Nifty50: 18,755 ▼ 70 (-0.3%)
Sensex: 63,168 ▼ 216 (-0.3%)
Namaste, friends !
Vending machines in South Korea have now got the Midas touch. Along with snacks and beverages, they also dispense gold bars! And there’s five different sizes to choose from. If you, too, are interested in buying gold, the latest tranche of Sovereign Gold Bonds opened for subscription today. Keep reading to know more.
- After a positive start, benchmark indices drifted downwards and ended lower on weak global cues
- In all, 36 of the Nifty50 stocks closed in the red
- Major global indices traded lower as investors awaits US Fed Chair, Jerome Powell’s testimony
Among the Nifty sectoral indices, PSU Bank (+0.9%) and IT (+0.4%) were the top gainers, while Media (-0.8%) and Realty (-0.7%) were the top losers.
| Top gainers | Today's change |
| HDFC Life | 628 ▲ 18 (+3.0%) |
| Bajaj Finance | 7,368 ▲ 164 (+2.2%) |
| Tech Mahindra | 1,093 ▲ 16 (+1.5%) |
| Top losers | Today's change |
| Adani Enterprises | 2,411 ▼ 98 (-3.9%) |
| Hero MotoCorp | 2,782 ▼ 49 (-1.7%) |
| Kotak Bank | 1,825 ▼ 32 (-1.7%) |
What’s trending
⭐ Mid and small-cap indices at new high
The Nifty Midcap 100 and Nifty Smallcap 100 indices touched new 52-week highs today amid a fall in the broader markets. So far this year, the Nifty Midcap 100 (+11.5%) and Nifty Smallcap 100 (+10.6%) index have outperformed the Nifty50 index (+3.5%), supported by a better domestic macroeconomic outlook and rising investment from mutual funds.
⭐ Grasim begins work on a CPVC resin plant
Grasim Industries has begun work to set up a chlorinated polyvinyl chloride (CPVC) resin plant with a capacity of 1 lakh metric tonnes in Gujarat. CPVC is used across different industries for water pipes and for handling industrial liquids. The new plant is being set up in partnership with Lubrizol Manufacturing India.
⭐ Skipper soars and bags fresh orders
Shares of the heavy electric equipment company Skipper soared 15% to hit a 52-week high, after the company announced it has bagged fresh orders worth ₹1,135 crore from the domestic and international market. As on 31 March 2023, Skipper had an order book of ₹4,551 crore, of which 20% consisted of exports and 80% were domestic orders.
⭐ Som Distilleries rises on capacity expansion
Shares of the alcoholic beverages maker jumped 5% intraday after the company commenced trial production with enhanced capacity at its Odisha Plant. The commercial production is expected to start next month. Last week, the company announced that its market share in Karnataka has grown to 20.1% in May 2023, from a mere 3.3% in FY20.
In Focus
First tranche of Sovereign Gold Bonds opens for subscription!
Investing in gold is considered a good avenue for an investor’s wealth preservation and portfolio diversification. Investors now have multiple ways of investing in gold, ranging from purchasing physical gold to buying digital gold. Sovereign Gold Bonds (SGB) are one such way to invest in gold.
What are Sovereign Gold Bonds (SGBs)?
SGBs are government-backed securities that are denominated in grams of gold. These bonds are issued by the Reserve Bank of India on behalf of the Government of India. Investors can own SGBs without the risk of theft, storage problems and making charges.
The latest series of Sovereign Gold Bonds (SGB) opened for subscription today. Here is what you need to know:
Subscription date and issue price
SGBs will be available for subscription from Monday, 19 June 2023 to Friday, 23 June 2023. The issue price for these bonds is set at ₹5,926 per gram. There is a discount of ₹50 per gram for those investors who subscribe and pay through digital modes, bringing the effective price to ₹5,876 per gram.
Interest on SGB investment
One of the key advantages of SGBs over other forms of gold is the interest payment for holding bonds. Investors get 2.5% interest on investment, which is payable semi-annually. Besides this, investors also benefit from capital appreciation on gold prices.
Eligibility and tenor
SGBs have a maturity of eight years, but exit options are available from the fifth year onwards. Indian resident individuals, HUFs, Trusts, Universities and Charitable Institutions are eligible to apply. Minimum investment is one gram. Investors can apply for SGBs in multiples of one gram. For individual investors, the maximum limit of subscription is four kilograms.
Tax treatment
Interest on SGB is taxed as per the individual's tax slab. In addition, there is no capital gains tax on redemption of these bonds. However, selling SGBs in the secondary market before maturity invites tax at the rate of 20% on capital gains arising on such transactions. Indexation benefits are available if the SGBs are sold after three years.
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