Groww Digest

2023-08-30 17:31:52 Daily Groww Digest

30 August 2023
---------------------
Sensex 65,087.25 ▲ 0.02%
Nifty 19,347.45 ▲ 0.02%
---------------------
Realty and metal stocks rose the most.

Bank and financial services stocks fell the most.

All Asian markets except Hong Kong closed in the green.

---------------------

More...

+BSE announced that all F&O contracts of Bankex will expire on Monday instead of Friday starting 16 October.

+Housing prices rose in 43 cities in the first quarter of 2023-24. Ahmedabad prices rose 9.1%, Bangalore: 8.9%, and Kolkata: 7.8%: National Housing Bank.

+The government has decided to extend the Rs 25,938 cr PLI scheme for the auto sector by one year till 2028.

+Rishabh Instruments IPO has been subscribed 0.73 times. Retail investors have subscribed 0.92 times. The IPO is open till 1st Sept.

+India is preparing to start the auction process for around 100 critical mineral blocks in the next 4 months: Mines Secretary Vivek Bharadwaj.

+India's Gift Nifty recorded highest ever single-day trading activity, with a turnover of around Rs 1.07 lakh cr.

+Number of foreign tourists who arrived in India in Jan-June rose 106% year-on-year.

+Cryogenic tank maker Inox India has filed draft papers for an IPO.

+Cable maker RR Kabel has received SEBI approval for an IPO.

+Sri Lanka will import 92.1 million eggs from India to decrease domestic prices.
---------------------

Stocks in the news
Ramkrishna Forgings: bagged an order worth around Rs 73.65 cr for the supply of equipment to a client in South America.

Tata Motors: Tata Passenger Electric Mobility announced the introduction of its new brand identity, TATA.ev, for the EV business.

Yes Bank: announced the launch of UPI with Central Bank Digital Currency (CBDC) app.

Titagarh Rail: received a letter of acceptance for a Rs 350-cr contract from Gujarat Metro Rail Corporation.

---------------------

Word of the Day

Foreign Exchange
Foreign exchange is the process of trading one country's currency for another's.

Just like you exchange your money when you travel, countries and businesses exchange currencies for various reasons.

For instance, imagine you're in India and want to buy a camera from Japan. You'll probably need to pay in the Japanese currency (Yen) to import it.

Banks, companies, and investors also trade currencies worldwide, aiming to profit from change in currency values.

---------------------

6 Day Course
Theme: mutual fund companies

Day 3: Wednesday

Mutual funds companies run many different mutual funds at the same time.

Example, HDFC mutual fund offers these: HDFC Taxsaver Fund, HDFC Small Cap Fund, HDFC Flexi Cap Fund, etc.

Mutual funds have a CIO - Chief Investment Officer.

The CIO has many fund mangers working with him/her.

These fund managers run each mutual fund — and decide which assets to buy, sell, or to continue holding.

A fund manager may be handling multiple mutual funds at the same time. He/she is not limited to just one mutual fund.

Besides the CIO and the fund manager, mutual fund companies have large teams of analysts and other executives.

Their job is to help the fund manager and CIO make decisions.

Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3YOLJsU

---------------------

Featured Question
““I have been investing through SIP, through a Financial Advisor. I am unhappy about his work culture. Now, if I want to close down my investment and collect my money without involving the Financial Advisor, can I do it ? . If yes then how. Pl guide.”




A mutual fund investment made in your name and PAN card is completely yours.

You have full control over it.

An investor can withdraw his/her investment by going directly to the mutual fund’s website.

A few details like PAN will be required.

Once logged in, you will be able to see your investments. You can invest more if you want.

You can even withdraw the amount.

The money will come in the same bank account from which you had invested originally (linked bank account). Buka / Bagaimana

2023-08-29 17:21:47 Daily Groww Digest

29 August 2023
---------------------
Sensex 65,075.82 ▲ 0.12%
Nifty 19,342.65 ▲ 0.19%
---------------------
Realty and metal stocks rose the most today.

PSU bank and FMCG stocks fell the most.

All Asian markets closed in the green. Hong Kong and China markets rose the most.

---------------------

More...

+The government approved a subsidy of Rs 200 per domestic LPG cylinder. Subsidy for Ujjwala scheme increased to Rs 400.

