Govt plans relief against tariffs, Adani Power's stock split, & more - Daily Digest
Friday, 5 September 2025
Markets opened above yesterday’s closing point.
Nifty 50 fell sharply in the first hour and rose in the second half of the day and closed flat.
Auto stocks and metal stocks rose the most today. IT stocks and FMCG stocks fell the most.
Global markets: US markets and Asian markets rose. Most European markets were in green (as of 6 pm IST).
News
India is planning a relief package to support exporters affected by US President Trump’s 50% tariffs: Finance Minister.
India’s forex reserves rose by $3.51 billion to $694.2 billion in the week that ended on 31 Aug.
Chartered Speed applied for a Rs 855 crore IPO with SEBI.
Stocks Updates
Adani Power: shareholders approved a stock split of shares in 1:5 ratio (1 share into 5 shares). Record date: 22 Sept.
BHEL: signed a 10-year MoU with Singapore’s Horizon Fuel Cell Technologies to develop hydrogen fuel cell-based rolling stock for the Indian market.
Dixon Tech: issued a corporate guarantee of up to $50 million for its wholly owned subsidiary Padget Electronics.
Dr Reddy’s: received a Rs 3 crore fine by GST authorities for irregularly availing export incentives.
Power Grid: won the bid to build and operate a transmission system for pumped storage projects in Sonbhadra, Uttar Pradesh.
Word of the Day
Alpha
It measures the performance of an investment compared to a benchmark index
The benchmark could be a stock market index like Nifty 50, Sensex, or an international index like S&P 500, depending on where the investment is made.
A positive alpha means the investment has performed better than the benchmark, while a negative alpha means it has underperformed.
Alpha can be used to check fund managers’ ability — the value they can add to the investment, over average market returns.
6 Day Course
Theme: shareholder meeting
Day 5: Friday
The voting power depends on the number of shares you own.
1 share = 1 vote.
If a person owns 2,000 shares of the company, his/her vote will have 2,000 voting power.
In case of companies with different classes of shares, the voting power can differ.
In India, these are called DVR shares (Differential Voting Rights).
Example:
-10 XYZ company’s shares = 10 votes
-10 XYZ company’s DVR shares = 100 votes
This is more common in the US where the same company can have class A, class B, class C, etc shares.
Example: it can be structured as class A shares have 10x voting power. Class B shares have 1x voting power (regular shares).
Featured Question
“As stated by you in todays question that the share price is live. How come the share price is high when the market opens in the morning in comparison to the yesterday's share price at the time of closing?”
This happens because of the ‘pre-market session’.
Before the markets open at 9:15 am, a pre-market session is held between 9:00 am and 9:15 am.
From 9:00 am to 9:08 am, buy/sell orders are taken from investors. These orders are matched.
The share price at market opening time is decided based on these matches in the pre-market.
This is done to control potential volatility, arising from news overnight.
Since the shares weren’t traded all night, it is possible that investors will react to the news that happened overnight.
Hence, a pre-market session is held.
This is why there is a mismatch in the share price at which the market closes and the share price at which it opens.
Did you like this edition?
Leave a feedback here!
Nice stuff, I like the format 👍