Windfall tax increased on ATF and diesel, Hero MotoCorp to raise Ather stake, & more - Groww Digest

Thursday, 16 July 2026

Markets closed flat today after some volatility.

Realty stocks and PSU Bank stocks fell the most today. Consumer durables stocks and chemicals stocks rose the most.

Global markets: US markets rose on Wednesday. Asian markets showed a mixed trend today. Most European markets fell (as of 6 pm IST).

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News

• The government increased windfall taxes on diesel and Aviation Turbine Fuel (ATF) exports effective today. Diesel export duties increased to Rs 15.5 per litre (vs Rs 8.5 per litre). ATF exports were raised to Rs 14.5 per litre (vs Rs 7.5 per litre). The export duty on petrol, however, was reduced to Rs 2.5 per litre (vs Rs 4 per litre).

• India’s first hydrogen-powered train with a capacity of around 2,600 passengers, will begin operations tomorrow. The train will run on the Jind-Sonipat section of Haryana.

• SBI Funds Management IPO was subscribed 41.66 times. Retail subscription: 3.60 times. IPO closed for subscription.

Stocks Updates

• HCLTech: signed a 7-year expanded partnership with The Guardian Life Insurance Company of America. It will also acquire a 100% stake in Guardian India Operations Pvt Ltd for $10.5 million.

• Coal India: received the commissioning certificate from the Gujarat Energy Development Agency for 200 MW of solar capacity out of its 300 MW Solar Power Project at Khavda, Gujarat.

• Wipro: net profit rose 0.65% year-on-year to Rs 3,352 crore in the Apr-June quarter. Interim dividend announced: Rs 2 per share. Record date: 27 July.

• Tata Motors: clarified that its MoU with UCO Bank for commercial vehicle financing is a routine business agreement with no binding commercial terms.

• Tata Capital: raised $400 million through 3.5-year senior unsecured bonds at a 5.332% coupon rate, maturing in January 2030.

• Tech Mahindra: net profit rose 28.45% year-on-year to Rs 1,465 crore in the Apr-June quarter.

• BHEL: turned profitable in the Apr-June quarter with a net profit of Rs 376.71 crore, compared to a loss of Rs 456 crore a year earlier.

• Polycab India: net profit rose 32.46% year-on-year to Rs 784.34 crore in the Apr-June quarter.

• Hero Moto: Ather Energy board approved the allotment of convertible warrants worth Rs 959.99 crore to Hero MotoCorp. After full conversion, Hero’s stake in Ather will rise from 29.48% to 30.68%.

• Waaree Energies: subsidiary Waaree Energy Storage Solutions started operations at its 5.15 GWh battery energy storage container manufacturing facility.

• UltraTech: clarified that the sharp movement in its share price on 15 July was market-driven and not due to any undisclosed company event.

Word of the Day

Legally Binding

It means that two or more parties are legally required to follow the terms of the agreement they have signed

In such cases, not following the terms of the agreement can lead to the matter being taken to court.

The court will hold both parties accountable to the terms of the agreement.

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6 Day Course

Theme: companies with extra cash

Day 4:Thursday

What else do they do with earnings companies make?

Many businesses use debt to fund their operations. In certain years, the cash flow might be low, leading to difficulty paying back their debt.

In good years, companies like that tend to prepay their debt or store the money for paying back debt later.

This helps them reduce their interest burden and prepare for the next time their cash flow is lower.

Besides pre-paying their debt, they also just store cash for future uses that are not necessarily for paying back debt.

These are called cash reserves and might be used for anything from growth, R&D, working capital, etc.

The storing of this money can happen in different ways. It might be kept as deposits in a bank account, or invested in government bonds that offer fixed interest, or invested in liquid funds/overnight funds.

Companies may also invest them in other short term and long term investment options like any other institutional investor.

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Featured Question

Q. “What is private equity and investment banking? Please differentiate between the two roles.”

Private equity funds are similar to mutual funds.

They accept and pool money from investors.

But these are not individual investors. These investors are mostly institutional in nature (pension funds, family offices, etc).

They also often have lock-in periods that last a couple of years.

Unlike mutual funds, private equity funds invest mainly in unlisted/private companies.

Mutual funds invest in companies but do not try to influence their day-to-day operations.

Private equity funds might buy enough stake in a company to influence their management and strategy. They might even control their day-to-day operations if they feel it necessary.

Often, they take over companies and try to turn them around (to sell their shares later).

Investment banking is more about advising companies with their finances.

Investment bankers might help companies raise money from investors or from lenders, take the company for IPO, help in acquiring another company, help in selling stake in their own company, evaluate companies, etc.

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