+Union Minister Nitin Gadkari launched a 100% ethanol-fueled (E100) variant of Toyota Innova — world's first BS-VI (Stage-II) electrified flex-fuel vehicle.

+Rishabh Instruments IPO will be open between 30 Aug - 1 Sept. Price band is Rs 418 to Rs 441 per share.

+Pyramid Technoplast IPO listed on NSE at Rs 187, a 12.65% premium. On BSE, it listed at Rs 185, a 11.44% premium.

+NSE’s exchange-traded currency derivatives has seen around 2,000 cr contracts worth Rs 609 lakh cr in the last 15 years.

+Delhi Metro recorded the highest-ever daily passenger journeys (68.16 lakh) on 28 Aug: DMRC.

+PepsiCo India has joined Open Network for Digital Commerce (ONDC).
---------------------

Stocks in the news
Airtel: Airtel Uganda is planning to raise up to $216 million through an IPO.

Gillette India: announced a dividend of Rs 50 per share.

Rashtriya Chemicals and Fertilisers: is now a ‘Navratna’ company.

Schaeffler India: received board approval for acquisition of Koovers for around Rs 142 cr.

SJVN: SJVN Green Energy received an order from the Assam Power Development for 3 solar projects.

Zomato: Tiger Global sold its remaining 1.44% stake in the company.

---------------------

Word of the Day

Insurance
Insurance is like a safety for unforeseen events that cost money.

You pay a little money regularly (called the premium) to an insurance company.

If something unexpected happens, they help by paying to fix or make the situation better.

For example:

With mobile insurance, if your phone's screen breaks, the insurance company would help cover the expense partially or fully.

It is important to be aware of what the insurance covers as it does not cover everything.

---------------------

6 Day Course
Theme: mutual fund companies

Day 2: Tuesday

Now, we come to the part which confuses many new investors.

Mutual fund companies launch many mutual funds. They are allowed to launch only one mutual fund in each category.

For example, take the category of large cap mutual fund. A mutual fund company will launch only one large cap mutual fund.

But, there are many mutual fund companies. Each one of them can launch their own large cap fund.

This is how you get so many large cap mutual funds. They are all competing with each other.

Think of sports shoes. Nike, Puma, Adidas, Power — these are all brands making sports shoes.

Each of those shoes is competing against other sports shoes in the market.

Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3YOLJsU

---------------------

Featured Question
“Why people are affried of mutual funds and insurance”



One of the biggest reasons why people are afraid of mutual funds and insurance is complexity.

People need to pay attention to a few things for better understanding.

There are many people who are trying to simplify this learning. Unfortunately, many of them make mistakes and mislead other people which makes people even more scared.

Ideally, people should put in the effort to at least understand the basics.

---------------------

That's it for now. See you tomorrow! Buka / Bagaimana

2023-08-28 17:29:54 Daily Groww Digest

28 August 2023
---------------------
Sensex 64,996.60 ▲ 0.17%
Nifty 19,306.05 ▲ 0.21%
---------------------
Realty and pharma stocks rose the most. IT and FMCG stocks fell the most.

All Asian markets closed in the green.

---------------------

More...

+Vishnu Prakash R Punglia IPO was subscribed 87.82 times. Retail investors subscribed 32.01 times.

+ISRO is planning to launch the Aditya-L1 solar mission on 2 Sept.

+India's auto industry is expected to rank 3rd in the world by 2030.

+Solar capacity addition in India fell 58% year-on-year to 1.7 gigawatt in the April-June quarter: Mercom India.
---------------------

Stocks in the news
Reliance: appointed Isha, Akash, and Anant Ambani as board directors.

L&T: fixed 12 Sept as the record date for its Rs 10,000 cr buyback.

BPCL: will spend around Rs 1.5 lakh cr on its initiative, 'Project Aspire'.

Bharat Forge: Bharat Forge company Kalyani Rafael Advanced Systems Pvt., won an order from the Ministry of Defence worth Rs 287.5 cr.

Patel Engineering: got an order for the Dibang multi-purpose project in Arunachal Pradesh.

Vedanta: won a $1.1-bn cost-disallowance arbitration case.

---------------------

Word of the Day

Bond
A kind of debt.

When you purchase a bond, you are giving a loan to the issuer, which may include a corporate, government, or municipality.

