Nifty 17382.25 (-0.11%)
Sensex 58394.41 (-0.11%)
Nifty Bank 36571.45 (0.17%)
Nifty IT 36138.3 (-0.05%)
Nifty Financial Services 17982.8 (0.00%)
Adani Ports 744.40 (0.72%)
Asian Paints 3153.65 (-0.85%)
Axis Bank 680.25 (0.61%)
B P C L 385.30 (1.70%)
Bajaj Auto 3333.85 (0.16%)
Bajaj Finance 7147.70 (-0.46%)
Bajaj Finserv 17729.50 (-0.16%)
Bharti Airtel 723.20 (-1.28%)
Britannia Inds. 3566.70 (-0.33%)
Cipla 910.90 (-1.12%)
Coal India 159.40 (0.06%)
Divis Lab. 4728.90 (-1.01%)
Dr Reddys Labs 4610.95 (-1.11%)
Eicher Motors 2480.15 (1.17%)
Grasim Inds 1738.00 (0.82%)
H D F C 2793.30 (-0.52%)
HCL Technologies 1174.70 (-0.84%)
HDFC Bank 1524.35 (-0.09%)
HDFC Life Insur. 702.50 (-0.40%)
Hero Motocorp 2491.20 (0.75%)
Hind. Unilever 2372.60 (-0.45%)
Hindalco Inds. 428.55 (-0.82%)
I O C L 122.35 (1.41%)
ICICI Bank 723.20 (0.11%)
IndusInd Bank 946.25 (0.07%)
Infosys 1766.20 (1.03%)
ITC 223.90 (-0.69%)
JSW Steel 647.85 (0.17%)
Kotak Mah. Bank 1971.70 (0.38%)
Larsen & Toubro 1823.25 (1.90%)
M & M 848.90 (-0.08%)
Maruti Suzuki 7285.25 (-0.54%)
Nestle India 19189.80 (-1.61%)
NTPC 128.20 (-0.39%)
O N G C 145.40 (0.97%)
Power Grid Corpn 214.95 (0.21%)
Reliance Industr 2464.30 (-0.75%)
SBI Life Insuran 1172.30 (-1.33%)
Shree Cement 26245.10 (-0.17%)
St Bk of India 477.45 (0.09%)
Sun Pharma.Inds. 759.05 (-0.94%)
Tata Consumer 771.40 (-0.24%)
Tata Motors 478.70 (-0.08%)
Tata Steel 1106.30 (-0.55%)
TCS 3636.15 (-0.19%)
Tech Mahindra 1622.90 (-0.41%)
Titan Company 2380.80 (-0.24%)
UltraTech Cem. 7414.95 (1.25%)
UPL 704.20 (0.86%)
Wipro 643.60 (-0.49%)

Investment Planning: Public Provident Fund vs Mutual Fund

Investment Planning: Public Provident Fund vs Mutual Fund
by 5paisa Research Team 28/10/2021

Appropriate investment planning aids an individual to achieve their life goals and objectives.

In today’s world, investing has become a necessity, if you don’t plan your investments you might end in a financial crisis in future. In life ahead, any uncertainty might come and hit an individual’s life so in order to overcome such events smoothly one should adequately plan their insurance and investments.

Appropriate investment planning also aids an individual to achieve their life goals and objectives. There are lots of investment avenues available in the market in which individual can invest their capital. So many investment options can put an individual in a dilemma of where to invest.

Out of many investment avenues, we will look into the two major ones, such as Public Provident Fund and Mutual Fund. Public Provident Fund is a long-term investment tool whereas, Mutual Fund is a long-term, medium-term or short-term investment tool.

Let’s look at the difference between these two investment options:

Particulars  

Public Provident Fund  

Mutual Fund  

Investment type  

Public Provident Fund is a long term investment tool run by the government, which offers fixed and safe returns to their investors.  

Mutual funds are managed by fund managers, who offers their investor to reap maximum benefits by investing in instruments according to the mutual fund schemes  

Mode of investment  

Investors have to invest at least a minimum amount in order to keep account active.  

One can invest in mutual funds schemes through SIP or lumpsum.  

Minimum Investment Amount  

₹500  

₹100 or ₹500 (for SIP) vary according to mutual fund.  

