Markets opened below yesterday’s closing point.
Nifty 50 opened lower today. The fall was mainly due to a sharp fall in IT stocks over AI-related concerns and weak global sentiments.
All sectors’ stocks fell today. Metal stocks and realty 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 fell by $6.71 billion to $717.06 billion in the week that ended on 6 Feb.
India’s passenger vehicle sales grew 12.6% year-on-year in Jan to 4.50 lakh units: SIAM
The US annual inflation fell to 2.4% in Jan (vs 2.7% in Dec).
The central government approved the Startup India Fund of Funds (FoF) 2.0 with a corpus of Rs 10,000 crore.
Stocks Updates
Coal India: net profit fell 15.6% year-on-year to Rs 7,165.98 crore in the Oct-Dec quarter. Dividend announced: Rs 5.5 per share. Record date: 18 Feb.
ONGC: net profit rose 22.6% year-on-year to Rs 11,946.42 crore in the Oct-Dec quarter. Dividend announced: Rs 6.25 per share. Record date: 18 Feb.
Torrent Pharma: net profit rose 26.2% year-on-year to Rs 635 crore in the Oct-Dec quarter. Dividend announced: Rs 29 per share.
Hindustan Unilever: company is acquiring the remaining 49% stake in its health & wellness subsidiary, ‘Zywie’.
Word of the Day
Credit Default Swap (CDS)
It is a contract acts as an insurance against the risk of default.
If an investor or lender is worried about the risk of default by the borrower, they can buy a CDS from a financial institution.
If a default happens, then the investor is compensated for the loss because of the CDS. Thus, risk is mitigated.
Periodic payments (premiums) are made to the seller of the CDS.
6 Day Course
Theme: how ETFs work
Day 5: Friday
One of the most crucial roles is played by the market maker.
The market maker keeps an inventory of ETF units.
They offer to buy units at a certain price and sell units at a certain price.
Market makers are constantly looking at the value of the underlying asset.
Based on the value they think is right, they adjust their buying and selling price often in milliseconds.
This way, they are able to keep the ETF units price aligned to the price of the underlying asset.
Often, the role of the Authorised Participant and Market Maker is played by the same body. But they are different and independent functions.
Featured Question
Q. “I always applied as retail investor category,if I want to apply in HNI category what should I have to do.”
If your application amount is more than Rs 2 lakh, your IPO bid will be taken under the High Net Worth Individual (HNI) category.
There is no separate registration required for it.
The only difference is the amount you apply for.
If your total investment in one IPO from one PAN crosses Rs 2 lakh, it automatically moves from the retail category to the HNI category.
When applying, many investment apps give you the option to select which category you want to apply under.
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