Financial: invested Rs 320.05 crore in its Jio Allianz General Insurance JV. Allianz invested the same amount, taking the total fresh investment in the JV to Rs 640.10 crore.
IRFC: received a GST show-cause notice for about Rs 396.91 crore, including interest and penalty, for FY23. The company said it will respond to the notice.
Vedanta: raised Rs 2,000 crore through unsecured NCDs via private placement.
Word of the Day
Tailwind
Tailwinds are factors that are usually outside the control of a company or a sector/industry.
Example: the government decides to spend Rs 50,000 crore building new highways.
This would mean a high demand for cement.
So we can say, “the government spending on building highways is a tailwind for the cement industry”.
More people wanting to travel to popular tourist spots thanks to social media would be considered a tailwind for the airline, hotels, tourism, etc sectors.
The opposite of tailwind is called headwind — an external factor that acts against a company or industry.
6 Day Course
Theme: US Fed rate changes
Day 3: Wednesday
Next, we need to understand that the global financial markets are extremely connected.
Also, investors invest in all sorts of assets, not just one type.
This means, an institutional investor in New York would be investing in US bonds, US stocks, US startups (venture investment), gold, silver, real estate, etc along with stocks, bonds, real estate, and venture investments across the world.
This means, any changes in the US Fed interest rates would have an indirect effect on all these different assets.
It would entirely depend on the risk associated with each and their expected return.
Whenever US Fed interest rates increase, investors can get more returns by taking less risk.
Therefore, more money is allocated to US govt bonds. This means the investors would be selling assets somewhere else.
Whenever US Fed interest rates decrease, investors are willing to take more risk in order to get their target returns.
Less money is allocated to US govt bonds. This means the investors would be selling US govt bonds and investing in other assets.
Featured Question
Q. “Every financial advisor says choose a good MF and do the SIP for long term (20-25yrs) and compounding works.. But, say after 5 years there is another MF which is performing great .. what i need to do ?should we change the MF or stick on to theold one itself.. I'm unclear how does this work”
There will always be a mutual fund that performs better than yours.
It is not a very smart strategy to chase after the best mutual fund.
If you look at the past mutual funds’ returns over any long period, you will observe that the best performing mutual fund in any category often changes.
A better strategy is to ensure that you have invested in a good mutual fund, that may or may not be the absolute best performer.
Also, it goes without saying, always compare mutual fund returns within the same category and sub category.
Every category and sub category of mutual fund gives different returns and carries a different level of risk.
Also, it is possible that a certain mutual fund’s performance is poorer compared to others in the same sub category for short durations. This is normal.
If a mutual fund continues to perform poorly compared to others, an investor may simply pause new investments in it and start investing in other mutual funds.
Moving already invested money to another mutual fund will involve taxes and other charges.
It may or may not make sense depending on individual conditions.
Investors need to evaluate which makes more sense — leaving already invested money or withdrawing even that.
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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.
Groww Invest Tech Pvt Ltd is registered with the Securities and Exchange Board of India (SEBI) under Registration No: INZ000301838, as a Research Analyst under No: INH200008662, as a Depository Participant under No: IN-DP-417-2019, and with the Association of Mutual Funds in India (AMFI) under ARN-111686.
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