Industrial output grows, GST collection rises, Asian Paints acquires White Teak, & more
Monday, 30 June 2025
Markets opened below Friday’s closing point.
PSU bank stocks and consumer durables stocks rose the most today. Private bank stocks and realty stocks fell the most.
Global markets: US and most Asian markets rose. Most European markets closed in red.
News
India’s industrial output grew 1.2% year-on-year in May (vs 2.7% in April). The manufacturing sector grew while the mining and electricity sectors fell.
India’s gross GST collection grew 9.4% year-on-year to Rs 22.08 lakh crore in FY 2024-25.
India’s fiscal deficit stood at Rs 13,163 crores for the April-May period (vs Rs 50,600 crores last year).
Curefoods India has filed its Draft Red Herring Prospectus (DRHP) with SEBI for a Rs 800 crore IPO.
Stocks Updates
Adani Green: operationalized 1,011.5 MW power projects at Khavda, Gujarat through various subsidiaries.
Shriram Finance: allotted Rs 485 crore worth of non-convertible debentures at a 9.233% coupon rate via private placement, maturing on 18 May 2027.
Torrent Pharma: will acquire a 46.39% stake in JB Chemicals for Rs 11,917 crore and will also make an open offer for another 26% stake. It also expressed interest to buy another 2.8% from certain employees of the company.
Asian Paints: acquired the remaining 40% stake in White Teak, a home decor brand, for Rs 188 crore, making it a wholly owned subsidiary.
NTPC Green: declared commercial operation of the final 120 MW unit of its 220 MW Shajapur Solar Project in Madhya Pradesh.
Word of the Day
Coupon Rate
It is the annual interest rate paid on a bond
It is paid to the bondholder on the face value of the bond.
While market prices of bonds may change, the coupon rate stays constant.
This rate is paid until the bond reaches maturity.
Example: if a bond has a face value of Rs 1,000 and the coupon rate is 7%, then the investor will receive Rs 70 every year as interest till the bond matures.
6 Day Course
Theme: FIRE
Day 1: Monday
FIRE = Financial Independence, Retire Early.
This is a movement that is fairly popular in the West and is now gaining traction in India too.
People who are a part of this movement aim to reach a certain number in net worth and quit working full-time.
In this week’s course, we will look at the different strategies in which people approach FIRE.
One of the most famous strategies is 4% withdrawal rate.
This says that if you can live on 4% (per year) of your total investments, your money will last you about 30 years.
This loosely translates to 25x — that is if you have 25 times the annual living expense in investments, the money will last you about 30 years.
This assumes you will invest your money in a balanced portfolio consisting of stocks and bonds (or equity mutual funds + debt mutual funds).
Some people feel uncomfortable about the 4% withdrawal rate and instead, aim for a withdrawal rate of 3% or lower.
The lower the withdrawal rate, the longer the money will last.
Below a certain withdrawal rate, you will practically never run out of money.
Featured Question
Q. “There are so many Small cap mutual fund in which there higher holdings are Large cap companies. Isn't it unfair to their subscribers, who have invested only for small cap? Why these AMC do like this with small cap fund investors?”
According to regulations, small-cap mutual funds have to hold at least 65% of their assets in small-cap stocks.
The remaining 35% can be invested in other kinds of stocks/assets.
Sometimes, small-cap mutual funds are allowed flexibility to hold less than 65% in small-cap stocks.
Why?
This is done to protect investors' returns.
The small-cap stocks universe is relatively small.
This means there are times when no good stocks are available at a good valuation. Investing in those small-cap stocks at higher valuations will result in poor returns in the long term.
So, in such cases, the fund manager opts to invest in different assets including mid-cap, large-cap stocks, bonds, and even keep cash.
The minimum 65% in small-cap stocks rule can be broken for short durations, up to 30 days — it is allowed.
Under certain circumstances, the fund manager can request to invest in non-small-cap assets for longer periods too.
In the longer term, this is a good thing since investing blindly in over-valued small-cap stocks will only hurt the investors and not get them good returns.
Did you like this edition?
Leave a feedback here!