NSE offers to settle dark fibre case, Union Bank to raise Rs 6,000 cr, & more
Wednesday, 25 June 2025
Markets opened above yesterday’s closing point.
All sectors’ stocks rose today except for the private bank stocks. Media stocks and metal stocks rose the most.
Global markets: US and Asian markets rose. European markets closed in the red.
News
NSE has offered SEBI Rs 1,388 crore to settle old co-location and dark fibre cases, where a few brokers allegedly got unfair access to market data. If resolved, this could pave the way for NSE’s IPO.
RBI has extended the trading hours of the call money market by 2 hours. Banks can borrow and lend money in the market from 9 am to 7 pm from 1 July. This move aims to improve liquidity management of banks.
HDB Financial Services IPO was subscribed 0.37 times. Retail subscription: 0.30 times. IPO closes on 27 June.
Stocks Updates
Jio Financial: acquired 19 crore equity shares in its wholly-owned subsidiary, Jio Payments Bank, for Rs 190 crore.
Hindalco: will fully acquire AluChem Companies, a US-based specialty alumina producer, for $125 million within 2-4 months (pending approvals).
Union Bank of India: board approved plans to raise up to Rs 6,000 crore through equity and debt instruments.
Sun Pharma: company’s partner, Philogen, withdrew its Nidlegy skin cancer drug application in Europe due to incomplete data. They are co-developing the drug for Europe, New Zealand, and Australia.
Lupin: received US FDA approval for its Prucalopride tablets for treating chronic idiopathic constipation. These tablets had an estimated annual sales of $184 million in the US.
Word of the Day
Promoter Holdings
It is the percentage of shares in a company held by its promoters
These promoters can be the founding members, the parent company or insiders with significant control in the company.
Changes in promoter holding can directly impact the stock price, as they affect market sentiment and investor trust.
For investors, promoter holdings is one of the metrics to judge the stability and confidence in a company.
6 Day Course
Theme: when to buy and sell
Day 3: Wednesday
So, we determined that the valuation of a share while you buy and sell is important.
If you buy an overvalued share and sell later on when its valuation has become more fair, you might not make any returns at all.
This is why just buying a good company’s shares is not enough.
Now, let’s say you bought shares when they were undervalued or even fairly valued.
Now, in about 2-3 year’s time, its price has grown and become overvalued.
What do you do?
This is where opinions differ.
Many investors would recommend selling at this point to book profits (even if they like the company).
Their aim would be to sell and book profits and buy the shares again when their price seems more reasonable.
On the other hand, another bunch of investors believe that they would not sell even if overvalued — they would simply continue holding on to the shares much longer.
The second approach is much easier than the first (as long as the company’s future is bright).
But there’s no clear ‘right’ strategy here. Every investor handles this situation differently.
Featured Question
Q. “Why do some penny stocks rise unexpectedly despite having bad financial figures?”
Penny stocks are usually stocks of companies whose share price has fallen to very low levels.
This means something had gone wrong with the company and it suffered losses or similar.
Their total value is small. So even a small amount of investment can end up causing its share price to rise/fall fast.
Imagine you have Rs 1 cr to invest. You invest in a company whose market cap is Rs 10 cr.
In short, you are trying to buy 10% of the company. This would absolutely cause the share price to shoot up.
On the other hand, if you try to invest the same Rs 1 cr into a company with a market cap of Rs 50,000 cr, you would not move that company’s share price much.
So any relatively large buy/sell activity can end up causing the share price of penny stocks to shoot up or down.
There are many reasons that can cause this.
Sometimes rumours can easily drive up buying or selling in a penny stock, causing sharp price changes.
Sometimes, people with bad intentions deliberately try to increase the share price so that other investors also buy in, causing a chain reaction of sorts.
Then, at a high enough price, they will sell and exit. This is called pump-and-dump and it is considered stock price manipulation. It is illegal.
Sadly, many penny stocks see such pump-and-dump operations happening to them, and regular investors become victims.
Besides bad intentions, many investors love the idea of getting a multi-bagger, that a company with bad prospects will have a massive turnaround and make a big comeback.
This also causes many investors to take sudden bets in penny stocks — causing price rises.
Such comebacks are rare and often end up hurting the investors.
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