Thursday, February 1, 2018



*#* FY18 fiscal deficit at 3.5% of GDP, target was 3.2% but the slippage was widely expected (fiscal deficit is flat YoY). Fiscal deficit for FY19 forecasted at 3.3% of GDP as compared to consensus forecast of 3.2%. Govt is committed towards Fiscal Reforms and Budgetary Management (FRBM) Committee report, will bring down central govt  debt to GDP ratio to 40%

*#* FY19 Market Loans forecasted at Rs 6.06 trillion ($ 95bn) as compared to Rs6 trillion in FY18 (budget forecast was Rs5.8 trillion, few days back it was raised by Rs0.2 trillion).

*#* Divestment target in FY19 is Rs800bn; FY18 divestment target upped to Rs1 trillion

*#* Higher direct tax revenue and divestment is partly making up for shortfall in GST (only 11 months of GST collection will reflect in FY18)

*#* Long Term Capital Gains (LTCG) exceeding Rs1lakh will be taxed @10% without benefit of indexation. All gains till 31st Jan 2018 will be grandfathered ie.any  gain earned after 31st Jan 2018 will be charged at 10% (ex. If a stock had touched 120 before 31st Jan 2018, and the sale happens at 140..then tax will be on 20 and not on 140—cost). STCG will be cont to be taxed at on distribution of equity oriented at 10%, this will hurt the dividend MF options. FM expects these schemes will bring Rs200bn in the first year…

*#* TAX benefit for MSMEs: Extends reduced corporate tax rate of 25% to companies with turnover <Rs2.5bn. In the last budget this reduced tax rate was floated for cos with turnover <Rs0.5bn abd benefited 25% of total companies filing tax returns..

*#* No change in tax for salaried tax payers.  Avg tax paid by salaried tax payers is ~Rs76,000 per person as compared to Rs25,000 per person in case of business tax payers. Standard deduction of Rs40,000 in lieu of transport and medical expenses (this was anyway ~Rs33,000).

*#* Senior citizen incentives : exemption on interest income on FDs/Post office deposit to be increased from Rs10,000 to Rs50,000. Raising limit of health insurance from Rs30,000 to Rs50,000.

*Rural Income/ Housing:*
*#* Focus on rural income and affordable housing continues – LT target is to double farm income by 2022 and provide house to every poor by 2022.

*#* In this year govt would raise MSP for Kharif crop (monsoon) to 1.5x of cost of produce

*#* Free cooking gas to 80mn poor households

*#* Will spend Rs14.34 trillion (224bn $) for rural livelihood in FY19

*#* Will increase allocation for agri credit from Rs10 trillion (156 bn $) to Rs11 trillion  (172 bn $)

*#* Launched flasgship national health protection scheme to cover 100mn families and 500mn beneficiaries. Will provide Rs5 lakh benefit per family per year coverage…this is very sizable

*#* 70 lakh formal jobs were created in FY18

*#* Govt will contribute 12% salary towards EPF to employees of all sectors (would be govt employees I assume, though FM did not mention)

*#* Fixed term eployment will be extended to all sectors. It was applicable in textile and footwear industry in FY18
*#* Women cintri to PF be redyced to 8% from 12% in first 3 years

*#* Nation needs investment of ~Rs 50 trillion in infra upgrade

*#* Govt upped infra spend target by 20.9% YoY to Rs 5.97 trillion

*#* Aims to complete 9000km of highway construction in FY18

*#* Railways: Aims to electrify 4000kms of railway lines in FY19. Maintenance of track infrastrucrure and safety will be the focus. Aims to do 3600 km of track renewal in FY19. Deployment of escalatators, CCTVs, wifi on stations

*#* Aim to expand airport capacity by 5x to handle 1bn trips. Udaan scheme to connect 56 unserved airports and 31 helipads.

Friday, January 5, 2018

Trading Holidays for the calendar year 2018

Trading Holidays for the calendar year 2018 : Equities
Sr. No.
Republic Day
Mahavir Jayanti
Good Friday
Maharashtra Day
Independence Day
Bakri ID
Ganesh Chaturthi
Mahatama Gandhi Jayanti
Gurunanak Jayanti

*Muhurat Trading will be conducted. Timings of Muhurat Trading shall be notified subsequently.
Source : NSEindia

Sunday, December 31, 2017

Basics terms of Stock Fundamental Analysis

Share Price=PE X EPS

P/E ratio=
Market Value per Share / Earnings per Share(EPS)

Industrial PE ratio= Average of PE Ratio of all peer Companies

EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares

Book value of a stock = book value of total assets – total liabilities.

