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

BSE, NSE suspend trading of DHFL shares from June 14: Know why

Saturday June 12, 2021

Company is awaiting the written order of the NCLT approving the Resolution Plan, says the stock exchange

Overstretched Nifty technical setup and precariously low VIX all raising red flags

Saturday June 12, 2021

For the coming week, the main worry for the market will be its own overstretched technical setup. This, when read along with the precariously low VIX value, raises a red flat for the immediate short term.

China's cryptocurrency-mining crackdown spreads to Yunnan in southwest

Saturday June 12, 2021

In addition to concerns about the huge amounts of energy needed for the computing power to create cryptocurrencies, the central government is also concerned about speculation after a surge in the price of bitcoin.

MaxVIL Q4 results: Profit jumps multi-fold to Rs 34 cr; firm to foray into residential realty biz

Saturday June 12, 2021

Total income rose to Rs 333.93 crore in the fourth quarter of last fiscal from Rs 258.88 crore in the corresponding period of the previous year, according to a regulatory filing.

China's cryptocurrency-mining crackdown spreads to Yunnan in southwest

Saturday June 12, 2021

China accounts for a over half of global bitcoin production

Bitcoin falls nearly 6% to $35,210; Ether drops 2.5%

Saturday June 12, 2021

Bitcoin, the world's biggest and best-known cryptocurrency, is down 45.7% from its 2021 high of $64,895.22 on April 14.

After conquering ports and airports, Gautam Adani sets sights on cement sector

Saturday June 12, 2021

The Adani Group’s flagship company Adani Enterprises, on Saturday, informed the bourses that it has incorporated a new wholly-owned subsidiary Adani Cement Industries with an authorized share capital of Rs 10 lakh and paid-up capital of Rs 5 lakh.

DLF sale bookings up 24% at Rs 3,084 cr in FY21

Saturday June 12, 2021

Housing sales were badly impacted during June quarter of 2020-21 because of the nationwide lockdown to control the COVID-19 pandemic.

India Power Corporation FY21 results: PAT jumps 60% to Rs 27 cr

Saturday June 12, 2021

The Kolkata-headquartered company is an integrated power utility with distribution licence covering 618 square kilometres in Asansol-Ranigunj region of West Bengal.

India's pharma sector growth accelerates in May due to low base effect

Saturday June 12, 2021

The ratings agency opined that the 47.8 per cent YoY growth in India's pharmaceutical market (IPM) during May 2021 was led by a low base effect.

ETMarkets Investors' Guide: $2 billion fund manager tells you how to play infra now

Saturday June 12, 2021

OPEC sees strong oil demand recovery: Paul Hickin, S&P

Saturday June 12, 2021

Oil has returned to pre Covid levels of demand which is really stoking the market’s optimism--Paul Hickin, Associate Director, S&P.

Ralph Wanger's tips on how to make money in smallcap stocks

Saturday June 12, 2021

Investing in smallcap companies can be riskier than largecaps and, therefore, Wanger advises investors to perform a careful research before trying to spot established firms with an able management that have proven their abilities over time.

2 PSU bank stocks for aggressive investors

Saturday June 12, 2021

"It makes sense to acquire PNB and Bank of Baroda at current levels for significant upsides."

Zombie stocks defy bankruptcy logic as meme traders bid them up

Saturday June 12, 2021

Redditors have bid up shares of AMC Entertainment Holdings Inc. and GameStop Corp. so much that it’s saved them -- for now, at least -- from deep trouble.

Can it be paying to be a contrarian investor in a bull market?

Saturday June 12, 2021

Contrarian investing works for both set of investors, those who follow market regularly as well for those who follow it only at certain times. The strategy pays off both in bull and bear markets.

Intraday volumes drying up fast, Nifty up for some consolidation

Saturday June 12, 2021

Compared with last year’s June, open interest is more or less same, but volumes in the derivative segment are down almost 30-40%. This indicates that intraday volumes have dried up, either due to peak margin requirements or lack of retail participants’ confidence at the current market levels.

Remittance firms slow to add Bitcoin, despite El Salvador move

Saturday June 12, 2021

In a move that could be a harbinger of crypto becoming a more popular way to send money across borders, El Salvador on Wednesday became the first country to adopt bitcoin as a parallel legal tender.

Wall Street Week Ahead: Fed meeting looms for stocks as inflation worries collide with 'Goldilocks' markets

Saturday June 12, 2021

Stocks have climbed steadily in recent weeks and now stand at fresh records, extending a rally that has seen the S&P 500 gain 13% this year and nearly 90% from its March 2020 low.

G7 leaders agreed to keep the money taps open: Source

Saturday June 12, 2021

The backing for more stimulus was shared by all leaders including Angela Merkel of Germany which has traditionally opposed heavy borrowing to spur growth, a position it has relaxed in the face of the COVID-19 crisis.

