Daily Groww Digest 11 May 2023 Sensex 61,904.52 ▼ 0.06% | Groww Digest
Daily Groww Digest
11 May 2023
Sensex 61,904.52 ▼ 0.06%
Nifty 18,297.00 ▼ 0.10%
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Indian markets ended flat today.
Healthcare and pharma stocks fell the most while consumer durables and FMCG stocks rose the most.
All Asian markets fell today except Japan. Taiwan’s market fell the most.
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More...
+Nexus Select Trust IPO was subscribed 5.45 times on day 3 (final day).
+Auro Impex & Chemicals IPO is now open for subscription. It will close on 15th May.
+Net investment in open-ended equity mutual funds fell 70% to Rs 6,480.29 cr in April compared to March. Debt schemes saw an inflow of Rs 1,06,677 cr.
+India shipped 2.51 cr units of wearables (like smartwatches) in the Jan-March quarter, a growth of 80.9% year-on-year: IDC.
+The government's wheat procurement is 2.52 cr tonnes so far in the ongoing marketing year, up 42% year-on-year.
+The government has exempted imports of crude soyabean and sunflower oil from basic customs duty and related cess till June 30. This is only for those importers who have a TRQ licence.
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Stocks in the news
Paytm: SoftBank sold 2.07% stake in Paytm through multiple open market transactions since Feb 2023. This was done to comply with SEBI’s takeover regulations.
Adani Enterprises: board will meet on Saturday to consider and approve a fund-raising proposal.
Hindustan Copper: planning to raise Rs 548 cr.
Reliance: JioCinema recorded over 1,300 cr video views in the first 5 weeks.
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Word of the Day
Balloon Loan
A balloon loan is a type of loan that offers lower monthly payments for a set period followed by a large balloon payment at the end.
Let’s say you take a 5-year loan. The borrowed amount is Rs 10 lakh and the total interest comes to Rs 5 lakh.
If this amount was to be paid back in equal instalments, it would come to Rs 25,000 per month.
But in a balloon loan, all EMI instalments will be lower - let's say Rs 15,000 per month.
However, at the end of 5 years, you will have to pay back Rs 6 lakh in one go.
Borrowers should have a well-defined plan to handle the balloon payment.
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6 Day Course
Theme: time periods used in finance
Day 4: Thursday
Year-to-date: the period between the start of the year and the current date.
Let’s say we are going to measure how much an investment has grown year-to-date (till today).
We will take the value of the investment on 1st Jan 2023 and then on 11th May 2023 (today) — and calculate the growth.
In many calculations in finance, the starting point is the first date of the financial year — so in India’s case, that would be 1st of April.
Then there’s 1-year return: when calculating 1-year (1Y) return, the starting point is exactly one year ago.
So in this example, we’ll take 11th May 2022 (starting point) and 11th May 2023 (ending point).
Likewise, for 3-Year (3Y) returns, the starting point is the same date 3 years ago. In 3-Year returns, the returns are per annum — returns per year for 3 years.
Likewise, there can be 5Y, 7Y, and 10Y returns.Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3VGYSD6
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Featured Question
"Do we need to pay tax even if we withdraw part of mutual fund i.e. redeeming only the capital amount and not the interest gained?"
There is no ‘capital amount’ or ‘interest’ in mutual funds. It’s more like investing in a flat or bungalow.
Let’s say you are an extremely rich person who owns 1,000 bungalows.
You bought each bungalow for Rs 10 lakh. Now each bungalow costs Rs 13 lakh.
Say you decide to sell 100 bungalows (out of your total 1,000 bungalows).
For each bungalow, you have gained Rs 3 lakh — and you’re selling 100 bungalows.
Therefore, your total gains are 3x100 = 300 lakhs (3 crore).
You will have to pay a capital gains tax on this 3 crore.
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That's it for now. See you tomorrow!
