Markets closed higher compared to yesterday’s closing point.
PSU bank stocks and pharma stocks rose the most today. Cement stocks and IT stocks fell the most.
Global markets: US markets ended mixed on Friday. Asian markets also showed a mixed trend on Monday. European markets opened in green (as of 6 pm IST)..
News
Hindustan Coca-Cola Holdings, which is the largest Coca-Cola bottler in India filed a DRHP with SEBI for an IPO. The IPO will consist of an offer for sale of 99.75 crore shares only.
MakeMyTrip’s India subsidiary received SEBI approval for its IPO. The company had confidentially filed a DRHP.
Stock Updates
L&T: won a “significant” order (worth Rs 1,000 crore to 2,500 crore) from Noida Metro Rail Corporation to design and build a 15.1 km elevated metro line and 10 stations.
Titan: repaid Rs 850 crore worth of commercial paper on 9 Nov.
Avenue Supermarts (DMart): repaid Rs 300 crore worth of commercial paper on 9 Nov.
BHEL: Telangana’s tax department dropped a proposed GST demand of Rs 207.26 crore for FY23, along with interest and penalties.
Word of the Day
Stop Loss
It is a tool used by traders and investors to start selling their stocks/securities if it falls to a certain level.
Stop loss orders can be of many types.
Stop loss market orders simply sell stocks if the price falls and reaches a certain price.
Example: sell stocks if price falls below Rs 331.
Stop loss limit orders simply start selling stocks if the stock hits a certain price but only if it is above a certain level too.
Example: sell stocks if price falls below Rs 331 but only if price is above Rs 323.
Trailing stop loss keeps moving the stop loss trigger as the price climbs up.
Example: sell stocks if price falls more than 10% of the highest price reached by the stock.
6 Day Course
Theme: stocks order matching
Day 1: Monday
A stock exchange’s (like BSE or NSE) main job is to match buyers and sellers.
This happens at lightning speed and are done by computers.
What logic do they use to match orders? But how does it all work?
In this week’s course, we’ll explore this topic.
First, let’s understand that there are two main kinds of orders:
Market order: buy or sell stocks at whatever the best price is available.
Limit order: buy or sell at a certain trigger price or better.
This is important because the stock price is always changing.
So if a person places a market order for buying one company’s shares, the price at which the buying happens can be different for each share he bought.
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Featured Question
Q. “In the digest dated 03-Nov, you have mentioned that in case of oversubscription, for individual retail investors, allotment is done randomly using a lottery system. Does this mean it's always all or none? I remember getting partial allotment?!”
Yes, there are some cases.
If the IPO is undersubscribed, then applicants get whatever they bid for. The lottery system is not needed.
If the oversubscription is neither high nor undersubscribed, applicants get more than 1 lot but not all the lots they applied for. Then it is done proportionally.
If the oversubscription is high, then applicants either get no lots or 1 lot. This is based on the lottery system.
Whenever we hear about greatly hyped IPOs with very high oversubscription levels, we can be sure the lottery system was used.
The information presented in this post has been compiled and prepared by Groww Invest Tech Pvt Ltd and is intended solely for informational purposes. It is not tailored to any specific investment objectives, financial situations, or needs of any individual investor. The content should not be construed as investment, financial, legal, or tax advice and should not be relied upon as a substitute for professional consultation.
Investing in securities markets involves inherent risks. Investors are advised to carefully review all relevant documents and consider their own risk tolerance before making any investment decisions.
Mutual fund investments are subject to market risks; please read all scheme-related documents carefully. Past performance of financial instruments, schemes, or markets is not indicative of future results.
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