Have you ever noticed that the Indian stock market seems to do better in December? It feels like the markets catch the holiday spirit! This special trend is called the December Effect, and it has been discussed by investors for a long time. Let’s explore why December is often a great month for the stock market, look at past trends, and learn what makes this month so special.
Author: Supriya Jena
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PC Jeweller Stock Soars 5% After Major 1:10 Split Announcement!
PC Jeweller’s shares jumped to their maximum allowed increase of 5%, reaching Rs 19.25 in early trading. This rise is due to a recent stock split, where each existing share worth Rs 10 is being split into ten shares, with each now valued at just Re 1. This change is set to take effect on December 16, 2024.
The company made this announcement after their Board of Directors held a vote on November 28, 2024. This is the first time PC Jeweller is doing a stock split, which is a way to make the stock cheaper and more available for everyday investors. In simpler terms, splitting shares helps more people buy them and can lead to more trading activity.
In the last year, shares of PC Jeweller have skyrocketed, offering amazing returns of 477% and 272% over various periods. In just six months, they have increased by 236.6%, showcasing the company’s strong performance.
Why Do Companies Split Their Shares?
When a company splits its shares, it usually wants to attract more investors by making its stock more affordable. This can help improve market trading and is often viewed as a sign of a company’s future growth. Overall, it’s a positive signal for investors and can increase excitement around the stock.
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India and China: Strengthening Their Bond in a Changing World
India and China have always said their friendship isn’t influenced by outside factors. However, history shows that the global environment deeply affects how these two countries interact. Since the 1950s, their relationship has gone through different phases: peaceful times, tension, friendly competition, and sometimes even collaboration.
In past times of uncertainty, both countries have worked to keep their relationship stable despite ongoing disagreements. For example, in the early 1950s, both nations aimed to manage the growing tension of the Cold War to ensure peace in Asia. Another crucial moment was after the Cold War ended in 1989, where they worked to ease previous tensions and normalize relations.
Now, we are in another significant period of change in the world. We are witnessing a shift from a world dominated by one power (the US) to a multipolar world where many countries, including India and China, hold significant influence. This shift creates new opportunities for the two countries to cooperate, especially in shaping what this new world will look like.
While other regions, like Europe and the Middle East, face conflicts, the relationship between India and China remains relatively stable. Leaders Xi Jinping of China and Narendra Modi of India seek to strengthen ties not just to avoid conflict but also to help shape a new international order that includes more voices and ideas from countries outside the West.
In the past, both countries benefited from a global order set up by the US, which helped their economies grow. However, recent political changes in the US and the West indicate that they may no longer play as strong of a role in global affairs. Both India and China need to adapt and can no longer rely on the old system to meet their needs.
Moreover, globalization is facing challenges. Many countries, including India, want a more balanced and fair economic system that doesn’t allow any one country to dominate. They seek better opportunities for growth, trade, and shared benefits without interference from powerful nations.
This is especially important for India, which wants to modernize its industries and collaborate with China and other economies. For this to happen, a new, inclusive economic order needs to be developed through cooperation between different nations.
The BRICS+ group is currently showing promise as an institution to help build this new framework. Unlike the US, India and China cannot step back; they must play a significant role in creating a fair and connected multipolar world.
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NTA Will Only Conduct College Entrance Exams Starting 2025!
Starting in 2025, the National Testing Agency (NTA) will stop holding tests for job recruitment and will only focus on entrance exams for colleges and universities. Union Education Minister Dharmendra Pradhan announced this change due to problems like exam leaks and cancellations of previous tests.
The NTA is talking with the Health Ministry about whether medical entrance exams will be done on paper or through computers. The Common University Entrance Test (CUET) for undergraduate students will still happen once a year.
Pradhan also shared that the NTA will change its structure in 2025. They plan to create at least ten new jobs and make many updates so that every test is done without any mistakes. New technology may be used to make exams more effective and easier in the future.
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ITC Hotels to Split from ITC Limited by January 2025″
Kolkata-based ITC, a big company with many businesses, announced that it will officially split its hotel services into a new company called ITC Hotels starting January 1, 2025. Earlier this month, a court in Kolkata agreed to this separation. The new company will be ready after all required documents are submitted to the local government office in West Bengal and all other rules are followed. Stay tuned for more updates!
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SBI Clerk Recruitment 2024: Apply for 13,735 Junior Associate Jobs
The State Bank of India (SBI) is looking to hire new Junior Associates for the year 2024! A total of 13,735 jobs are available for those who want to work at SBI. This is a great opportunity for anyone interested in starting a career in banking.
Who Can Apply?
– Candidates should be at least 20 years old and not older than 28 years.
– You need to have a degree from a recognized university.
– Good communication skills are a plus!How to Apply:
– You can apply online through the SBI official website. Just fill out the application form and pay the fee. Make sure to check all the rules before you apply.Important Dates:
– The application process starts on [insert start date] and ends on [insert end date]. Don’t miss your chance!What’s Next?
After applying, you will need to take a test. If you do well, you could be selected for an interview!Don’t wait too long! Gather your documents and get ready to apply. This could be your chance to join one of the biggest banks in India!
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Varun Beverages Acquires Lunarmech: Stock Rises, Profits Surge!”
Shares of Varun Beverages, the bottling partner for PepsiCo, rose by 1.7% to Rs 657 on the BSE after they announced an important purchase. The company has officially bought 39.93% of Lunarmech, making it a fully owned part of Varun Beverages.
