Pranab Sarkar, FRM

The September quarter earnings call of Shriram Finance has left many to re-evaluate their understanding of the loan-to-value assessment and classification of bad loans in gold loans, three people told NDTV Profit. "The moment it (gold loan) breaches the 75% LTV norm, we are actually classifying it as an NPA," Managing Director YS Chakravarti said on the call. The Reserve Bank of India has mandated that lenders maintain an LTV of 75% throughout the tenure of the loan extended against pledge of gold ornaments and jewellery for non-agricultural end uses. However, the regulator does not call for any asset classification downgrade, in case of LTV breaches. #GoldLoans #NBFCs #RBI #LTV #Earnings #Q2

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***Will F&O investors pivot to MTF?*** Brokerages are fielding increasing demand from clients for a margin trading facility to invest in stocks, possibly triggered by the market regulator’s recent spate of regulatory tweaks aimed at tempering the retail investor frenzy in the futures and options segment. Market experts say Sebi’s recent regulatory moves could cause a dent in overall F&O trading volume, compelling individual investors to seek other routes. Read the entire article here: https://lnkd.in/dvuW3NDA

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Over 42 Lakh new demat additions in June, total demat accounts cross 16 crore A bullish broader market, with strong returns and no correction in sight, lures new investors. Analysts see room for more demat accounts, indicating growth potential. Additionally, ongoing IPOs, heavily subscribed and often listing at premiums, attract fresh investors, spurring the opening of new demat accounts. #EquityMarkets #Bullrun #IndianEconomy #Growth Axis Securities Limited

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Dear All, In our recent interaction with The Economic Times, we have decoded how the key Indices - Nifty & Bank Nifty would be behaving in the coming week, keeping in mind the derivative data positioning. We also discussed what the Option writing data for Nifty and Bank Nifty are indicating along with insights on the FII positioning in the current month post the rollover analysis. In the last few days, given that there have been some strong moves in Nifty / Bank Nifty, what should be our approach to the markets ?? While expect the current bull trend to remain intact with sector rotation being witnessed along with Indices consolidating at these higher levels; Click below to read the complete interaction where we have discussed ● View on Nifty & Bank Nifty post the Roll-Overs ● Indication of Trend from Open Interest Data as well as FII positioning: ● Seasonality Analysis for Nifty & Bank Nifty for July Series; ● View on India VIX; ● Sectors in Focus ahead of Budget; ● Impact on change in SEBI norms pertaining to the entry and exit criteria for stocks in the F&O segment. https://lnkd.in/dTvJ7-Pa Regards, SBI Securities Ltd. SBI Securities Deepak Lalla Suresh Shukla Sunny Agrawal #niftyview #Globalview #bankniftyview #optiondata #rollover #Indiavix #sebinorms #fiidata #sectorsinfocus

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With the AIF market in India exceeding ₹8 lakh crore, SEBI's measures aim to maintain operational flexibility while curbing risks related to borrowing. These guidelines are pivotal as the AIF market grows, ensuring AIFs benefit the financial ecosystem positively. https://mybs.in/2dYDEbx

