Retail auto sales up 26%, Samvardhana Motherson profit up 102%, & more - Groww Digest
Thursday, 06 August 2026
Markets closed higher than yesterday’s closing point. The major difference between Nifty and Sensex this week was due to the closing auction system.
PSU Bank stocks and chemical stocks rose the most today. Realty stocks and media stocks fell the most.
Global markets: US markets closed mixed on Wednesday. Most Asian markets fell on Thursday. Most European markets rose (as of 6 pm IST).
News
The government approved construction of a 135.87 km, four lane Guwahati-Tezpur Corridor along the NH-15 in Assam worth Rs 8,970.20 crore.
The government approved Rs 23,731 crore for ‘GOBARdhan’-India’s national unified scheme for compressed biogas.
The government clarified that India is neither importing nor intends to import ethanol from the US for fuel blending. The fuel blending programme and ethanol procurement is entirely from domestic producers.
Coal production rose 7.51% year-on-year to 69.75 MT in July. Coal dispatch grew 18.03% in the same period to 86.85 MT.
India remained a net importer of steel in July. Finished steel consumption rose 6.50% year-on-year to 14.40 MT in July. Steel production rose 1.40% to 13.70 MT in the same period.
Indian retail automobile sales grew 25.89% year-on-year to 25.91 lakh units in July, according to Federation of Automobile Dealers Associations (FADA).
Juniper Green Energy listed at Rs 245 on NSE, a premium of 8.89% over its issue price and closed 16.67% higher by the end of the day.
Stocks Updates
LIC: net profit rose 23.98% year-on-year to Rs 13,584.25 crore in the April-June quarter.
Power Grid: net profit fell 0.89% year-on-year to Rs 3,598.42 crore in the April-June quarter.
Samvardhana Motherson: net profit rose 101.64% year-on-year to Rs 1,032.05 crore in the April-June quarter.
Trent: net profit rose 20.79% year-on-year to Rs 519.01 crore in the April-June quarter.
Aurobindo Pharma: net profit rose 25.20% year-on-year to Rs 1,032.56 crore in the April-June quarter. The board also approved merging its two step down subsidiaries into it’s wholly owned subsidiary Eugia Pharma Specialities Ltd.
Persistent Systems: Launched a voluntary takeover offer to acquire Germany-based Nagarro at Euro 81 per share.
Vedanta Aluminium Metal: stock exchanges sought clarification on a media report that the company may raise Rs 13,500 crore from Axis Bank, HDFC Bank and ICICI Bank. The company neither confirmed nor denied the report and said it regularly evaluates funding options.
Word of the Day
OFS
It is a process via which promoters or major shareholders sell their shares in a company to investors.
OFS stands for Offer For Sale.
In OFS, no new shares are created. Since the sellers of these shares are other major shareholders, the money goes to their pockets.
Hence, the company does not get any money from an OFS.
In an OFS, the share sellers define a floor price (minimum price) and then invite bids from investors.
The allocation of shares is done based on this bidding.
Many times, OFS is conducted along with the IPO procedure — which means a company can do an IPO with fresh issue shares, or with fresh issue shares + OFS shares or only OFS shares.
A company can also do an OFS after the IPO process.
6 Day Course
Theme: phases of stock markets
Day 4: Thursday
The next phase is called plateauing or topping out.
This usually happens when the bull run has extended for a long time pushing share prices up to astronomical levels.
In this phase, a common tug of war observed is that of pessimism vs optimism.
Many investors are preparing for a correction/fall. Many believe the markets are going to continue climbing.
Therefore, this phase is often marked by lots of trading but low price movement.
The markets and share prices tend to remain in a narrow range until some external event causes the situation to change.
Many people start commenting that various stocks are trading at overvalued levels.
Do note, this phase is sometimes skipped. It is entirely possible that a bull run is interrupted with a sudden negative news that has wide implications.
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Featured Question
Q. “As individual invester if we buy stocks/shares of particular company, individual has to pay transaction charges, service charges, exchange charges etc., on the value of the shares bought likewise does AMCs will also have to pay while buying/selling of stocks...and brokerage who will get? And NAV of MSs includes all these charges on buy or sell?”
Yes, the same charges apply to AMCs buying and selling stocks as well.
This includes brokerage, STT, exchange transaction charges, stamp duty, GST, etc.
The brokerage is paid to the broker the AMC has tied up with to execute its trades.
Because of the high volume of transactions they carry out, AMCs negotiate extremely low brokerage charges.
These charges are included in the NAV. Investors do not have to pay them separately again.
The difference to note is that they do not have to pay any STCG tax or LTCG tax.
That applies to investors only when they withdraw money from the mutual fund.
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