Help_Small_Investors: Market News
    • Showing posts with label Market News. Show all posts
    Showing posts with label Market News. Show all posts

    Sunday, 25 October 2020

    Vedanta Dividend Per Share

    October 25, 2020 0
    Vedanta Dividend Per Share

      



    Stock: Vedanta 
    Dividend Announcement on VDL:

    The director of VDL has approved an interim dividend of  Rs.9 / share for the financial year of 2020-2021 amounting to Rs 3500 Crores.

    As of now, the record date is set to be 31st of October 2020. Which means only those stocks holder will be eligible for the dividend who brought the stock before  31st of October 2020.

    My advice to all the investors who are interested to buy the Stock for the dividend to buy before or by 28th Oct 2020.Because it takes 2 trading days for the stocks to show in the Demat account. So by end buying by 28th Oct, we can rest ensure that we would not miss the Dividend.

    The Board of Directors informed about the interim dividend to everyone through a circular.

    This is really good news coming from the BOD as the delisting matter does fell as expected so  the disappointed Invested would  definitely feel good with this news

    A dividend of Rs 9 is definitely a whooping amount as many of us are holding a good number of shares.

    Just for example if someone is holding  100 shares of VDL. They can easily earn up to Rs900.

    They also confirmed that the delisting a kind of deemed failure, they also put forward some reason as follows: 

    "A large number of unconfirmed bids and some technical glitches in the tender process are likely to have contributed to the failure".

    Currently, the price of the stock is trading at 104.75, still, with a week to go, I am expecting the stock to move a little.

    Currently, the stock is trading above its 20 days SMA.

    If one wants to look into history In the year 2015 Oct VDL announced a dividend in terms of the capital amount was again Rs3500 the Stock was trading at Rs.101 and the stock took some beating and went down up to Rs 68 before it went up to Rs.350  in Jan 2018.

    The bottom line is that the market might take the price up however I expecting the price to come down again after 31 st Oct 20. Before it again catches the fire. 
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    Monday, 12 October 2020

    My view on Vedanta's Delisting

    October 12, 2020 0
    My view on Vedanta's Delisting

    Stock: Vedanta(VDL)



    Hello Everyone, Today we are going to discuss my view on the Delisting of Vedanta, 

    The benefits and things one needs to do.

    In order for the Delisting to happen the promoter should acquire at least 90% stakes, currently, the promoters are holding only 50%. So they need another  40 % to do delisting

    A large number of share are held by MF 

    So the retailer's role in the delisting is very limited.

    The delisting is entirely dependent on the big gun HDFC(MF) which acquires almost 6.50% of total stakes so if they are not showing interest in delisting then delisting would not happen.

    The simple answer to your question is If you are in profits then better to sell it. Because the stock may come down to 80–90 levels again. So in case if you brought at those levels and the market is giving to a good price then why to wait for delisting such sell it because the Metal sector is not doing well leaving VDL and understand it went up such because of Delisting news and if that does not happen then we might see VDL trading below 80 levels. 


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    Tuesday, 25 August 2020

    News on Lupin

    August 25, 2020 0
    News on Lupin


    Stock: Lupin

    Some good news flowing in Lupin, Co Receives USFDA  approval for Generic AlbuterolSulphate MDI.

    Currently, the stock is trading at the support of 967..Expected to open at least 5-8% upon opening.

    Should go up to 1090 with this news once it crosses 1100, one can expect a target up to 1190.
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    Thursday, 6 August 2020

    No Repo Rate Cut by RBI -

    August 06, 2020 0
    No Repo Rate Cut by RBI -

    Key Features of RBI Policy:

    RBI announces Rs 10,000 cr special liquidity facility for Nabard, NHB

     Reserve Bank of India (RBI) Governor Shaktikanta Das on August 6 announced a more liquidity facility of around Rs 10,000 crore for NABARD and National Housing Bank.
    RBI's Chairman Das said the additional funding will help NBFCs and the housing sector tide over the liquidity crisis.
    Inflation Outlook:
    According to RBI, the most favorable food inflation outlook might emerge on good farm produce. MPC expects inflation to go up in  Q2 2021 and projects retail inflation to remain elevated in Q2.
    GDP Growth:
    Reserve Bank of India (RBI) expects FY21 real GDP growth to remain in the "-ve" zone in the 1st half & overall FY21 hence feels the space for further monetary policy action is available but would be advisable to be judicious.
    RBI Meet Outcome: Like we said earlier about the Repo Rate. No changes were done on RR It remains unchanged at 4 percent and the Reverse Repo Rate unchanged at 3.35 percent.   Monetary Policy Committee has maintained the accommodative stance and kept the MSF rate, Bank rate unchanged at 4.25%.
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    Will RBI going to Cut the Rate's ?

