Capital Market

Today's Technical report

The capital market plays an important role in mobilising the savings and diverting them in productive investment. It is a medium of transferring the financial resources from surplus and wasteful areas to deficit and productive areas meaning transfer of money or capital from those who have surplus money to those who are in need of investment thus increasing the productivity and prosperity of the country.

It deals in long-term loans. It supplies industry with fixed and working capital and finances medium-term and long-term borrowings of the central, state and local governments. The common instruments used in capital market are shares, debentures, bonds, mutual funds, public deposits etc. The funds which flow into the capital market come from individuals who have savings to invest, the merchant banks, the commercial banks and non-bank financial intermediaries, such as insurance companies, finance houses, unit trusts, investment trusts, venture capital, leasing finance, mutual funds, building societies, etc.

The capital market functions through the stock exchange. A stock exchange is a market which facilitates buying and selling of shares, stocks, bonds, securities and debentures. It is not only a market for old securities and shares but also for new issues of shares and securities. In fact, the capital market is related to the supply and demand for new capital, and the stock exchange facilitates such transactions.

Funds flow into the capital market from individuals and financial intermediaries which are absorbed by commerce, industry and government. It thus facilitates the movement of stream of capital to be used more productively and profitability to increases the national income. It prides incentives to savers in the form of interest, dividend or bonus and transfers funds to investors, thus leading to capital formation.

The capital market encourages economic growth by leading to the development of commerce and industry through the private and public sector. In an underdeveloped country where capital is scarce, the absence of a developed capital market is a greater hindrance to capital formation and economic growth.

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Indian Business News

Gold and silver: The rebound has run into resistance

Saturday August 20, 2022

Our base case remains that safe-haven demand should fade further, assuming that the US economy does not slip into recession. The bull case remains a recession as it should lead to a significant pick-up in safe-haven demand. Meanwhile, silver should continue to move in gold’s slipstream.

FPIs pour over Rs 20,000 cr since mid-July! Stay invested as India’s growth story is here to stay

Saturday August 20, 2022

The recent correction was a good opportunity to invest but in hindsight we all are experts. So now if you have missed this opportunity you will have to see beyond what the market is factoring.

Mind Over Money: Riding a bike is my way of meditating and keeping calm, says Sumit Chanda

Saturday August 20, 2022

Buffett's Berkshire Hathaway wins OK to buy 50% Occidental stake

Saturday August 20, 2022

Some investors and analysts have nonetheless said Berkshire could eventually buy Occidental, diversifying an energy portfolio that includes several utilities, electricity distributors, and renewable power projects including wind.

US dollar net longs rise; euro shorts hit biggest since February 2020

Saturday August 20, 2022

This is why Treasury yields have been able to recover from their lows ploughed at the start of the month, giving the US dollar, which has been benefiting from renewed safety flows, an extra helping hand."

Can Sensex hit a new peak of 65,000 by this December? What experts say

Saturday August 20, 2022

Stating that India Inc’s earnings for the June quarter have also been reasonably admirable as the topline grew QoQ, he said, “We believe there is great merit in India Inc's growth story, and in that regard, we opine that Sensex could touch 65000 by Dec 2022”.

Wall Street Week Ahead: Summer rebound in US stocks gains fans among chart-watching investors

Saturday August 20, 2022

Among these are measures that show the "breadth" of a market move, or whether a significant amount of stocks are rising or falling in unison. A period of narrowing breadth late last year came as a worrying sign to some investors and preceded the start of a decline in the S&P 500 in which stocks fell nearly 21% in the first half of 2022.

BlackRock warns Wall Street watchdog new ESG rule could harm investors

Saturday August 20, 2022

While BlackRock acknowledged the need to boost oversight, it questioned the SEC's demand for more details on how funds should categorize strategies and describe their ESG impact, arguing such details could mislead investors about how much ESG really matters when managers pick stocks and bonds.

Mind Over Money: Need for Speed! 3 market lessons which biking taught this CEO

Saturday August 20, 2022

"Nothing happens too fast, even biking. I avoid driving too fast, and at the same time, remain cautious on the road. It is the same story in equities; nothing happens overnight, be patient," said Sumit Chanda

Wall Street ends down as yields rise; indexes post weekly losses

Saturday August 20, 2022

After notching its worst first half since 1970, the S&P 500 has bounced some 16% from its mid-June low, fueled by stronger-than-expected corporate earnings and hopes the economy can avoid a recession even as the Fed hikes rates.

Gold prices fall Rs 100 on Saturday; silver selling at Rs 56,000 per kg

Saturday August 20, 2022

The price of 22-carat gold also fell Rs 100 and the precious metal is trading at Rs 47,800

Prices unacceptably, uncomfortably high, MPC noted while raising rate

Friday August 19, 2022

External MPC member Jayanth R Varma dissented on the resolution that said the panel would remain focused on withdrawal of accommodation while seeking to achieve simultaneous goals of restraining inflation and underpinning growth.

