India’s retail inflation falls, Reliance divests Asian Paints stake, & more
Thursday, 12 June 2025
Markets opened slightly below yesterday’s closing point.
Nifty 50 fell for most of the day. It fell significantly in the second half of the day.
All sectors’ stocks fell today except for the healthcare stocks. Realty stocks and consumer durables stocks fell the most.
Global markets: US markets closed in the red. Most European and Asian markets fell.
News
India’s retail inflation fell to 2.82% in May (compared to 3.16% in April). Food inflation fell to 0.99% (compared to 1.78% in April).
The National Stock Exchange of India (NSE) received SEBI’s approval to launch monthly electricity futures contracts.
The Indian government reduced the Basic Customs duty on major imported crude oils from 20% to 10%.
The UK’s annual GDP growth rate fell to 0.9% in April, compared to 1.1% in March.
Stocks Updates
Reliance: divested 3.50 crore equity shares of Asian Paints for Rs 7,703 crore, at a rate of Rs 2,201 per share. After this sale, it now holds 87 lakh equity shares in Asian Paints.
Canara Bank: board approved raising Rs 9,500 crore via debt instruments in the financial year 2025-26.
NTPC: finished trial runs for Unit-3 of the 660 MW BARH and 660 MW North Karanpura Super Thermal Power Projects, adding to their total capacity.
HCL Tech: partnered with Volvo Cars as one of its strategic suppliers for end-to-end engineering services.
Word of the Day
Market Correction
It is a fall in a stock price from a recent high
During market corrections, the upward trend of stock prices is reversed.
It is usually defined as a drop of 10% or more.
They are temporary, lasting for a short while before the market recovers.
Economic shocks, policy changes or even geopolitical changes can lead to market corrections.
They act as a cooling-off period, preventing markets from becoming overvalued.
6 Day Course
Theme: most common money-related scams
Day 4: Thursday
Online shopping scams are another massive source of frauds.
Many websites are made to look like real e-commerce websites. Many items are sold by so-called “trusted” sellers on WhatsApp and Telegram.
Many times, even sellers on trusted platforms like Amazon and Flipkart send items that are fake.
This is why it is important to check the links and apps of e-commerce platforms carefully before placing an order.
Check reviews of sellers and items carefully. Some scammers are very good at faking reviews to make themselves look authentic.
Using the online payment option can be a risky step in case of newer websites and apps. Try to use cash-on-delivery wherever possible in such cases.
Featured Question
Q. “I had 30 shares of Quess. Company decided to split into 3 companies and accordingly I got 30 shares of Digitide and 30 shares of Bluspring. How capital gain for Digitide and Bluspring is calculated in case I sell them as there is no buy price applicable.”
Whenever a company splits into more companies, new shares are created.
In such cases, the company also announces a split ratio.
This split ratio tells us how much of a company’s assets were given to the new company.
The buy price is calculated using this split ratio.
Let’s say there is a company called ABC Chemicals. And it is splitting into ABC Chemicals and ABC Fertilisers.
In this case, the company declares a split ratio of 10%.
This means that 10% of the company’s assets are being given to the new company. 90% remains with ABC Chemicals.
Let’s say you bought shares of ABC Chemicals for Rs 1 lakh.
That is the buying price in your case.
After the split, the buying price will change in case of shares of both companies.
The buying price you will consider for ABC Chemicals:
90% of Rs 1 lakh = Rs 90,000
The buying price you will consider for ABC Fertilisers:
10% of Rs 1 lakh = Rs 10,000
Whenever you decide to sell the shares, you will have to use these buying prices to calculate the capital gains.
Note: if you add the buying price of both companies, it will be the same as the buying price of the original company (before split).
In case of your shares, please look for the split ratio declared by the company.
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