    August 06, 2020 0
    Will RBI going to Cut the Rate's ?

    RBI likely to cut rates despite inflation risk: 

    Reviving growth by boosting demand could take precedence over the inflation target.

    Our economy is going through a  worse phase and might continue in the coming months. As coronavirus numbers are getting wider and wider because of it people are expecting a rate cut. However, we do not think so.

    About 15-20%  of economists in a Reuters poll expect the Reserve Bank of India (RBI) to cut the repo rate by another 25 basis points (bps) on Aug. 6  and some more Repo Cut can be expected in the next quarters.

    “High inflation has added more confusion in the minds of  Reserve Bank's, but given the state of aggregate demand, we forecast the RBI will continue easing,” said Rahul Bajoria, an economist at Barclays who expects a 25-bp cut.

    Annual retail inflation increased in June to 6.09% from 5.84% in March, remaining above the RBI's medium-term target range of 2%-6%.

    In recent times the RBI's policies have focused on financial stability and the need to support growth despite the price target.

    The country was under one of the strictest lockdowns in the world starting from March for over two months to stop the spread of the coronavirus. The government gradually eased restrictions in June, July, and some relief in Aug although infections continue to rise.

    As per the poll results, analysts are thinking that the economy to contract by 20% in the June quarter versus the April forecast of a 5.2% fall and remain in negative terrain until the December quarter.

    For this fiscal year, the economy is likely to fall up to 5.1%, which would be its weakest performance in the last 40 years, a sharp contrast to the 1.5% expansion forecast in April. Which is something already expected because of lockdown in the entire country.

    Leaving the rate cuts apart,  some economists are expecting RBI to focus on liquidity and regulatory measures to address demand shocks and financial market dislocations.

    “RBI may think of widening the policy corridor to 75 bps by easing reverse repo by a higher quantum,” she said, adding that though they expect a 25-bp rate cut, it may not be effective in the current environment.

    In this year the RBI has already reduced the repo rate by a total of 115 basis points since February, on top of the 135 basis points in an easing cycle last year, from 6.50%, forecasting the slowing growth.

    There are A few economists, who feels it may be prudent for the RBI to pause in August before resuming its rate-cutting cycle once inflation has stabilized.

    As per the DBS economist, Radhika RaoWeakness in growth versus above-target inflation, improving indicators, and concerns over inflation expectations will put the RBI in a tough spot.

    “It will be a  very close call,.” The talks will go aside in the next few hours as the RBI policies are going to announced. I believe everyone is at the edge of their seats.
    I  do not think RBI is going to do many changes. However, never know let's wait and watch.
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    Saturday, 1 August 2020

    SEBI's Circular On T+2 Margin Trading

    August 01, 2020 0
    SEBI's Circular On T+2 Margin Trading

                                                SEBI 's Circular on T+2  Trading.


    Today we are going to discuss how the new margin circular from SEBI is going to affect the Retailers.

    Until yesterday  the trading in the  Stock Market is broadly divided   into the following categories

                                                         1. Intraday

                                                         2. Delivery base buying

                                                                a. Buy today Sell Tomorrow

                                                          .3.Sell today Buy tomorrow

                                                          4. Future And Options

    Now, let us try to understand how the new margin policy  is going to affect these Segment

    Intraday:  Now most people in the market do trading especially in the Intraday ..Where one needs to sell or buy a stock on the same day and needs to exit their positions by the end of the day. Normally the timings are from 9:15 - 3:15. With the new policy, I really do not see any change to it.

