Markets opened below Friday’s closing point. This was due to negative global sentiments triggered by the US-Iran war.
All sectors’ stocks fell today, except for metal and pharma stocks. Auto stocks and consumer durables stocks stocks fell the most.
Global markets: Most US and Asian markets fell. Most European markets also fell (as of 6 pm IST).
News
The US and Israel jointly carried out military strikes against Iran hitting multiple strategic targets across the country. The attacks triggered Iranian retaliation aimed at Israel and US military bases in the region, escalating tensions in the Middle East.
India’s manufacturing PMI rose to 56.9 in Feb (vs 55.4 in Jan). This means manufacturing activity grew more in Feb than in Jan.
India’s industrial production grew 4.8% year-on-year in Jan as per preliminary data (vs 8% in Dec). Manufacturing grew 4.8% (vs 8.4% in Dec).
India’s gross GST collection rose 8.1% year-on-year in Feb (vs 6.2% in Jan).
The Employees’ Provident Fund Organisation (EPFO) has decided to retain the interest rate on EPF deposits at 8.25% for FY25-26 for the third year in a row.
India and Canada finalised the Terms of Reference (ToR) to begin talks on a Comprehensive Economic Partnership Agreement (CEPA).
Clean Max Enviro Energy IPO listed on the stock exchanges at a discount of 8.83% over the issue price and closed 17.62% down at the end of the day.
Stocks Updates
UltraTech: will acquire a 26% stake in AMPIN C&I Power Forty Four Pvt Ltd for Rs 15.12 crore to secure its renewable energy needs.
M&M: sold its remaining 20% stake in Blue Planet Integrated Waste Solutions Pvt Ltd for around Rs 5.07 crore, and the company has ceased to be its associate.
Bajaj Housing: allotted non-convertible debentures worth Rs 503.42 crore at 7.25% interest rate, maturing in 2029, on a private placement basis.
ABB India: executed a Business Transfer Agreement on 1 March to transfer its robotics business to ABB Robotics India Pvt Ltd for Rs 1,568.20 crore.
Tech Mahindra: and Orange Business plan a 5-year global partnership to deliver AI-driven enterprise digital transformation solutions.
Airtel: and Google have partnered to launch AI-powered secure RCS messaging in India to enhance spam protection and reduce digital fraud.
Word of the Day
Green Shoe Option
It is a provision in an IPO that allows a company to sell extra shares than initially planned
The underwriters, who handle the IPO process, are allowed to issue additional shares (usually 15% percent more than the original number).
This is done to maintain a stable stock price, if the demand is more than expected.
If demand is strong, underwriters sell more shares to meet it. If the price falls, they can buy back the shares to stabilize the price.
6 Day Course
Theme: currency
Day 1: Monday
When we look at any Rupee note, we see that it is signed by the RBI governor who promises to pay the bearer the amount.
This means that the Rupee represents a certain value. The note itself is just the value holder.
It does not have any value by itself. It has value only because the RBI governor declares that it has value.
This is how most currencies across the world work.
Earlier, the currency itself was a commodity. Example: 1 gold coin, 5 silver coins, etc.
Then, the notes became a representation of the commodity.
So, $1 would be equal to x amount of gold or silver or some other commodity.
This was called the commodity backed currency.
Until a few decades ago, most currencies were commodity backed. Meaning, they represented a certain amount of gold, or silver, or some other commodity.
We explored the question "What if I had invested only in “high ROE / high ROCE” stocks in the Nifty 50?"
Check out the full report here.
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