Market in red but condom-maker Cupid jumps 15%: Know why
What's the story
Sexual wellness brand Cupid's share price surged by a whopping 15% despite a broader stock market crash today. The small-cap company announced a bonus issue in the ratio of 4:1, meaning shareholders will get four additional shares for each share they own as of today's record date. The company's announcement read that the deemed date of allotment would be next working day i.e. Tuesday, March 10.
Investor benefit
What are bonus shares?
Bonus shares are extra shares given by a company to its existing shareholders at no cost, usually from its retained earnings. This is done as a way of rewarding investors. For example, if you own 1,000 shares of Cupid, you'd get an additional 4,000 bonus shares with the 4:1 ratio distribution. This would take your total shareholding to 5,000 after the bonus issue. At the time of writing, the stock was trading at ₹90.5, up by 12.5%.
Market impact
Nifty, Sensex record steep fall on Monday
The key domestic stock indices, Nifty 50 and Sensex, fell on Monday. The Sensex plummeted by nearly 2,400 points to 76,424 while the Nifty50 fell by over 700 points to 23,750. The fall was attributed to rising crude oil prices, which are seen as a potential strain on the South Asian nation's economy. This has raised concerns about growth and inflation while increasing import costs for the world's third-largest oil importer.