Markets closed lower compared to Friday’s closing point.
The fall could be due to rising expectations of an interest rate hike in the US, after Fed Chair Kevin Warsh’s speech over the weekend. The MSCI rebalancing is expected to have added to the fall.
Media stocks and metal stocks fell the most today. Private bank stocks and healthcare stocks rose the most.
Global markets: US markets fell on Friday. Most Asian markets fell on Monday. Most European markets traded in red (as of 6 pm IST).
News
India’s GDP rose 7.80% year-on-year in the April-June quarter compared to 6.90% a year ago.
India’s fiscal deficit narrowed to 26.80% of the annual budget estimates between April and July, from 29.90% in the same period last year.
The government released Index of Services Production data for June 2026. 18 out of 19 sub-sectors rose, led by real estate, retail trade and wholesale trade. Only air transport fell.
IPO Corner
Lumino Industries IPO was subscribed 50.48 times on day 3. Retail subscription: 27.70 times. The IPO closed for subscription.
ESDS Software Solutions IPO was subscribed 18.34 times on day 2. Retail subscription: 14.61 times. The IPO will close for subscription on 1 September.
Purple Style Labs IPO was subscribed 0.08 times on day 1. Retail subscription: 0.39 times. The IPO will close for subscription on 2 September.
Augmont Enterprises listed at Rs 961 on NSE, a premium of 21.95% over its issue price and closed 14.72% higher.
Stock Updates
Muthoot Finance: approved the merger of subsidiary Muthoot Money Ltd into Muthoot Finance. Muthoot Money has 1,006 branches, which will be combined with Muthoot Finance’s network.
Canara Bank: approved the sale of its 70% stake in Canbank Factors Ltd to Vidvedaa Pvt Ltd for Rs 80.50 crore, subject to approvals. It also paid Rs 248.10 crore in annual interest on time to investors who hold its Rs 3,000 crore Additional Tier 1 bonds.
Cipla: signed an exclusive licensing deal with SBP Group for breast cancer drug Rolditamig Deuderuxtecan. Cipla will develop and sell the drug in India, South Africa and five other emerging markets, while SBP Group will manufacture and supply it.
Varun Beverages: formally incorporated KIVA Spirits and Company Ltd, the subsidiary through which it plans to enter ready-to-drink and alcoholic beverages. The company had already announced this plan on 25 August.
Word of the Day
Company’s Management
It refers to the employees of a company responsible for making key decisions
These decisions include business choices, resource allocation, and organisational roles.
It is usually made up of the executive management team (CEO, CFO, CTO, etc) + senior management team (VP, SVP, Directors, etc). The middle management is also included in this list: senior managers, managers, heads, etc.
Individual contributors/employees are not considered a part of a company’s management.
The board of directors, external contractors, consultants, external advisors, and shareholders are also not considered a part of a company’s management.
6 Day Course
Theme: strategies of long-term investing
Day 1: Monday
Many investors bet on value investing (buying stocks at cheaper prices than they should be).
Many investors bet on growth investing (buying stocks that will grow very high in the future even if not cheap today).
Some accomplished investors like Warren Buffett and Howard Marks say they are both the same thing. We will not get into that discussion today.
Long-term investors use many different strategies that are roughly similar in idea but their implementation is different.
Let’s look at some of these strategies in this week’s course.
Turn around stocks/revival: investors who use this strategy are betting on stocks from industries that have not been performing well.
Their idea is that something caused them to do poorly, and now, those reasons are changing.
This change will result in good performance which is unlike what was happening before.
It is not necessary that the industry itself was underperforming. It could also be a case of one company underperforming, that for some reason is expected to do better in the future.
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What If
Debt is a cheaper source of capital than equity, but excessive debt can drown a business in interest payments.
It becomes important to check how effectively a company can repay the interest on borrowed money.
This is where Interest Coverage Ratio comes in. ICR measures how many times a company’s operating profit can cover its annual interest obligations.
Investors tend to assume that a company with a huge interest cushion makes it a good stock to bet on. But does that logic hold?
Does a company with a safer debt profile offer better stock returns?
In today’s What If, we looked at 11 years of ICR data and individual stock returns from the Nifty 100 basket to understand if higher ICR meant better stock returns, whether a strong debt cushion protects investors from sharp falls and how sector dynamics come into play.
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