The issuer pays interest for the duration of the bond and also pays back the principal amount at the end.

---------------------

6 Day Course
Theme: mutual fund companies

Day 1: Monday

Many people invest in mutual funds.

But not many know how the companies running the mutual funds work. In this week, we’ll explore mutual fund companies.

Mutual fund companies come under a certain type of company called an ‘asset management company’ or AMC.

All mutual fund companies are AMCs. But there are AMCs that are not mutual fund companies.

Think of AMCs like how you think of an electronics company.

Samsung makes fridges. They also make washing machines, TVs, and speakers. LG also does all of those.

So, Samsung and LG are two different companies offering different products that compete with each other.

Something similar happens with AMCs and their mutual funds.

Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3YOLJsU

---------------------

Featured Question
“As a beginner in SIP, how many funds should I be investing in? I have found atleast 20 to 25 good mutual funds based on my research.”



Each investor’s capacity to manage mutual funds is different.

You should ideally invest based on the number you can manage and monitor.

Investing in too many mutual funds can be difficult for an individual investor.

So, how many mutual funds should you narrow down to? That is something you have to decide for yourself.

---------------------

That's it for now. See you tomorrow! Buka / Bagaimana

2023-08-25 18:24:50 Daily Groww Digest

25 August 2023
---------------------
Sensex 64,886.51 ▼ 0.56%
Nifty 19,265.80 ▼ 0.62%
---------------------
All sectors closed in the red today. PSU bank and realty stocks fell the most.

All other Asian markets closed in the red as well.

Japan and Taiwan markets fell the most.

---------------------

More...

+Vishnu Prakash R Punglia IPO has been subscribed 10.63 times so far. Retail investors have subscribed 12.88 times. The IPO is open till 28th Aug.

+Zepto has raised $200 million and is now a unicorn (over $1 billion valuation).

+Rishabh Instruments IPO will be open between 30 August to 1 Sept. Price band is Rs 418-441 per share.

+Forex reserves fell by $7.28 billion to $594.90 billion in the week that ended on 18 Aug.
---------------------

Stocks in the news
Sapphire Foods: Sapphire Foods Mauritius sold 16.25 lakh shares of the company at an average price of Rs 1,355 per share.

Bharat Electronics: Ministry of Defence approved buying of electronic warfare suite from Bharat Electronics.

Jio Financial: removal from BSE indices has been postponed by another 3 days to 1st Sept.

Power Finance: will provide a Rs 4,527.68 cr loan to set up a 1,320 MW project in Raghunathpur (West Bengal).

---------------------

Word of the Day

Litigation Financing
Litigation financing is when a third party (usually a company) provides you with money to cover your legal costs.

The company receives a share of the potential winnings if your case is successful.

Example: Let's say you were in a car accident and believe it wasn't your fault.

You want to sue the other driver for compensation, but you don't have the funds to hire a lawyer, pay court fees, and other related expenses.

A litigation financing company reviews your case and believes you have a strong chance of winning.

They offer you Rs 1 lakh to cover all the legal costs, and in return, they'll take a portion (let's say 20%) of any compensation you receive if you win the case.

It is important to carefully read and understand the terms of the financing agreement, as the company's share can sometimes be quite significant.

---------------------

6 Day Course
Theme: term insurance

Day 5: Friday

Many insurance takers are attracted towards insurance that also serve as investments.

ULIP is one such example.

In this, a part of the premium amount is invested in a scheme and offered as returns.

In most cases, investments and insurance should not be mixed.

Insurance is meant to cover you in case of a negative outcome. It is better to take insurance that serves that purpose properly.

Investments should ideally be done separately and purely for investing.

Mixing these two often leads to poor insurance as well as poor investment.

Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3qAoLcx

---------------------

Featured Question
“How is dividend reinvested into mutual fund. Generally, I never see additional units getting added to my folio in my email in addition to my SIP. So, how exactly is dividend amount added to my mutual fund and where can I check how much dividend is reinvested?”



Investors do not get additional units.

The value of the exiting units goes up. Which means, the NAV value goes up whenever dividend is added.

