New GST reforms, BHEL's Rs 2,600 cr order, & more - Daily Digest

Thursday, 4 September 2025

Sep 04, 2025

Markets opened significantly above yesterday’s closing point.

Nifty 50 opened higher and fell throughout the day and closed flat. The main reason for this may have been the weak market sentiments due to worries over US tariffs.

Auto stocks and FMCG stocks rose the most today. PSU bank stocks and oil and gas stocks fell the most.

Global markets: Most US markets rose. Asian markets showed a mixed trend. Most European markets rose (as of 6 pm IST).

News

IThe GST Council has approved reforms to the tax slabs, introducing a simpler structure with two rates, 18% and 5%, along with a 40% sin tax on some goods. The changes are expected to be implemented by 22 September.
The USA’s trade deficit rose to $78.3 billion in July (vs $59.1 billion in June).
The government approved a Rs 1,500 crore incentive scheme under the National Critical Mineral Mission to promote the recycling of critical minerals in India.
Eldorado Agritech has applied for a Rs 1,000 crore IPO with SEBI.

Stocks Updates

NTPC: permanently shut down its Tanda Thermal Power Station Stage-I (4x110 MW) located in UP.
Varun Beverages: incorporated a joint venture company, White Peak Refrigeration Pvt Ltd, to manufacture visi-coolers and refrigeration equipment in India.
Zydus Lifesciences: partnered with Netherlands-based Synthon to exclusively license and supply generic Ozanimod Capsules for the US market. The total addressable market for the drug is $637 million in the US.
BHEL: received a Letter of Intent from MB Power to supply equipment worth Rs 2,600 crore for a 800 MW thermal project at Anuppur, Madhya Pradesh.

Auto Updates (August)

Maruti Suzuki: sales stood at 1.81 lakh units. Out of this, 36,538 units were exports.
M&M: sales stood at 75,901 units, a flat growth year-on-year. Passenger vehicle sales fell 9% year-on-year to 39,399 units.
Tata Motors: sales grew 2.1% year-on-year to 73,178 units. Commercial vehicle sales grew 10% to 29,863 units. Passenger vehicle sales fell 3% to 43,315 units.
Hyundai Motor: sales stood at 60,501 units, including export sales of 16,500 units.
Eicher Motors: sales grew 55% year-on-year to 1.14 lakh units. Exports grew 39%.
TVS Motor: sales grew 30% year-on-year to 5.09 lakh units. Two-wheeler sales also grew 30%.
Ashok Leyland: sales grew 5% year-on-year to 15,239 units.
Escorts Kubota: sales grew 27.1% year-on-year to 8,456 units. Exports grew 35.5%.
Bajaj Auto: total sales grew 5% year-on-year to 4.17 lakh units.

Word of the Day

Sin Tax

It is a special tax that is charged on goods considered harmful to the society

Under India’s new GST reforms, a 40% sin tax is going to be applied on ‘sin goods’ along with certain luxury products.

These sin goods can be tobacco products, alcohol, sugary drinks, etc.

Their purpose is to discourage people from consuming these products and also generate more revenue for the government.

6 Day Course

Theme: shareholder meeting
Day 4: Thursday

As mentioned earlier, AGMs conduct voting.

On what issues do shareholders vote?

These can be everything from adopting that year’s financial reports, dividend declaration, appointment of auditors and directors, compensation of directors, changing company’s name, etc.

In many cases, the vote is decided by a simple majority.

This means as long as the resolution gets more than 50% votes, it is considered to have been green-lighted by the shareholders.

In some cases, a super-majority may be required which means a minimum of 75% of votes.

Most votes are binding. This means the company will act as per the results of the voting.

In India, it is mandatory for companies to allow shareholders to vote electronically or online. So they can vote even if they are not attending the shareholder meeting.

Featured Question

“Consider a hypothetical situation in which a company listed on stock exchange has no buyers and sellers for one month but the companies profit has increased by 10% in this time frame then will the share price increase due to the rise in earning or be constant due to no trade had taken place?”

The share price will not change.

For the share price to change, a transaction needs to take place. Someone needs to buy and someone else needs to sell.

The price at which the latest transaction (buying and selling) takes place is the share price you see.

When the share markets are open, the share price is constantly changing.

This is because many investors are constantly buying and selling the shares.

The live price reflects the latest buying/selling price.

The moment the market shuts at 3:30 pm, the buying and selling stops. And the price does not change until the market opens again and buying/selling restarts.

This is why we don’t see any price change if good/bad news comes in the evening/night/early morning.

In your example, you are mentioning that the company’s profits increased by 10%.

But, you are saying there is no buying/selling of that share happening.

So clearly, we will see no change in price.

Note: often, when a good/bad news comes, a greater number of investors try to sell/buy. This can trigger more buying and selling of that share.