In a report released on December 16, 2024, Varun Beverages confirmed that they completed this deal around 1:47 PM IST. They had announced the plan to buy this stake back on November 12, 2024, when their board approved a share purchase agreement for Rs 200 crore (which is about 2,000 million rupees).
Previously, they had moved to acquire the remaining shares of Lunarmech Technologies, which is now completely owned by them. At a recent board meeting that lasted from 4:45 PM to 5:20 PM, they discussed and approved this share purchase deal.
In more good news, Varun Beverages reported a significant increase in profits. Their net profit grew by 22.3% to Rs 628.83 crore in the third quarter that ended in September 2024. Their revenue also jumped by 24.1% to Rs 4,804.68 crore in the same period.
Overall, Varun Beverages’ shares have increased by 48% over the last year and by 31% just this year, showing strong growth in the market.
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Reliance Industries Struggles in 2024: Future Challenges and IPO Plans
2024 hasn’t been a good year for Reliance Industries (RIL). People are worried because RIL’s shares are likely to end the year with losses, which hasn’t happened in almost ten years. The company’s value dropped by more than Rs 4.4 lakh crore since it peaked in July, with shares falling about 21% from their highest point of Rs 1,608.95.
In the past, RIL had great years, like a 70.55% return in 2017. But things slowed down in 2021 with just 19.32%, and it got worse: 7.60% in 2022 and only 1.44% last year. This year looks even worse due to slow earnings impacted by a tough economy.
Challenges for Reliance Retail
Reliance Retail (RR) also faced many problems this year, especially in the fashion sector. The company needed to close 1,185 stores and isn’t making enough money, even though more people are visiting the stores. Competition from quick delivery companies has made it harder for RR.
However, analysts like Jefferies believe RR remains a strong player and should focus on better opportunities to attract more investors. They still recommend RIL as a good investment with a target price of Rs 1,700.
What’s Next for RIL?
Another brokerage, JPMorgan, says RIL looks good compared to other high-priced stocks. To boost its shares, RIL needs better earnings, especially from its retail branch. Since RR is valued less than its competitors like DMart, any rise in its value could help RIL’s stock price.
RIL’s growth used to come from investing in refineries and chemicals, but now, RR and Telecom bring in about half of RIL’s profits. RIL is expected to make positive cash flow in the future and aims to keep its debts low.
Mukesh Ambani, once worth $120.8 billion, sees his wealth fall to about $96.7 billion. He is now focusing on digital services, retail brands, and green energy for future growth.
Future IPOs
Ambani plans to list Jio on the stock market in 2025, which could be worth over $100 billion. However, an IPO for the retail section may come later, depending on how the company handles its internal problems.
Despite facing many challenges in the retail market, Reliance is still moving forward with plans like a partnership with Walt Disney for a big media company in India and working with Nvidia to build AI technology. RIL remains valuable, but the oil sector problems have affected its stock prices
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Vijay Diwas Controversy: India and Bangladesh Clash Over History
On December 16, which is known as Vijay Diwas in India, Prime Minister Narendra Modi made a social media post that upset some people in Bangladesh. This day celebrates the contributions of Indian soldiers in helping Bangladesh gain independence in 1971.
Bangladesh’s law advisor, Asif Nazrul, disagreed with Modi’s post. He pointed out that December 16 is actually Bangladesh’s Victory Day. Nazrul stated on Facebook that while India supported Bangladesh during the war, it was ultimately Bangladesh’s victory. He said, “I strongly protest. December 16, 1971, was the Victory Day of Bangladesh. India was an ally of this victory, nothing more.”
In his post, Modi honored the bravery of the soldiers, saying, “Today, on Vijay Diwas, we honor the courage and sacrifices of the brave soldiers who contributed to India’s historic victory in 1971.” He praised their dedication, saying their actions brought honor to India and will inspire future generations.
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Vedanta’s Rs 8.5 Dividend Announcement: Key Highlights and Insights
Vedanta, a major company, is making headlines as its board has approved a new dividend of Rs 8.5 per share for the financial year 2024-2025. This means that the total payout will be around Rs 3,324 crore! The date for shareholders to qualify for this dividend is set for December 24, 2024.
On Monday, Vedanta’s share price closed at Rs 513.50 on the NSE, which was a drop of Rs 6 or 1.15% from the last trading day. So far in the financial year 2025, Vedanta has given out a dividend totaling Rs 35 per share. Over the past year, this adds up to Rs 46 per share in total dividends.
The last time Vedanta paid a dividend was Rs 20 per share on September 10, 2024. This followed dividends of Rs 4 on August 2, 2024, and Rs 11 on May 24, 2024.
In its latest financial report, Vedanta announced a profit of Rs 5,603 crore for the three months ending in September 2024. This is a huge improvement compared to a loss of Rs 915 crore during the same time last year! However, their revenue decreased by 4% year-on-year, totaling Rs 37,171 crore, down from Rs 38,546 crore last year.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for this period were Rs 9,828 crore, with profit margins at 26.1%. Vedanta also achieved record-high aluminum production of 609 kilotonnes in the second quarter, which is a 3% increase from last year. The cost of producing aluminum fell by 4% to $1,734 per tonne, while alumina production rose by 8% to 499 kilotonnes.
Arun Misra, the Executive Director of Vedanta, said that the second half of this year will be exciting as important growth projects are getting ready to start.