Returns  

Returns are fixed and safe guaranteed by the government. The prevailing rate of the Public Provident Fund is 7.1% (FY 2021-2022)  

Returns of mutual funds are market-linked and are based on the performance of the mutual fund.  

Maximum Investment Amount  

₹1,50,000  

No upper limit  

Maturity Period  

15 years – you can extend the same by a block of 5 years  

There is no maturity period as such. Investors can hold for long-term or short-term as per their needs and risk exposure and investment horizon.    

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Retail investors, QIBs push Nykaa IPO across the finish line on first day

by 5paisa Research Team 28/10/2021

Online-to-offline beauty products company Nykaa’s initial public offering made a flying start on Thursday with the share sale getting fully covered on the first day itself despite a big drop in secondary markets.

Nykaa’s IPO of 2.648 crore shares, excluding the anchor allotment, had received bids for 4.09 crore shares by 4:30 PM. This means the issue was subscribed 1.55 times.

Subscription was led by both retail investors and qualified institutional buyers (QIBs). Retail investors bid for 1.66 crore shares, or 3.5 times the 47.5 lakh shares reserved for them, by late afternoon. QIBs bid for almost 1.99 crore shares, or 1.4 times their quota of 1.4 crore shares.

Non-institutional investors such as corporate houses and high-net-worth individuals placed bids for about 60% of the 71.29 lakh shares reserved for them.

Meanwhile, secondary markets posted a sharp drop on Thursday. The BSE's 30-stock Sensex fell 1,158 points, or 1.9%, to end at 59,984.70.

Nykaa anchor allotment

Investors’ interest in the Nykaa IPO was evident also from the high demand for its shares in the anchor book. The company mopped up around Rs 2,396 crore from more than 90 anchor investors by selling 2.129 crore shares at the upper end of its IPO price band of Rs 1,085-1,125 apiece.

As many as 21 mutual funds applied for Nykaa shares in the anchor book, accounting for one-third of the total amount.

Several local insurance companies and a wide range of overseas institutions also came in as anchor investors. These include sovereign wealth funds GIC and Abu Dhabi Investment Authority; Canadian pension funds CPPIB, CDPQ and Ontario Teachers’ Pension Plan; and New York-based Tiger Global.

Other foreign institutions that made anchor investors include BlackRock, Fidelity, JP Morgan, Invesco, Morgan Stanley, Goldman Sachs, Nomura and BNP Paribas.

Nykaa intends to raise as much as Rs 630 crore through a fresh issue of shares. The IPO also includes an offer for sale of 4.19 crore shares by a promoter group entity and some of the company’s existing investors.

The overall IPO size is about Rs 5,350 crore. The IPO closes on November 1.

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Closing Bell: Worst fall in six months, Sensex sinks by 1158 points, Nifty ends down by 1.9%

Closing Bell: Worst fall in six months, Sensex sinks by 1158 points, Nifty ends down by 1.9%
by 5paisa Research Team 28/10/2021

Indian markets suffered their worst single-day loss in the last six months.

Domestic benchmark indices fell sharply on Thursday, October 28 posting their worst single-day performance since April 12, 2021. The below-than-anticipated September quarter corporate earnings, continuous selling of Indian equities by foreign institutional investors amid heightened volatility due to monthly expiry of October future and option contracts impacted the investors' sentiment. During today's trading session, the Sensex fell as much as 1,366 points and the Nifty 50 index was down below its important 17,800 level, falling as much as 411 points.

At the closing bell on Thursday, the Sensex was down 1,158.63 points or 1.89% at 59,984.70, and the Nifty was down 353.70 points or 1.94% at 17,857.30. On the advance-decline of shares, around 887 shares have advanced, 2313 shares declined, and 116 shares are unchanged.

The top Nifty losers of the day were Adani Ports, ITC, ONGC, ICICI Bank and Kotak Mahindra Bank. Top gainers included IndusInd Bank, L&T, UltraTech Cement, Asian Paints and Shree Cements.

All sectors ended in the red today, with the Metal index plummeting most around 3.5% followed by Nifty Bank and Realty which were down by 3%. Other contributors to the market decline were Pharma, Media and Financial service.

