Quite a lot of investors are worried about the FPIs dumping Indian equities and concluding that this is the prime reason for the ongoing correction in stock prices.
A 🧵 to understand details about FPIs buying and selling in financial markets before jumping to conclusions
I watched the whole interview just to make sure was not missing any nuance. This is sheer arrogance at play!
The only reason this company can survive is because no one takes data and privacy breaches in India seriously. They would have been sued and finished by now in the US
We love to make our taxes complex.
GST council has reduced the F&B served in cinema halls from 18% to 5% today.
But if the F&B is booked along with the tickets, then it will be taxed at 12% or 18%. (same as principal supply i.e tickets)
Why?
Because movie tickets below Rs100
19-yr old topping the CA exam
Her brother gets All India rank 18 in same exam.
Both from Tier-3 city in MP
The real story of India has mostly been in smaller cities.
Till few years ago, an old friend was sending kids (twins - 1 girl and 1 boy) to a top-tier private corporate-group led school in Noida despite exorbitant expenses every year in the name of "good education"
In one fine new academic session, school floated a "summer cricket camp"
The final word in TCS/LRS drama is:
- No tax deduction for payments on foreign goods & services. So buying NY times subscription or Netflix streaming services are exempted.
-No impact if employee of a company undertake business trips (current account transactions will be over
Nykaa P/E ratio likely to be 450 at IPO. Given the strong interest, if one gets 100% premium, likely to list at 900 P/E.
It's time to unlearn lot of things to value these companies.
There is a sudden surge in last few months among very large corporate houses to set up family offices in tax-friendly jurisdictions like Dubai & Singapore. What do they know what we don't!
#inheritancetax
coming?
In Zomato's Q2 FY22 PR, the word 'adjusted' is used 19 times. There is no analyst concall to discuss any query till Q1-FY23
"The only reason that one may not understand a financial statement is because the writer does not want you to understand it" - Warren Buffett
SEBI has shared new framework for short selling in Indian financial markets and allowed both institutional and retail investors to short sell.
“Short selling” is selling a stock which the seller does not own at the time of trade.
🧵 on the details.
NSE has allowed buying of US stocks at IFSC. A basic announcement has come today. One can buy fractional shares of US listed companies directly in India.
International investing and advisory will make great strides in the years to come. I look forward to this change.
The oldest story in markets is playing out. Corner the float, bring it in F&O, increase the price to heights and dump on unsuspecting shareholders.
The story went from monopoly play to value buy to unlock trade to platform company to momentum position.
The Revevolving train.
@gauravmunjal
Assuming if AI is sufficient enough to attract a particular set of readers who want books in animation, what makes you think Kindle and Audible can't do it quickly enough to kill competition?
Sakshi, a neighbour in the next lane to our home, died on Sunday morning under tragic circumstances heading for summer holidays. She was married with 2 kids.
Whole media circus going on for the past two days around her house. Meanwhile, no change at New Delhi railway station
Read 1 book every week. Across all categories and genres. Choose the book length according to your work schedule. Make suitable notes. Do it for 1 year.
You will feel tremendous change in your writing and knowledge base. Telling from personal experience.
Quant MF is out with their stress test report.
The time taken for 50% portfolio liquidation is 6 days for the quant Mid Cap Fund and 22 days for the Quant Small Cap Fund.
Time taken for 25% portfolio liquidation is 3 days for the quant Mid Cap Fund and 11 days for the Quant
@varinder_bansal
We should stop basking in the glory of foreigners who were born in India (by chance) and stayed in US (by choice). Instead, we should rather design an ecosystem that appreciates and retains talent in India.
I was detected Covid positive on 24th March. Was in home isolation for 10 days. Tested Negative post that. mild symptoms. CT value was 33. All fine now!
Stay safe. Weak a mask!
#MaskUpIndia
If there’s any COVID-related help you need, please reach out without hesitating.
Can't time exactly due to election season but in all probability we are staring at NBFC crisis 2.0. Things are piling up - IL&FS group default, Essel Infra, margin funding of MFs for NBFCs under scanner, DHFL fiasco, ADAG defaults and so on. Get your seat belts on!
Yes bank shareholders:
At 400 : It's the next HDFC bank!
At 300 : It's part of normal course correction.
At 250 : Investment for life, got to buy more.
At 200 : Dude, looks like we have a problem.
At 150 : Mar gaye Bhai.
Great decision to boost consumption. People with few lakhs and no financial compulsion will just spend 2000 rs notes.
Small merchants may remain reluctant, but online websites with the COD option will zoom.
More money in banks would help banks improve deposit loan ratio and
Net FII inflows YTD
Japan - $33bn
Korea - $16bn
China - $12bn
Taiwan - $6.5bn
India - (-)$3.3bn
FIIs have better options to invest than India purely on valuations!
