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PROBABILITIES OF DALAL STREET ON  16th  JULY 2024

PROBABILITES OF DALAL STREET ON 16th JULY 2024

 Dear market participants, as per yesterday’s view nifty closed in green but failed to break its all-time high but sustained above 24500. before taking the next move we should look at the following points.

  • FII bought 3.48 Laksh index futures and in options, they bought 83,058 so they are neutral in derivatives. In cash, they purchased 2684cr.
  • DII’s sold 75067 index future and in options they sold 3.93L. in cash they sold 331cr
  • Clients are bearish in the future and in options too.
  • If we look at Global markets, US markets are positive, European markets are negative, and Asian markets are mixed  
  • The volatility index rose  37%, which closed at 14.19.    
  • As per open interest nifty has 24500 followed by 24400, which has the highest put seller. there are negligible call sellers at 24700 and at 24750.

In the daily time frame nifty made a doji candle, so there is indecisive in the next move of nifty one should care fully watch at high and low points of the previous day’s trading session if it breaks any of the points then it moves further 100 points in the same direction. the main points for the next trading session in nifty are 24500 and 24650.

                                                                                             -By

                                                                              A Ganesh R Bhat



Also read Chapter -2 of finance



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15/07/2024 /0 Comments/by
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FINANCE JOURNEY- 2

what are Public Finance and investment finance?

Public Finance

Definition: Public finance refers to the study of how the government raises revenue and spends it to influence the economy. It encompasses the management of a country’s revenue, expenditures, and debt load through various government and quasi-government institutions.

Key Components:

  1. Revenue Generation:
    • Taxes: The primary source of revenue for most governments. Taxes can be categorized into direct taxes (income tax, corporate tax) and indirect taxes (sales tax, VAT).
    • Non-tax Revenue: Includes revenues from government-owned enterprises, fees, fines, and grants.
  2. Expenditure:
    • Public Services: Funding for education, healthcare, defense, and infrastructure.
    • Social Welfare Programs: Payments for unemployment benefits, pensions, and subsidies.
  3. Budgeting:
    • The process of creating a plan for how government revenues will be spent. This involves predicting future revenues and expenses and ensuring that expenditures do not exceed revenues.
  4. Public Debt:
    • Governments often borrow money to cover deficits. Public debt management involves deciding how much to borrow, from whom, and under what terms.
  5. Fiscal Policy:
    • The use of government spending and taxation to influence the economy. For example, increasing spending or cutting taxes to stimulate growth during a recession.

Objectives of Public Finance:

  • Economic Stability: Stabilizing the economy by reducing fluctuations in business cycles.
  • Equitable Distribution: Ensuring a fair distribution of wealth and income.
  • Efficient Resource Allocation: Allocating resources in a way that maximizes social welfare.

Investment Finance

Definition: Investment finance involves the management of assets and securities to achieve financial goals. It covers a range of activities from personal investing to corporate finance and portfolio management.

Key Components:

  1. Types of Investments:
    • Equities (Stocks): Buying shares of a company to gain ownership and potential dividends.
    • Bonds: Lending money to a government or corporation in exchange for periodic interest payments and the return of principal at maturity.
    • Real Estate: Investing in physical properties for rental income or capital appreciation.
    • Commodities: Investing in physical goods like gold, oil, and agricultural products.
    • Mutual Funds and ETFs: Pooled investment vehicles that offer diversification and professional management.
  2. Investment Strategies:
    • Active vs. Passive Management: Active management involves selecting stocks to outperform the market, while passive management involves tracking a market index.
    • Risk Management: Diversification, hedging, and other techniques to mitigate potential losses.
    • Asset Allocation: Distributing investments among different asset classes to balance risk and return.
  3. Financial Markets:
    • Primary Market: Where new securities are issued and sold for the first time.
    • Secondary Market: Where existing securities are traded among investors.
  4. Valuation and Analysis:
    • Fundamental Analysis: Evaluating securities based on financial statements, industry trends, and economic indicators.
    • Technical Analysis: Analyzing historical price and volume data to predict future price movements.
  5. Corporate Finance:
    • Capital Budgeting: Deciding which projects or investments a company should undertake.
    • Capital Structure: Determining the mix of debt and equity financing.
    • Dividend Policy: Deciding how much profit to return to shareholders versus reinvesting in the business.