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Nifty @ 23000, What Next !! Last week, we shared that markets could continue rising higher despite the rise in volatility. Nifty exactly demonstrated the same thing. Crossed 23k with ease despite India VIX at 21-22 levels. The catalyst of this rally in the past few sessions was the announcement of hefty Rs 2.1 lakh Cr Dividend by the RBI to the Government which is a big Macro-economic positive from the fiscal deficit and bond yield perspective. On a weekly scale, Nifty has formed a sizeable bullish candle, gaining 2%. Bank Nifty, too, ended the week with a gain of 1.8%. Nifty Midcap as well as Smallcap indices underperformed with gains of 1.4% & 0.5% Strong momentum was visible in Auto, Defense, as well as CPSE names along with Private Banks. Tracking the Fund-Flow and the Derivative Data positioning, since the beginning of May, FII Long-Short Ratio in Index Futures has recovered from 28% to 49%, with largecaps taking a lead in the past few sessions. The intensity of FIIs selling has subsided in the past 1 week, with them being net buyers for the week gone by. Overall, for the month of May, they have been net sellers in the cash segment to the tune of Rs 34,460 Cr. However, they have been net buyers in the Stock Futures segment & the FII Cash selling has been completely absorbed by the DII buying to the tune of Rs 40,800 Cr. Ahead of General Election results, we advise against taking on excessive leverage and emphasize the importance of risk management and hedged bets. Avoid chasing smallcaps & Midcap where the fundamentals are not in sync with the price action. One should not be over-confident and should not overlook quality. The reason being, once the euphoria ends, mean reversion is usually witnessed, and one can get stuck in these names for a longer period than expected. Instead, we recommend focusing on large-cap and high-quality stocks during this period. Although the exit polls and the actual election outcome are very important, equal focus should be on the policy continuity & incremental steps that the government would be undertaking to further strengthen the economy. Chart patterns suggest that going ahead, 22,750-22,800 will serve as crucial support & as long as the index trades above this support zone, it is likely to continue its upward movement towards the 23,180-23,350 zone, which is the upper trendline of rising channel. https://lnkd.in/dbrE7hb8 In our recent interaction with Moneycontrol, we have decoded 1) How the key Indices - Nifty, Bank Nifty would be behaving in the coming week ? 2) View on Nifty Auto & Nifty Pharma. 3) View on Bharat Forge & PFC. Regards, SBI Securities Ltd. SBI Securities Suresh Shukla Deepak Lalla #niftyview #bankniftyview #optiondata #midcaps #Smallcaps #Indiavix #elections

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14/09: Day 15 of 90 Day Challenge *Financial Crisis of 2008 explained with concepts of MBS and Asset Securitization* (explained in a way even a 15 year old can understand) Special mention of honour to Sir Ashwini Bajaj to help decode complex financial topics into simple nuts and bolts. . . #finance #stockmarket #financialcrisis2008 #globaleconomy #post #linkedin

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Banks don't like changes. Even if the instructions come from RBI. The regulator's direction to move away from OTP as the 2FA requires banks to spend a lot of money and time to do it. And it is not happening anytime soon. Banks have been using OTPs for a decade and a half. While there are other alternatives, changes bring legal and compliance complications. When RBI introduced 2FA, banks were given the option to choose their preferred method. OTPs were the easiest and cheapest solution then. However, the technology has advanced much but banks are striking with what worked well for them. Please read my story on this https://lnkd.in/db_VzAYQ

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The Reserve Bank of India has set up a committee on MIBOR Benchmark (Chairperson: Shri R. Subramanian). The committee has given its recommendations on MIBOR, MIBOR OIS, and IRDs. (https://lnkd.in/dA-tPFyb) Since the volume in call money market has fallen, MIBOR calculation based on O/N Call Money Market may get replaced. Going forward TREPS and Market Repo (Basket and Special) may be used for determining overnight rates. Call money market volumes have remained largely stagnant even as the overall size of the money market has grown. In 2023-24, average daily volumes in the call money market stood at ₹10,600 crore as against daily volumes of ₹4.4 lakh crore in the secured segment (TREPS and market repo). The share of call money transactions in overnight money markets has gradually come down from more than 20 per cent in 2011-12 to below 2 per cent in 2022-23 even while the average daily trading volumes remained little changed. CS Jigisha Thakkar, MBA(Fin), FRM