Wow. Fine print says once you opt for NO-deduction slab, you can't opt back to the YES-deduction slab. Amazing Kulhari-par-leg maarna initiatives this government comes up with!
Lost a 43-yr old cousin this morning due to Covid complications. Was in ICU since last weekend. Left behind two 14-yr old twin daughters and wife. Both parents still in home isolation but stable. Terrible, terrible loss!
#CovidSOS
2 major schemes of a leading MF house allocated shares of this fintech during IPO in Oct. One of them exited fully and another exited 95% of the shares allocated (obviously in loss) by Dec.
What changed in the business in less than 2 months?
Bombay Oxygen trades at 23k from 10k m/m. It's pumped as oxygen manufacturing company dealing in Industrial gases on social media.
Funny thing is it discontinued this business 2 yrs ago and now registered as NBFC with virtually zero sales.
Someone desperately wants an exit!
(1/n) A thread on the SEBI new circular with respect to increase in equity exposure across multi-cap funds
For brevity, Large caps (LCs), Mid caps (MCs) and Small caps (SCs)
Finance minister explanation of why 28% GST on casinos, online gaming and races was applied after due deliberation within GST council.
"Rates on gaming can't be less than on food items"
UCO bank to merge with Union Bank. Bank of Maharashtra to merge with Bank of India. Both did QIP earlier in the month.
Even though it was announced in Budget 2022, names were always up in the air regarding which smaller PSU banks will merge with larger PSBs. This is informal
One business channel. 15 entities. Many colluded with each other and planned front-running.
'Experts' used to take positions before giving advice on TV in F&O segment. Over 1040 such transactions detected in 2022. Profit sharing in 'cash' and via bank accounts.
SEBI issue
Kaju up 150-200, Almonds up 300-350 in Khari Bawoli (Wholesale place for dry fruits in Old Delhi).
Get ready for expensive sweets in festive season.
Thank you Taliban.
NCR and Mumbai residential prices are likely peaking in the next 9 months, if not early.
Gurgaon 1Q2024 sales are already down 15-18% as compared to 1Q2023. Less said about speculation in RE prices, more it is.
If AI leads to more job losses in IT, expect RE sales numbers to
SEBI directs brokers to refund penalty amounts charged to Clients for shortages of margins.
The penalty was always on the broker side, never on clients for the new margin rules.
Selling deep Out of Money (OTM) call options on the last day of the weekly option expiry days (e.g., Wednesday for Nifty Bank and Thursday for Nifty50) has become a very popular trading strategy for many high networth individuals (HNIs).
By pledging stocks, mutual funds, and
A youtuber, non registered, makes video on an upcoming IPO discussing business prospects & whether one should apply to it (reco). Charges for it and earns income.
A RA, registered with SEBI, makes the same video discussing same points but cannot earn from it.
Compliance!
@Prashanth_Krish
When RJ bought Titan, he was not aware about Tanishq turnaround. When he bought CRISIL, he was not aware about potential S&P stake. Luck and serendipity are least talked about in Investing.
HDFC AMC
AUM ~380,000 crore
Mcap ~ 79, 000 crore
M-cap/AUM Ratio ~ 21%
Any AMC buyout deal in past, average money paid ~ 7-9%
Assume AUM will increase in near future & TER will trend lower
Time to list more mutual fund based AMCs on "astronomical" valuations?
Clarification from the GST council press note.
When cinema tickets and F&B are clubbed together, composite supply will apply and GST applicable will be as of principal supply
It took 215yrs for the US government debt to reach US$7trn. It has added the same amount in just the past 27months. USD devaluation is a matter of when and NOT if...
Daniel Kahneman and Yuval Noah Harari are two of the most prominent sharp thinkers about history, human psychology and critical thinking. So it’s always going to be a treat for the fans when both of them got together for a discussion. A must listen!
I don't think in my entire career of tracking global markets for over 15 years, I have seen such credit spreads and lack of bond bids. EM will be screwed. This is history being written again. To hell with 2008 comparisons.
Hello
@SEBI_India
Can you explain why management of a listed company is having private conversations about such price sensitive information on social media without making adequate disclosures on exchange
Disc : No position neither interested.
Manappuram Finance auction of pledged Gold
9MFY21 : 8cr
Q4FY21 : 450 cr
Q1FY22 : 1500 cr
This is the formal Gold sector.
There is bound to be informal Gold lending to get loans to pay expenses by households and small businesses.
Pain in broader economy
Disc : No position
We should stop basking in the glory of foreigners who were born in India (by chance) and stayed in US (by choice). Instead, we should rather design an ecosystem that appreciates and retains talent in India.
Treat for value investors!
Brown University has uploaded Value Investing Q&A Series with the best of the names including Howard Marks, Mohnish Pabrai and many others
@Gautam__Baid
@pankajbaid17
Completed 10yr SIP in two funds this Septemeber. One is an Index fund, another is a sectoral Fund. Both funds from same AMC.
