The Indian stock markets were closed today on account of Dussehra.
Hence, there won’t be any updates on the Nifty 50, Sensex, Top Gainers, and Top Losers sections today.
Global markets: US markets traded mixed on Monday. Most European and Asian markets fell (as of 6 pm IST).
News
Jio Platforms raised Rs 8,109.84 crore from 212 anchor investors ahead of its IPO. LIC, New World Fund, Government of Singapore, received the highest allocation.
The government clarified that it has no plans to regulate airline ticket prices under the new airfare rules, but will impose caps on airfares in exceptional cases like natural disasters or major disruptions, as per media reports.
Stock Updates
Sun Pharma: its cancer drug UNLOXCYT is now recommended as a preferred treatment under US medical guidelines for certain skin cancer patients who cannot undergo surgery or radiation.
PFC: received No Objection letters from BSE and NSE for its proposed merger with REC Ltd, subject to necessary approvals.
Max Healthcare: shareholders approved plans to expand into medical education and medicine manufacturing
Word of the Day
Independent Director (ID)
They are external members of a company’s board and are responsible for voting on key decisions that come to the board.
The ID should have no financial/personal gains from that company apart from the compensation they receive as an ID.
They are responsible for bringing unbiased perspective and to protect the interests of minority shareholders.
They are appointed by the shareholders and are registered in the Independent Directors Databank of India.
6 Day Course
Theme: dividends
Day 2: Tuesday
Companies pay dividends when they do not have use for the extra profits.
If they think they can re-invest the extra profits, they can skip paying dividends to re-invest the money for future growth.
This is the theory. In practice, many companies try to pay dividends no matter what.
This means they pay dividends even if they need the money for future growth. They may even pay dividends despite making losses.
Why?
Not paying dividends can affect the company’s reputation and sentiments associated with the stock.
Many investors might think the company’s future is not healthy and might start selling the stocks, crashing its price.
This is not always true. But it can happen.
This is why companies that have a reputation for paying dividends try to remain consistent with paying dividends.
Of course, there are companies that reduce or even stop paying dividends with no negative impact to their share price. But this is rare.
Featured Question
Q. “In 15th October Groww digest, you told that Markets closed significantly higher compared to yesterday’s closing point. The fall in global AI stocks, especially Asian tech stocks due to higher interest rate expectations in the US, could have improved investor sentiment towards India. But on the same date FII net sold for Rs. -5,285.37 crore. Why? At least FII should buy in net positive value.”
Let’s ask another question: why do they need to buy for the markets go to up?
As a group, FIIs are significant and own many shares. But they are not the only big players in the markets.
This is why they could be selling and the markets still going up at the same time.
Markets go up when the demand for shares is higher than supply (loosely speaking, the reality is more nuanced).
If FIIs withdrew on that day, and the markets still rose, it means some of the other groups (DIIs, individual retail investors, promoters, etc) were buying in larger chunks.
Why do FIIs sell when others are buying?
There could be many reasons for this. It is possible that some factors that affect them do not affect DIIs and other India-based investors.
This is the most common reason behind FIIs selling and investors buying on the same day.
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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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