May 10, 2021 10:57 AM
Purposes of the Stock Market, Capital and Investment Income, Domestic stock markets started the week with gains. At 9:28 am on Monday, the Sensex was up 360 points at 49,566. The Nifty gained 117 points to trade at 14,940. The rupee continued to trade at Rs 73.31 against the dollar. U.S. markets closed with gains on Friday.
Asian markets are moving positively today. The center also clarified last week that there would be no nationwide lockdown. Foreign exchange reserves have risen sharply. These developments support the movements of the indexes.
Purposes of the Stock Market, Capital and Investment Income, However, investors are likely to remain vigilant in the wake of rising corona cases in the country on a large scale, lockdowns in the majority states and cuts by international companies in India’s GDP estimates.
Only Infosys and Ultratech are losing ground in the Sensex 30 index. Dr Reddy’s Labs, ONGC, Kotak Mahindra Bank, NTPC, HDFC, IndusInd Bank and ICICI Bank were among the gainers. Today Artemis Medicare Services, Chambal Fertilizers and Chemicals, HFCL, HSIL and Nutricircle will release their quarterly results.
The stock market serves two very important purposes. The first is to provide capital to companies that they can use to fund and expand their businesses. If a company issues one million shares of stock that initially sell for $10 a share, then that provides the company with $10 million of capital that it can use to grow its business.
Minus whatever fees the company pays for an investment bank to manage the stock offering. By offering stock shares instead of borrowing the capital needed for expansion, the company avoids incurring debt and paying interest charges on that debt.