Markets closed lower than yesterday’s closing point.
Realty stocks and oil & gas stocks fell the most today. Media stocks and metal stocks rose the most.
Global markets: US markets rose on Monday. Asian markets showed a mixed trend on Tuesday. European markets traded higher (as of 6 pm IST).
News
The government increased windfall taxes on fuel exports. The export duty on petrol was increased to Rs 3.50 per litre. Diesel export duties increased to Rs 25.50 per litre. ATF exports were raised to Rs 22 per litre.
LIC’s Rs 31,410 crore OFS was subscribed over 3.3 times from institutional investors on day 1. The government is selling up to 6.50% stake at a floor price of Rs 382 to comply with minimum public shareholding norms. The offer will open for retail investors tomorrow.
Stocks Updates
Airtel: net profit rose 37.32% year-on-year to Rs 8,167.40 crore in the April-June quarter.
L&T: subsidiary L&T Energy Hydrocarbon Offshore (LTEH Offshore) secured an ultra-mega order (more than Rs 15,000 crore) from ADNOC Offshore to develop multiple offshore facilities in the Middle East.
Pidilite Industries: net profit rose 29.74% year-on-year to Rs 872.41 crore in the April-June quarter.
Samvardhana Motherson: subsidiary MSSL Global RSA Module Engineering Ltd acquired the remaining 49% stake in Vacuform 2000 Proprietary Ltd, making it an indirect wholly owned subsidiary.
Varun Beverages: subsidiary Varun Beverages (Zimbabwe) Pvt Ltd formed a 70:30 joint venture with Mega Market Pvt Ltd for activities in Zimbabwe.
Billionbrains Garage Ventures (Groww): State Street Global Advisors’ investment in Groww Asset Management Ltd was completed after receiving required approvals.
SBI Funds Management: net profit rose 3.70% year-on-year to Rs 880.26 crore in the April-June quarter. The board also approved an investment of up to Rs 25 crore in wholly owned subsidiary SBI Funds International (IFSC) Ltd.
Zydus Lifesciences: received USFDA final approval for Indocyanine Green for Injection, with 180-day exclusivity. The drug has annual US sales of about $125.8 million.
Cipla: subsidiary InvaGen Pharmaceuticals received a USFDA Establishment Inspection Report (EIR), confirming closure of inspection at its Hauppauge facility in New York.
Nykaa: net profit rose 243.10% year-on-year to Rs 80.01 crore in the April-June quarter. The board also approved the acquisition of a 51% stake in skincare company Aminu Wellness Pvt Ltd for up to Rs 32 crore.
Word of the Day
Offshore
It refers to any entity that is registered in another country for financial benefits.
In finance, offshore is often used to describe low-tax or low scrutiny countries.
For example, offshore companies are often shell companies registered in island-countries like the Cayman Islands, Mauritius, Bahamas etc.
Offshore banks are bank accounts opened in countries where the details of the account openers required by banks is less.
Offshore investment funds are funds that might invest globally but are registered in low-tax countries.
6 Day Course
Theme: phases of stock markets
Day 2: Tuesday
Let’s start with the first phase: consolidation.
This phase is also often called the bottom out phase because it is that phase in the markets when a falling market starts showing signs of recovery.
Investors are generally very sceptical, and often scared during this phase having been hurt because of the past falls.
Everyone is being cautious and the mood is sombre.
It is at this stage that institutional investors notice that the stocks are available at very low valuations.
They start buying and accumulating stocks in large quantities. They often treat this phase as a good buying opportunity.
Stocks that usually remain very highly valued are often available for very low prices.
For this reason, many also call this phase the accumulation phase.
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Featured Question
Q. “Why is it difficult to make 1% consistent Monthly returns even after diversification in Stocks and Mutual funds?”
If you look at Nifty 50 index fund returns, you will see that 12% per annum returns over a period of a few years are easily possible.
Many good mutual funds have been able to give much higher returns than just that.
The problem comes with consistency.
The markets are never consistent. They move in lumps. Sometimes they move downward, sometimes upward, and sometimes they remain flat.
So making 12% per annum returns (over a few years) in the markets has so far been easily possible.
But making a guaranteed 12% per annum every year is hard. You will notice that in some years, the index even gives negative returns.
Now, you can imagine making 1% per month every single month, consistently, is going to be harder.
It is not impossible. There are highly skilled traders and investors who have been able to do it. Many are able to make even higher returns than that.
But it is not easy for sure.
Even the best investors and traders in the stock markets usually have negative and positive periods.
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