---------------------

That's it for now. See you tomorrow! Buka / Bagaimana

2023-08-24 18:39:28 Daily Groww Digest

24 August 2023
---------------------
Sensex 65,252.34 ▼ 0.28%
Nifty 19,386.70 ▼ 0.29%
---------------------
Healthcare and pharma stocks fell the most while IT and realty stocks rose the most.

All other Asian markets closed in the green.

Hong Kong and Taiwan markets were the top gainers.

---------------------

More...

+Aeroflex Industries IPO was subscribed 97.11 times. Retail investors subscribed 34.41 times.

+RBI has increased the transaction limit for small-value digital payments done via the offline mode to Rs 500 per transaction.

+Vishnu Prakash R Punglia IPO has been subscribed 3.77 times so far. Retail investors have subscribed 4.88 times.

+Reliance Jio added 22.7 lakh subscribers in June while Airtel gained 14.1 lakh subscribers. Vodafone-Idea (Vi) lost 12.9 lakh customers.

+The government has set a target to procure 521.27 lakh tonnes of rice during the ongoing kharif season.

+BRICS group has invited Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the UAE to join the group.
---------------------

Stocks in the news
Tata Motors: Competition Commission has closed a case (related to authorised dealers) against the company.

Hindustan Zinc: regained ownership of 13.94 cr shares representing 3.3% of equity that was pledged to Axis Trustee.

Reliance Industries: launched a new retail format Yousta which has all products priced below Rs 999.

TVS Motor: launched a new electric scooter, TVS X.

Coforge: Hulst BV has reportedly sold approx 1.63 cr shares (26.63% stake) in Coforge.

---------------------

Word of the Day

Retained Earnings
A company can either spend its profits on the business itself or save it for future use.

The money that is saved for the future is called retained earnings.

Retained earnings help businesses whenever they are in urgent need of money.

---------------------

6 Day Course
Theme: term insurance

Day 4: Thursday

Many insurance takers choose to buy insurance online because it is cheaper.

Research carefully when deciding between online vs offline.

More importantly, research the insurance company.

How is their reputation? Do they deliver on their promises? How easy is it to claim the insurance amount?

Looking at the claim settlement ratio helps a lot — this is a mandatory declaration every insurance company has to make.

Check the insurance premium amount also. Different companies charge different premium amounts.

One company may charge Rs 6,000 per year for an insurance of Rs 1 cr.

Another might charge Rs 10,000 per year for the same cover amount.

The cheaper one is not always better. Research why the premium amount is lower before taking a decision.

Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3qAoLcx

---------------------

Featured Question

“If mutual funds is having majority stake as equity then we will get dividend or not?”



In case of equity mutual funds, the dividend comes to the mutual fund.

Now, if the mutual fund is a ‘growth’ plan, the money will get reinvested back into the same mutual fund.

In case the mutual fund is a ‘dividend’ plan mutual fund, the money may be paid out in the form of dividend by the mutual fund.

All investors will get a proportionate amount of the dividend based on their investment amount.

---------------------

That's it for now. See you tomorrow! Buka / Bagaimana

2023-08-23 18:37:13 Daily Groww Digest

23 August 2023
---------------------
Sensex 65,433.30 ▲ 0.33%
Nifty 19,444.00 ▲ 0.25%
---------------------
Bank stocks rose the most while FMCG and oil & gas stocks fell the most.

All Asian markets except China closed in the green.

---------------------

More...

+With Chandrayaan-3, India has become the 1st country to successfully land on Moon’s south pole.

+Board exams to be held twice a year from now on. Students can keep their higher score.

+Aeroflex Industries IPO has been subscribed 21.10 times so far. Retail investors have subscribed 17.78 times.

+TVS Supply Chain IPO listed on NSE at Rs 207.05, a 5.1% premium over its issue price.

+Reliance Retail Ventures announced that Qatar Investment Authority will invest Rs 8,278 cr in the company for around 1% stake.

+DOMS Industries has filed draft papers with SEBI for an IPO.

+Total banking transactions at GIFT International Financial Services Centre reached $508 billion till July 2023.
---------------------

Stocks in the news
Tata Communications: planning to raise Rs 1,750 cr through debentures.

Linde India: got an order from Indian Oil Corporation (IOCL) for an air separation unit.

Piramal Enterprises: will raise Rs 3,000 cr through debentures.

Hindalco: will invest Rs 2,000 cr in a copper and e-waste recycling facility.

