Markets holiday, Ministry of Defence signs Rs 5,083 cr deals & more - Groww Digest
Tuesday, 3 March 2026
The Indian stock markets and commodities markets were closed today on account of Holi.
Hence, there won’t be any updates on the Nifty 50, Sensex, Top Gainers, and Top Losers sections today.
Global markets: US markets showed a mixed trend. Asian markets fell. Most European markets fell (as of 6 pm IST).
News
The Ministry of Defence signed contracts worth Rs 5,083 crore for acquiring six Advanced Light Helicopters Mk-III for the Indian Coast Guard and Surface-to-Air Vertical Launch - Shtil missiles for the Indian Navy.
Stocks Updates
M&M: clarified that its 35,000 LCV export order to Indonesia remains active with advance payment received, and media reports of suspension of the order are incorrect.
Britannia: received a GST order from CGST Thane authorities demanding Rs 6.37 crore (tax and penalty) for FY21 to FY24, which it will challenge.
Cipla: formed a 60:40 joint venture with ‘Kemwell’ in India to develop and commercialize biologics and incorporated a wholly owned subsidiary, Cipla Middle East Company, in Saudi Arabia for pharma manufacturing and distribution.
Dabur: will invest Rs 60 crore to acquire a minority stake in luxury skincare brand ‘RAS Beauty’ under its Dabur Ventures initiative.
Word of the Day
Evergreening
It is when banks give new loans to borrowers who are struggling to repay old ones
More loans are given to stop the debts from turning into non-performing assets (NPAs).
This makes the bank’s financial statements look better.
In the short term, banks’ profits are not affected because they don’t need to set aside extra money for NPAs.
But this only delays the recognition of bad loans.
It might lead to a bigger financial crisis in the long term (like the 2018 NPA crisis of India).
6 Day Course
Theme: currency
Day 2: Tuesday
Yesterday, we spoke about commodity backed currencies.
Now, let’s talk about fiat currencies. Most currencies in the modern times are fiat currency.
Fiat currency is not backed by any commodity. It is backed by the trust of the country issuing that currency.
For example, the US issues US dollars.
In short, earlier, the money was worth some quantity of a commodity. And now, the money is not backed by a commodity.
This is why the price of gold can change.
In case of fiat currencies, the government (central bank of the country) can print money. It can create more money out of thin air.
This was not possible with commodity-backed currencies. Since every single dollar used to mean a certain amount of gold, they could not create more money. They had to mine more gold if they wanted to create more money.
Featured Question
Q. “Sir, recently I entered into stock market. I observed that in the value of stock there is abnormal difference in face value, book value and market price. For example one stock face value is ₹.1 book value is ₹.10 and market price is ₹ 210. How this can be understood?”
The face value of any company is the value of 1 share when the company was created.
It is simply an accounting number. It is an accounting tool and investors will not get anything very useful about the business from it.
Book value tells us the value of the company’s assets. If a company suddenly stopped working, how much would its assets be worth after settling its debts/liabilities?
Obviously a company has many other intangible assets (brand, trust, reputation, speed, talent, copyright, patent, etc).
Many of these do not get factored in the book value.
Market price: this is the share price you see on the stock markets.
It changes every day. It is the price that the investors seem to agree on. It may or may not be fair based on the company’s current and future profit/revenue.
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