Wall Street ekes out gains to close languid week

Saturday June 12, 2021

The Nasdaq gained the most among the three major indexes, while the bellwether S&P 500 squeaked its way to a second straight record closing high.

US regulators urge financial firms to quickly ditch Libor rate benchmarks

Saturday June 12, 2021

Federal Reserve Vice Chair Randal Quarles emphasized there is "no path forward" for Libor, which is being scrapped after numerous banks were fined for manipulating it, and that firms have no reason to delay moving derivatives and other market contracts to the new Secured Overnight Financing Rate.

Oil hits multi-year highs in third weekly gain on demand recovery

Saturday June 12, 2021

Brent crude futures settled at $72.69 a barrel, rising 17 cents after reaching their highest since May 2019. For the week, Brent was up 1%.

IT stocks may outperform Nifty by a wide margin

Saturday June 12, 2021

"I would suggest investors to be overweight on the IT sector."

ICICI Bank’s Rs 3,000-crore infra bonds issue adds to economic rebound buzz

Saturday June 12, 2021

The bonds offered 6.45 percent with seven-year maturity. ICRA rated those papers with AAA (Stable) grade.

Sona Comstar raises Rs 2,500 crore in anchor issue, third-largest ever

Saturday June 12, 2021

The anchor issue is the third-largest in Indian capital market history after SBI Cards and Payment Services and Power Grid Infrastructure Investment Trust.

Enforcement Directorate issues notice to WazirX, directors over FEMA breach

Friday June 11, 2021

Exchange said they are yet to receive ED notice

Palm oil prices fall most in nearly a month due to technical selling

Friday June 11, 2021

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market

Sensex, Nifty post fourth straight weekly rise; Dr Reddy's rises over 3%

Friday June 11, 2021

After rising 341 points, the Sensex settled 174 points, or 0.33 per cent, higher at 52,475

Latest meme stock: Danish biotechnology company jumps almost 1,400%

Friday June 11, 2021

Orphazyme A/S, which develops therapies to treat genetic disorders, says it has no idea why its American depositary shares surged overnight

Coal India hits 52-week high, regains Rs 1 trillion market capitalisation

Friday June 11, 2021

The stock of the state-owned company surpassed its previous high of Rs 162.95, touched on February 26, 2021.

Sun TV Networks posts Rs 488 cr profit in Q4

Friday June 11, 2021

Its revenue from operations during January-March 2021 stood at Rs 802.55 crore. It was Rs 758.13 crore in the corresponding quarter of the previous fiscal.

US consumer sentiment rebounds in early June: survey

Friday June 11, 2021

The survey's gauge of current economic conditions edged up to a reading of 90.6 from 89.4 in May. Its measure of consumer expectations rose to 83.8, the highest since February 2020, from 78.8.

Bitcoin law is only latest head-turner by El Salvador's millennial president

Friday June 11, 2021

Cryptocurrency fans across the globe celebrated when his bill was swiftly approved by lawmakers on Wednesday.

Fed may opt for faster phase-out of housing-backed bond purchases

Friday June 11, 2021

The results of the Reuters survey, which was released on Friday, showed economists expect the Fed to unveil its plans to taper its monthly purchases of $80 billion of Treasuries and $40 billion of MBS in the third quarter.

FTSE 100 posts best week in over a month as economy strengthens

Friday June 11, 2021

The blue-chip index rose 0.7%, with precious metal miners and base metal miners jumping 0.7% and 1.8%, respectively, while insurance stocks rose 1.3%.

Sebi bans Capital Money Mantra, proprietor from market for 2 years

Friday June 11, 2021

Sebi said Capital Money Mantra and its sole proprietor Yadav have carried out investment advisory activities without obtaining a certificate of registration from the regulator.

ABB India board reappoints Sanjeev Sharma as MD

Friday June 11, 2021

Sharma's current term expires on December 31, 2021, a BSE filing said.

DLF scions appointed on company board

Friday June 11, 2021

DLF on Friday said the board has "co-opted Savitri Devi Singh and Anushka Singh as additional directors of the company with immediate effect, subject to the approval of shareholders."

Oil prices rise to fresh multi-year highs on fuel demand recovery

Friday June 11, 2021

Brent crude futures edged up 13 cents to $72.65 a barrel to 1145 GMT, a day after closing at their highest since May 2019

CG Power posts Rs 294 cr profit in March quarter

Friday June 11, 2021

Total income in the fiscal year stood at Rs 3,065.87 crore compared to Rs 5,158.01 crore in 2019-20.

BSE sets up entity to administer, supervise activities of registered investment advisors

Friday June 11, 2021

The administration and supervision of BASL members will be in accordance with capital markets regulator Sebi rules.

BEML posts turnover of Rs 3,557 cr in FY21, its highest ever

Friday June 11, 2021

In spite of major disruption and slowdown of economic activities caused by the outbreak of COVID-19 pandemic, the Bengaluru-headquartered company said it has been able to perform creditably.