Markets closed significantly lower compared to yesterday’s closing point.
The markets fell throughout the day. The negative sentiment due to factors like RBI rate hike and rise in crude oil prices may have led to the fall.
All sectors’ stocks fell today. Metal stocks and realty stocks fell the most.
Only 3 stocks in Nifty 50 rose today. Hence, there are only 3 stocks in the ‘Top Gainers’ section.
Global markets: US markets fell on Wednesday. Most Asian markets fell on Thursday and most European markets also traded in red (as of 6 pm IST).
News
The GST Council approved a series of measures such as removing tax officers’ arrest powers, reducing the general penalty amount, changing input tax credit rules, etc.
The government said that India’s regulatory framework for satellite communication services is fair and non-discriminatory, after Elon Musk claimed that Starlink’s entry in India was “being blocked by certain oligarchs”.
RBI officially removed Paytm Payments Bank from the Scheduled Banks list under the RBI Act, following the cancellation of its banking license earlier this year.
Stock Updates
TCS: net profit rose 14.98% year-on-year to Rs 13,884 crore in the July-Sept quarter. Dividend declared: Rs 12 per share, with 14 Oct as the record date.
Vedanta: declared a Rs 5 dividend, with a 14 Oct record date.
Titan: fully repaid Rs 825 crore of commercial paper issued in July upon maturity.
JSW Steel: repaid its entire $500 million overseas bond issue, which was originally due on 5 April 2027.
ONGC: incorporated ONGC Petrochemicals Marketing Ltd with Mangalore Refinery and Petrochemicals Ltd and ONGC Petro additions Ltd, holding 50%, 25%, and 25%, respectively.
Polycab India: NCLT accepted an insolvency petition filed by Asier Metals Pvt Ltd. Polycab says it does not owe the amount and has appealed the order.
Dr Reddy’s: received two USFDA inspection observations at its Andhra Pradesh facility.
Tata Consumer: won an income-tax case at the Income Tax Appellate Tribunal in Kolkata over certain tax benefits claimed for AY 2020-21.
Word of the Day
Market Depth
It refers to the ease with which a stock can be sold while affecting the share price the least.
On every stock’s page, we can see the top price bands at which buy or sell orders are placed in the markets.
Along with each price band, the number of stocks available at that price is also shown.
Market depth is said to be low when the top price bands are far apart, and/or the number of stocks in each price band is less.
So, if you were selling stocks, and the market depth was thin, you would quickly exhaust the first price band and move to the second, and then third and so on — based on the number of stocks you were selling, and the number of stocks available in each price band.
If the market depth was thick, you would be able to sell all your stocks within the first price band itself.
6 Day Course
Theme: things investors should ignore
Day 4: Thursday
Famous investors’ portfolios.
Many famous investors’ portfolios are publicly known because they end up owning more than 1% of certain companies.
Crossing 1% requires them to publicly declare their ownership.
Because of this, a part of their investment portfolio gets publicly known.
Copying this can be a bad strategy since we don’t know what else they own (less than 1%).
Say an investor owns Rs 50 cr of a very big and stable company. But this investment is less than 1% of its total shares. So it is not publicly declared.
On the other hand, the investor also owns Rs 50 cr of a small and high-risk company. This portion is greater than 1% of the company. So this is publicly declared.
Someone aiming to copy this investor will only see the riskier investment and copy only that.
Also, by the time the investors’ investment is publicly disclosed, the price of the stock might have risen.
So even if we copy, we won’t get the same price benefit as the investor did.
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Featured Question
Q. “How to compare my MF SIP return with Bank RD return. For example, investment in RD is giving a fixed interest of 7% p.a, how to compare this return with the return of MF SIP investment.”
The best way to compare would be to compare the XIRR of both.
In case of SIPs, the XIRR would be shown by the platform you’re using to invest.
In the case of the RD, you can use an XIRR calculator.
In Microsoft Excel and Google Sheets, there are formulas where you can easily enter all your inflow/ outflow into an investment, and the dates they occurred on.
The same can be used for RD also.
Do remember that the tax in case of both is different and the returns you get after paying tax will also be treated differently.
A more tempting way is to compare absolute percentages of both. That would not be a very accurate method. It is better to not compare absolute returns.
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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