Data from National Securities Depository Limited showed that foreign portfolio investors have so far this month sold shares worth Rs 9,295.78 crore in Indian markets.

In today's bloodbath, market heavyweight's such as ICICI Bank, Coal India, Axis Bank, Cipla, Tata Motors and HDFC Bank were each down between 3-4%, while SBI, Titan, NTPC, Hindalco, Tech Mahindra, JSW Steel, Eicher Motor, Wipro, Tata Steel, Power Grid, and HCL Tech were down between 2-3% at the closing bell.

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Marico Q2 profit rises but margins shrink on higher input costs

by 5paisa Research Team 28/10/2021

Fast-moving consumer goods maker Marico Ltd on Thursday reported higher consolidated net profit for the second quarter from a year earlier, but its earnings margin narrowed due to a sharp increase in input costs.

The maker of Parachute coconut hair oil and Saffola cooking oil posted a net profit of Rs 316 crore for the July-September period, compared with Rs 273 crore a year earlier.

However, second-quarter profit fell from the preceding three months; the company had posted a profit of Rs 365 crore during the April-June period, despite the country grappling with a severe second wave of Covid-19.

The company’s revenue from operations increased 22% to Rs 2,419 crore for the second quarter from Rs 1,989 crore a year earlier. But this was lower than the first quarter’s figure of Rs 2,525 crore.

Total expenses rose to Rs 2,039 crore from Rs 1,641 crore, led by a 35% increase in material costs to Rs 1,345 crore from Rs 1,010 crore a year earlier.

Marico’s shares fell 2.46% on Thursday to close at Rs 561 apiece in a Mumbai market that fell 1.9%. The shares have fallen about 7.4% since touching a one-year high on October 18.

Marico Q2: Other highlights

1) EBITDA increased 9% to Rs 423 crore from 389 crore a year earlier.

2) The EBITDA margin narrowed to 17.5% from 19.6% in the year-ago period.

3) International business recorded turnover of Rs 549 crore, up 13% on constant currency basis.

4) India business delivered revenue of Rs 1,870 crore, up 24% on a YoY basis. Volume growth was 8%.

5) Gross margin improved sequentially by 140 basis points, but was down 560 bps YoY as edible oil and crude oil prices remained high.

Marico commentary and outlook

The company said that, with more than 90% of its portfolio comprising daily-use items, it witnessed healthy demand trends across these categories while discretionary and out-of-home consumption also picked up to some extent.

Rural growth exceeded urban during the quarter but has slowed down sequentially. In the International business, it witnessed a steady quarter in all markets, except Vietnam, which was battling a severe Covid-19 surge.

Marico said the operating margin in the India business fell to 17.8% in Q2 from 20.6% a year earlier owing to sharp input cost pressure, which was only partly alleviated by pricing interventions in key portfolios and cost rationalization measures.

The premium personal care portfolio, comprising premium hair nourishment and male grooming products, had its best quarter since the onset of the pandemic. Livon Serums clocked double-digit growth over pre-Covid run rates. The male grooming portfolio grew in double digits, but still short of pre-Covid levels, Marico said.

The company said that since pace of rural growth has moderated despite normal monsoons and continued government stimulus, some degree of caution in the near-term growth outlook is warranted.

“In the current scenario, we expect to deliver double-digit revenue growth in the domestic business on the back of mid-single digit volume growth in H2,” it said. “However, we believe high-single digit volume growth is possible in Q4, if consumption trends do not worsen.”

Marico expects gross margin to improve sequentially in Q3 and Q4. However, it expects an improvement in operating margins to play out only in Q4, given that ad spends will rise from Q3 itself and a large part of the benefits of a second round of cost rationalization measures will start accruing in Q4.

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Top 4 stocks trading near short-term support levels

Top 4 stocks trading near short-term support levels
by 5paisa Research Team 28/10/2021

One of the most basic and crucial part of technical analysis is support and resistance. Here are the top 4 stocks that are trading near their short-term support levels.

When it comes to analyzing a stock based on technical analysis, one of the most fundamental and crucial things is understanding the support and resistance levels. Now, why is it important to look at support and resistance levels? Studying support and resistance levels ideally help you understand the probable level where the price is likely to move in the opposite direction.

