Markets opened below yesterday’s closing point.
IT stocks and consumer durables stocks rose the most today. Pharma stocks and healthcare stocks fell the most.
Global markets: US markets and Asian markets rose. European markets rose (as of 6 pm IST).
News
India’s fiscal deficit for FY25-26 stood at 4.4% of the GDP, in line with government estimates.
Commercial LPG prices have been raised by around Rs 42 to Rs 53.50 per cylinder. This is the 4th hike in a month.
India has officially issued a Letter of Request (LoR) to the French government for a Rs 3.25 lakh crore ($39 billion) deal to purchase 114 Rafale fighter jets for the Indian Air Force (IAF): as per media reports
Stocks Updates
Adani Green: stepdown subsidiary, Adani Hybrid Energy Jaisalmer Five Ltd, operationalised a 50 MW solar power project at Khavda, Gujarat, taking total operational renewable capacity to 19,835.8 MW.
Power Finance: 3 wholly owned subsidiaries, Deoghar Infra, Deoghar Mega Power, and Jharkhand Infrapower, were struck off and dissolved by the Registrar of Companies.
Adani Energy: incorporated 7 wholly owned subsidiaries (Sunrays Step I, II & III Ltd and Arasan Step I, II, III & IV Ltd) to undertake electricity generation, transmission and distribution business.
Mankind Pharma: subsidiary, Mankind Lifesciences, acquired the remaining 10% stake in Upakarma Ayurveda for Rs 75 lakh, making it an indirect wholly owned subsidiary.
Infosys: expanded partnership with Norway’s DNB Bank to modernise its financial crime detection systems, including fraud monitoring and anti-money laundering operations.
Auto Updates (May)
Maruti Suzuki: sales stood at 2.43 lakh units. Domestic sales stood at 1.94 lakh units and exports stood at 41,914 units.
M&M: sales grew 20% year-on-year to 99,636 units. Domestic passenger vehicle sales grew 11% to 58,021 units while commercial vehicle sales grew 19% to 24,079 units.
Tata Motors Passenger: sales grew 42% year-on-year to 59,790 units.
Hyundai Motor: sales grew 4.1% year-on-year to 61,137 units including export sales of 13,300 units.
Eicher Motors: sales grew 15% year-on-year to 1.03 lakh units. Exports fell 33% to 9,116 units.
TVS Motor: sales grew 31% year-on-year to 5.67 lakh units. EV sales grew 56% to 43,632 units.
Ashok Leyland: sales grew 4% year-on-year to 14,923 units.
Escorts Kubota: sales grew 18.9% year-on-year to 12,310 units.
Bajaj Auto: sales grew 20% year-on-year to 4.61 lakh units.
Word of the Day
Fiscal Deficit
It occurs when the government’s spending exceeds the government’s income in a financial year.
When government spending exceeds its income, it needs to borrow money to bridge the gap. This gap is known as the fiscal deficit.
It is measured as a percentage of the GDP to see the borrowing level of the government.
A higher fiscal deficit means the government is borrowing more, while a lower fiscal deficit might indicate government is spending efficiently.
Having a fiscal deficit is common for most countries and not always bad. It depends on how the borrowed money is used.
Fiscal deficits can have an effect on inflation, interest rates, national debt, bond yields, and the overall value of a country’s currency.
6 Day Course
Theme: use of LLMs in investing
Day 2: Tuesday
Next, let’s look at the ability to find info.
When given a stock’s name, many LLMs are able to successfully dig up quality information that can range from recent history to way back.
Of course, for this to happen, the data must be easily available. If there is no data, the LLM will not be able to find it.
This means that it is usually better at talking about the history of bigger and older companies than newer and smaller companies.
Published news articles and quarterly reports are two of the biggest sources of information for LLMs.
LLMs also use information available on forums like Reddit and other such online sources.
This can be a potential source of misinformation also, which can cause the LLM to hallucinate.
Along with facts, LLMs have also become good at tracking published numbers (like stock price, revenue, earnings, etc) and have shown the ability to link stock price with various events that happen over time.
Featured Question
Q. “What happens to mutual funds whose AUM drops to 0? (I had an SIP in a very bad fund where the AUM has now fallen significantly. I stopped the SIP but didn't redeem my units)”These platforms partner with a US based firm to make this happen.
A mutual funds’ AUM can drop to 0 under two conditions:
- The value of all assets of a mutual fund go to Rs 0 (all shares, bonds, etc become Rs 0)
- Every single investor withdraws money from the mutual fund
This is an extremely rare situation and does not happen very often.
Sometimes, a mutual fund may be merged with another mutual fund. The investors would get units of the newly merged mutual fund in return.
Sometimes, a mutual fund may be shut down and the investors’ money returned to them.
Sometimes, the mutual fund may just continue to operate for years while having poor performance.
If a mutual fund’s returns are consistently low, you may consider withdrawing the money and investing elsewhere.
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Great article