Markets closed lower compared to yesterday’s closing point.
Increasing expectations of an interest rate hike due to rising inflation in the US, and high oil prices could have led to the fall.
Realty stocks and metal stocks fell the most today. Private bank stocks and media stocks rose the most.
Global markets: US markets fell on Thursday. Most Asian markets fell on Friday. Most European markets traded in green (as of 6 pm IST).
News
India’s forex reserves rose $44.90 billion to a record high of $785.70 billion for the week ended 4 September.
The government notified that the Banker’s Books Evidence Act, which modernises the legal framework for the use of banking records as evidence, will be effective from 1 October.
IPO Corner
Rentomojo Limited was subscribed 72.88 times on day 3. Retail subscription: 15.59 times. The IPO closed for subscription.
Karamtara Engineering was subscribed 62.63 times on day 3. Retail subscription: 13.26 times. The IPO closed for subscription.
Manipal Payment and Identity Solutions was subscribed 1.42 times on day 3. Retail subscription: 2.19 times. The IPO closed for subscription.
Asset Reconstruction Company (India) Limited was subscribed 20.10 times on day 3. Retail subscription: 3.39 times. The IPO closed for subscription.
Stock Updates
Adani Ports: SEBI settled regulatory proceedings involving MD Karan Adani and former CFO B. Ravi. They paid Rs 13.65 lakh each to settle the matter without admitting or denying the findings.
BSE: invested Rs 9.28 crore in India International Bullion Holding IFSC Ltd, increasing its direct stake from 3.33% to 5.54%. BSE plans to further increase its holding to 20%.
Aurobindo Pharma: the USFDA completed an inspection of subsidiary Apitoria Pharma’s API facility in Andhra Pradesh with zero observations.
JSW Infrastructure: subsidiary JSW Port Logistics received approval to set up the first Inland Container Depot in the Ballari region of Karnataka. The facility will handle import and export cargo and is part of its planned logistics park at Kudathini.
Word of the Day
Range Bound
It is when the price stays within a certain upper and lower limit
Often, this phrase is used to describe a stock price or an index.
When the price does not go beyond an upper limit and a lower limit but keeps moving within a narrow range for a long time, it is said to be range bound.
Range bound stocks or indices are not seen as good investments since they do not generate returns.
6 Day Course
Theme: mutual fund ratings
Day 4: Thursday
It is always a good idea to look at multiple ratings from different agencies when analysing mutual funds.
That can often give a better idea and remove some biases of individual rating agencies.
Besides, an investor cannot depend only on ratings to choose mutual funds.
Yes, that increases workload, but it is something mutual fund investors must learn anyway.
Factors like fund manager quality, holdings quality, diversification, concentration, etc need to be looked at individually.
Often, a new investor will not be able to make these decisions immediately. It can take some time.
Thus, it is a good idea to use an informed relative’s or friend’s help or even an advisor’s help — while you learn and skill yourself.
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Featured Question
Q. “In PMS, does AMC have to deploy whole 50 lakhs or they can keep some cash? if market drops and stock holdings drop below 50 lakhs then what happens?”
When you invest in any PMS, you must invest at least Rs 50 lakh.
The fund manager may or may not invest the entire amount in stocks immediately.
Example: if the fund manager believes that the markets are overvalued, more money might be kept in cash form or in liquid funds.
The regulations require a minimum investment of Rs 50 lakh in PMS at the time of investment.
If after investment the value dips below Rs 50 lakh, the investor does not need to invest extra to make it reach Rs 50 lakh.
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