Markets opened below yesterday’s closing point.
FMCG stocks and auto stocks rose the most. Realty stocks and consumer durables stocks fell the most.
Global markets: US markets fell. Asian markets showed a mixed trend. Most European markets rose (as of 6 pm IST).
News
SEBI has proposed allowing online bond platforms to offer overseas-listed debt securities regulated by the International Financial Services Centres Authority (IFSCA), as part of ease-of-doing-business measures.
Onemi Technology Solutions (Kissht) IPO has been subscribed 9.50 times. Retail subscription: 2.03 times. IPO is closed for subscription.
Stocks Updates
BEL: received a Rs 1,251 crore order from the Ministry of Defence to supply Ground Based Mobile ELINT System (GBMES) to the Indian Army.
Coal India: received the commissioning certificate from Gujarat Energy Development Agency (GEDA) for a 100 MW solar power plant in Banaskantha, Gujarat.
Shriram Finance: allotted NCDs worth Rs 100 crore on a private placement basis at a coupon rate of 9.15% per annum, maturing on 19 Jan 2029.
Tata Power: Dorjilung Hydro Power Limited, a joint venture in which Tata Power holds a 40% stake, secured $515 million financing from World Bank for the 1,125 MW Dorjilung Hydroelectric Power Project in Bhutan.
Lupin: received USFDA approval for Glycerol Phenylbutyrate oral liquid used to treat rare metabolic disorders.
L&T: net profit fell 3.1% year-on-year to Rs 5,325.6 crore in the Jan-March quarter. Dividend announced: Rs 38 per share, with 22 May as the record date. L&T Energy Hydrocarbon Onshore won a large order (Rs 2,500 to 5,000 crore) from Bharat Coal Gasification and Chemicals Ltd (BCGCL) for a coal-to-ammonia-nitrate project in Odisha.
M&M: net profit rose 41.6% year-on-year to Rs 4,667.57 crore in the Jan-March quarter. Dividend announced: Rs 33 per share, with 3 July as the record date.
Punjab National Bank: net profit rose 12.5% year-on-year to Rs 5,225.12 crore in the Jan-March quarter. Dividend announced: Rs 3 per share, with 13 June as the record date. Net Interest Income fell 3.5% to Rs 10,757 crore.
Marico: net profit rose 13.99% year-on-year to Rs 391 crore in the Jan-March quarter. Dividend announced: Rs 4 per share, with 30 July as the record date.
Word of the Day
Loan Restructuring
It means changing the original terms of a loan to make it easier for the borrower to repay.
Sometimes, borrowers may have trouble paying their loans on time due to various reasons.
To avoid the risk of a default by the borrower, banks may lower the interest rate, give more time to repay, or reduce the monthly payments to ease the financial burden.
This may cause a temporary drop in the borrower’s credit score and may lead to an increase in the overall interest payments if the loan tenure is extended.
6 Day Course
Theme: India’s relation with USD
Day 2: Tuesday
If you notice, the exchange rate for USD-INR is changing every day.
This is because the currencies are being bought and sold real time, similar to any commodity or shares.
If you are a foreign investor wanting to set up a factory in India, you will buy Indian Rupees by spending your US dollars.
If you are importing some commodity (like crude oil), you will be using your Indian Rupees to buy US dollars to be able to pay the foreign seller.
Let’s say the exchange rate is Rs 95 per USD.
If suddenly a lot of people are trying to buy Indian Rupees (convert USD to INR), the demand for INR will be up.
This causes the exchange rate to fall.
Example: it might fall from Rs 95 to Rs 94.
If a foreign company operating in India is taking its profits back to its home country, it will convert INR to USD. So the demand for USD will be higher.
Example: it might rise from Rs 95 to Rs 96.
Many such parallel trades are always happening. The net of all these trades determine the live exchange rate.
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