Returns of ~11% and ~14% CAGR respectively. Compounding works slightly better if one can let go seeing returns for a while :)
It is heartening to see that RBI is intervening and calling CEOs of private sector banks in understanding the causes of High Attrition & work load at the entry level.
It is quite evident that many of these banks are pushing freshers into demanding sales jobs without adequate
SEBI in Press conference
We have no issues if any Finfluencer want to educate the masses. We are in full support of it. However, the moment they induce anyone to trade or advice or gurantee returns publicly, we have a problem.
FFs consultation paper to be out in next two
Equity markets are making new highs every day. Other assets like gold, bitcoin, bonds, cash, real estate, etc., are also performing decently. Logically, investors should be happy and looking forward to a great holiday season at the end of the year. However, multiple interactions
Stimulus - Day 1 package details
#AatmanirbharBharat
in Liquidity but Cash stimulus limited to 2500 crore.
Hopefully, more reforms and measures to follow in the next few days!
The more easier way is to concentrate on stocks and sector you are invested in and analyse how they are impacted.
Have an investment strategy and fine tune it with macro data coming in, if required.
End of thread.
New Zealand has approved a new measure allowing for paid leave after miscarriage. The legislation is believed to be among the first in the world, applying to couples who lose a baby at any point. You got to admire NZ in so many ways specially the PM Jacida Arden.
"We at BlackRock today have better information on most cos than their CFO. If you are waiting to get a cos annual report & you think that's how investment work, you are dead meat. It's priced into the market faster than you can open a PDF file, let alone print it" - M. Wiseman
A thread of best reads of 2020 compiled across the internet.
PS : This is from personal reading list and covers across spectrums (and not necessarily investing and markets)
Will be updating the thread over next two days
Read a micro cap company annual report on weekend whose 90% revenues come from local manufacturing. First 30 pages deals with how global economy is doing & how it can benefit the company. Closed that PDF very quickly :)
A thread on the new Registered investment advisors (RIA) regulations which are coming to effect from 30th Sept, 2020
SEBI came up with the final regulations/explanations yesterday. Here is the link to the circular
Try giving 3-5 year old car for servicing at company's official service station these days. You will definitely feel you were riding a different vehicle given the number of faults they will tell you. Another downside of slowdown in Autos. Making money from wherever possible.
SIP registration peaked in September. It takes 4+ weeks to begin a SIP. The October increase reflects the SIPs registered post market high on 28th August and before 21st Sept. October did not see much new registrations though little redemptions came. Lumpsum flows r absent for 4m
It took me a while to digest this and write about truly heartbreaking incident of a child death.
India has the highest number of attacks by stray dogs in the world. India has 36% of all rabies deaths in the world along with highest cases of rabies deaths. Most rabies deaths are
कुत्ते के काटने से बच्चे की मौत.. पालतू से लेकर आवारा तक.. बन रहे यमदूत
रेबीज पीड़ित को अस्पताल में डॉक्टर्स ने लाइलाज घोषित किया.. इसके बाद एम्बुलेंस में तड़प-तड़पकर पिता की गोद में दम तोड़ दिया मासूम ने.....
UP : गाजियाबाद में कुत्ते के काटने से 14 साल के बच्चे की तड़प-तड़पकर
Those who are calling this a mad market may like to recall July-07 to Jan-08. Sharpest market rally even when sub-prime crisis was lurking behind the bushes. Market can remain on steroids longer than you like.
Don't look for too many reasons in this falling market. Just like bull market was made up of crappy reasons, bear market will also be filled with WA and twitter rumours. Look for investment opportunities. That;s more important.
I truly wish we have webcast AGMs from now on. Will save so much time, money and energy of analyst community with an additional option of replaying and watching at convenience for all investors.
A thread of the 10 best podcast episodes (& series) I listened to this year
#2022inreview
PS : I use
@Spotify
as my platform, so hyperlinks are from there. In the case of the series, I have shared a link to the first episode.
This is across genres. RT for wider benefit.
It's 2023 and influencers are still complaining about high cost food prices at the airport.
Has anyone been forced to buy?
PS : Almost all retail outlets have to pay obnoxious rental rates at the airport. Businesses are there to make money, not do charity. It's been the same
Bank of Baroda. Bajaj finance, Paytm, IIFL, JM financial - None of these are isolated cases.
All are systemic issues related to corporate governance, KYC or regulatory operations. This won't be the end of the RBI scrutiny.
There is a reason why we have remained UW on lending
A lawyer friend who specializes in making wills says he is swamped with work. 40-45 yr old folks writing wills in these Covid times. This is likely to become a permanent feature in financial planning.
One theory floating around is government will loose 50% of STT by implementing these norms!
The new norms are only applicable to retail investors, not institutions. Retail investors delivery volumes on exchange are mere 3%.
What exactly are we panicking about?