Markets closed significantly higher compared to yesterday’s closing point.
The US midterm elections resulted in the victory of the Democratic Party, which is currently the opposition party in the US. This resulted in positive sentiments across the global markets. Which may have led to a rise in the markets today.
Auto stocks and realty stocks rose the most today. Media stocks and chemical stocks fell the most.
Global markets: US markets rose on Wednesday. Most Asian markets ended higher on Thursday. European markets opened in green (as of 6 pm IST).
News
The government shared tax devolution worth Rs 1.09 lakh crore with state governments to increase capital spending and welfare expenditure.
SEBI permitted mutual funds to settle cash market trades on a net basis to reduce funding requirements.
SEBI also revised the threshold limit for taking positions in currency derivatives involving the Rupee, without establishing underlying exposure..
Stock Updates
LIC: net profit rose 19.97% year-on-year to Rs 12,114.78 crore in the July-Sept quarter.
Adani Ports: agreed to acquire Netherlands-based liquid storage company Evos at an enterprise value of 2,558 million euros.
Titan: net profit rose 113.66% year-on-year to Rs 2,393 crore in the July-Sept quarter, including a one-time gain of Rs 671 crore. Noel Tata will retire as Vice-Chairman on 12 Nov.
Adani Power: signed a 25-year agreement to supply 1,234 MW of thermal power to Uttarakhand Power Corporation Ltd (UPCL).
M&M: net profit rose 24.90% year-on-year to Rs 4,587.88 crore in the July-Sept quarter.
ONGC: net profit rose 55.25% year-on-year to Rs 16,743.54 crore in the July-Sept quarter. Dividend declared: Rs 8 per share. Record date: 12 Nov.
BSE: net profit rose 44.90% year-on-year to Rs 809.15 crore in the July-Sept quarter.
CG Power: Maharashtra Pollution Control Board ordered the company to stop manufacturing at its Waluj plant over alleged pollution law violations.
Cummins India: net profit fell 18.50% year-on-year to Rs 507.17 crore in the July-Sept quarter.
LG Electronics India: net profit rose 25.66% year-on-year to Rs 489.35 crore in the July-Sept quarter. It also approved plans to enter the automotive electronics business.
Apollo Hospitals: net profit rose 32% year-on-year to Rs 629.90 crore in the July-Sept quarter.
Tata Power: subsidiary Tata Power Renewable Energy commissioned a 300 MW solar project in Karnataka for SECI.
Dr Reddy’s: received approval from Brazil’s drug regulator to sell generic semaglutide injections for type 2 diabetes.
Aurobindo Pharma: net profit rose 32.72% year-on-year to Rs 1,126.08 crore in the July-Sept quarter. Dividend declared: Rs 7 per share. Record date: 11 Nov.
Bharat Forge: net profit fell 7.80% year-on-year to Rs 275.87 crore in the July-Sept quarter.
Ashok Leyland: NCLT approved the merger of subsidiary Hinduja Leyland Finance into NDL Ventures. NDL will issue 25 shares for every 10 Hinduja Leyland Finance shares.
Word of the Day
Punting
It is when an investor/trader takes a bet based on luck, price action, hype, and gut feel.
In such a case, the investor knows that the element of luck is greater in such a deal and that the risk is extremely high.
These are usually very short to short term trades.
It can be considered almost a lottery-like investment. It is not necessary for most investors to be involved in punting.
If at all an investor does try, it must be a very small portion of the total investment amount.
6 Day Course
Theme: GMP in IPOs
Day 4: Thursday
In case of IPOs where the subscription is very strong, the GMP does shoot up many times.
This is the signal many investors are looking for.
While it is possible that the GMP shoots up because of buying demand from investors wanting listing gains, it is also possible that the grey market price shoots up because of genuine long-term investors.
In such a case, genuine long-term investors who believe the IPO is very underpriced will try to buy the stock even at higher prices than the issue price.
This can cause the GMP to go up noticeably. Such a stock with strong buying demand might go up after the stock lists too.
If we combine what we wrote yesterday and today, the conclusion comes to this: the GMP can shoot up because of demand from either list gain investors or long-term investors.
In one case, the share price might fall upon listing. In the other case, the share price might climb after listing.
More often than not, it is actually a mix of both of these two.
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Featured Question
Q. “what is this lottery system in ipo when over subscribed and how exactly this lottery systems algorithm works? can someone at registrar or ipo allotment make changes to allot ipo to specific group as oppose to random allotment despite of RBI regulations? Who watches these algorithms making random allotments are whether fair or rigged?”
In this random allotment of shares, every PAN holder is treated as one.
So, even if an investor invests using 2 different demat accounts on different platforms, his application is treated as a single application.
Similarly, the number of bid lots is not counted.
Then, the registrar takes this list of applicants.
The registrar’s software then randomly allocates the shares in case of oversubscription.
SEBI mandates a fair and completely random allotment process for individual retail investors. The software algorithm is not made publicly available.
An exchange executive oversees this finalisation of the allotment.
The system falls under SEBI and its jurisdiction. They can audit and punish if irregularities are found.
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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