---------------------

Word of the Day

FICO Score
A person's capacity to pay back loans and other debts is measured by their 3-digit FICO score.

This is also known as credit score, it indicates if a person is credit worthy (eligible for loans).

Banks and lenders calculate a person's credit score on the basis of their payment history like timely payments for credit cards, EMIs, etc.

A person has a better chance of receiving a lower interest on the loan if their credit score is high.

---------------------

6 Day Course
Theme: term insurance

Day 3: Wednesday

Insurance policy term: this is the period for which the insurance is valid.

Many people end up taking shorter term policies. This could be a mistake in case of many people.

For example, say a person takes a term insurance at the age of 30 and the policy term is 20 years.

The policy will no longer be applicable after the person is 50 years old.

This mistake is almost as common as another mistake — not taking a large enough amount.

People forget to account for inflation also. They feel the insurance amount they’re taking will be enough but often it is not.

Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3qAoLcx

---------------------

Featured Question
“Where is compounding the invested capital applicable w.r.t stocks?”



In the case of stocks and mutual funds investment, there is no concept of principal and interest.

So why do we say it is compounding?

Because the rate of growth is measured in compounded returns.

So, if you treat your initial investment as ‘principal’ and then calculate the returns over the years, you will see a compounding effect.

Let’s say you invested Rs 1 lakh in a mutual fund. In 5 years, it became Rs 2 lakh.

If you calculate the per-year returns of this growth, it will come to 14.87% compounded annual return.

---------------------

That's it for now. See you tomorrow! Buka / Bagaimana

2023-08-22 17:52:46 Daily Groww Digest

22 August 2023
---------------------
Sensex 65,220.03 ▲ 0.01%
Nifty 19,396.45 ▲ 0.01%
---------------------
Metal and consumer durable stocks rose the most. PSU bank and pharma stocks fell the most.

All Asian markets closed in the green.

---------------------

More...

+India’s crude oil production rose 2.1% year-on-year to 2.5 million metric tonnes in July 2023.

+Pyramid Technoplast IPO was subscribed 18.29 times. Retail investors subscribed 14.72 times.

+Aeroflex Industries IPO has been subscribed 6.72 times. Retail investors have subscribed 6.71 times. The IPO will close on 24th August.

+India’s Chandrayaan-3 is set to land on the moon on 23 Aug at around 6:04 PM. The live telecast will begin at 5:20 PM tomorrow.

+Vistara (airline) reported a net loss of Rs 1,393 cr for the year 2022-23 vs Rs 2,031 cr last year.

+Shiva Pharmachem has filed draft papers with SEBI for an IPO.

+Jupiter Life Line has received SEBI’s approval for an IPO.

+Porsche AG is expecting around 80% of its sales in India to come from electric vehicles by 2030.
---------------------

Stocks in the news
Marksans Pharma: USFDA has approved its cough-and-cold tablet.

Axis Bank: Cleartrip has partnered with the bank to introduce travel benefits to credit card holders.

LIC: now holds 6.66% stake in Jio Financial Services.

Union Bank of India: will raise Rs 5,000 cr through qualified institutional placement.

Adani Enterprises: Kempas Trade and Investment has raised its stake in Adani Enterprises from 67.65% to 69.87%.

---------------------

Word of the Day

Collateral
Collateral is an asset that the borrower owns - like gold or real estate.

The borrower can use his assets as collateral to take loans.

If the borrower is not able to repay the debt, the lender (bank) can seize his/her asset to sell it and regain the money.

Collateral reduces the lender's risk.

---------------------

6 Day Course
Theme: term insurance

Day 2: Tuesday

If a person dies, it is not guaranteed that his/her dependents will be paid.

Insurance companies have numerous clauses and conditions.

Many insurance companies do not pay in case of death from suicide.

Most insurance companies will not pay in case of death from adventure sports (river rafting, paragliding, etc).

Several companies will not pay if the death occurs when the person was breaking the law — driving over the speed limit, etc.

This complicates buying a term insurance because these clauses end up excluding many causes of death — which might seem unfair to many people.

A thorough research into this is a must before insurance is purchased.

Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3qAoLcx

---------------------

Featured Question
“What are some good short term investment options to consider? Say for a period of a month or two.”



