Markets opened above yesterday’s closing point.
Nifty 50 fell in the first hour, rose throughout the day, and closed in the green.
All sectors’ stocks rose today. Metal stocks and IT stocks rose the most.
Global markets: Most US and Asian markets rose. European markets showed a mixed trend (as of 6 pm IST).
News
India and the UK signed a $468 million deal for the supply of UK-made Martlet missiles to India.
The UK Prime Minister announced that 9 UK universities will establish their campuses in India.
India and Australia signed 3 defence agreements to boost military cooperation: Agreement on Information Sharing, MoU on Submarine Search and Rescue Cooperation, and Terms of Reference for Joint Staff Talks.
RBI launched a retail sandbox for its central bank digital currency (CBDC), also known as the e-rupee, to allow fintech companies to develop and test new applications in a regulated and secure environment. This is part of the ongoing e-rupee pilot, which was launched in Dec 2022.
SEBI revised the rules for block deals, effective from 7 Dec. It raised the minimum order size from Rs 10 crore to Rs 25 crore. The price range was increased from ±1% of the reference price to ±3%.
Canara Robeco IPO has been subscribed 0.23 times. Retail subscription: 0.36 times. IPO closes on 13 Oct.
Rubicon Research IPO has been 0.51 subscribed times. Retail subscription: 1.36 times. IPO closes on 13 Oct.
LG Electronics IPO was subscribed 54.02 times. Retail subscription: 3.54 times. IPO is closed for subscription.
Stocks Updates
TCS: net profit rose 1.47% year-on-year to Rs 12,131 crore in the July-Sept quarter. Dividend announced: Rs 11 per share. Record date: 15 Oct. The company has also acquired a 100% stake in US-based IT firm ListEngage MidCo for $72.8 million.
M&M: clarified that it has no plans to demerge its auto and tractor businesses, dismissing media reports on a possible restructuring.
InterGlobe Aviation (IndiGo): the DGCA has imposed a Rs 20 lakh penalty on the airline for matters concerning pilot training. IndiGo plans to contest the order.
Lupin: company announced plans to invest $250 million over the next 5 years to build a new state-of-the-art pharmaceutical manufacturing facility in Coral Springs, Florida. The plant will produce over 25 critical respiratory medicines.
Reliance: the FMCG arm of the company, Reliance Consumer Products, has relaunched Tamil Nadu-based personal care brand Velvette in a new and contemporary avatar.
Word of the Day
Exchange Rate
It is the value of a country’s currency when compared to another currency
It tells you how much of one currency is needed to buy the other.
Example: if 1 US$ = Rs 88, it means you need 88 Indian rupees to buy 1 US dollar. Similarly, if 1 Euro = Rs 103, it means you need 103 Indian rupees to buy 1 Euro.
Exchange rates change constantly due to demand and supply, interest rates, inflation, and global events. Some countries keep their exchange rates fixed to another currency.
Exchange rate movements affect the cost or the demand for goods imported in the country and the goods exported to foreign countries.
6 Day Course
Theme: High-risk high-reward investments
Day 4: Thursday
Now, let’s talk about margin trading which can be considered extremely risky.
In margin trading, investors are buying and selling assets using leverage (borrowed money).
This borrowed money in addition to your own money results in you being able to trade with much larger amounts.
So, if you had money to buy 100 shares, using margin, you might be able to buy 500 shares.
If the value of these shares go up by 1%, the entire gain is yours to keep. You just have to pay back the borrowed amount.
So, in short, it amplifies the gains.
But the same possibility applies in the other direction as well — extremely high losses.
The possibility of losing the entire investment amount makes this option extremely risky for investors.
Skilled and learned traders are able to generate returns in excess of 20% to 30% per annum.
Very skilled traders with a good appetite for risk might be able to generate returns as high as 40% to 60% per annum.
Most traders however are not skilled enough and end up losing money.
Features Question
Q. “This is in continuation with yesterday’s question. If the first 30 companies are common in both Nifty 50 and Sensex 30 indices in India. What is the significance of maintaining two indices? Ideally, Sensex 30 is not useful, right?”There can be many indices. It all depends on which index an investor wants to use.
Sensex 30 was launched first back in 1986.
Back then, many investors felt an index tracking the biggest 30 companies in India would be good.
Then, as the markets matured and grew, some investors felt a bigger index with 50 stocks was needed.
Nifty 50 was launched in 1996.
But not all investors track Nifty 50. Some still prefer using the Sensex 30.
Likewise, Nifty Bank index was launched to help investors track the banking sector.
Similarly, there are many indices that serve different kinds of investors.
Nifty IT, BSE 250 smallcap, Nifty Auto, BSE 100, Nifty Next 50, Nifty TMI, BSE PSU, etc.
New indices are launched often depending on latest developments.
One of the most recently launched index is BSE Hospitals index launched only a few days ago.
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