Markets closed higher than yesterday’s closing point. Nifty and Sensex rose 2.6% this week.
Media stocks and auto stocks rose the most today. IT stocks and FMCG stocks fell the most.
Global markets: US markets rose on Thursday. Most Asian markets rose on Friday. European markets showed a mixed trend (as of 6 pm IST).
News
India’s forex reserves rose by $6.11 billion to $682.35 billion in the week that ended on 24 July.
India’s fiscal deficit widened to Rs 3.07 lakh crore in the April-June quarter compared to Rs 2.81 lakh crore in the same period a year ago.
The government approved Rs 84,084 crore for the National Offshore Exploration Scheme of the Ministry of Petroleum and Natural Gas up to FY30-31.
The government approved Rs 5,070 crore for development of 5,000 MW floating solar photovoltaic projects with energy storage systems.
SEBI introduced the ‘GARUDA’ framework to simplify and expedite the launch of AIFs effective from 30 July. This allows AIFs to launch 10 day after filing Private Placement Memorandum (PPM).
Manipal Health Enterprises Limited’s IPO was subscribed 4.92 times on day 3. Retail subscription: 0.93 times. The IPO closed for subscription.
Juniper Green Energy’s IPO was subscribed 0.47 times on day 2. Retail subscription: 0.22 times. The IPO will close for subscription on 3 August.
Stocks Updates
L&T: signed a six-year EPC framework agreement with Petroleum Development Oman (PDO).
Maruti Suzuki: net profit fell 9.11% year-on-year to Rs 3,446.90 crore in the April-June quarter.
ITC: net profit fell 16.21% year-on-year to Rs 4,394.13 crore in the April-June quarter.
Sun Pharma: net profit rose 27.04% year-on-year to Rs 2,894.79 crore in the April-June quarter.
Bajaj Finserv: net profit rose 12.31% year-on-year to Rs 3,132.35 crore in the April-June quarter. The board also approved entering the reinsurance business through a new subsidiary, subject to IRDAI and other approvals.
Dixon Tech: net profit rose 194.89% year-on-year to Rs 663.42 crore in the April-June quarter.
M&M: subsidiary MLMML will raise about Rs 322 crore through an equity issue to Lightrock Cayman Holdings Ltd, along with existing investors. It also incorporated step-down subsidiary Novavayu Aerospace Ltd (NAL) to manufacture aircraft and aerospace products and provide related services.
BEL: received additional orders worth Rs 847 crore since its last disclosure on 13 July. The orders cover electro optics, security operation centre, seekers, components, spares and services.
Indian Oil: reported a net loss of Rs 1,630.74 crore in the April-June quarter, compared with a net profit of Rs 6,813.71 crore in the year-ago period.
BSE: acquired a 3.33% stake in India International Bullion Holding IFSC Ltd (IIBH) for Rs 10.10 crore.
Bajaj Holdings: net profit fell 22.37% year-on-year to Rs 2,706.45 crore in the April-June quarter. The year-ago quarter included a Rs 1,521.88 crore profit from the sale of Bajaj Finserv shares.
GAIL: net profit rose 96.92% year-on-year to Rs 4,665.36 crore in the April-June quarter.
Lupin: received USFDA approval for diazepam injection (used for treating anxiety disorders). The product’s estimated annual sales in the US are $77.9 million.
Aditya Birla Capital: net profit rose 40.07% year-on-year to Rs 1,174.70 crore in the April-June quarter.
Shree Cement: net profit fell 17.66% year-on-year to Rs 529.19 crore in the April-June quarter.
Lenskart: incorporated a joint venture company, Lenskart Metalframes Pvt Ltd, with China’s Mingfeng Glassesworld Ltd (MGL) to manufacture metal spectacle frames and allied optical products in India.
ICICI Bank: completed the issuance of $1 billion senior unsecured fixed-rate notes through its IFSC Banking Unit under its $7.5 billion Global Medium-Term Note programme.
Airtel: received a Rs 6.3 lakh financial penalty from TRAI for alleged violations of mobile-number portability regulations. The company will pay the penalty.
Word of the Day
MoU
It is a document signed by two or more parties that expresses intent to work together
Unlike agreements, MoUs are not always legally binding.
Signing an MoU is the step that usually occurs before an agreement is signed and allows both parties to define the roles and intentions of the work they will do together.
6 Day Course
Theme: bonds
Day 5: Friday
So far, we were talking about bonds of one kind: fixed interest rate.
You must remember that even in the bond market, there are several different types of bonds being traded.
Depending on the type of bond, each type would be priced differently.
And different factors would affect each of them though largely, they are similar.
For example, government bonds are usually trusted more and therefore have lower interest rates.
Some bonds’ interest rate is tied to a benchmark and changes from time to time (floating interest rate).
Some bonds pay the interest only upon maturity. Some pay in a fixed interval.
Some bonds are callable — the issuer can choose to pay the bond before the tenure is over.
Junk bonds are low-priced bonds that offer higher interest rates but carry extreme risk of defaulting.
There are many more types.
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Featured Question
Q. “When a person buying share from exchange does a portion of shares kept for buying or selling from the company which is only for trading role. If a certain selling happens who is actually buying and vice versa.”
The exchange’s job is to match buyers and sellers.
It does not stock shares to sell to anyone.
So when you buy shares someone somewhere is selling those shares to you.
When you sell shares, someone is buying from you.
We never know who the buyer/seller on the other side of the trade is.
Of course, these trades are happening at a price that everyone considers “fair”.
If you set a limit buy order at a very low price, nobody might want to sell and your order will not get executed.
Whenever there is no buyer/seller for shares, the shares cannot be bought/sold.
In such a condition, the shares are said to be illiquid.
It is rare for shares of large companies to be illiquid. Smaller companies’ shares do become illiquid more often.
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