Market ka Capsule
Market soars before results, Company issues unlimited shares, & more
Monday, 3-June-2024
Sensex 76,468.78 ▲ 3.39% Nifty 23,263.90 ▲ 3.25%
Pointers:
- Nifty 50 opened higher than yesterday's closing point and then made a new lifetime high.
- Markets saw a heavy buying today and recorded the biggest single-day gain in 3 years.
- The Oil and gas stocks rose the most, All other stocks rose by a great margin.
- The US markets were closed today.
- European markets were up.
- And Asian Markets showed an upward trend too.
TOP LOSERS: (Nifty 50)
LTIMindtree Rs. 4,649.40 ⏷ 1.12%
HCL Tech Rs. 1,314.45 ⏷ 0.73%
Asian Paints Rs. 2,866.45 ⏷ 0.51%
Sun Pharma Rs. 1,453.05 ⏷ 0.46%
News:
- Results trends for India's general elections will start from 8:00 AM tomorrow (4th June).
- The Nifty Bank Index crossed 51,000 points for the first time. Understanding the Nifty Bank Index. Learn Click Here
- Amul has increased milk prices by Rs. 2 per litre. Mother Dairy has also increased milk prices by Rs. 2 per litre in Delhi-NCR.
- Lupin: the company has launched a generic drug in the US to treat bacterial infections.
- Shriram Finance: raised $ 468 million in multi-currency loans for business growth.
- Embassy REIT: has raised Rs. 1,200 crores to acquire a business park in Chennai.
- Biocon: got US FDA approval for its anti-fungal medicine.
- SBI: crossed the Rs. 8 lakh crore market capitalization. Learn about Market Capitalization. Click Here
- Welspun Corp: the company's subsidiary signed a deal worth Rs. 3,670 crore with Saudi Aramco to supply steel pipes.
- InterGlobe (Indigo): the company has partnered with Japan Airlines for direct flights to 14 destinations in India.
News:
- Kronox Lab IPO: the issue has been subscribed 11.10 times. Retail subscription: 13.00 times. Open till 5th June 2024.
1-Day Change
Auto Sales:
Automobile companies announced their sales numbers for May. Here are the highlights:
-Maruti Suzuki: 1.75 lakh units, 1.98% less year-on-year.
-Tata Motors: 76,766 units, 2.39% more.
-M&M: 71,682 units, 17% more.
-Ashok Leyland: 14,682 units, 11.79% more.
2 and 3-wheeler companies:
-Hero Moto: 4.98 lakh units, 4.11% less.
-TVS Motor: 3.70 lakh units, 11.89% more.
-Bajaj Auto: 3.55 lakh units, 0.05% more.
-Eicher Motors: 71,010 units, 8.33% less.
Featured Question:
There are some limitations.
Let’s say a company, ABC Ltd, has a total of 23 lakh shares.
On top of that, the management decides to create 23 lakh new shares.
They say these new shares will be sold to investors to raise more money for the business.
They can do so.
They can create 23 lakh new shares and sell them.
After this, the total shares of that company goes up to 46 lakh.
This means that, in theory, the share price will reduce by half.
Why?
Because the company is still the same: the revenues and profits are the same.
But the total shares are now double in number.
So the earnings per share is reduced by half.
Companies create new shares when they are raising money by selling a stake in a company.
Usually, they raise money by creating a small number of new shares. This is done with the aim of not affecting the current share price too much.
Before creating new shares, the company also needs approvals from the board and the existing shareholders.
Also, a company cannot go on creating new shares on its own. It needs to get regulatory approvals.
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