Markets closed lower compared to yesterday’s closing point. This was the fourth consecutive session of fall. Selling in IT stocks and higher oil prices could have led to the fall.
IT stocks and FMCG stocks fell the most today. Realty stocks and media stocks rose the most.
Global markets: US markets rose on Wednesday. Asian markets traded mixed on Thursday. Most European markets traded in green (as of 6 pm IST).
News
India received foreign inflows worth $136.38 billion through a special USD-INR forex swap facility from June to August, as per RBI. Foreign currency non-resident (bank) deposits saw inflows worth $127.23 billion during this period.
MSCI Global will delete Swiggy from its MSCI Global Standard Index and MSCI Mid Cap Index effective 7 September, after the company reduced its foreign ownership limit to 49.50%, leaving no room for new foreign investors.
Lumino Industries listed at Rs 110 on NSE, a premium of 34.15% over its issue price and closed 35.61% higher.
Stock Updates
Infosys: voluntarily liquidated two step-down wholly owned subsidiaries, Guidevision UK Ltd and In-tech Automotive Engineering Beijing Co Ltd.
HCLTech: signed an MoU with Transport for NSW, the New South Wales transport authority in Australia, to explore AI and Indian-language features for its traffic-management system in Indian cities.
Hindustan Zinc: received a letter of intent for a 314.21-hectare rare-earth elements and yttrium block in Gundlupet, Karnataka.
Power Grid: won 2 renewable-energy transmission projects with annual transmission charges of around Rs 4,397 crore.
Adani Energy: GQG-managed entities reduced their combined stake from 5.09% to 3.46%.
Samvardhana Motherson: agreed to guarantee a loan facility of up to Rs 70 crore, plus interest, taken by its wholly owned subsidiary Motherson Digital Technologies Ltd.
Canara Bank: approved raising up to $2 billion through foreign-currency bonds via its GIFT City or overseas branches
Tata Power: commissioned a 162 circuit km transmission corridor and 1,000 MVA substation in Uttar Pradesh.
Max Healthcare: added a new 400-bed tower at Max Smart Super Speciality Hospital, Saket, and approved another Rs 87.87 crore investment for Kalinga Hospital.
Bharat Forge: signed 2 separate defence partnerships with Thales and FN Herstal for rocket systems, small arms and counter-drone technology.
Persistent Systems: approved fundraising of up to $1.25 billion through debt and equity-linked instruments.
Word of the Day
Carry Trade
It is a method of trading where a trader borrows money from one country (where interest rates are low) and invests in another country (where interest rates are high)
This way, the trader is able to generate a profit because of the difference in interest rates.
Example: traders borrow from Japan and invest the money in Indian bonds.
6 Day Course
Theme: quarterly reports
Day 4: Thursday
Let’s talk about dividend strategy.
As the name suggests, in this, the investor aims to invest in stocks that have a history of giving good dividends or are likely to give good dividends.
Such investors care less about the returns given by the stock’s price increase though they do not fully ignore it either.
Quality stocks strategy: some investors focus first on the quality of the management running the company and the business itself.
Their belief is that a good team and a good management and a well functioning business are best positioned for future growth.
Investors using this strategy are more accepting of higher valuations, debt, recent poor performance, etc since they are placing a bet on the management and the business.
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Featured Question
Q. “Whenever a company launches QIP at discount, after some time share price falls to QIP level or below ultimately. Why does this happen? Is QIP good or bad ?”
QIP or Qualified Institutional Placement is when a company offers some fresh shares for sale.
QIP is offered by companies that are already on the share markets (which means, they have already done their IPO).
It is a faster way for the company to raise money. These shares are offered to institutional buyers only.
To make the offer tempting, the shares are offered at a price slightly lower than the current share price.
Many times, this leads to the actual share price falling. Sometimes, it reaches the QIP price.
This can happen due to multiple factors.
If for whatever reason, a QIP is seen as a negative factor, many investors might try to sell the shares.
Many times, investors fear this effect and start selling — causing share prices to fall.
Sometimes, investors see this price offered in the QIP as the “real price” and start selling their shares believing them to be overpriced.
Also, since QIP increases the number of total shares, the earnings per share falls. This can also cause a correction in the share price.
Many times, the share price does not fall after the QIP.
Are QIPs good or bad?
QIPs are like any other fund raises done by companies. Whether a QIP is good or bad depends entirely on the purpose and intended use of the money raised.
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Is Carry Trade allowed for Retail investors and can I carry trade in Groww site and what documents will be required for doing the carry trade....is there any lock in period
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