  • Objectives of Investment Finance:
  • Wealth Maximization: Achieving the highest possible return on investment while managing risk.
  • Liquidity Management: Ensuring the ability to meet short-term financial obligations.
  • Capital Preservation: Protecting the invested principal from loss.

Summary

  • Public Finance deals with government revenue, expenditure, and debt to manage economic stability and public services.
  • Investment Finance focuses on managing investments to achieve financial goals, involving various asset classes, strategies, and market dynamics.
  •                                                                                    Source collected BY                                                                                                    Vishal Kumar K R



Click here to know What is Finance?



Click here to read FINANCE JOURNEY-3



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15/07/2024 /3 Comments/by
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DEN Networks Q1 Net Profit Rises 6.8% to ₹45.5 Crore Despite Revenue Dip

DEN Networks Q1 Net Profit Rises 6.8% to ₹45.5 Crore Despite Revenue Dip

Cable TV services provider DEN Networks Ltd reported a 6.8% year-on-year increase in net profit for the first quarter that ended on June 30, 2024. The company’s net profit rose to ₹45.5 crore from ₹42.6 crore in the corresponding quarter of the previous year, as stated in a regulatory filing on Monday, July 15.

Despite the increase in net profit, DEN Networks faced a decline in its revenue from operations. The company’s revenue dropped by 9.4% to ₹247.5 crore, compared to ₹273.2 crore in the same period of the previous fiscal year.

At the operating level, the company saw a decrease in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). EBITDA fell by 9.1% to ₹28.1 crore in the first quarter of this fiscal year, down from ₹30.9 crore in Q1 of FY24.

The financial results highlight a mixed performance for DEN Networks, with net profit growth despite declining revenue and operating income.



Click here to read HDFC AMC results



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15/07/2024 /1 Comment/by
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Jio Financial Services Q1 Results

Jio Financial Services Q1 Results

Jio Financial Services reported its financial results for the June quarter on Monday, revealing a 6% year-on-year decline in net profit. The company posted a net profit of Rs 313 crore for the quarter, down from Rs 332 crore in the same period of the previous financial year.

Despite the decrease in net profit, the company’s total revenue from operations for the quarter increased slightly. Revenue stood at Rs 418 crore, representing a 0.9% increase from Rs 414 crore reported in the corresponding period last year.

A significant factor in the financial performance was the decline in interest income. For the reported quarter, interest income was Rs 162 crore. This marked a notable decrease from Rs 281 crore in the fourth quarter of FY24 (Q4FY24) and Rs 202 crore in the first quarter of FY24 (Q1FY24). The reduction in interest income could be indicative of changes in the company’s lending activities, interest rate environment, or other financial conditions impacting its earnings from interest-bearing assets.

On a sequential basis, comparing the reported quarter to the previous quarter, profit after tax (PAT) saw a marginal increase. PAT for the June quarter was up by 0.64%, rising to Rs 313 crore from Rs 311 crore in the preceding quarter. This slight improvement suggests some stabilization or recovery in the company’s profitability on a quarter-over-quarter basis, despite the year-on-year decline.

Overall, the financial results for Jio Financial Services highlight a mixed performance, with growth in operational revenue and a minor sequential increase in net profit, but significant challenges reflected in the decreased interest income and year-on-year decline in net profit. The company may need to address these challenges to achieve more robust growth in the future.



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15/07/2024 /0 Comments/by
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HDFC AMC Hits Record High as Q1 Net Profit Soars 26%

HDFC AMC Hits Record High as Q1 Net Profit Soars 26%

Shares of HDFC Asset Management Company (AMC) hit a record high on Monday after the firm reported a 26% rise in Q1 net profit, climbing to Rs 604 crore from Rs 478 crore last year.