For a period that short, there aren’t many options available.

Since the period is short, you may not want to invest in assets that fluctuate a lot.

For example: shorts might go up and down a lot in that period.

In such cases, low-risk options like debt funds and FDs might be more suitable. Do explore more such options.

The options might also change with your risk tolerance level and investment amount.

---------------------

That's it for now. See you tomorrow! Buka / Bagaimana

2023-08-21 18:11:07 Daily Groww Digest

21 August 2023
---------------------
Sensex 65,216.09 ▲ 0.41%
Nifty 19,393.60 ▲ 0.43%
---------------------
Indian markets closed in the green today.

Metal and IT stocks rose the most while PSU bank and media stocks fell the most.

Asian markets: China, Hong Kong, and Taiwan fell while Japanese markets rose.

---------------------

More...

+Pyramid Technoplast IPO has been subscribed 5.84 times so far. Retail investors have subscribed 6.52 times. The IPO is open till 22nd Aug.

+The government has imposed an export duty of 40% on onions with immediate effect.

+HonorTech is planning to relaunch the Honor brand of smartphones in India.

+Retirement fund body EPFO added 17.89 lakh members in June.

+Vishnu Prakash R Punglia IPO (worth Rs 308.88 cr) will be open between 24 - 28 Aug. Price band: Rs 94 to Rs 99.

+Chandrayaan-2 (launched in 2019) and Chandrayaan-3 (2023) can now communicate with each other.

+Value of foreign portfolio investors' investments in Indian stock markets stood at $626 billion in the April-June quarter, 20% higher year-on-year: Morningstar.
---------------------

Stocks in the news
Reliance: Jio Financial Services got listed on BSE at Rs 265 per share. On NSE, the listing price was Rs 262.

Titan: will acquire an additional 27.18% stake in CaratLane for Rs 4,621 cr.

BHEL: got an order from Mahan Energen worth approx Rs 4,000 cr.

Bharat Forge: wholly owned subsidiary ‘Kalyani Strategic Systems’ got export orders worth Rs 850 cr.

Wockhardt: shareholders rejected a proposal to raise Rs 1,600 cr from a promoter.

PNB Housing Finance: fully recovered a corporate non-performing asset (NPA) of Rs 784 cr.

KEC International: got new orders worth Rs 1,007 cr, including for the construction of a multi-specialty hospital.

---------------------

Word of the Day

Exit Strategy
Exit strategy is a plan to sell a financial asset or investment.

Cashing out on gains, selling of shares after achieving financial goals, or limiting losses are some reasons why people plan on selling their shares.

Merger and acquisitions, IPOs, and management buyouts, are some examples of common exit methods.

---------------------

6 Day Course
Theme: term insurance

Day 1: Monday

Term insurance comes into effect when the insurance buyer dies.

In a term insurance, a person buys the insurance. In case he/she dies, the dependents get the cash benefits.

Term insurance is only valid for a certain period after which it needs to be renewed.

The insurance taker needs to pay a 'premium' — to get the term insurance.

This premium is determined based on many factors like age, profession, gender, and so on.

In this week, we’ll dive deep into term insurance.

Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3qAoLcx

---------------------

Featured Question
“Is investing in IPO always a good option to gain some guaranteed returns?”



No, not at all.

IPO returns are not guaranteed.

Many times, the IPO share price goes down after listing causing a loss. Many times it goes up giving a profit.

This is not pure luck. It depends on the company and company fundamentals also. Public opinion of the IPO also matters.

Please analyze each IPO before investing.

---------------------

That's it for now. See you tomorrow! Buka / Bagaimana

2023-08-21 07:45:40 Luckin Coffee got a new CEO, and the company was delisted from NASDAQ.

By Dec 2020, it was determined that Luckin would have to pay a $180 million fine.

And that was it.

Once something like this happens, there is usually not much left. Usually.

Unexpected

But Luckin’s case is a bit different.

After fraud and scandals, near bankruptcy, lockdowns in China, fines, and other giant challenges, Luckin reported its first profit in Dec 2022.

The company not only survived under the new CEO, it was financially doing better than ever.

It now has over 6,500 stores in China. That is more than Starbucks’ 5,600.

In 2022, Luckin Coffee had a new competitor. CottiCoffee.