    Delivery base buying:  Here in DBB  One buy's stock and holds it for a period to earn good returns and on another hand, some people want to trade as per speculation i.e they buy stocks on news and sell on the confirmation.  Normally this type of trading takes place before a day of results or on any big announcement. At times people would prefer doing exactly the opposite of the above one ..where one sell's a stock today and buy it tomorrow.

    Now with the latest Circular from SEBI, that option is completely taken off from the market as one who buys a stock needs to wait at least 2 working days or until the stock is deposited into their Demat account before they take a sell call.

    Let's understand this with an example:
    Ramesh brought 100 Stocks of Reliance in the market today and wants to sell it tomorrow before the 1st of August 2020 this was possible however now he can not sell it tomorrow, he has to wait T+2 days before putting a sell order in the market.

    Same way when someone Sell a stock also needs to wait until the complete amount appears in the trading account.

    In short, both the BTST and STBT options are now going to be a part of History now.

    The future and Options segment is still going to remain the same.

    Conclusion: With this new SEBI Circular the retailers are mostly getting affected as they have to wait at least 2  business days from the time they sold or brought back the stocks. On the other end, even someone wants to sell the holding at a good profit and invest the returns in other good stocks as the Stock Value of the other stock seems to be attracting can not do that on the same day the day he sold his holding.

    The other Team that would badly get affected are the brokers who have no online platform, where one needs to do trading with them only by calling them for placing the orders.

    According to me, this Policy gives more inconvenience than comfort to the traders.
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    Tuesday, 28 July 2020

    SEBI Circular on Intraday Margin Trading

    July 28, 2020 0
    SEBI Circular on Intraday Margin Trading


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    SEBI New Margin Circular Affect On Market (Starting mostly from Dec -2020)




     Impact of SEBI circular on Margin:

    In recent days SEBI has released a new Circular in regards to Margin positions.

    The new changes will take place mostly from 1st December 2020.

    Many people have some questions in their minds.
    Some of the question which I made a note are as follows:




     Will this be an End to Intraday
    OR
    Will this be an End to Super Leverages
    OR
    Will this be an End to the Discount Broker firm itself.

    Now let talk about each one of them.

    Firstly Intraday trading would not be ended,however, it is the most likely thing that would get affected.

    Yes, Leverage's may not be the same till now one use to get astounding leverage of 30- 40 times will be getting 4-5 times at most.

    Broker Firm which is running the business in the Leverages now they need to work on the facility and quality of the services  otherwise other firms or to some extend standard broker firm's will be benefited.

    Now let''s try to understand what is " VAR " and "ELM" because now everything is going revolve around these two variables which vary from stock to stock.

    VAR + ELM

    VAR: VAR is an abbreviation for Value at Risk, a financial term that is used to measure the risk of loss on a portfolio of investments.


    ELM: Extreme loss margin.


     Let's try to understand how this going to affect the real market with an example.

     Case: XYZ Stock

    Now let us assume a person “A” has 10,000 Rs. Started trading with a Broker who provides him a margin of 40 times leverage. Because of Which he can buy a lot within his investment amount. Which is Rs.10,000. Now with the SEBI rule, he needs to pay “ VAR + ELM “ Which could be around 25,000. So get ready to pay 3 times what you paying now to buy a lot of stock in an intraday.



    Since we understood how it affects the Intraday traders. Now let's see what the broker firm needs to do and if they fail what happens?



    The SEBI is thinking of implementing this on a quarterly basis.



                                                                 Case1: December - Feb

    If the broker does not collect 25% of Var + ELM upfront from the client then pays a penalty.
    Case 2: Feb-April  
    If the broker do not collect 50% of Var + ELM upfront from the client then pays a penalty 
     Case 3: April-June
    If the broker do not collect 75% of Var + ELM upfront from the client then pays a penalty
     From SEP 2021 
    Fully implemented


    Now let 's see the Merit and Demerit of it.

    Merits: Market will be less volatile, will be in strong hands, Less or no manipulation of the market.


    Demerit: Capital investment on a daily bases will be reduced, Drop-in volumes.

    Conclusion:
    To save small investors from those brokers who at times end up using the margin of one client to another another..SEBI is trying to make the market more reliable and more transparent.



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