HDFC AMC’s stock rose 3.05% intraday to Rs 4295.20 on BSE, compared to the previous close of Rs 4168.05. The market cap increased to Rs 89,532.19 crore. The stock ended the day 0.57% higher at Rs 4192 on BSE.

A total of 0.17 lakh shares were traded, with a turnover of Rs 7.23 crore on BSE. The stock has surged 121% over two years and 36% over three years. It reached a 52-week low of Rs 2320.20 on July 14, 2023.

HDFC AMC’s relative strength index (RSI) stands at 58.5, indicating the stock is neither overbought nor oversold. The shares are trading above their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages.

Revenue from operations increased 35% to Rs 775 crore in Q1, up from Rs 575 crore a year ago. Total income rose 29% to Rs 948 crore, compared to Rs 732 crore last year. Consolidated revenue from operations was Rs 775.24 crore in Q1FY24, up 35% from Rs 574.54 crore.

The stock has gained 76.41% in a year and 121% over two years. Return on equity climbed to 29.5% in FY24. Operating profit from core asset management rose 40% to Rs 579.3 crore in Q1, up from Rs 413.3 crore last year.



Click here to view the results of BANK OF MAHARASHTRA



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15/07/2024 /2 Comments/by
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Bank of Maharashtra’s Q1 Net Profit Soars by 46.6%

Bank of Maharashtra's Q1 Net Profit Soars by 46.6%, Shares Surge by 5.61%

 

Bank of Maharashtra reported a significant increase in its Q1 net profit on July 15, rising by 46.6% to Rs 1,293.5 crore, compared to Rs 882 crore in the same period last year, according to an exchange filing.

The bank’s net interest income (NII) grew by 20%, reaching Rs 2,799 crore from Rs 2,340 crore year-on-year (YoY).

Following the announcement, the bank’s shares rose by 5.61%, reaching Rs 68.73 on NSE at 13:55 pm.

The bank’s asset quality improved slightly, with gross non-performing assets (NPA) at 1.85%, down from 1.88% quarter-on-quarter (QoQ). However, the net NPA remained unchanged at 0.20%. In absolute terms, gross NPA stood at Rs 3,873 crore compared to Rs 3,833 crore in the previous quarter, while net NPA was Rs 415 crore against Rs 409 crore QoQ.

Provisions for the quarter were reported at Rs 950 crore, slightly up from Rs 942 crore in the preceding quarter.



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15/07/2024 /1 Comment/by
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PROBABILITES OF DALAL STREET

PROBABILITES OF DALAL STREET ON 15th JULY 2024

Dear market participants, in the last trading session, as we discussed there was weak resistance at the 24400 level in nifty, the market broke the 24400 level and also reached 24500, making a new all-time high. for taking a position from current levels we should look following important points.

  • FII bought 3.27 Laksh index futures and in options, they bought 43303 so they are neutral in derivatives. In cash, they bought 4021.60cr.
  • DII’s sold 80814 index future and in options they sold 3.92L. in cash they sold 1651cr
  • Clients are bearish in the future and in option they are neutral.
  • If we look at Global markets, US markets, Europe, and Asian markets all three are bullish
  • The volatility index fell 93%, which closed at 13.72. 
  • As per open interest nifty has 24400 followed by 24300 has the highest put seller. there are negligible call sellers at 24550 and 24600.

India’s annual consumer inflation rate rose to 5.08% in June of 2024 from 4.75% in the previous month, well above market expectations of 4.80% to reflect the fastest pace of price growth since February. From the last month, Indian consumer prices jumped by 1.33%, the largest increase in 11 months.  IT sector Q1 results are coming good and the industrial production rate also increased so there is more positive news than negative news. for tomorrow’s session also bull sentiments may continue in markets. if any dip happens then it will be an opportunity to buy with strict stoploss.

