Markets opened significantly below yesterday’s closing point.
Healthcare stocks and pharma stocks rose the most today. IT stocks and oil and gas stocks fell the most.
Global markets: US markets closed in the green. Most Asian markets and most European markets fell (as of 6 pm IST).
News
India’s forex reserves fell by $9.98 billion to $671.63 billion in the week that ended on 12 June.
Jio Platforms has filed draft papers with SEBI for an IPO with a fresh issue of up to 27 crore equity shares.
Turtlemint Fintech Solutions IPO has been subscribed 0.45 times. Retail subscription: 0.29 times. IPO closes on 23 June.
Stocks Updates
Bharat Forge: signed a Rs 425 crore contract with the Ministry of Defence to supply gas turbine generators for Indian Navy warships.
Hindalco: commissioned an aluminium bicycle components manufacturing facility in Chakan, Pune, with an annual capacity of 5 lakh frames and forks, 7.5 lakh handlebars and 8 lakh pairs of wheel rims.
Cholamandalam Investment: allotted NCDs worth Rs 100 crore at a coupon rate of 8.08% and a re-issue yield of 8.15% on a private placement basis.
Tata Power: Received a Letter of Intent from REC Power Development and Consultancy to acquire Ryapte Power Transmission Ltd, an SPV developing a 250-km transmission network in Karnataka, with annual transmission charges of Rs 521.07 crore.
Aurobindo Pharma: received approval from the US Federal Trade Commission for its proposed acquisition of Lannett Company LLC. The deal is expected to close before the end of June..
Word of the Day
Capital Gains Tax
It is the tax you pay on the profit made after selling an asset.
The profit earned after selling assets like stocks, bonds, real estate, etc is known as capital gains.
The amount of tax paid depends on how long you have had the asset.
Short-term and long-term capital gains (STCG and LTCG) are taxed differently. The time required for an asset to qualify as long-term or short-term can also vary.
For example:
If you sell equity shares within 12 months, the profit is taxed at 20% (STCG).
If you sell them after 12 months, the profit is taxed at 12.5% (LTCG) with exemption up to Rs1.25 lakh annually.
6 Day Course
Theme: understanding FIIs
Day 5: Friday
Finally, let’s talk about geopolitics.
When FIIs invest, they have expectations of a certain kind of returns and a minimum threshold.
Below that threshold, they are not comfortable investing.
Anything that threatens this leads to FIIs selling and withdrawing.
One common observation is that of conflicts. Whenever countries or regions enter into a conflict, FIIs get nervous about their future prospects.
For smaller scale conflicts, it affects only the Emerging Markets (EM) involved directly.
But for larger conflicts with an impact across the global economy, FII starts selling across all EM.
Likewise, if good developments take place, FIIs start investing uniformly across all EM.
In case of more regional threats, they start investing in greater quantities in the EM that were involved.
In short, fear of a disruption causes FIIs to sell and withdraw. Opportunities including potential growth leads them to invest in EM.
Featured Question
Q. “What is the difference between a public and a private company”
A public company is one of which you can buy shares in the share markets.
It is also called a publicly listed company. As in, the company that is listed on the share markets.
Private companies are those that are not available on the share markets.
Another common way these labels are used is to describe who owns the company.
A public-sector company is a government run company.
A private-sector company is a company that is not a government company.
Here’s the crucial distinction.
A publicly listed company can be both types of companies — privately owned and government owned.
Similarly, an unlisted company can also be privately owned and government owned.
In short:
Publicly listed: shares available on share markets (government company or private company)
Unlisted company: shares not available on share markets (government company or private company)
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