So, does it mean that each time when a stock reaches such levels, it would turn back? No, there would be times when the stock might have gathered the strength to break these support and resistance levels. Breaching of such levels ideally mean that the trend is likely to continue in the direction it has breached.

Hence, it is quite important to understand support and resistance levels as it would help you make decisions on short-term trades or would alert you for swing trades. Now the most likely question here would be, how to identify these support and resistance levels? Although technical analysis seems objective in nature, it has got a lot of subjective as well.

Analysing support and resistance level is quite subjective. However, the most basic is to find a level where the stock failed to breach the level maximum number of times. Moving averages are also one of the ways to understand support levels. Many also use Fibonacci retracement and extension for deciding support and resistance levels.

Having said that, here is the list of the top four stocks that are presently trading near their support levels. You should monitor the price action of stock at these levels. This will help you take better entry and exit decisions.

Stocks 

Last Traded Price (Rs) 

Time Frame 

50 Period EMA (Rs) 

Support Level (Rs) 

Hindustan Unilever Ltd. 

2,389.7 

Weekly 

2,401.2 

2,368.0 

Bajaj Auto Ltd. 

3,700.7 

Weekly 

3,648.9 

3,647.2 

Power Grid Corporation of India Ltd. 

185.9 

Daily 

185.0 

185.3 

HDFC Bank Ltd. 

1,593.6 

Daily 

1,596.0 

1,587.2 

 

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Penny Stock Update: These stocks gained up to 11.11% on Thursday

Penny Stock Update: These stocks gained up to 11.11% on Thursday
by 5paisa Research Team 28/10/2021

On Thursday equity market closed down in red. BSE CAPITAL GOODS is the top gainer while BSE Realty index is the top loser in today’s trade.

On the monthly expiry day, frontline indices saw a huge fall. The market never recovered from its initial losses and closed at its lowest point of trade. In today’s trade Indian equity market was volatile, some sectoral indices closed up in green whereas some indices closed down in red.

Nifty 50 and BSE Sensex are down by 353.70 points i.e., 1.94% and 1,158.63 points i.e., 1.89% in today’s trade. Stocks pulling the BSE Sensex index up are Larsen & Toubro, Asian Paints, IndusInd Bank, UltraTechCement and Bajaj Finance. Whereas, stocks that dragged the BSE Sensex down are ICICI Bank, HDFC Bank, Kotak Mahindra, Reliance Industries and ITC. Moreover, stocks pulling Nifty 50 up are the same as BSE Sensex stocks and Shree Cements. While, Stocks pulling Nifty 50 down are ICICI Bank, HDFC Bank, Adani Ports, ITC and Reliance.

In today’s trade, only S&P BSE CAPITAL GOODS Index remained the sole gainer which closed up positive. BSE CAPITAL GOODS index consisting of stocks such as ABB India Ltd, V Guard Industries Ltd, Finolex Cables Ltd and SKF India Ltd are top gainers up by 6.63%.

Today most of the indices closed in red mark among which top losers are S&P BSE Realty, S&P BSE BANKEX, S&P BSE Power and S&P BSE Utilities Index. BSE Realty index that consists of stocks such as Brigade Enterprises Ltd, Indiabulls Real Estate Ltd, Godrej Properties Ltd and Oberoi Realty Ltd are top losers, shedding up to 4.95%.

Here is the list of penny stock that gained up to 12% on a closing basis on Thursday, 28th October 2021:

Sr No.      

Stock      

LTP       

Price Gain%      

1.      

JIK Industries Ltd  

0.50  

11.11  

2.      

Premier Ltd  

4.20  

5.00  

3.      

Ankit Metal & Power Ltd  

4.25  

4.94  

4.      

 
Jyoti Structures Ltd  

19.15  

4.93  

5.      

Rohit Ferro-Tech Ltd  

17.05  

4.92  

6.      

Sintex Industries Ltd  

5.35  

4.90  

7.      

Cinevista Ltd  

15.10  

4.86  

8.      

VIP Clothing Ltd  

17.30  

4.85  

9.      

Surana Telecom and Power Ltd  

9.75  

4.84  

10.      

Andhra Cements Ltd  

19.60  

4.81  

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