Daily Groww Digest 5 Sept 2023 --------------------- Se | Groww Digest
Daily Groww Digest
5 Sept 2023
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Sensex 65,780.26 ▲ 0.23%
Nifty 19,574.90 ▲ 0.24%
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Media and healthcare stocks rose the most.
Financial services and bank stocks fell.
Asian markets: China and Hong Kong fell while Japan and Taiwan rose.
US markets were closed on 4 Sept on account of Labor Day.
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More...
+India's auto sales rose 9% year-on-year in August: FADA. 3-wheeler sales jumped 66% to a record high of 99,907 units.
+Vishnu Prakash R Punglia IPO listed on NSE at Rs 165, a premium of 66.67%. On BSE, it listed at Rs 163.3, up 64.95%.
+Ratnaveer IPO has been subscribed 21.82 times. Retail investors have subscribed 23.12 times. It is open till 6 Sept.
+SAMHI Hotels Ltd and Motisons Jewellers Ltd have received SEBI approval to launch IPOs.
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Stocks in the news
Hero Moto: to invest Rs 550 cr in Ather Energy.
RVNL: was the lowest bidder for a railway project worth Rs 174 cr.
Cipla: planning to acquire South Africa-based Actor Pharma.
Shree Cement: set up a new Rs 550 cr grinding unit in West Bengal.
Tata Steel: will pay Rs 314.70 cr as annual bonus to employees.
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Word of the Day
Bull Market
When stock prices are rising due to investor confidence and expectations of growth, it is called a bull market.
Opposite of this is a bear market.
In a bear market, investor confidence is down and Nifty 50 and Sensex generally fall.
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6 Day Course
Theme: finance certifications
Day 2: Tuesday
NISM
National Institute of Securities Markets.
This is an educational arm of the SEBI that conducts the NISM exams.
NISM certification is not one certification. There are many levels of NISM certifications.
NISM certification is useful in many fields.
It is most popular for becoming a registered investment advisor (RIA) — to give finance advice to people.
To become an RIA, a person would have to clear some levels of NISM certification.
It must be added here, NISM certifications can be taken by anybody, not necessarily those who want to become an advisor.
Missed last week's course? You can download the course PDF - click to download: https://bit.ly/45x3yiF
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Featured Question
“What is relation between p\e and sector p\e”
PE ratio stands for price-to-earnings ratio.
To get the PE ratio, you
-take the price of the share
-divide it by the earnings (per share)
What this tells you is how high the price of a stock is when compared to the money it is earning.
PE ratio is used by many investors to determine if a stock is overvalued or undervalued.
But there is no 'right' level. It varies from investor to investor.
The PE ratio of companies in same industries are usually similar.
For example, companies from the infra sector will likely have similar PE ratios. Banking sector companies' PE will be similar. And so on.
This is where the concept of sector PE ratio comes in.
They calculate the PE ratio of an entire industry or sector (infra, pharma, banking, etc).
Based on that, they can look at individual stocks and decide if the PE ratio is too high or too low.
Example:
The sector PE ratio of IT stocks is 25.
So, when an investor sees an IT company stock’s PE ratio being 20, he/she might say that the stock is undervalued in comparison to the sector.
The sector PE ratio of energy stocks is 15.
So, when an investor sees an energy stock’s PE being 20, he/she might say that the stock is overvalued.
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That's it for now. See you tomorrow!
