Markets closed higher compared to Friday’s closing point.
Iran and Qatar held talks over the weekend to end the US-Iran war which led to oil prices falling sharply. This led to markets opening significantly higher.
Oil & gas stocks and metal stocks rose the most today. Media stocks and IT stocks fell the most.
Global markets: US markets fell on Friday. Asian markets ended mixed on Monday. European markets also showed a mixed trend (as of 6 pm IST).
News
India’s gross GST collections rose 22.9% year-on-year to Rs 2.31 lakh crore in October. Collections from imports rose 42.2%, while domestic collections increased 15.8%.
The price of a 19-kg commercial LPG cylinder rose by Rs 10 to Rs 2,820 in Delhi from 1 November. Prices also increased in other major cities.
The government introduced new aviation rules requiring airlines to clearly display cancellation charges and refund conditions when showing ticket prices. The rules will take effect on 1 January 2027.
TRAI tightened consumer grievance redressal rules where telecom operators can be penalised up to Rs 20 lakh per quarter per service area for improper handling of complaints.
SEBI recommended the government to remove long-term capital gains (LTCG) tax on foreign investors, as per media reports.
Coal production from captive and commercial mines rose 42% year-on-year to 22.03 MT from 15.49 MT a year ago.
EAAA India Alternatives listed at Rs 1,675.50, a premium of 0.63% over its issue price and closed 3.78% higher.
Stock Updates
L&T: won a ‘significant’ order (Rs 1,000 crore to Rs 2,500 crore category) to build residential towers in Mumbai and Bengaluru and a commercial tower in Hyderabad.
NTPC: net profit rose 38.74% year-on-year to Rs 7,029.56 crore in the July-Sept quarter. Dividend declared: Rs 3 per share. Record date: 6 Nov.
JSW Steel: the merger of Piombino Steel into the company became effective on 31 October.
Coal India: subsidiary South Eastern Coalfields filed draft papers with SEBI for an IPO. Coal India will sell up to 66.81 crore shares in the issue.
Power Grid: net profit rose 8.41% year-on-year to Rs 3,866.16 crore in the July-Sept quarter. Dividend declared: Rs 3 per share. Record date: 6 Nov. It also approved selling its entire stake in subsidiary CTUIL to Grid Controller of India for about Rs 73.46 crore.
Zydus Lifesciences: completed its acquisition of Sterling Biotech Ltd’s API business. The deal was announced in September 2024.
Muthoot Finance: net profit rose 34.12% year-on-year to Rs 3,246.53 crore in the July-Sept quarter.
Marico: net profit rose 30.95% year-on-year to Rs 550 crore in the July-Sept quarter.
Lupin: received USFDA approval for generic Amifampridine tablets, used to treat a rare condition that causes muscle weakness. It is eligible for 180-day shared generic exclusivity.
Ambuja Cements: announced a Rs 14,500 crore investment plan to add 30 MTPA of cement production capacity across 6 states.
Auto Updates (October)
M&M: sales grew 9% year-on-year to 1.31 lakh units. Domestic passenger vehicle sales grew 2% to 73,338 units while commercial vehicle sales grew 4% to 33,037 units.
Maruti Suzuki: sales rose 25% year-on-year to 2.76 lakh units. Domestic sales stood at 2.17 lakh units and exports stood at 49,872 units.
Bajaj Auto: sales of 2 wheelers and commercial vehicles grew 14% year-on-year to 5.92 lakh units.
Eicher Motors: Royal Enfield motorcycle sales grew 7% year-on-year to 1.33 lakh units.
TVS Motor: sales grew 29% year-on-year to 7 lakh units. EV sales rose 120% and stood at 71,382 units.
Hyundai Motor India: sales grew 17.7% year-on-year to 82,299 units, its highest-ever monthly sales, including export sales of 19,500 units.
Tata Motors: commercial vehicle sales grew 27% to 47,652 units.
Tata Motors Passenger: sales grew 23% year-on-year to 75,426 units. EV sales grew 75% to 16,244 units.
Hero MotoCorp: sales grew 16% year-on-year to 7.34 lakh units. EV (VIDA) sales stood at 30,143 units.
Ashok Leyland: sales of commercial vehicles grew 23% year-on-year to 21,888 units.
Word of the Day
Portfolio Drift
It is when an investment portfolio ends up different from its stated goal because of different assets giving different returns
It is better to understand with the help of an example.
An investor has decided to invest 20% of the total amount in bonds and 80% in shares.
Over time, the shares give higher returns than the bonds. So, the stocks portion grows faster.
Because of this, a few years later, the portfolio is actually 95% shares and 5% bonds.
This portfolio is now riskier than what the investor had originally planned for.
This phenomenon is called portfolio drift.
The portfolio has drifted away from its intended holding structure and risk capacity.
The solution to this is to routinely rebalance the portfolio (yearly, every 2 years, etc), to bring it back to the intended goal: 20% bonds and 80% shares.
The 20-80 split is just an example. Different investors can have different portfolio splits.
6 Day Course
Theme: GMP in IPOs
Day 1: Monday
We often hear investors talking about GMP during IPO applications.
This week, let’s do a deep dive on this topic.
GMP = Grey Market Premium
It is an informal share price of a company’s stock before the stock becomes listed on the share markets.
It is not illegal. But it is not formally recognised either.
When a company is about to go for IPO, some shareholders may start offering the shares (via contracts) for others to buy from them directly.
The price of the shares in this case is determined purely by negotiation and 1-1 discussions.
This is why this price is called the grey market price.
These days there are some platforms that try to help buyers and sellers meet each other, essentially becoming similar to the formal share markets. The legality of these platforms is not clear.
At any point multiple such before-IPO buy/sell transactions can take place between various parties.
The price of the share in these deals is reported anecdotally. This is the GMP.
It is possible that not all prices are reported and publicly known.
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What If
When a company reports strong quarterly results, its stock is assumed to go up.
After all, if a company is earning more money, shouldn’t its stock also do better?
But sometimes, companies report strong profits, and their stocks still fall. There are also times when profits decline, but share prices rise.
But do share prices really follow earnings that closely? And if a great quarter doesn’t lift a stock right away, does the market catch up later?
We wanted to understand how much quarterly results actually move a stock, and whether earnings are the only thing that matters.
In today’s What If, we tested how stocks with the strongest and weakest profit growth performed against the Nifty 50 in each results season, and how the link between earnings and share prices changed over different periods of time.
We also tested what would have happened if you bought only the 10 fastest-growing companies every quarter.
The information presented in this post has been compiled and prepared by Groww Invest Tech Pvt Ltd and is intended solely for informational purposes. It is not tailored to any specific investment objectives, financial situations, or needs of any individual investor. The content should not be construed as investment, financial, legal, or tax advice and should not be relied upon as a substitute for professional consultation.
Investing in securities markets involves inherent risks. Investors are advised to carefully review all relevant documents and consider their own risk tolerance before making any investment decisions.
Mutual fund investments are subject to market risks; please read all scheme-related documents carefully. Past performance of financial instruments, schemes, or markets is not indicative of future results.
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ntpc's standalone profit grew only about 14%, the 39% is consolidated, carried by subsidiaries and jvs while standalone other income fell