Crypto investors seek clarity on reporting assets in I-T returns

Friday August 19, 2022

Having shifted the coins offshore using the Blockchain network to avoid stifling regulations, they have sensed that sharing the information with Income tax (I-T) authorities could invite as much trouble as hiding it.

Gold imports up 6.4% to $13 billion in April-July this fiscal year

Friday August 19, 2022

The imports stood at USD 12 billion during the same period a year ago

India better placed, investments rise and inflation should soften

Friday August 19, 2022

The services sector can emerge as the key driver and inflationary pressures should soften further going ahead, the ministry said in its Monthly Economic Review released Friday.

The reason behind rise of women investors in the Indian crypto market

Friday August 19, 2022

Recent data from exchanges and other crypto companies in India provides a glimmer of hope. It is reported around 20 per cent of crypto investors in India are women, but the numbers still show a significant gender gap.

SGB issue price fixed at Rs 5,197 per gm; subscription to open on Monday

Friday August 19, 2022

The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from Monday, has been fixed at Rs 5,197 per gram of gold, the Reserve Bank of India said on Friday. The Sovereign Gold Bond Scheme 2022-23 Series II will be open for subscription from August 22 26, 2022. "The nominal value of the bond...works out to Rs 5,197," the central bank said in a statement. The central government, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs 50 per gram, less than the nominal value, to those investors applying online and the payment against the application is made through digital mode. "For such investors, the issue price of Gold Bond will be Rs 5,147 per gram of gold," the RBI said. The RBI issues the bonds on behalf of the Centre. The bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges -- NSE and BSE. Th

Nifty snaps 8-day winning run on weak global cues; Sensex falls 652 points

Friday August 19, 2022

Fed remarks, China growth concerns hit sentiment

CAMS promoter entity pares 3.79% stake for Rs 428 crore

Friday August 19, 2022

The shares were sold at an average price of Rs 2,306.18 apiece, taking the transaction value to Rs 427.99 crore.However, the buyer(s) of the shares could not be ascertained.As of the June quarter, Great Terrain Investment Ltd held a 23.74 per cent stake in CAMS, a shareholding pattern showed.CAMS shares fell by 5.48 per cent to close at Rs 2,250.10 on BSE.

Sovereign Gold Bond Scheme: Issue price fixed at Rs 5,197/gm; subscription opens Monday

Friday August 19, 2022

The central government, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs 50 per gram, less than the nominal value, to those investors applying online and the payment against the application is made through digital mode."The nominal value of the bond...works out to Rs 5,197," the central bank said in a statement.

CDC Group sells 3.56% stake in IIFL Finance for Rs 453 crore

Friday August 19, 2022

The shares were disposed of at an average price of Rs 335.64 apiece, valuing the transaction at Rs 453.16 crore.Meanwhile, Morgan Stanley Asia Singapore Pte picked up the shares of the company.As of the June quarter, CDC Group plc, which is one of the public shareholders of IIFL Finance, owned 1.35 crore shares, amounting to a 3.56 per cent stake in the company, the shareholding pattern showed.

RBI gets more aggressive on forwards to save rupee

Friday August 19, 2022

The Reserve Bank sold a net of $3.7 billion in the spot market and $18 billion in the forward market in June according to the latest data released by the Reserve Bank of India.

Stock price not in our control, focus is on profits: Paytm CEO Vijay Shekhar Sharma

Friday August 19, 2022

Speaking at the company’s first annual general meeting as a listed company, held virtually, he also said Paytm was on track to turn operationally profitable by September next year.

India among top crypto adopters. Will it alarm govt to expedite regulations?

Friday August 19, 2022

"India's crypto industry is too big to ignore and a strong, business-friendly policy for the crypto industry will enable investors to trade with confidence and boost the morale of the young workforce willing to make a career in this space," he added.India was ranked sixth in crypto adoption. Only two developed nations were featured in the top 10 - Singapore at fourth and the United States at the sixth spot.

Banks rush to raise funds via CDs amid credit demand

Friday August 19, 2022

Bank credit expanded 14.5% year-on-year to Rs 123.7 lakh crore as on July 29 this year. By contrast, deposit mobilisation climbed 9.1% to Rs 169.7 lakh crore. Banks are required to mandatorily set aside a part of deposits to meet prudential norms.

Meme stocks in reverse as Bed Bath & Beyond slump spooks investors

Friday August 19, 2022

Bed Bath & Beyond Inc's shares extended their plunge, falling 42% to $10.80, after Cohen said a day earlier he had sold his 9.8% stake in the company, almost five months after amassing it and pushing for changes.

Settlement scheme for illiquid stock options cases

Friday August 19, 2022

"Sebi has framed a Settlement Scheme (Scheme, 2022) for the entities against whom proceedings have been initiated and are pending before any forum or authority, viz. Courts/SAT, Adjudicating Officer or Recovery Officer (provided an appeal has been filed and the same is pending before the SAT/Court," the notice mentioned.

