RBI keeps repo rate unchanged, Divi's Labs profits up 27%, & more — Daily Digest
Wednesday, 6 August 2025
Markets opened slightly below yesterday’s closing point.
Nifty 50 was volatile and fell in the first half of the day mainly due to the announcement of RBI’s repo rate decision.
All sectors’ stocks fell today except for the PSU bank stocks. Pharma stocks and healthcare stocks fell the most.
Global markets: US markets closed in red and most Asian markets rose. Most European markets were flat (as of 6 pm IST).
News
The RBI decided to keep the repo rate unchanged at 5.50% to support economic growth amidst uncertainty in global trade. This comes after 3 consecutive rate cuts.
Prestige Hospitality Ventures got SEBI’s approval for a Rs 2,700 crore IPO.
NSDL got listed on the stock exchanges at a premium of 10% over the issue price and closed 17% up at the end of the day.
Sri Lotus Developers and Realty got listed on the stock exchanges at a premium of 18.67% over the issue price and closed 31.23% up at the end of the day.
M&B Engineering got listed on the stock exchanges with no listing gains and closed 6.27% up at the end of the day.
Stocks Updates
Bajaj Auto: net profit rose 14% year-on-year to Rs 2,210 crore in the April-June quarter.
Trent: net profit rose 9% year-on-year to Rs 430 crore in the April-June quarter.
Divi’s Labs: net profit rose 27% year-on-year to Rs 545 crore in the April-June quarter.
Bajaj Holdings: net profit rose 116% year-on-year to Rs 3,487 crore in the April-June quarter.
Pidilite: net profit rose 19% year-on-year to Rs 672 crore in the April-June quarter. Dividend announced: Rs 10 per share; record date: 13 Aug. The board also recommended a 1:1 bonus issue.
Power Finance Corp: net profit rose 24% year-on-year to Rs 6,866 crore in the April-June quarter. Dividend announced: Rs 3.70 per share; record date: 18 Aug.
Hero Moto: net profit rose 63% year-on-year to Rs 1,705 crore in the April-June quarter.
Cipla: the US FDA classified its recent inspection of the company’s Bommasandra, Bengaluru facility as Voluntary Action Indicated (VAI), meaning no major compliance issues were found.
Auto Updates: July
+ Maruti Suzuki: sales stood at 1.81 lakh units. Domestic sales stood at 1.49 lakh units and exports stood at 31,745 units.
+ M&M: sales stood at 83,691 units, a growth of 26% year-on-year. SUV sales grew 20% with 49,871 units sold.
+ Tata Motors: domestic sales stood at 69,131 units. Commercial vehicle sales grew 7% year-on-year to 28,956 units. Passenger vehicle sales fell 11% year-on-year to 40,175 units.
+ Hyundai Motor: sales stood at 60,073 units including export sales of 16,100 units.
+ Eicher Motors: sales grew 31% year-on-year to 88,045 units. Exports grew 95%.
+ TVS Motor: sales grew 29% year-on-year to 4.56 lakh units. Two-wheeler sales also grew 29%.
+ Ashok Leyland: sales grew 8% to 15,064 units.
+ Escorts Kubota: sales grew 2.7% year-on-year to 7,154 units. Exports grew 25.3%.
+ Bajaj Auto: total sales grew 3% year-on-year to 3.66 lakh units.
Word of the Day
Acquisitions
It is when one company buys another company, or a part of it.
This can happen by purchasing shares or assets of the other company.
After the deal, the buying company may get some control.
The level of control depends on how much stake is acquired. Full ownership gives full control, while a minority stake gives only limited influence.
Companies can seek out acquisitions for various reasons — faster growth, access to newer markets and technology, etc.
Example: Tata Motors acquired Jaguar Land Rover (JLR) from Ford, Facebook (Meta) acquired Instagram and WhatsApp, etc.
6 Day Course
Theme: order matching
Day 3: Wednesday
Price-time Priority Matching.
Buy and sell orders are matched based on price matching first.
So, let’s say the lowest price seller wants to sell at Rs 101 per share. He wants to sell 10 shares.
There are 3 buyers: buyer A, B, and C.
Buyer C wants to pay Rs 100 per share for 10 shares.
Buyers A and B are willing to pay Rs 101. Both want to buy 5 shares each.
So instantly, buyer C is de-prioritised because the price is not matching (is lower than the seller's expectation).
Now, buyer A and B are matching the price of the seller.
So who will get the shares? This will be decided based on who came first.
Let’s say buyer B placed the buy-order at Rs 101 first. And then after that, buyer A placed the buy-order at Rs 101.
So, priority will be given to buyer B first. And then buyer A will be able to buy.
First 5 shares will be sold to buyer B. Then the next 5 shares will be sold to buyer A.
So, the matching engine gives first priority to matching price. After price is matched, then they look at who placed the order first.
Featured Question
Q. “Why are most of the valuations are measured using $ and not the other currencies or even gold to measure valuations.”
This depends.
It is not always in $ or USD.
In case of new companies that are growing big, there are investors who back the company early on.
Many times these investors are foreign investors who report their numbers back in their country.
So, they tend to talk about valuations in $ or USD.
For example, many Indian start-ups have foreign investors. Their valuations are often spoken of in $ or USD.
But if the investors are mainly Indian, they tend to report numbers in Indian Rupees or INR.
In either case, when filing for an IPO in India, every company has to report numbers in Indian Rupees or INR.
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