2023-05-04 19:25:08
Daily Groww Digest
4 May 2023
Sensex 61,749.25 ▲ 0.91%
Nifty 18,255.80 ▲ 0.92%
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Indian stock markets rose over 0.9% today.
All sectors other than FMCG closed up today. Financial services and metal stocks rose the most.
The US Fed announced another rate hike on Wednesday. This might be a reason why US stock markets closed in the red.
All Asian stock markets except Australia ended in the green.
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Quarterly Results
HDFC
Reported a 20% year-on-year growth in standalone net profit at Rs 4,425.50 cr.
Revenue from operations increased by 35.6% to Rs 16,679.43 cr.
Dividend of Rs 44 per share..
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More...
+US Fed has increased interest rates by 0.25%. Federal funds rate is now at 5.25%, the highest since 2007.
+Total vehicle retails sales fell 4% year-on-year in April: FADA.
+Ajay Banga is the new president of the World Bank.
+Around 163 Indian companies have invested over $40 billion in the United States so far. This has led to the creation of nearly 4.25 lakh jobs in the country: survey by the Confederation of Indian Industry.
+BluSmart Mobility has raised $42 million from Investors including BP Ventures.
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Stocks in the news
Reliance: will demerge Reliance Strategic Investments Ltd (RSIL) from itself. The new company is expected to list on BSE and NSE and will be called Jio Financial Services.
Adani Ports: completed the sale of its Myanmar Port for $30 million.
Dabur: declared a dividend of Rs 2.70 per share.
KEC International: declared a dividend of Rs 3 per share.
GR Infraprojects: won a Rs 737 cr order in Uttar Pradesh.
Hero Moto: planning to introduce its e-scooter Vida V1 in 100 cities this year.
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Word of the Day
Appreciation
Appreciation (of assets) refers to an increase in the value of an investment over time.
For instance, if you buy a stock for Rs 1,000 and after one year its worth Rs 1,500, then it has appreciated by Rs 500.
Appreciation is one way investors can make money, by buying low and selling high when the value of their investment has increased.
Appreciation can also refer to a currency's increase in value compared to another currency.
For instance, if the Indian Rupee appreciates against the US Dollar, it means that one Rupee can buy more Dollars than before.
This can affect international trade and investments.
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6 Day Course
Theme: mutual fund withdrawal
Day 4: Thursday
Whenever you withdraw or redeem money from a mutual fund, you will have to pay tax.
Tax on mutual funds varies on the type of mutual fund.
In some cases, you might not be required to pay taxes, but you will still have to show it as capital gains returns when filing taxes.
Some investors have a misconception that they do not need to file taxes if they withdraw from one mutual fund and invest the money in another mutual fund.
Not true. Even in this case, taxes will be involved.
This is why taking money out of a mutual fund and reinvesting it again and again can lower your overall returns.
Returns from mutual funds are categorized as capital gains. Do read more about tax rates for different mutual fund categories.
Missed last week's course? You can download the course PDF - click to download: https://bit.ly/3Hn5sbC
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Featured Question
"How to calculate CAGR from absolut return"
It is not possible to calculate the CAGR using only the absolute return.
To calculate CAGR, you need 3 things:
-the starting value of the investment
-the ending value of the investment
-the time period in which the investment grew in years
There are many CAGR calculators online that you can use for this.
If you want to calculate it yourself using the mathematical formula, use this formula:
CAGR = {(Final value / Initial value) ^ (1/time)} - 1
'^' stands for 'raised to the power'.
So the formula is the final value divided by the initial value raised to the power 1 divided by time in years. Then, subtract 1 from this.
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