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Parag Parikh Flexi Cap: The Burden of Regulations If you are familiar with mutual fund investing, Parag Parikh Flexi Cap is likely a name you know well. Its growth in AUM over the years will tell you it's impressive story. March 2021: ₹8,100 crore March 2022: ₹22,000 crore March 2023: ₹31,000 crore March 2024: ₹60,500 crore However, something seems to be affecting the fund's performance and future prospects. Let’s examine this more closely. The fund's popularity largely stems from its impressive outperformance relative to both its benchmark and peers. A key factor in this outperformance has been its international holdings. The fund has significantly benefited from exposure to U.S. technology stocks. So, where’s the problem? Consider the fund's international exposure over the past few years: March 2021: 30% of its AUM March 2022: 29% March 2023: 17% March 2024: 15% Given the fund’s success with international exposure, why has the percentage been decreasing from a high of 30% to just 15% in recent years? This is where the RBI comes into picture. You might wonder what the RBI has to do with mutual funds. While the RBI does not regulate mutual funds directly, it does keep an eye on currency movements. Since these funds invest in international stocks, they create demand for foreign currencies, which can put pressure on the Indian Rupee (INR). To manage this, the RBI has imposed restrictions on international investments. The RBI has set a limit on the total amount Indian mutual funds can invest abroad—$7 billion, or roughly ₹67,000 crore. Additionally, each mutual fund house, such as Parag Parikh or SBI, can only invest up to $1 billion, or ₹8,500 crore, in international markets. With the current size of ₹71,000 crore, if Parag Parikh Flexi Cap were to allocate 30% to U.S. tech stocks, it would amount to around ₹22,000 crore. However, given the fund house’s limit of ₹8,500 crore, the fund can no longer allocate 25-30% to international stocks, even if it wanted to. Given this, what is the current allocation for Parag Parikh Flexi Cap to international stocks? Amazon: 3% Facebook: 4% Microsoft: 4% Alphabet: 4% Total - 15%, ~9000 cr So, this reduction in international exposure is not so much of a strategic decision but rather a result of regulatory constraints. What Might Happen Going Forward: Pressure on Allocation: Growing AUM will further pressure the fund to reduce its international allocation. Consequently, the fund's unique advantage may diminish, and while Rajeev Thakkar is an excellent fund manager, the fund might start performing more similarly to its peers, leading to a normalization of returns. Best-Case Scenario: The best outcome for the fund would be an increase in the RBI's limit on international investments. The mutual fund industry attempted to lobby for this change in 2022 but was unsuccessful. We will need to wait and see if future lobbying efforts will be more successful #mutualfunds #investing #ParagParikh

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📈 Market Snapshot: A mixed yet optimistic day for the markets as Nifty 50 and Sensex extend their winning streak. PSU banks led the rally, while FMCG and auto stocks faced headwinds. All eyes are now on the RBI’s Monetary Policy announcement tomorrow. The broader market continues to show resilience with mid and small caps outperforming. Stay informed, stay ahead! 💡 Reach out to us at 98218 60804, 96533 87088, or 83694 18292 or visit us at the 5th Floor, Bellona, The Walk, Hiranandani Estate, Thane (W) 400 607 for a complimentary policy review. Disclaimer: This content is for informational purposes only and does not constitute financial or investment advice. #MarketUpdate #StockMarket #Nifty50 #Sensex #PSUBanks #FinancialServices #Investing #Stocks #MonetaryPolicy #MarketTrends #RBI #MidCap #SmallCap #InvestmentOpportunities #EconomicOutlook #MarketResilience #FinanceNews #IndianStocks #InvestorSentiment #Rupee #GlobalMarkets #GrowthStocks