                                                                                                  -By

                                                                                        A Ganesh R Bhat



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Disclimer

14/07/2024 /0 Comments/by
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NSE Tightens Collateral Rules:

The National Stock Exchange (NSE) of India is making it harder for traders to use certain stocks as collateral for margin requirements in intraday or derivatives (Futures & Options) trading. This means that from August 1, 2024, many stocks that traders currently pledge to meet margin requirements will no longer be eligible.

Here’s a simpler breakdown:

  1. New Rules: NSE’s clearing arm will only accept stocks that have been actively traded 99% of the time over the past six months and have low transaction costs.

  2. Big Change: Over 1,000 stocks will be removed from the list of acceptable collateral, out of the current 1,730 eligible ones. This leaves traders with fewer options to pledge.

  3. Impact: Some big companies like Adani Power, Yes Bank, Suzlon, and Paytm are among those whose stocks will be affected. Even though these companies have high market capitalizations, their stocks won’t meet the new criteria.

  4. Why: The aim is to only allow stocks that are easy to trade and have low costs associated with trading them.

  5. Effect on Traders: The total value of stocks currently used as collateral is about Rs 73,500 crore. The real impact of these changes will depend on whether brokers will still accept the disqualified stocks as collateral.

NSE will release a final list of acceptable stocks in its monthly circular, giving traders a clearer picture of which stocks can still be used as collateral.



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14/07/2024 /0 Comments/by
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Finance Journey-1

What is Finance?

Finance is the field that deals with the management, creation, and study of money, investments, and other financial instruments. It tells us about how money is created, and how it is used. It encompasses a wide range of activities, including:

  1. Personal Finance: Managing individual or household financial activities such as budgeting, saving, investing, and planning for retirement.
  2. Corporate Finance: Handling the financial activities of companies, including capital investment decisions, funding strategies, and managing financial resources to maximize shareholder value.
  3. Public Finance: Managing the financial activities of governments, including budgeting, taxation, expenditure, and public debt management.
  4. Investment Finance: The study and practice of investing in various financial instruments such as stocks, bonds, real estate, and other assets to achieve financial growth.

Finance involves the use of various financial instruments and concepts, including risk management, financial markets, and financial planning. It plays a crucial role in the economy by facilitating the flow of money and resources, enabling economic growth and stability.

What is personal Finance?

Personal finance is the management of an individual’s or a household’s financial activities. It involves making decisions about saving, spending, investing, and protecting one’s financial resources over time. Key components of personal finance include:

  1. Budgeting: Creating a plan for how to spend your money. This involves tracking income and expenses to ensure you live within your means and allocate funds towards your financial goals.
  2. Saving: Setting aside a portion of your income for future needs or emergencies. This includes building an emergency fund and saving for specific goals such as a down payment on a house, education, or retirement.
  3. Investing: Allocating money to assets like stocks, bonds, mutual funds, real estate, or other investment vehicles to generate returns over time. Investing helps grow wealth and achieve long-term financial goals.
  4. Debt Management: Managing and repaying debts such as credit card balances, student loans, mortgages, and personal loans. Effective debt management involves minimizing interest costs and paying off high-interest debt as quickly as possible.
  5. Retirement Planning: Preparing financially for retirement by contributing to retirement accounts like 401(k)s, IRAs, or pensions. This also includes estimating retirement needs and creating a plan to ensure sufficient income during retirement years.
  6. Insurance: Protecting against financial risks through insurance products such as health insurance, life insurance, disability insurance, and property insurance. Insurance helps mitigate the impact of unexpected events on your finances.
  7. Tax Planning: Strategically planning and managing finances to minimize tax liabilities. This includes understanding tax deductions, credits, and the timing of income and expenses to optimize tax outcomes.
  8. Estate Planning: Preparing for the transfer of assets after death. This includes creating wills, trusts, and other legal arrangements to ensure that your assets are distributed according to your wishes and to minimize estate taxes.

