Markets closed lower compared to yesterday’s closing point.
Geopolitical tensions continued to push oil prices higher which could have been a reason for the fall. The drop was more significant in the stocks outside of the Nifty 50.
All sectors’ stocks fell. Metal stocks and consumer durable stocks fell the most today.
Global markets: US markets ended mixed on Thursday. Asian markets also traded mixed on Friday. Most European markets opened in red (as of 6 pm IST).
News
India’s forex reserves fell $5.01 billion to $721.02 billion for the week ended 16 Oct.
SEBI relaxed margin rules for cash trades by allowing clients to use value of early delivered shares for subsequent trades as margin, effective from 22 February 2027.
Commerce Minister Piyush Goyal said that the EU’s carbon tax on steel and other industrial products could increase infrastructure costs, and trigger retaliatory measures from its trading partners.
SEBI removed the mandatory call recording requirements for research analysts interacting with institutional investors, while keeping the requirements for retail investors.
BSE invited applications for the post of MD & CEO and announced requirements through a post on X (formerly Twitter). The deadline for applications is 19 Nov.
IPO Corner
Tonbo Imaging India Ltd listed at Rs 1,160 on NSE, a premium of 65.71% over its issue price and closed 65.04% higher.
Zetwerk Manufacturing Businesses Ltd listed at Rs 159.25 on NSE, a premium of 5.46% over its issue price and closed 6.82% lower.
Bonfiglioli Transmission Ltd listed flat at Rs 586 on NSE and closed 3.40% lower.
Jio Platforms’ Rs 30,213 crore IPO was subscribed 20.59 times on day 3. Retail subscription: 2.70 times. The IPO closed for subscription.
Paras Healthcare’s Rs 1,450 crore IPO was subscribed 2.23 times on day 3. Retail subscription: 2.00 times. The IPO closed for subscription.
Stock Updates
Dr Reddy’s: net profit fell 31.35% year-on-year to Rs 924.80 crore in the July-Sept quarter.
Infosys: net profit rose 6.23% year-on-year to Rs 7,823 crore in the July-Sept quarter. Dividend declared: Rs 26 per share. Record date: 3 Nov.
Bajaj Finserv: subsidiary Bajaj General Insurance appointed Deepak Reddy as CEO Designate from January 2027. He will replace Tapan Singhel as MD & CEO in April 2027, subject to IRDAI approval.
Power Grid: completed its power-transmission project connecting renewable-energy zones in Koppal and Gadag, Karnataka.
Shriram Finance: net profit rose 59.19% year-on-year to Rs 3,683.81 crore in the July-Sept quarter. Dividend declared: Rs 6.50 per share. Record date: 29 Oct.
Torrent Pharma: net profit fell 9.64% year-on-year to Rs 534 crore in the July-Sept quarter.
Tata Motors: reported a net profit of Rs 1,257 crore in the July-Sept quarter from a loss of Rs 867 crore a year ago.
CG Power: net profit rose 43.71% year-on-year to Rs 412.04 crore in the July-Sept quarter.
Cipla: the USFDA inspected its US subsidiary InvaGen’s facility in New York and found no issues.
SBI Funds Management: net profit fell 5.99% year-on-year to Rs 701.24 crore in the July-Sept quarter.
Jindal Steel: net profit rose 21.34% year-on-year to Rs 774.43 crore in the July-Sept quarter.
Godrej Consumer: started making household insect-control products at its new factory in Indonesia, part of an earlier Rs 250 crore investment plan.
JSW Steel: net profit rose 225.26% year-on-year to Rs 5,279 crore in the July-Sept quarter. It also approved a 5 MTPA expansion of its Odisha joint venture plant, with JSW and JFE Steel investing Rs 3,750 crore each.
Coforge: net profit rose 56.49% year-on-year to Rs 588.10 crore in the July-Sept quarter.
Shree Cement: net profit fell 15.13% year-on-year to Rs 261.82 crore in the July-Sept quarter.
Word of the Day
OTM
In FnO, it is an option that has no intrinsic value
OTM = Out of the Money
A call option lets you buy at a fixed price.
An OTM call option would let you buy at a price higher than current price.
Example: an OTM call option lets you buy a certain company’s shares for Rs 220. While its share price in the market is currently Rs 200.
In this case, the call option is not used. It is better to simply buy from the share market instead of using the option.
A put option lets you sell at a fixed price.
An OTM put option would let you sell at a price lower than current price.
Example: an OTM put option lets you sell a certain company’s shares for Rs 180. While its share price is currently Rs 200.
In this case, the put option is not used. It is better to simply sell in the share market instead of using the option.
An OTM option can become useful if the share price changes.
Example: an OTM call option lets you buy at Rs 220. The current share price is Rs 200. But tomorrow, the share price jumps to Rs 244.
Now it makes sense to use the call option.
Such options are called In the Money (ITM) options. Which means this option has an intrinsic value.
Or in other words, it makes sense to use the call or put option instead of buying or selling in the markets at current share price.
If the option’s strike price matches the share price exactly, it is called an At the Money (ATM) option.
6 Day Course
Theme: dividends
Day 5: Friday
Now, the discussions made so far might have made dividends very attractive.
So the question is — is it simply better to stick to investing in dividend paying stocks only?
Not really.
Some of the fastest growing companies pay no dividends largely because they are reinvesting their earnings back in the business.
Many simply use the extra profits to build a cash reserve for a future rainy day.
According to some studies, dividend-paying or non-dividend-paying stocks have no inherent advantage over each other.
Many investors prefer companies not to pay dividends and instead reinvest in the business because paying dividends results in taxation for the investors.
So these investors see it as a better deal to simply re-invest the money back in the company.
In India, dividends are added to individuals’ annual income while calculating tax. So it is taxed as per a person’s income tax slab rate.
10% of this is via TDS if the dividend value in a financial year exceeds Rs 10,000.————
Featured Question
Q. “If Infosys profit rose by 35.85% then why did share price go down by 7.76%? Isn't rising of profit a good news?”
We cannot comment about individual stocks.
We can speak about stocks in general.
Stock prices are tied with investors and their sentiments.
Before a company’s quarterly results are announced, many investors have certain expectations.
The share price response after the quarterly results are announced depends greatly on the expectation vs reality.
The share price can drop when expectations are much higher than what the company delivered — even if the results may be considered “good”.
Another factor could be that a high jump in profit is misleading.
Let’s say a company’s earnings in 2019 was roughly around Rs 100 cr. The earnings had been rising consistently at about 10% a year.
Then in 2020, it fell drastically to Rs 40 cr.
The year after that, things turned around and the profits came to about Rs 90 cr.
Compared to its 2019 profit, the 2021 profit was still down 10%. But compared to 2020, it is up 125%!
This is called a low-base effect.
There are other reasons too because of which a company might fail to impress. Sometimes when a company’s future looks bleak to investors, the present performance fails to impress.
Sometimes investors are just profit-booking.
There are many other factors acting at the same time too that may not even be related to the company itself.
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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