Markets closed higher compared to yesterday’s closing point.
Nifty and Sensex opened lower but rose around 10 am and ended positive.
IT stocks and media stocks rose the most today. Consumer durable stocks and oil & gas stocks fell the most.
Global markets: US markets rose on Thursday. Most Asian markets ended in green on Friday. European markets also rose (as of 6 pm IST).
News
SEBI revised the CAS framework to calculate the reference price for closing auctions based on volume-weighted average price (VWAP) of trades. The changes will take effect from 7 Dec.
India’s forex reserves fell $8.58 billion to $726.03 billion for the week ended 9 Oct.
The government raised windfall tax on petrol exports to Rs 2.5 per litre (vs Rs 0.5 earlier). The duty on diesel exports was cut to Rs 8.5 per litre (vs Rs 16 per litre).
India’s current account deficit narrowed to $5.2 billion in August compared to $6.1 billion in August a year ago.
Mutual funds stopped accepting new investments in gold fund of funds (FoFs) from 16 Oct due to verbal restrictions imposed by SEBI, as per media reports.
Indian Gas Exchange Ltd, Cult.fit Ltd and 2 others received SEBI approval for IPO.
IPO Corner
Fusion CX’s Rs 702 crore IPO was subscribed 4.45 times on day 3. Retail subscription: 5.70 times. The IPO closed for subscription.
Zetwerk Manufacturing Business’s Rs 5,012 crore IPO was subscribed 0.31 times on day 2. Retail subscription: 0.36 times. The IPO will close for subscription on 19 Oct.
Bonfiglioli Transmissions Limited’s Rs 2,533.81 crore IPO was subscribed 0.99 times on day 2. Retail subscription: 1.16 times. The IPO will close for subscription on 19 Oct.
Tonbo Imaging India Limited’s Rs 852 crore IPO was subscribed 7.78 times on day 2. Retail subscription: 7.13 times. The IPO will close for subscription on 19 Oct.
Stock Updates
Jio Financial: net profit fell 51.02% year-on-year to Rs 340.44 crore in the July-Sept quarter.
Maruti Suzuki: won a tax dispute, with an estimated benefit of Rs 13,000 crore (including interest). It also expects a Rs 6,300 crore reduction in potential liabilities.
NTPC: signed an agreement with Africa50 (organisation backed by African governments) to explore electricity-generation projects and power trading across Africa.
Power Grid: received a Letter of Intent for a power-transmission project in Pune, Maharashtra, with annual transmission charges of Rs 199.55 crore.
Shriram Finance: renamed subsidiary Shriram Overseas Investments Ltd to Shriram Gilts Ltd as part of its plans to enter the government securities trading business.
Solar Industries: subsidiary Solar Explochem Ltd agreed to acquire explosives manufacturer Sivasakthi Industrial Explosives Pvt Ltd for Rs 115.02 crore.
DLF: net profit rose 10.28% year-on-year to Rs 1,301.35 crore in the July-Sept quarter. This included a Rs 738.71 crore accounting gain from changes in the value of convertible debentures.
PNB: net profit rose 15.08% year-on-year to Rs 5,898.37 crore in the July-Sept quarter.
LTM (formerly LTIMindtree): net profit fell 0.23% year-on-year to Rs 1,397.90 crore in the July-Sept quarter. Dividend declared: Rs 25 per share. Record date: 23 Oct.
PFC: received RBI’s approval to proceed with its proposed merger with REC, subject to approvals.
Jindal Steel: subsidiary Jindal Paradip Port started operations of a 12.5 million-tonne annual cargo-handling facility in Odisha, part of a Rs 3,393 crore port project.
Mankind Pharma: will acquire a 70% stake in Belgium-based Armed Cell Therapeutics for 48 million euros. The company develops advanced cancer treatments.
Persistent Systems: approved plans to raise up to Rs 9,000 crore (Rs 8,000 crore NCDs and Rs 1,000 crore commercial paper) to fund its acquisition of Germany-based Nagarro.
Bharat Forge: invested Rs 240 crore in subsidiary Kalyani Strategic Systems Ltd through a rights issue. Rs 163 crore of it will be used to set up an explosives-filling facility for ammunition.
Word of the Day
Asset Quality
It refers to the overall reputation of an investment asset, especially bonds and debt
A bond with good asset quality would be less likely to default, would have good governance and audit practices, track record of timely payments, etc.
Asset quality is also used in other investments like real estate, private equity, etc.
In those contexts the parameters being measured would be different. But the overall idea remains the same.
6 Day Course
Theme: understanding bond pricing
Day 5: Friday
Another factor that influences bond prices is liquidity.
Bonds that can easily be bought and sold on the bond markets tend to be priced more favourably.
Bonds that have less liquidity are usually more volatile and sensitive to external factors.
Broadly speaking, other economic factors like inflation, health of the economy, etc and expectations based on those factors are all a part of pricing bonds in bond markets.
In some sense, it is similar to stocks — the factors affecting them are many.
And, those factors interact with each other making pricing difficult to predict with accuracy.
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Featured Question
Q. “Why does marginal increase in interest rates bad for market. Yes loan repayments will be affected but bonds/FD's not so much. Why is the sentiment changing from investing to saving suddenly?”
This is largely because the financial system is all interconnected.
In simple terms, when interest rates are increased, lots of other things get affected.
Higher interest rates (no matter how small) reduce the number of loans taken.
When less loans are taken, less spending happens.
When less spending happens, companies earn less revenue and therefore less profits.
Many companies take loans so their borrowing costs also go up.
At the same time, many investors also find it slightly more attractive to invest in deposits like FD and RD.
Since investors know about these mechanisms, many investors’ sentiments get affected as soon as the rate changes are announced.
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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