The stock markets began on a positive note last week and had closed in the green for 10 consecutive days – which happens to be the biggest rally in 13 years – until Thursday when major benchmark indices experienced a widespread sell-off. That single day fall caused the markets to end the week in the red.
While general economic headwinds might be one of the reasons for this, another one is that the US has delayed its stimulus plans until after the presidential elections in November. That disappointed global and Indian markets, as the markets were expecting the government to step in and pump money into the system which would lead to a further revival of the coronavirus battered economy.
Anyway, before getting into more about the markets, we thought of talking about the world’s oldest business empire!
Mutual fund! Which one? Or stocks. Which?
Every investor would have faced this question or asked someone else this question. Most often, both. As almost all of you would know, at the bottom of every Fear Bull. For a very long time, we’ve been observing that many of our readers leave feedback like “send stock recommendations” or “give daily advice on buying and selling”.
It is often said that we all should do our own research while investing. And this applies to any kind of investment - stocks, mutual funds, gold, real estate, etc.
But why? Why can’t you simply copy what your friend is doing?
If your friend is buying a stock, he/she must be buying to make money. Nobody invests to lose money.
Here’s the thing.
Every investment you make is calibrated to your personal situation. If you had a total of Rs 1 cr net worth, would you spend Rs 50 lakh betting on just one stock?
You wouldn’t. But someone with a net worth of Rs 100 crores might be very comfortable betting Rs 50 lakh in that stock.
This sounds very trivial. But think of this: every time you make an investment decision of any kind, these are some of the factors you’re considering:
-How much risk can I take?
-What happens if I lose this money?
-What big expenditure do I have coming up in the immediate future?
-Is the potential gain offered by this investment enough?
-Can I take out my money very quickly from this?
When you ask someone else “which stock do I Invest in?” And you get a response “I am buying XYZ stock today”, you’re only getting a small portion of the information. You’re not getting to know the net worth of the person recommending you the stock. You don’t know their immediate liabilities. You don’t know how comfortable they are at dealing with a loss. Maybe their ability to take a risk is far greater. than yours.
Investing is quite similar to many other big decisions you make - which city to live in, which car to buy, which career path to take - it depends on you. There’s nothing wrong with discussing with others.
However, the final decision should be the one you have made yourself. The best person to ask for financial advice is still the same: you.
Equity Mutual Fund NAV Cut-off Restored to 3 PM
For years, the NAV cut-off timing for mutual funds had been 3 pm. And then, unprecedented times came. The pandemic caused such disruption of daily life; many essential daily services were impacted.
Due to the impact, the cut-off timings for mutual funds were also changed. They were reduced by around 2 hours. Now, as normalcy creeps back, the older NAV cut-off is being restored.
Note, the NAV cut-off timing is being restored only for equity mutual funds. Debt and debt-oriented hybrid funds will continue to have the special NAV cut-off timing.
IT Stocks Continue Performance in Q2
At the start of the pandemic and the resulting lockdowns, the performance of nearly every sector was doubted. Towards the middle of May 2020, some clear indications started to emerge. Amongst them, IT stocks emerged as some of the best-performing stocks when their Q1 results were announced.
In the month of October, many companies have released their Q2 reports. IT companies seem to be doing well yet again with healthy profits.
So much so, many are rolling out promotions and salary hikes again too.
HCL Tech: The company reported a 15.9% increase in profits (Rs 3143 crores) when compared to the same quarter last year. The company declared a dividend of Rs 4 per share.
TCS: The company reported a 7.05% drop in profits (Rs 7475 crores) when compared to the same quarter last year. The company declared an interim dividend of Rs 12 per share. The board also approved a share buyback proposal for up to 5.33 crores.
Infosys: The company reported a 20.5% increase in profits (Rs 4845 crores) when compared to the same quarter last year. The company declared an interim dividend of Rs 12 per share.
Mindtree: The company reported an 87.9% increase in profits (Rs 253.70 crores) when compared to the same quarter last year. The company declared an interim dividend of Rs 7.50 per share.
More News in Numbers
- 1.32%: Wholesale price index (WPI) inflation for the month of September on the back of the rising cost of food articles.
- 3 pm: Restored cut-off timing for equity mutual funds.
- Rs 12/share: Interim dividend announced by TCS.
How to read candlestick charts
- Day-traders tend to swear by candlestick charts.
- You must have heard of various patterns like hammer pattern, shooting star pattern, etc from those who are involved in day trading.
- If you’re aware of the risks and are looking to get started in day trading, here’s a detailed article explaining what candlestick charts really are.
Equitas Small Finance Bank IPO
A detailed look at Sensex and its allocation:
Markets this week
Sensex: 39,982.98 ▼ 1.30%
Nifty: 11,762.45 ▼ 1.27%
🥇 Gold: Rs 50,552 ▼ 0.52%
🥈 Silver: Rs 61653 ▼ 2.07%
Dow Jones: 28,606.31 ▲ 0.06%
Nasdaq: 11,671.56 ▲ 0.79%
All percentages above are weekly ups/downs.
HAPPY INVESTING!
SEE YOU TOMORROW
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