Block mechanism in demat must for share sale transactions from Nov: Sebi

Friday August 19, 2022

Markets regulator Sebi on Friday made it mandatory for investors to block securities on their respective demat accounts for sale transactions. Currently, the facility is optional for investors. The block mechanism in the demat accounts of clients undertaking sale transactions would become mandatory from November 14, the Securities and Exchange Board of India (Sebi) said in a circular. Under the mechanism, shares of a client intending to make a sale transaction will be blocked in the client's demat account in favour of the clearing corporation concerned. In July, the regulator decided to introduce the concept of a block mechanism, whereby investors have an option to block securities in their respective demat accounts for sale transactions from August 1. The option of an early pay-in method is also available. Under this option, shares are transferred from a client's demat account to the clearing corporation concerned's account. If the sale transaction is not executed under the early

Wall Street reminded of risks as Fed mulls more intervention

Friday August 19, 2022

The Dow Jones Industrial Average fell 0.54% to 33,813.96, the S&P 500 lost 0.67% to 4,254.83 and the Nasdaq Composite declined about 1% to 12,837.36.

Stablecoin Tether's reserves fell $16 billion in second quarter

Friday August 19, 2022

The reserves statement on Tether's website comes a day after it said it had switched to accountancy firm BDO Italia to certify its reserves and that it would aim to release monthly reports by the end of the year.Stablecoins are a type of cryptocurrency designed to keep constant value, such as a 1:1 U.S. dollar peg. They are widely used in cryptocurrency trading to move funds between different cryptocurrencies or into regular cash.

Market Watch: Nifty may consolidate in near term

Friday August 19, 2022

New 10-year bond pricing flags concern of inflation, say dealers

Friday August 19, 2022

The latest bond coupon at 7.26 per cent is higher than expected

Sebi penalises 8 individuals for breach of insider trading norm in Titan shares

Friday August 19, 2022

The order came after Sebi received a letter from Titan Company Ltd (TCL) wherein the firm intimated the regulator about alleged violations of Prohibition of Insider Trading (PIT) rules and the company's code of conduct by some of its persons/ employees.

Sebi joins RBI's account aggregator ecosystem

Friday August 19, 2022

Account aggregator or AA is an RBI-regulated non-banking finance company (NBFC) that facilitates the collection of the financial information pertaining to a customer from financial information providers on the basis of the consent of the customer.AA facilitates consolidation, organisation, and presentation of the financial information to the customer or FIU based on the explicit consent of the customer.

Adani Power buys DB Power for Rs 7,000 crore

Friday August 19, 2022

DB Power has 2 units of 600 MW each of thermal power in Chattisgarh. The power assets of DB Power is housed under a holding company called Dilligent Power.

Block mechanism in demat accounts must for share sale transactions

Friday August 19, 2022

The option of an early pay-in method is also available. Under this option, shares are transferred from a client's demat account to the clearing corporation concerned's account. If the sale transaction is not executed under the early pay-in mechanism, then those shares are returned to the client's account and the process takes time and involves a cost.

Uncomfortable inflation level, resilient growth offer space for policy actions, RBI Governor says

Friday August 19, 2022

“Sustained high inflation, unless addressed effectively, could result in unanchoring of inflation expectations and their second order effects," Shaktikanta Das said in the minutes of the central bank's monetary policy meeting held earlier this month. "This necessitates appropriate monetary policy response to prevent upward drift in inflation from the target rate."

Tech View: Nifty50's indecisive candle on weekly chart a cause for concern

Friday August 19, 2022

"At this point, the only solace for bulls is the fact that some buying emerged as the index entered into the bullish gap area present between 17,764 and 17,724 levels, registered on August 14, which was defended at least on a closing basis. Therefore, if the bulls fail to defend 17,710 levels in the ensuing week, more weakness is likely," he said.

Crypto price: Bitcoin hits 3-week low, falls below $22K; Ether plunges over 5%

Friday August 19, 2022

Share market update: Most active stocks in today's market in terms of volume

Friday August 19, 2022

The NSE Nifty index closed 198.05 points down at 17758.45

Stock market update: Nifty Pharma index falls 1.05%

Friday August 19, 2022

The Nifty Pharma index closed 1.05 per cent down at 12799.95.

Sensex snaps longest winning run of the year, slumps 652 pts; Nifty ends below 17,800; banking stocks drag

Friday August 19, 2022

3-5 years of sustainable growth seen; where to invest in pharma? Tushar Bohra

Friday August 19, 2022

“API and CRAMS have at least five to seven years of very good growth and high margin continuing overall. Some of these companies are dirt cheap when compared to the potential that is there in the segment and we are still getting some of these companies at 10, 11, 12 times current year earnings.”