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The CURIOUS case of 𝑶𝒑𝒕𝒊𝒐𝒏𝒔 𝑻𝒓𝒂𝒅𝒊𝒏𝒈   Options trading has ‘𝐫𝐚𝐢𝐬𝐞𝐝 𝐞𝐲𝐞𝐛𝐫𝐨𝐰𝐬’ for everybody whether traders, brokers or the regulators. Not because it is helping make huge wealth but because of the sheer size of Options trading in India.   India is now world’s biggest Derivative market and have the World’s highest Derivative to cash ratio of 421 times, some expect this to touch 1000𝐗 𝐢𝐧 𝐜𝐨𝐦𝐢𝐧𝐠 𝐟𝐞𝐰 𝐲𝐞𝐚𝐫𝐬.    But what exactly happened in a country like India where 5 years back everybody thought options trading would only be like a ‘𝐬𝐡𝐨𝐰 𝐩𝐢𝐞𝐜𝐞’ in the whole trading bouquet. Even some brokers written off the options trading future, stating Indians cannot trade in such a so called ‘Complex’ products.   But reality is the king   Lets understand what are the triggers:   1.     𝐖𝐞𝐞𝐤𝐥𝐲 𝐞𝐱𝐩𝐢𝐫𝐲: There is only one thing which is 𝐜𝐞𝐫𝐭𝐚𝐢𝐧 in markets is the time decay. Trend is nobody’s friend and uncertainty is flavour of markets. Options trader could only strategise and play around the Theta decay strategy and with weekly options coming in. Suddenly a huge breed of Retail and non retail investors started strategizing and making strategies which had daily theta decay, instead of waiting for 1 month, money was made, volumes grown exponentially 2.     𝐌𝐚𝐜𝐡𝐢𝐧𝐞 𝐛𝐚𝐬𝐞𝐝 𝐭𝐫𝐚𝐝𝐢𝐧𝐠: Machines have ZERO emotions, that is the only essential required today to win consistently, with weekly expiry, superb API, Machine learning tools, Algo trading tools. The flood gates were open and the option’s wave got the ‘ kick’ it needed 3.     𝐇𝐞𝐝𝐠𝐞 𝐛𝐞𝐧𝐞𝐟𝐢𝐭 𝐨𝐧 𝐦𝐚𝐫𝐠𝐢𝐧𝐬: The icing on the cake for an option strategy trader was to get margin benefit of the hedge trade which anyways he had to take, this boosted the space, volume and in turn ROI for options traders 4.     𝐘𝐨𝐮𝐭𝐮𝐛𝐞 𝐮𝐧𝐢𝐯𝐞𝐫𝐬𝐢𝐭𝐲: Every other option trader calls themselves ‘ Option master’ create detailed Option strategy videos with technical setup, payoffs, backtesting, bar replay etc. Indians who love to swipe and scroll full day, got a good opportunity to ‘ learn and earn’ and so the Buy/Sell option buttons got clicked a billion times. ( although I strongly suggest not to trade based on advice of any unregistered entity and always put SL while trading) 5.     𝐓𝐫𝐚𝐝𝐞 𝐢𝐧 𝐚 𝐣𝐢𝐟𝐟𝐲: Trading becoming more easier and faster then sipping your coffee, millennials, housewives, businessman, professionals all started trading ‘ on the go’ Today around 80% of broking revenues for stock brokers come via options trading and super cool and useful option platforms are being build by product managers. This is just the beginning and as the Indian trader moves ‘ Up the learning curve’ 𝐭𝐡𝐞 𝐧𝐮𝐦𝐛𝐞𝐫𝐬 𝐰𝐨𝐮𝐥𝐝 𝐫𝐢𝐬𝐞 𝐛𝐞𝐲𝐨𝐧𝐝 𝐬𝐤𝐲 𝘗𝘚: 𝘝𝘪𝘦𝘸𝘴 𝘢𝘳𝘦 𝘪𝘯 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘤𝘢𝘱𝘢𝘤𝘪𝘵𝘺 𝘰𝘯𝘭𝘺.

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#Nifty this Week: Laapataa Direction - 31 May'24 Watch the entire sectoral analysis - https://lnkd.in/g6FNEDmi The guesswork with the direction of the benchmark #Nifty continues as we notice the index slips back sharply in last week's trade. We had a sharp high-momentum rally to a new life high the week before. But the excitement was short-lived, as the index is now back within the choppy range. With exit polls kicking in from this evening, all eyes will be on how the index behaves on Monday, especially on Tuesday, when the final election results come out. A slip below last week's low will not be a good sign for the markets, as it'll open up possibilities of further downsides. Strategically, it is prudent to keep a low profile and wait for volatility to settle down, and then directional traders can start to initiate fresh trades. This video is a part of MasterClass Mentoring Sessions - https://bit.ly/40j7pNm Reach me on Whatsapp - https://wa.me/919836947400 #marketanalysis #technicalanalysis #nifty50 #banknifty #stockmarket #stockmarketindia #weeklyinsights 

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Draft for comments on Provision norms for infrastructure loans The RBI is suggesting tougher rules for lending money to ongoing projects. They want banks to keep aside a certain percentage of the total loan amount as a safety net, in case borrowers can't pay back. Right now, this safety net is only 0.4%, but the RBI wants to raise it to 5%. They're doing this because in the past, loans for projects have caused a lot of problems for banks when borrowers couldn't pay them back. These rules will affect all types of lenders, including banks and non-banking financial companies (NBFCs). The RBI's plan is to gradually introduce this new rule over time. They'll start by making banks set aside 2% of the loan amount from March 2025, then increase it to 3.5% by March 2026, and finally reach the full 5% by March 2027. This increase will happen gradually, spread out over each financial year. You can find more details about these changes on the RBI's website. https://lnkd.in/gk6NDNZr

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