Market ka Capsule
Tata's new Subsidiary, Record number of transactions, & more
Wednesday, 05-June-2024
Sensex 74,382.24 ▲ 3.20% | Nifty 22,620.35 ▲ 3.36%
Pointers:
- Markets rose significantly today after the record lows yesterday.
- Today's lowest point was at around 9:24 AM when the markets fell below yesterday's closing point.
- Nifty 50 rose and reached today's highest point around 3:10 PM.
- Private Bank stocks rose the most.
- All the Nifty 50 stocks were up. Therefore, there will be no 'Top Losers' table today.
- The US markets were up.
- European markets were up.
- Asian Markets showed mixed trends too.
TOP LOSERS: (Nifty 50)
Today there were no Losers.
News:
- NSE set a world record today (5 June) for processing the highest number of transactions (1,971 crores) orders in a single day.
- RBI has started a 3-day meeting to decide the next monetary policy, including interest rate changes. Decisions will be announced on Friday.
- The Nifty Bank Index fell from 49,000 points. Understanding the Nifty Bank Index. Learn Click Here
- Investors will now receive their stocks in their demat accounts directly from the clearing corporations. SEBI has ordered brokers to be removed as intermediaries in the process, effective 14 October.
- India's coal production rose 10.15% to 83.91 million tonnes in May compared to 76.18 million tonnes in the year-ago period.
- FSSAI has ordered all food companies to remove any claim of '100% fruit juices' from the labels and ads of reconstituted fruit juices.
- Spectrum auction has been postponed by 19 days and will begin on 25 June: Department of Telecom.
- Peru will adopt UPI tech soon, becoming the first South American country to do so.
- Learn About Adani Energy Solutions share price: Click Here
- Tata Motors: the company's board has approved to set up a wholly-owned subsidiary for its commercial vehicles business - 'TML Commercial Vehicles'. The company also approved the merger of Tata Motors Finance with Tata Capital.
- Kotak Mahindra Bank: received RBI approval to sell a 70% stake in its general insurance subsidiary to Zurich Insurance Company.
- Torrent Pharma: signed an agreement with the Japanese pharma company 'Takeda' to market its acid reflux drug in India.
- KEC: the company got orders worth Rs. 1,002 crores for civil and defense residential projects.
News:
- Kronox Lab IPO: the issue has been subscribed 118.22 times. Retail subscription: 55.72 times. Subscriptions closed today.
1-Day Change
Featured Question:
“Give me Some light on Arbitrage Funds and how they will Invest in Markets ?”
Many times, the same share can be priced differently on different exchanges.
Example:
Share price of XYZ Ltd:
-On BSE = Rs 345.87
-On NSE = Rs 345.66
So, the price is Rs 0.21 lower on NSE.
Arbitrage funds will buy the stock on NSE and sell it on BSE.
This way, they can make a quick profit of Rs 0.21 per share.
Because this strategy is being used by many large investors, the price difference between exchanges is very small and barely lasts.
It is very difficult for regular investors to use this strategy profitably.
Mutual funds and other institutions are able to do this because they have very powerful computers that are capable of doing these orders in milliseconds.
Arbitrage funds are considered to be low-risk mutual funds.
Their returns have also been relatively low.
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