Markets closed higher compared to yesterday’s closing point.
Oil prices fell as low as $104 a barrel on hopes of the US-Iran war coming to an end, which could have led to the rise in the market. However, later in the day, oil prices rose slightly.
FMCG stocks and realty stocks rose the most today. PSU Bank stocks and metal stocks fell the most.
Global markets: US markets ended mixed on Monday. Asian markets traded mixed on Tuesday. European markets opened in red (as of 6 pm IST).
News
SEBI allowed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to issue Depository Receipts (DRs) backed by their units that permits them to access foreign investors.
IRDAI tightened Employee Stock Option Plan (ESOP) rules and reduced processing fees for share transfer among other measures in its revised framework.
Multi-asset international exchange, NSEIX, extended market operations for 23.5 hours from 03:15 am to 02:45 am to improve global accessibility.
SFC Environmental Technologies listed at Rs 355.10, a premium of 7.61% over its issue price and closed 29.12% higher.
Stock Updates
ITC: net profit fell 18.68% year-on-year to Rs 4,168.40 crore in the July-Sept quarter. It also approved merging its wholly owned subsidiary Sproutlife Foods Pvt Ltd, which owns Yoga Bar, into ITC.
SBI: net profit rose 19.98% year-on-year to Rs 25,361.16 crore in the July-Sept quarter. This included a one-time gain of Rs 6,879.26 crore from selling a stake in SBI Funds Management. Last year’s quarter included a Rs 3,026.57 crore gain from selling a stake in Yes Bank.
NSE: net profit rose 22.83% year-on-year to Rs 2,577.62 crore in the July-Sept quarter. The board also approved selling up to a 40% stake in its subsidiary National Coal Exchange of India Ltd.
HAL: will acquire Canadian company CAE’s 50% stake in HATSOFF Helicopter Training Pvt Ltd, making it a wholly owned subsidiary.
Bajaj Finserv: net profit rose 22.88% year-on-year to Rs 2,757.66 crore in the July-Sept quarter. It also plans to invest up to Rs 5,800 crore in Bajaj Finance through a preferential issue.
Power Grid: received government confirmation for the merger of 28 wholly owned subsidiaries into 2 other subsidiaries, effective 2 Nov.
Solar Industries: net profit rose 78.86% year-on-year to Rs 617.02 crore in the July-Sept quarter.
Bajaj Holdings: net profit rose 27.86% year-on-year to Rs 1,993.37 crore in the July-Sept quarter.
Meesho: invested Rs 400 crore in wholly owned subsidiary Meesho Payments Pvt Ltd to expand its lending-services business.
Vedanta: said the 28.8 acres of land reportedly cancelled by Odisha authorities represents less than 1% of its Jharsuguda aluminium operations’ landholding. It expects no impact on operations.
Word of the Day
AMO
It is an order type that lets investors place buy/sell orders after the stock markets have shut for the day
AMO = After Market Orders
There are two main types of AMOs: Limit AMO and Market AMO.
In limit AMOs, investors place orders and specify the price at which the trade will take place.
So when the markets open, the stockbroker will buy at the specified price or lower price; and will sell at the specified price or higher.
In market AMOs, the stockbroker executes the order based on the number of stocks specified at whatever price available.
Stocks, ETFs, and derivatives can be traded using AMOs — depending on the platform.
6 Day Course
Theme: GMP in IPOs
Day 2: Tuesday
Let’s say in an IPO, the issue price is determined to be Rs 130. Now, until it lists, different investors will be trying to get the shares.
So demand for these shares is very high and investors are willing to pay as much as Rs 20 above the issue price.
So, unofficially, the share price is Rs 130 + 20 = Rs 150.
At this point, many assume that the share will list at Rs 150 or higher since the market in general seems to be willing to pay Rs 150 per share.
This means, the share issue price is Rs 130. And the Rs 20 extra is the premium over it.
So the GMP (Grey Market Premium) = Rs 20 and the grey market price = Rs 150.
Many investors track the GMP closely to get an indication of how the stock might list.
The higher the GMP, the higher the listing price expectation.
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Featured Question
Q. “How allotment is made in case of over subscription”
Oversubscription is handled differently for different categories of investors.
In case of individual retail investors, allotment is done randomly using a lottery system.
In case of HNIs and QIBs, allotment happens proportionally.
In case of anchor investors, allotment happens as per the discretion of the company.
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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