Markets closed significantly higher compared to yesterday’s closing point.
Foreign buying and a sell-off in AI stock globally could have led to the rally in Indian stocks.
Private bank stocks and consumer durable stocks rose the most today. Media stocks and REITs & realty stocks fell the most.
Global markets: US markets fell sharply on Thursday. Most Asian markets ended lower on Friday. European markets opened in red (as of 6 pm IST).
News
India’s forex reserves fell $2.69 billion to $717.06 billion for the week ended 30 Oct.
Retail automobile sales fell 23.80% year-on-year to 31.72 lakh units in October compared to a year ago as per Federation of Automobile Dealers (FADA).
The government has approved 12 new applications worth over Rs 7,500 crore in the latest tranche, under the Electronics Components Manufacturing Scheme (ECMS), as per reports..
Stock Updates
Adani Enterprises: joint venture AdaniConneX agreed to acquire Vizag Mega Data Center Park from Adani Infra (India) for Rs 1,085.51 crore in cash.
M&M: approved investing up to Rs 1,450 crore in subsidiary SML Mahindra through a rights issue.
Hindalco: net profit rose 58.87% year-on-year to Rs 7,532 crore in the July-Sept quarter. It also cancelled its proposed acquisition deal with AluChem.
DLF: signed an agreement with Everstone Group to form a joint venture that will invest in IREO’s India businesses. DLF plans to invest around Rs 3,750 crore for a majority stake.
Tech Mahindra: subsidiary PF Holdings agreed to acquire an additional 10.02% stake in Italy’s Pininfarina at 1.20 euros per share as part of its delisting plan.
Britannia: net profit rose 10.16% year-on-year to Rs 720.97 crore in the July-Sept quarter.
GAIL: subsidiary GAIL Mangalore Petrochemicals started operations at its 1.25 MTPA plant in Mangaluru to produce a raw material used in polyester manufacturing.
Marico: increased its stake in wellness company Cosmix Wellness from 60% to 80% for Rs 113.65 crore..
Word of the Day
Cash Equivalent
It is an investment that can be considered to be as safe and liquid as keeping cash in the bank.
Many companies and investors try to not keep vast sums of money in the bank account.
Instead, they try to make a small return on it, which is better than keeping money in the bank.
But since they cannot take risks with this money, they invest in extremely safe investments. Withdrawing money from these investments is also very easily possible.
Such investments are called cash-equivalent investments.
Example: overnight funds, bonds maturing in 90 days or less, government bonds, etc.
6 Day Course
Theme: GMP in IPOs
Day 4: Thursday
Another point to note about GMP is that it is mostly driven up or down by a smaller number of traders.
Since these are a small number of traders, the GMP price volatility can be very high. Even a small number of people changing their minds can cause drastic changes in their buy/selling.
But these small groups’ thinking can be much different from a larger group of investors, especially institutional investors.
This is yet another reason why GMP fails to be a great predictor of how the stock will behave upon listing.
The short version of this is that GMP alone is never enough to tell us much.
It can indicate a few things — demand among traders, sentiments among a certain segment of the markets, etc.
But it is never a standalone reliable metric for IPO listing gains.
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Featured Question
Q. “Can we stop SIP within one year of starting without redeeming and if stopped before one year when to redeem.”
Yes, it is possible to cancel an SIP any time an investor wants.
As you rightly pointed, cancelling an SIP does not automatically result in withdrawal.
An investor can withdraw/redeem any time he wishes to (in case of open ended mutual funds or mutual funds without a lock in period).
Something an investor might want to keep in mind is that redeeming from an equity mutual fund within 1 year from the investment date attracts taxes.
The tax rate is 20% of the gains.
After 1 year, the gains are taxed at 12.5%.
The first Rs 1.25 lakh gains are not counted in this. The first Rs 1.25 lakh gains are taxed at 0%.
This limit resets in every financial year and applies across all equity investments (equity mutual funds and shares).
The 12.5% tax rate applies on the gains after this amount.
In case of SIPs, each month’s SIP’s tax is calculated individually from the date of investment.
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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