Dividend--A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Return on Equity(ROE) = Net Income/Shareholder's Equity

ROCE = Earnings Before Interest and Tax (EBIT) / Capital Employee

Revenue is simply the total amount of cash generated by the sale of products or services associated with the company's primary operations.

Net income=Revenue-Total Expenses

Market it small,medium or large.
Select as per your investment plan.

Volume traded = Intra day traded shares + Inter day traded share.

Deliverables = Inter day traded share.

Deliverables % = (Inter day traded shares/Total volume traded) × 100

Reserves - Balance sheet reserves represent the amount of money insurance companies set aside for future insurance claims or claims that have been filed but not yet reported to the insurance company or settled.

Net worth - Net worth is the amount by which assets exceed liabilities.

Debit - A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Liabilities - A liability is a company's financial debt or obligations that arise during the course of its business operations.

Assets - An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.Increasing Value indicates business expansion.

Promoters - A promoter is an individual or organization that helps raise money for some type of investment activity.

Financial Statements - Standalone financial statements show the financial position of the company alone (and no other legal entity).

Consolidated financial statements show the financial position of the company itself along with it’s subsidiary companies, associate companies and joint ventures.

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Tuesday, December 26, 2017



The Sensex, has been in existence since 1875, is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on BSE.
Published since 1 January 1986, Sensex is regarded as the pulse of the domestic stock markets in India. The base value of the Sensex is taken as 100 on 1 April 1979,

Here is a timeline on the rise of the Sensex:

100 1 APRIL 1979
1000 July 25, 1990
2000 January 15, 1992
3000 February 29, 1992
4000 March 30, 1992
5000 October 11, 1999
6000 February 11, 2000
7000 June 21, 2005
8000 September 8, 2005
9000 December 5, 2005
10000 February 7, 2006
11000 March 27, 2006
12000 April 20, 2006
13000 October 30, 2006
14000 December 5, 2006
15000 July 6, 2007
16000 September 19, 2007
17000 September 26, 2007
18000 October 9, 2007
19000 October 15, 2007
20000 December 11, 2007
21000 November 5, 2010
22000 March 24, 2014
23000 May 9, 2014
24000 May 13, 2014
25000 May 16, 2014
26000 July 7, 2014
27000 September 2, 2014
28000 Nov 12, 2014
29000 JAN 15, 2015
30000 MARCH 04, 2015
31000 MAY 27, 2017
32000 JULY 13, 2017
33000 OCT 25, 2017
34000 Dec 26, 2017
35000 JAN 17, 2018

Saturday, December 2, 2017

Net interest income (NII)

Net interest income (NII) is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors.

Net interest income = Interest earned - interest paid 

Assuming ABC Bank earned an interest income of Rs 15,000 crore on its assets comprising all kinds of loans, mortgages and securities for the year ended March 31, 2015 and paid Rs 13,750 crore in interest to depositors, the net interest income would be: Net interest income = Rs 15,000 crore - Rs 13,750 crore = Rs 1,250 crore.

 Net interest income can differ from bank to bank due to variations in the composition and quality of assets and interest-bearing funds, change in yields of interest-earning assets and in interest rates paid on liabilities. NIIs of lenders with assets and liabilities bearing variable rates are more vulnerable to change in interest rates. If the spread between rate-sensitive assets (RSAs) and rate-sensitive liabilities (RSLs) increases, a rise in interest rate can make interest income rise more than interest expenses. In such a case, NII also goes up.

On the other hand, when the spread between RSAs and RSLs falls, a rise in interest rate can make interest expenses rise more than interest income, leading to a drop in NII. NII, meanwhile, can also get impacted by any rise or fall in non-performing assets (NPAs). According to the Reserve Bank of India's June edition of financial stability report, NII growth of scheduled commercial banks has been falling over the past couple of years. It stood at 9.3 per cent for FY15 compared with 11.7 per cent for FY14 and 34.6 per cent for FY11.

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