Markets closed lower compared to Friday’s closing point.
Nifty and Sensex opened slightly higher today but continued to fall for the rest of the day.
FMCG stocks and PSU Bank stocks fell the most today. Media stocks and chemical stocks rose the most.
Global markets: US markets rose on Friday. Most Asian markets fell on Monday. Most European markets traded in green (as of 6 pm IST).
News
India’s retail inflation rose to 5.54% in September from 4.83% in August. Rural inflation at 6.08% (vs 5.24%) and urban inflation at 4.88% (vs 4.31%).
Equity mutual fund inflows rose 30.61% to Rs 38,306.55 crore in September. The outflows from debt funds widened to Rs 1.83 lakh crore in September compared to Rs 8,127 crore in August. SIP contributions reached a record high of Rs 32,490 crore in September.
SEBI introduced a common advertisement code for regulated entities (stock brokers, research analysts, mutual funds, etc). Celebrities can now promote these entities, brands but cannot endorse specific products or services, without approval.
US President Trump lifted sanctions on Russian fuel and said that Russia agreed to supply diesel to global markets till April 2027, to lower rallying fuel prices.
RBI announced to sell dollars to meet the entire daily dollar requirements of oil marketing companies (OMCs) among other measures to support the rupee.
Stock Updates
HCLTech: net profit rose 21.18% year-on-year to Rs 5,132 crore in the July-Sept quarter. Dividend declared: Rs 12 per share. Record date: 16 October. It also signed a partnership with Anthropic to develop AI solutions for businesses.
NTPC: subsidiary NTPC Renewable Energy started operations of another 66.18 MW of its Kalasar solar project in Rajasthan, taking the group’s commercial capacity to 90,492 MW.
Power Grid: acquired Lakadia II Power Transmission from REC subsidiary RECPDCL for Rs 18.43 crore for a 7,500 MW renewable-energy transmission project in Gujarat. It also started operations of a transmission system for Rajasthan’s 20 GW renewable-energy zone.
Avenue Supermarts (DMart): net profit rose 8.55% year-on-year to Rs 743.57 crore in the July-Sept quarter.
ICICI Pru AMC: net profit rose 6.08% year-on-year to Rs 888.96 crore in the July-Sept quarter. Dividend declared: Rs 30 per share with 21 October as the record date.
PFC: subsidiary PFC Consulting sold three power-transmission project companies to Power Grid and AnantGrid for a total of Rs 58.48 crore.
Tata Motors Passenger: signed an agreement with Stellantis India to jointly develop vehicles for over 50 global markets, to be manufactured at their JV plant in Pune.
Infosys: said the US government suspended its new and pending PERM applications, which are part of the employment-based green card process.
Word of the Day
Undercurrents
It is a less talked about factor affecting an investing, industry, market, situation, etc.
In finance and investing, many factors get recognised and many don’t.
Sometimes, the less talked about factors can have a large impact in the longer run. Those factors are called undercurrents.
Examples:
“While this company is growing well, there are undercurrents of difficulty in paying back debt.”
“One can sense undercurrents of market overvaluation though nobody is talking about it yet.”
6 Day Course
Theme: understanding bond pricing
Day 1: Monday
Our most basic understanding of bonds is that it is like giving a loan to someone.
When you buy a bond, you lend money to the bond issuer. And you agree on the interest rate, date of repayment, and the frequency of payment of interest.
This part is simple.
What adds another layer to this is that the bonds can be bought and sold as long as they have not matured.
The price of the bond at any time depends on various factors — which is what we will discuss in this course.
So, the price of bonds keeps going up and down in the bond markets — similar to what happens to share prices on share markets.
But something unique to bonds is that the bond’s price starts becoming more predictable as the maturity date of the bond nears.
This effect is called pull to par (or pull to maturity).
So, if a bond’s maturity amount is Rs 1 lakh, its price on the bond market will start getting closer to Rs 1 lakh as its maturity date gets closer.
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What If
Big investments made by institutional investors like mutual funds, foreign portfolio investors (FPIs) and insurance companies are keenly watched by the retail investors.
Once a company has listed in the markets, it can raise thousands of crores through something called Qualified Institutional Placement (QIP).
When big institutions put massive money into a company, it’s easy to assume the stock will do better.
But does backing from the “smart money” mean the stock will do well?
In today’s What If, we looked at the biggest QIPs each year in the last decade.
We tracked how the stocks moved before and after each QIP, compared the price institutions paid with what retail investors could pay on allotment day, and checked returns against the Nifty 50.
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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