Tuesday, April 14, 2020

Bank credit grows at 6.14 percent, slowest since 1962

Slowdown Blues: CMIE paints not-so-happy picture for economy ...

Bank credit growth decelerated to an over five-decade low of 6.14 percent in the fiscal ended March 31, 2020, amid a faltering economy, lower demand and risk aversion among banks, according to RBI.
Bank advances growth in FY20 was the slowest since the fiscal ended March 1962, when loans had grown by 5.38 percent.
In the week ended March 27, 2020, advances stood at Rs 103.71 lakh crore as against Rs 97.71 lakh crore as on March 29, 2019, according to Reserve Bank data

FIEO : 15 millions may lose jobs

About 15 million people face job losses in India's exports sector following cancellation of over half of the orders and gloomy forecast for global trade due to the Covid-19 pandemic, exporters' body FIEO says.
Seeking immediate announcement of a relief package for exports, Federation of Indian Export Organisations (FIEO) President says a fine balancing is required between life and livelihood, as opting for only one can be disastrous for the country.

IMF ropes in Raghuram Rajan

IMF has named former RBI governor Raghuram Rajan and 11 others to her external advisory group to provide perspectives from around the globe on key developments and policy issues, including responses to the exceptional challenges the world now faces due to the corona-virus pandemic.

Rajan, who was the Reserve Bank of India governor for three years until September 2016, is currently working as a professor at the prestigious University of Chicago.

Saturday, April 4, 2020


India’s largest private lender HDFC BANK informed the exchanges today that its advances grew 6.3 percent quarter-on-quarter to Rs 9,93,000 crore while deposits rose 7.4 percent over the previous quarter to Rs 11,46,500 crore. On an annual basis, advances rose to a four-quarter high of 21 percent, while deposits grew 24 percent—the third consecutive quarter when the metric registered growth over 20 percent.
The bank’s CASA (current and savings account) ratio rose to 42 percent from 39.5 percent in the previous quarter and 42.4 percent a year ago.

FPI holdings raised

National Securities Depository  and Central Depository Services  revised Foreign Portfolio Investment (FPI) limits for all listed stocks on Indian bourses.

With this move, FPI limit in certain stocks has gone up to 100 per cent. The move is likely to increase India’s weight-age in MSCI and FTSE global indices.

The effective date is 01-04-2020.

Friday, April 3, 2020

India to get emergency funding from World Bank

 World Bank has approved $1-billion emergency financing for India to tackle the corona virus outbreak, which has claimed 53 lives and infected 2,500 others in the country.

The World Bank's first set of aid projects, amounting to $1.9 billion, will assist 25 countries, and new operations are moving forward in over 40 nations using the fast-track process, the bank said.

The largest chunk of the emergency financial assistance has gone to India -- $1 billion.

Sunday, March 29, 2020

We saw 'Black Swan' event coming in 2014, which would affect the world's financial markets

KARVY had predicted that SENSEX @1,00,000 IN 2020. The prediction was made in June 2014.

While countering the Karvy predictions, among others, we had indicated the following:

 Happening of a 'Black Swan' event - like the one occurred in 2008 which led to global melt down. A sub prime crisis. Prior to the global melt down in 2008, Sensex was hovering around 22,000 and experts like KARVY then predicted that Sensex will touch 50,000 mark by 2014. Believing this theory millions of investors jumped in to the market. Then came the melt down. Equity markets across the world plummeted. Within few months Sensex came down to 8000 levels. Most investors lost money, some went bankrupt, few committed suicide. Brokerage houses down sized their operations.  It took nearly 6 years for Sensex to come to the level of 2008. Between June 2008 and June 2014, in full 6 years, the Sensex has moved by just by 3000 points.

(This article was first published on 05-06-2014)

World's financial markets did witness a 'Black Swan' event in March 2020.

FIIs turns net buyers

After weeks of net selling, FIIs have net bought for Rs 356 crores in cash market on Friday, 27-03-2020. DIIs too have net bought to the extent of Rs 1704 crores in the same segment. In March, till last Friday, FIIs had net sold for more than Rs 50,000 crores due to Corona virus / global melt down.

Tuesday, February 25, 2020

IPO ANALYSIS : SBI Cards and Payment Services Limited

Issue Details :

Issue opens
/ closes on
03-03 / 05-03-2020
Issue size
Rs 10000 Cr ( Rs 500 Cr fresh shares
issue and OFS of 13.05 crore shares)

Face value
Rs 10
Price Band
Rs 750-755
Credit card / related business
Bse, Nse
Kotak Mahindra, SBI Capital Markets,
 DSP Merrill Lynch, Axis Capital, 
HSBC Securities and Capital Markets 
and Nomura Financial Advisory
 and Securities.

Saturday, February 22, 2020

IPO SCAM : SEBI to intensify probe

Image result for scam

Securities and Exchange Board of India, widened its investigations into alleged irregularities in initial public offers in 2011.

The companies under scanner are :

1. Readymade Steel
2. Timber Home
3. Inventure Growth 
4. Parampont Printpacking
5. SRS Ltd
6. Birla Pacific Spa
7. Finotex Chemicals
8. Acropetal Tech
9. Sudar Garments
10. Midvalley Entertainment
11. Indo Thai Sec
12. Aanjneya Life care
13. Shilpa Cable
14. VMS Ind
15. Rushil Decor
16. Vaswani Ind
17. Prakash Constrowl
18. Servalaxmi Paper
19. Singhvi Forging.

FirstChoiceIPO had advised to stay-away from all the above IPOs except Acropetal Technologies.

Thursday, February 20, 2020

Swiggy raises further money

Image result for swiggy

Online food delivery startup Swiggy has secured a fresh Rs 805 Cr in a round led by South African internet giant Naspers. Existing investors, Meituan-Dianping and Hadley Harbour Master Investments LP, also participated in the round.

Swiggy had reported a loss of Rs 2345 Cr for the year 2019.

Forthcoming IPO : National Securities Depository Limited (NSDL)

Issue Details: 

Issue size
Rs 1000 Cr 
Face Value
RS 10

Depository services
Bse, Nse
Kotak, SBI Cap and I Sec

Wednesday, February 19, 2020

Forthcoming IPO : Apeejay Surrendra Park Hotels Ltd

Image result for apeejay hotel

Issue Details: 

Issue size
Rs 1000 cr 
Face Value
RS 10

Apeejay group / PE backed by Credit Suisse
Hotel chain
Bse, Nse
ICICI Sec, Axis Cap and JM Financials

Forthcoming IPO : NCDEX

Issue Details: 

Issue size
Rs 500 Cr 
Face Value
RS 10

Nse, LIC / others
Commodity exchange
Bse, Nse

Forthcoming IPO : Indian Railway Finance Corporation

Issue Details: 

Issue size
140 cr equity shares
Face Value
RS 10

Govt of India
Financing Railways operation
Bse, Nse
IDFC Securities, HSBC Securities and Capital Markets (India), ICICI Securities and SBI Capital Markets