Stock market news
In the financial world today, small-cap and mid-cap stocks faced significant declines. The hardest-hit sectors were banking and automobiles. This downward trend wasn’t limited to India; other Asian markets also experienced losses.
Let’s take a look at the winners and losers in the stock market:
Stock market Top Gainers
NIFTY 50
Adani Ports: ₹831.10 (Up by 1.60%)
Tech Mahindra: ₹1,291.65 (Up by 1.36%)
Dr. Reddy’s: ₹5,668.50 (Up by 0.95%)
Asian Paints: ₹3,244.20 (Up by 0.93%)
Airtel: ₹917.95 (Up by 0.80%)
Top Losers
NIFTY 50
M&M: ₹1,583.25 (Down by 3.11%)
ICICI Bank: ₹959.30 (Down by 2.82%)
Cipla: ₹1,206.40 (Down by 2.69%)
SBI: ₹588.15 (Down by 2.15%)
IndusInd Bank: ₹1,411.30 (Down by 2.02%)
In international financial news, the US Federal Reserve has decided to temporarily halt its interest rate increases after raising rates 11 times since March 2022. Meanwhile, the Bank of England has kept its rates unchanged at 5.25% after implementing 14 rate hikes since December 2021.
Here are some notable updates from the stock market:
IPCA Labs has acquired an additional 19.29% stake in Unichem Labs for ₹598 crores.
Schneider Electric has announced a capital expenditure plan of ₹3,200 crores by 2026, as stated by CEO Deepak Sharma.
The government has initiated an Offer for Sale (OFS) for SJVN, offering a 2.46% stake at ₹69 per share.
Zydus Life has received final approval from the US FDA for a skincare gel.
IPOs Section
The Signature Global IPO has been subscribed 1.61 times, with retail investors subscribing 2.54 times. The subscription period is open until September 22.
The Sai Silks (Kalamandir) IPO has been subscribed 0.33 times, with retail investors subscribing 0.26 times. The subscription period is also open until September 22.
EMS, a listed company, has seen its shares trading at ₹281.55, reflecting a 34% premium.
Word of the Day: EPS (Earnings Per Share)
Earnings Per Share (EPS) is a measure of how much profit each individual share of a company represents. It’s calculated by dividing the net profit of a company by the total number of shares. Since the number of shares can change over time, it’s advisable to use the weighted ratio method when calculating EPS.
Now, let’s address a common question about equity investments:
Question: Approximately how much equity investment is needed on a monthly basis to reach a corpus of ₹1 crore in 10 years?
Answer:
The amount needed for monthly investments depends on the return rate of the mutual fund, which can vary. Here’s a range of returns:
If the mutual fund yields 10% per annum for 10 years, you would need to make a monthly SIP (Systematic Investment Plan) of ₹48,500 to reach ₹1 crore.
If the mutual fund yields 12% per annum, you would need a monthly SIP of ₹43,500.
With a 15% annual return, you’d require ₹36,000 per month.
For a mutual fund generating 20% annual returns, a monthly SIP of ₹26,500 is needed.
Remember that mutual fund returns aren’t fixed or guaranteed, so choose your investments carefully.
Stock Market Updates (1-Day Change):
Gold: ₹58,793 (Down by 0.61%)
Silver: ₹71,751 (Down by 1.17%)
USD-INR Exchange Rate: ₹83.06/USD (Down by 0.07%)
Dow Jones: 34,440.88 (Down by 0.22%)
Nasdaq: 13,469.13 (Down by 1.53%)
Long-Term Returns (Past 20 Years):
Nifty 50 (India): Annual Return of ▲ 14.85%
Sensex (India): Annual Return of ▲ 14.56%
Dow Jones (US): Annual Return of ▲ 6.63%
Nasdaq (US): Annual Return of ▲ 10.36%