Govt launches EV portal, Adani Airports raises $1 billion, & more
Tuesday, 24 June 2025
Markets opened significantly above yesterday’s closing point.
Nifty 50 fell in the second half of the day and closed in the green.
All sectors’ stocks rose today except for the media stocks and oil and gas stocks. PSU bank stocks and metal stocks rose the most.
Global markets: US and European markets rose. Asian markets also rose.
News
The Defence Ministry has signed 13 contracts worth Rs 1,981.90 crore under the Emergency Procurement (EP) route. This aims to boost the Indian Army’s counter-terrorism capabilities by procuring drones, radars, air defence systems, and protective gear.
The Ministry of Heavy Industries has launched a portal under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), inviting global companies to apply. Companies must invest at least Rs 4,150 crore, in return for lower import duties of 15% for 5 years.
The National Housing Bank (NHB) has tightened rules for refinancing home loans in under-construction properties. Loans will only be refinanced if less than 50% of the construction is complete.
Stocks Updates
Adani Enterprises: company subsidiary, Adani Airports, raised $1 billion in funding from global investors for its Mumbai International Airport.
Cochin Shipyard: company subsidiary, Hooghly Cochin Shipyard, won a Rs 100-250 crore order from Antara River Cruises to build 2 luxury cruise vessels for the Brahmaputra river.
Vodafone-Idea (Vi): clarified it has not received any government communication regarding the reported Rs 84,000 crore relief on company dues, which caused a 7% share price surge as per media speculation.
Word of the Day
Asset Turnover Ratio
It measures how well a company uses its assets to generate revenue from sales
A higher ratio means a company is using its assets efficiently.
Asset turnover ratio = Net sales/Average total assets
It can be useful for comparing companies in the same industry.
Usually, sectors like retail and consumer staples have a high asset turnover ratio.
Sectors like real estate and construction have a low ratio.
6 Day Course
Theme: when to buy and sell
Day 2: Tuesday
In the case of good companies, their share price would be going up in the long term while still moving up and down in the short term.
There can be times when the company’s revenues and profits are too low for its share price — the company is overvalued.
There can also be points where the opposite is true — the company is undervalued.
Investors try to sell when they find the shares to be overvalued. And they wait for shares to become undervalued to buy them.
This sounds simple enough. But it is far from simple.
Why?
Many times, good companies continue to climb up despite being overvalued. They remain overvalued for many years — growing as their profits and revenues increase.
Let’s say you sell at a point, thinking the shares are overvalued. You miss out on its future growth.
Likewise, you might buy a share when you think it is undervalued.
What if it continues falling down further because newer information comes out that shows the company’s future is in danger?
Featured Question
Q. “If markets tend to perform well in the long run, why do retail investors often panic and sell during short-term volatility—even though it may reduce returns due to capital gains tax? Do FIIs and DIIs also exit during such times, or do they stay invested since they’ve done deeper research on the businesses?”
Because nothing is guaranteed.
Yes, markets have performed well in the long run. Investors still panic because ‘what if this time it is different?’
Emotions and fear tend to dominate investors’ minds in such times.
Hence, they react by selling and assuming things will be much worse and the markets will not recover for a long time or ever.
This is one reason.
Another reason is that nobody likes seeing the value of their investments fall.
They assume that they will sell before the markets fall and then invest again when they start rising.
This sounds good on paper, but in practice, rarely succeeds for most investors.
They end up buying and selling at the wrong time.
Yet another reason is that they may have short-term plans with that money.
Maybe they need that money in the next few months and can’t wait for the markets to recover.
Coming to FIIs and DIIs — such institutional investors have large research teams, so they tend to be a bit more logic-driven.
But FIIs and DIIs can also behave in a manner similar to individual investors, despite being more methodical and analytical.
They are ultimately humans and panic does affect them.
Many FIIs and DIIs tend to ride these events out successfully. But many also end up panicking and selling at the wrong times.
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