Upgrade in India's credit rating, SEBI dismisses allegations on Adani Group, & more - Daily Digest
Friday, 19 September 2025
Markets opened below yesterday’s closing point.
Nifty 50 fell in the first half of the day and closed in red.
PSU bank stocks and realty stocks rose the most today. Private bank stocks and consumer durables stocks fell the most.
Global markets: US markets rose and most Asian markets fell. European markets showed a mixed trend (as of 6 pm IST).
News
India’s forex reserves rose by $4.7 billion to $702.97 billion in the week that ended on 12 Sept.
India’s foreign-currency sovereign rating was upgraded by Japan’s Rating and Investment Information (R&I) from BBB to BBB+ (stable).
Japan’s inflation rate fell to 2.7% year-on-year in Aug (vs 3.1% in July).
iValue Infosolutions IPO has been subscribed 0.89 times. Retail subscription: 0.85 times. IPO closes on 22 Sept.
Saatvik Green Energy IPO has been subscribed 0.59 times. Retail subscription: 0.88 times. IPO closes on 23 Sept.
Stocks Updates
Adani Enterprises: SEBI officially dismissed the Hindenburg Research allegations against the Adani Group.
Adani Green: a company subsidiary incorporated 2 new step-down subsidiaries, Adani Ecogen One and Adani Ecogen Two, for renewable power projects.
Eicher Motors: company’s motorcycle brand, Royal Enfield, partnered with Flipkart to sell its full 350 cc motorcycle range online from 22 Sept starting in 5 cities including Bengaluru, Gurugram, Kolkata, Lucknow, and Mumbai.
BHEL: received a Rs 586.43 crore GST notice from Telangana authorities for FY 22 to FY 24.
L&T: received significant orders (Rs 1,000 to Rs 2,500 crore) including mining equipment support, tyre machinery for top manufacturers, and valve projects in India and Saudi Arabia.
Hindalco: company subsidiary Novelis raised $100 million by issuing municipal bonds.
JSW Energy: company subsidiary, JSW Neo Energy, will acquire Tidong Power’s 150 MW hydro project in Himachal Pradesh for Rs 1,728 crore.
Waaree Energies: a company subsidiary will acquire 76% of Racemosa Energy for Rs 53 crore to expand into smart meter manufacturing.
Word of the Day
Assets Under Management (AUM)
It is the total value of all the investments managed by a mutual fund or financial institution
These investments can include anything — such as stocks, mutual funds, bonds, cash, etc.
A higher AUM indicates the fund’s size and popularity.
Funds with a high AUM (larger funds) can have lower fees as they can spread costs across more investors, and can spread risk more effectively.
However, a high AUM doesn't guarantee higher returns. The fund’s performance still depends on the manager’s expertise, strategy, and market conditions.
'AUM' is used loosely by many others also.
Examples: many people call their personal net worth their AUM. Many investment platforms refer to the amount currently invested via them as their AUM. Venture capitalists also refer to their investments as AUM.
6 Day Course
Theme: dividend vs buyback
Day 5: Friday
Another way a company can use its excess money is by re-investing it in the same business.
So instead of paying dividends or doing buybacks, they simply keep the money for future expansion.
This often leads to more growth, resulting in higher revenues and profits, resulting in higher share price.
In this case, the shareholder benefits by the increase in the share price.
Many companies are famous for not doing frequent buybacks or not paying dividends at all.
If the company does not have any immediate use for the money, they may continue to just store the cash for a future date.
Companies like Apple, Alphabet (Google), Berkshire Hathaway, etc have held cash piles of greater than $100 billion at different points in time.
Featured Question
“Can you explain exemption limits in LTCG and STCG. In short term if I earn 10k in a trade, would that be taxable?”
Only talking about equity investment (shares and equity mutual funds):
STCG tax of 20% applies when you buy and sell within 1 year.
LTCG tax of 12.5% applies when you buy and sell after 1 year.
The first Rs 1.25 lakh gains are exempt from LTCG tax (in a financial year).
These taxes are applied on the gains or profits.
Do note, trading is taxed as business income. This means that the intraday trading (non-delivery), F&O, etc are treated as business income.
Business income is taxed based on the income tax slab rate.
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