Markets closed lower compared to yesterday’s closing point.
The fall could be due to the same reasons as yesterday, which is a rise in crude oil prices. In fact, today the Brent crude crossed the $100 mark as tensions between the US and Iran continued.
IT stocks and realty stocks fell the most today. Only metal stocks rose.
Global markets: US markets fell on Tuesday. Most Asian markets traded mixed on Wednesday. European markets traded in red (as of 6 pm IST).
News
The government approved 3 multitracking projects worth Rs 10,783 crore across 14 districts in West Bengal, Jharkhand, Odisha, Madhya Pradesh and Chhattisgarh.
The government approved 5 multitracking projects worth Rs 10,021 crore in 17 districts across Tamil Nadu, Andhra Pradesh, Karnataka and Telangana.
IPO Corner
Rentomojo Limited was subscribed 1.42 times on day 1. Retail subscription: 1.54 times. The IPO will close for subscription on 11 September.
Kanohar Electricals was subscribed 10.22 times on day 2. Retail subscription: 8.49 times. The IPO will close for subscription on 10 September.
Karamtara Engineering was subscribed 1.27 times on day 1. Retail subscription: 1.07 times. The IPO will close for subscription on 11 September.
Manipal Payment and Identity Solutions was subscribed 0.17 times on day 1. Retail subscription: 0.73 times. The IPO will close for subscription on 11 September.
Asset Reconstruction Company (India) Limited was subscribed 0.38 times on day 1. Retail subscription: 0.56 times. The IPO will close for subscription on 11 September.
Prasol Chemicals was subscribed 0.72 times on day 2. Retail subscription: 1.14 times. The IPO will close for subscription on 10 September.
Stock Updates
ICICI Bank: RBI allowed its subsidiary ICICI Prudential AMC to acquire up to 9.95% each in CSB Bank, DCB Bank, Kotak Mahindra Bank and AU Small Finance Bank.
L&T: won an offshore order (Rs 2,500 crore - 5,000 crore) from ONGC for projects off India’s west coast. It also raised Rs 500 crore through tokenised NCDs at a 7.40% coupon rate, maturing in September 2029.
Sun Pharma: set up Sun Pharma Global Treasury Centre IFSC Ltd in GIFT City with an initial capital of about Rs 9.5 crore to handle treasury and funding activities.
Adani Enterprises: airport subsidiary Adani Airport Holdings will raise Rs 9,825 crore from investors, including Alpha Wave Global, Premji Invest, Temasek and BlackRock.
Adani Ports: won a 30-year contract to develop and operate 2 dry-bulk berths at Paradip Port in Odisha.
Hindustan Zinc: signed a 6-year agreement with MFL India to use 30 electric trucks for transporting zinc and lead concentrate in Rajasthan.
Shriram Finance: raised Rs 2,220 crore through secured NCDs at a 7.80% coupon.
Adani Energy Solutions: signed a 25-year agreement to supply 2,500 MW of round-the-clock power to MSEDCL.
CG Power: received a stay on an income-tax demand of about Rs 215.59 crore until its appeal is decided.
Muthoot Finance: invested Rs 31.80 crore in Asia Asset Finance, increasing its stake to 72.92%.
Aditya Birla Capital: raised Rs 2,335 crore through four tranches of secured NCDs on a private placement.
REC: subsidiary RECPDCL transferred Musalgaon Power Transmission Ltd to Maharashtra State Electricity Transmission Company for about Rs 2.21 crore.
Word of the Day
Holding Company
It is a company meant to own shares in other companies
Most holding companies do not produce any goods or provide any services.
They act as a parent company that is used to own stakes or shares in other companies.
Holding companies often hold a majority of the shares in their child companies.
But this is not always the case. They may also be a minority shareholder of some companies.
6 Day Course
Theme: mutual fund ratings
Day 3: Wednesday
One of the biggest flaws of mutual fund ratings is that they are almost always backward looking.
Mutual fund ratings are based on the past performance of mutual funds.
Many of them are greatly influenced by recent short term returns (last 6 months or 1 years’ returns).
All mutual funds have different kinds of holdings. This means that they perform very well during certain periods and less so during certain other periods.
Many mutual fund rating agencies rate these mutual funds highly after this good performance period. This does not mean that the mutual fund will continue to perform the same way in the future as well.
It may, but it may also not continue that way.
Similarly, even if a good mutual fund is going through a difficult period where its performance is lagging, many mutual fund ratings will rate it lower.
For this reason, mutual fund ratings can seem a little less useful.
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Featured Question
Q. “what if everyone want to sell the stocks, but no one wants to buy them at any cost. what happened to that shares?”
No trade will take place.
For trades to take place, there has to be a buyer and seller.
In the case mentioned above, there is no buyer, only seller. So, the seller will be unable to sell.
Those shares will remain with the current owner.
This state is described as the stock being illiquid.
The same logic applies in reverse while buying shares in a bulk deal.
What you are describing might be a pattern you have seen in some very specific case.
It is hard to say what the right thing to do in such a case might be.
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