The Indian stock markets were closed today on account of Mahatma Gandhi Jayanti.
Hence, there won’t be any updates on the Nifty 50, Sensex, Top Gainers, and Top Losers sections today.
Global markets: US markets rose on Thursday. Asian markets traded mixed on Friday and European markets also showed a mixed trend (as of 6 pm IST).
News
India’s forex reserves fell $18.34 billion to $747.56 billion for the week ended 25 Sep.
The government extended RoDTEP (an export tax-refund scheme) until 31 Dec from 30 Sep for several categories of exporters, including SEZ and export-oriented units.
Stock Updates
HDFC Bank: RBI approved Anup Bagchi as MD & CEO for 3 years from 27 Oct. He will replace Sashidhar Jagdishan.
ICICI Bank: subsidiary ICICI Life’s CEO Anup Bagchi will step down on 13 October to join HDFC Bank. Sidharatha Mishra has been approved as its next MD & CEO, subject to IRDAI approval.
Bajaj Finance: plans to raise up to Rs 17,500 crore, including Rs 11,700 crore through a QIP and Rs 5,800 crore by issuing warrants to its parent company Bajaj Finserv, which can later be converted into Bajaj Finance shares.
Tata Steel: NCLT approved the merger of wholly owned subsidiary Rujuvalika Investments into Tata Steel. The merger is meant to simplify the group structure.
Hindalco: terminated its proposed acquisition of US-based AluChem Companies and its specialty alumina business because the deal could not be completed on time.
PNB: received a SEBI warning over alleged insider-trading-rule violations involving three designated persons and their relatives. No financial penalty was imposed on the bank.
Zydus Lifesciences: extended the deadline for its proposed 50:50 Sri Lankan JV with Sunshine Healthcare to December 2026 as required conditions are still being completed.
Aurobindo Pharma: subsidiary Apitoria completed the acquisition of A1 Biochem Group’s contract research services business.
Word of the Day
Buying Pressure
It is when the demand for a share or any financial asset is higher than supply
It causes the price of the share/asset to rise.
The greater the buying pressure, the greater the share price increase.
The opposite of this situation would be ‘selling pressure’.
6 Day Course
Theme: US Fed rate changes
Day 5: Friday
So, we can see how various assets are impacted by the US Fed rates.
What makes this unpredictable is that the rate increases and decreases are not predictable.
The US Fed increases/decreases the rates based on their goals.
These goals are mainly to do with increasing economic activity and controlling inflation.
Thus, nobody can tell for sure how the US Fed rates will change in the future.
Many times, the US Fed tries to hint about their moves in order to not surprise everyone.
They also try to increase or decrease rates in small incremental steps like 0.25% at a time.
Usually, they meet 6-8 times a year and decide on changes. Not all meetings result in rate changes.
Many times, they decide to keep the rates unchanged.
Featured Question
Q. “Rate of inflation fluctuates. Then how can one decide on the retirement planning? Like how much corpus one needs to raise after the age of retirement?”
It is true, inflation cannot be accurately predicted.
Some years, it is low, and some high.
What most people do while planning is to use historical averages of inflation. To do that, they add some extra safety margin.
So if the historical inflation has been around 5%, 1% or 2% is added to that and used. Which means, they will consider 6% to 7% as inflation and calculate their retirement corpus.
Granted, this is not a 100% fool proof solution. If economic conditions change very fast and in a negative manner, even this could turn out false.
Adding more safety margin can help.
So far, historical averages have worked fairly well in calculating retirement corpus.
Also, individual inflation can be different from average inflation. This also needs to be factored in.
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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.
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