Markets closed lower compared to yesterday’s closing point. Fresh military attacks between the US and Iran pushed oil prices higher which could have led to the fall.
Auto stocks and media stocks fell the most today. Oil & gas stocks and realty stocks rose the most.
Global markets: US markets fell on Tuesday. Most Asian markets fell on Wednesday. Most European markets traded in red (as of 6 pm IST).
News
The government levied windfall taxes on petrol exports to Rs 1.5 per litre from nil. Diesel export duty was raised to Rs 25 per litre from Rs 24 per litre. The export duty on ATF exports was reduced to Rs 19 per litre from Rs 19.5 per litre.
Coal India subsidiary, Mahanadi Coalfields filed a DRHP for an IPO, consisting of an offer for sale of 66.18 crore shares by promoter Coal India.
Purple Style Labs IPO was subscribed 1.29 times on day 3. Retail subscription: 1.57 times. The IPO closed for subscription.
Stock Updates
ICICI Bank: raised $17.88 billion through the RBI’s FCNR(B) swap facility by 31 Aug. Its overseas units lent $9 billion against these deposits. It also bought a 2% stake in ICICI Prudential Life for Rs 1,470 crore, taking its holding to 52.8%.
HDFC Bank: plans to repay Rs 739 crore worth of Additional Tier 1 (AT1) bonds on 30 Sept.
L&T: the National Company Law Tribunal (NCLT) has accepted the petition related to the previously announced merger scheme between L&T and L&T Realty Properties Ltd. The matter will be heard on 6 October.
Adani Ports: step-down subsidiary Astro Offshore incorporated Astro Offshore MESA Company in Saudi Arabia for ship management and operations, with initial capital of SAR 50,000.
UltraTech: plans to increase its logistics fleet to more than 600 heavy-duty electric trucks by December 2026.
TVS Motor: repaid Rs 1,900.35 crore raised through preference shares after they reached maturity. It also paid the final interest/coupon of about Rs 114 crore.
Indian Oil: received shareholder approval to expand the company’s business into areas such as hydrogen, ammonia, critical minerals, carbon markets, data centres and digital services.
Tata Motors: received all prior sector regulatory approvals required for its proposed tender offer to acquire Iveco Group. The offer is still subject to review by Consob, Italy’s securities market regulator.
Cholamandalam Investment: issued Rs 2,000 crore of unsecured perpetual NCDs through private placement at an 8.97% coupon rate.
Aditya Birla Capital: issued Rs 300 crore of secured zero-coupon NCDs on a private placement basis, maturing in June 2031.
Bharat Forge: subsidiary Kalyani Powertrain completed the previously announced sale of its entire 50% stake in REFU Drive GmbH,a German company focused on electric-drive and powertrain technology, to REFU Elektronik GmbH.
Auto Updates (August)
Maruti Suzuki: sales rose 21.3% year-on-year to 2.19 lakh units. Domestic sales stood at 1.85 lakh units and exports stood at 33,844 units.
M&M: sales grew 42% year-on-year to 1.07 lakh units. Domestic passenger vehicle sales grew 50% to 59,257 units while commercial vehicle sales grew 22% to 27,415 units.
Tata Motors Passenger: sales grew 56% year-on-year to 67,753 units.
Hyundai Motor: sales grew 8.8% year-on-year to 65,796 units including export sales of 11,400 units.
Eicher Motors: sales grew 11% year-on-year to 1.26 lakh units.
TVS Motor: sales grew 21% year-on-year to 6.16 lakh units. EV sales stood at 59,453 units.
Ashok Leyland: sales grew 38% year-on-year to 21,038 units.
Bajaj Auto: sales grew 28% year-on-year to 5.35 lakh units.
Tata Motors: commercial vehicle sales grew 49% to 44,411 units.
Word of the Day
Final Dividend
It is the final dividend a company gives in a financial year.
It is decided after a company’s accounting for a full financial year is over.
Dividend that is paid in between the financial year is called the interim dividend.
Many companies usually announce interim dividends along with the quarterly results.
A company can also announce an interim dividend in its fourth quarter and announce a final dividend after that.
Many companies choose to skip the interim dividend of the 4th quarter and instead pay a final dividend directly.
6 Day Course
Theme: quarterly reports
Day 3: Wednesday
Today, let’s talk about sector rotation strategy.
In this, investors believe that every sector goes through cycles — good periods and difficult periods.
Sector rotation strategy aims to invest in good companies of sectors that are about to start a new cycle or are already doing well.
At the same time, they aim to sell off their existing shares that belong to industries/sectors that have lived through one cycle and might be looking at lacklustre or poor periods ahead.
The challenge with this style of investing is that it requires the investor to be very aware of the sectors and its cycles.
To make matters difficult the cycles don’t always come as expected since many industries are also affected by other external factors.
It requires the investor to be able to get out of sectors and jump into sectors at the right time.
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Featured Question
Q. “Why does our government restricts investment in international markets. Why are these limitations of 7 billion dollar.”
One of the reasons behind this limit is to do with exchange rates.
Whenever money flows out of India, it weakens our exchange rate. The opposite happens when money flows into the country.
This is why countries try to limit money flowing out of their economy in various ways.
This investment limit is just one of the many ways of doing so.
It also makes more money available for investing within the country which aids the country’s growth.
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Sweet update
Good knowledge