This is a new brand that has emerged in China.

It is rapidly expanding and challenging Starbucks. It is also challenging Luckin Coffee, of course.

And CottiCoffee has been started by Charles Lu.

Yes, the same Charles Lu who started Luckin Coffee and was fired after the scandal.

It’s a mad world out there.


6-Day-Course
Theme of the week: reading balance sheets

Day 6 - Sunday

We’ve reached the end of this week’s course that started on Monday.

Here’s a test you should take. Get pen and paper!

Question 1:
Balanced sheets are written like this:

-Assets = liabilities + debt
-Assets = liabilities + shareholders' equity
-Debt = liabilities + shareholders' equity

Question 2:
Taxes and fines are a part of liabilities.

-True
-False

Question 3:
Any asset that can be converted to cash in a short period of time. How long is the period of time?

-1 day
-1 month
-1 year

Question 4:
All companies’ balance sheets must be read in the same way.

-True
-False

Question 5:
In case of IT company stocks, you have to ignore the revenue, earnings, and debt.

-True
-False


Answers:

Q1: Assets = liabilities + shareholders' equity
Q2: True
Q3: 1 year
Q4: False
Q5: False


---------------------

There's more:

-Quick takes from the week
-How Sensex, Nifty, gold, silver, Dow Jones, and Nasdaq changed over the week

And more!

Visit our Weekly Groww Digest page to read it all:

https://groww.in/digest Buka / Bagaimana

2023-08-18 19:16:56  Daily Groww Digest  
  
18 August 2023
---------------------  
Sensex 64,948.66 ▼ 0.31%
Nifty 19,310.15 ▼ 0.28%
---------------------
Indian markets closed in the red today.

IT and realty stocks fell the most while media and PSU bank stocks rose the most.

Asian markets: all markets fell. Hong Kong’s market ended 2.05% lower.
---------------------

More...

+Concord Biotech IPO listed at Rs 900.05 on NSE, a premium of 21.46%.

+Pyramid Technoplast IPO has been subscribed 1.61 times. Retail investors have subscribed 1.90 times. The IPO is open till 22nd Aug.

+Hyundai Motor India will buy the Talegaon (Maharashtra) plant of General Motors India.
---------------------
Stocks in the news
Reliance: Jio Financial Services will be listed on NSE and BSE on 21 Aug.

Lupin: acquired 2 brands, ‘Ondero’ and ‘Ondero Met’ from Boehringer Ingelheim for Rs 235 cr.

South Indian Bank: PR Seshadri will be the new CEO and MD.

GMM Pfaudler: Pfaudler Inc sold a 13.6% stake in GMM Pfaudler.

NLC India: will supply 300 MW of solar power to Rajasthan Urja Vikas Nigam for 25 years.

---------------------
Word of the Day

Consumer Price Index
Consumer Price Index (CPI) is an index (collection) of various products and services. 

It is used to track the change in the prices of products and services like food, housing, clothing, transportation, electronics, healthcare, and education.

Because it shows the rise or fall of price, CPI is used globally to track the inflation level of countries.

---------------------  
6 Day Course
Theme: reading balance sheets

Day 5: Friday

The important parts of a balance sheet vary from industry to industry.

Some metrics are entirely missing from the balance sheets of certain companies.

Likewise, the importance of different metrics changes from company to company.

Example: in the case of manufacturing companies, depreciation of equipment is an important consideration.

But in the case of IT companies, it would be a smaller concern.

Investors have to learn which parts of the balance sheet they must pay attention to and which they must ignore based on the company they're analyzing.

Of course, some things are important for all companies no matter which industry they belong to: revenue, earnings, debt, etc.
Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3OSYoba
---------------------

Featured Question
“Is there any advantage of investing in NFO instead of investing on the same fund after the offer period .”



For most investors, no there is no advantage.

In fact, there may be disadvantages: new funds don’t have any track record so we don’t know how they’ll perform.

Many investors invest because of the fund managers' reputation.

Most new investors are better off investing in mutual funds that have been in existence for some time and have shown a track record of good returns.

Many people think since the NFO will have a lower NAV, it’ll give better returns.

This is not true. A lower NAV does not offer any advantage in returns.
---------------------
That's it for now. See you tomorrow!  Buka / Bagaimana