Markets closed flat compared to yesterday’s closing point.
Nifty and Sensex ended slightly lower after a volatile session.
Cement stocks and private bank stocks fell the most today. Media stocks and pharma stocks rose the most.
Global markets: US markets rose on Monday. Asian markets showed a mixed trend on Tuesday. Most European markets opened in green (as of 6 pm IST).
News
India’s outward FDI fell 13.96% to $4.34 billion in September compared to $5.05 billion in August according to RBI data. Outward FDI is the significant investment made by Indian companies in foreign companies.
India’s total number of broadband subscribers rose 0.59% to 1,107.68 million in September compared to 1,101.21 million in August: TRAI.
SEBI extended the deadline for compliance by Debenture Trustees for activities outside of SEBI’s purview to April 2027.
EAAA India Alternatives’ Rs 1,200 crore IPO was subscribed 0.33 times on day 2. Retail subscription: 0.11 times. The IPO will close for subscription on 28 Oct.
SFC Environmental Technologies’ Rs 667.53 crore IPO was subscribed 0.10 times on day 1. Retail subscription: 0.16 times. The IPO will close for subscription on 29 Oct.
Stock Updates
Bajaj Auto: net profit rose 61.93% year-on-year to Rs 3,436.10 crore in the July-Sept quarter. The results include its recently acquired Austrian business.
L&T: net profit rose 32.50% year-on-year to Rs 5,202.10 crore in the July-Sept quarter. It also won a ‘major’ order (Rs 5,000 crore to Rs 10,000 crore category) for Dhaka Metro Line 1 in Bangladesh.
Maruti Suzuki: net profit fell 26.36% year-on-year to Rs 2,466.10 crore in the July-Sept quarter.
Tata Motors: partnered with Amazon to deploy 3,000 electric trucks across its transportation network in India.
Tata Capital: net profit rose 51.27% year-on-year to Rs 1,659.87 crore in the July-Sept quarter. The board also approved increasing its overseas bond issuance limit from $2 billion to $3 billion.
LTM: won a two-year technology services deal with a global banking company, potentially worth up to $100 million.
Tata Power: signed an MoU with BPCL to develop electricity infrastructure for its Mumbai refinery. It involves a combined investment of around Rs 250 crore.
One 97 Comm (Paytm): net profit rose to Rs 226 crore in the July-Sept quarter from Rs 21 crore a year ago. It also approved investing up to Rs 500 crore in subsidiary Paytm Cloud Technologies, which may further invest in its Singapore subsidiary.
Cipla: net profit fell 35.05% year-on-year to Rs 877.54 crore in the July-Sept quarter.
Persistent Systems: raised Rs 4,264.61 crore through a QIP to institutional investors at Rs 5,550 per share.
Mazagon Dock: net profit fell 54.09% year-on-year to Rs 344.12 crore in the July-Sept quarter. Dividend declared: Rs 5 dividend per share. Record date: 3 Nov.
Word of the Day
Free Float Shares
These are shares of a company that are readily available for trade on the share markets
Shares that are held by the promoters/founders, employees, government bodies, etc along with locked up shares are not a part of free float shares.
These shares are usually held by the shareholder for control over the company and therefore are less likely to be traded.
These are called restricted shares.
All other shares are deemed free float shares.
(Total Outstanding Shares) - (Restricted Shares) = (Free Float Shares)
6 Day Course
Theme: different kinds of funds in India
Day 2: Tuesday
Let’s go a bit deeper into REITs and InvITs today.
REITs as a category is a relatively new fund type in India. Only about 5 REITs exist in India as of now.
They own commercial properties. The income those properties earn is the income of the investors.
Different REITs follow a different rent-sharing schedule. Some pay quarterly, some have other timelines.
SEBI requires REITs to pay at least 90% of the distributable cashflow to the investors of the REITs.
Investors earn via appreciation of the units they own + rental income + debt repayment from the properties owned.
InvITs are similar but instead of commercial properties like shopping malls and offices, InvITs own power transmission lines, tolled highways, etc.
Their income comes from contracts and not rent.
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Featured Question
Q. “This was posted on Groww digest on 21-Oct "Bajaj Finance: issued secured zero-coupon NCDs worth Rs 2,120 crore through private placement basis, maturing in Oct 2031" Who would buy a zero coupon NCD? Irrespective of the investor, FII, DII or retail invest for returns, if the coupon is zero, what is the point of investing? ”
Such bonds are offered at a price lower than the maturity value.
They pay no interest and simply give a lump sum amount at the end of the maturity period.
But the buying price of these bonds at the present date is lower than the maturity amount.
The difference is the profit an investor makes.
Why do it like this?
Why not simply a bond with no interest rate payment till the maturity happens?
There are accounting, legal, and taxation reasons behind this.
Example: A zero coupon NCD offers a bond with zero coupon (0% p.a.) which will pay Rs 1.1 lakh in one year’s time. An investor can invest in this today by buying the bond for Rs 1 lakh. So effectively, the investor is making a return of 10% p.a.
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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