Personal finance involves making informed decisions to ensure financial stability, achieve financial goals, and secure one’s financial future.

What is corporate finance?

Corporate finance is the area of finance that deals with the financial activities and decisions of companies and corporations. It involves managing the financial resources of a business to maximize shareholder value, ensure long-term sustainability, and support strategic goals. Key components of corporate finance include:

  1. Capital Budgeting: The process of planning and managing a company’s long-term investments. This involves evaluating potential projects or investments (such as new machinery, expansions, or acquisitions) to determine their expected return and deciding which projects to undertake.
  2. Capital Structure: Determining the optimal mix of debt and equity financing. This includes deciding how much funding should come from internal sources (like retained earnings) versus external sources (like issuing new shares or taking on debt).
  3. Working Capital Management: Managing short-term assets and liabilities to ensure the company has sufficient liquidity to meet its operational needs. This includes managing cash flow, inventory, accounts receivable, and accounts payable.
  4. Financial Planning and Analysis: Forecasting future financial performance, setting financial goals, and creating budgets. This also involves analyzing financial statements and key performance indicators to guide decision-making.
  5. Dividend Policy: Deciding whether to distribute profits to shareholders in the form of dividends or to retain earnings for reinvestment in the business. This decision affects shareholder satisfaction and the company’s growth potential.
  6. Risk Management: Identifying, assessing, and mitigating financial risks that the company faces. This includes managing risks related to interest rates, currency fluctuations, commodity prices, and credit.
  7. Mergers and Acquisitions (M&A): Evaluating, planning, and executing transactions in which the company merges with or acquires another business. This involves assessing the strategic fit, financial benefits, and integration challenges of potential deals.
  8. Funding and Financing: Securing the necessary capital to fund the company’s operations and growth. This includes issuing stocks or bonds, arranging loans, and negotiating with investors and financial institutions.

Corporate finance is essential for the strategic planning and growth of a company, ensuring that it can effectively allocate resources, manage risks, and achieve its financial objectives.

In the next Blog we try to get will know more about Public Finance and investment finance.

                                                                                          By

                                                                               Vishal Kumar K R

"Finance can be arranged easily in the world, but managing it after acquisition is one of the most difficult tasks."
Vishal Kumar K R
Thrive group founder, investor



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14/07/2024 /3 Comments/by
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Quarterly Results

Quarterly Results of D mart and Geojit financial services limited

DMart Q1 Results: Net Profit Rises 17.5% To Rs 773.8 Crore

 

Avenue Supermarts Ltd, which runs the D-Mart retail chain, saw a 17.5% increase in its net profit, reaching Rs 773.8 crore for the first quarter of the financial year 2024-25. During the same period, their revenue increased by 18.6% to Rs 14,069.1 crore, compared to Rs 11,865.4 crore in the same quarter last year.

In the first quarter of the previous year, D-Mart’s net profit was Rs 658.8 crore. Their earnings before interest, taxes, depreciation, and amortization (EBITDA) for April-June 2024 increased by 18% to Rs 1,221.3 crore, up from Rs 1,035.3 crore the year before. However, the company’s profit margin slightly decreased to 8.68% from 8.73% a year ago.

Neville Noronha, Avenue Supermarts’s CEO and managing director, mentioned that their revenue grew by 18.4% this quarter. General merchandise and clothing sales improved, which helped increase their gross margin. They also opened six new stores, bringing the total number of stores to 371 as of June 30, 2024. Operating costs went up as they worked on improving service quality and building capabilities for the future.

Geojit Financial Services Limited

Geojit Financial Services Limited reported its earnings for the first quarter ending June 30, 2024. The company’s revenue increased to INR 1,811.82 million, up from INR 1,159.75 million the same quarter last year. Net income also rose significantly to INR 445.12 million from INR 210.26 million a year ago.

The basic and diluted earnings per share from continuing operations both improved to INR 1.86, compared to INR 0.88 in the previous year.

13/07/2024 /1 Comment/by