18th Aug 2020 "Your potential is much higher then what u r today
Indian Markets - Indian markets saw volatility in first half after closing positive. IT, Pharma and metals hold the key.SGX trading flat
- Indices: NSE Nifty 50 (P/E 31.39);NSE Bank Nifty (P/E 23.031) ; BSE Sensex (P/E 26.6)
- In Aug FII Cash +11,627 Cr ;DII Cash -6,524 Cr
Global Markets:
US markets DJI down -86(-.31%), S&P(.3%) and NASDAQ closed life time higher.
US markets DJI down -86(-.31%), S&P(.3%) and NASDAQ closed life time higher.
Europe traded positive
Asian Markets Trading mix with negative bias
Commodities : Gold and silver bounced back as expected
Gold : Gold 53,377 INR
Silver: MCX 69,600 INR
Forex:- USD 74.745, EUR 88.87, GBP 98.13
Major Results :
18th- UFlex, KNR, ZEEL, HAL
19th- Tide water Oil, Kennametal, Balmer Lawrie, Muthoot finance, CSB Bank
20th- Accelya Kale, HC Global
21st- Suprajit, Oil India
HeadlinesNews/ Events/ Results
- AGR Hearing to continue today, SC ask the govt to presents its view on Reliance Jio - RCOM spectrum sharing issue
- Serum India looks to make 1 Billion covid shots
- India's COVAXIN is provind safe in early results
- RBI allows Bandhan bank to open new branches- Positive
- No end to current bull market - Shankar Sharma of First Global
- Economic recovery picking up pace:Nomura
- AGR case: Supreme Court’s poser to govt
- Tata Motors rejects reports of JLR stake sale
- SC asks Rcom to explain fall in valuation
- India's GDP to contract 16.5% in Apr-June quarter: SBI report
- India's seafood exports pegged at 12,89,651 MT in FY 19-20
- India's power output rises for the first time in five months in August
- Finance Minister Nirmala Sitharaman seeks investment from UAE for Rs 111 lakh cr National Infrastructure Pipeline
Business Standard
- SC seeks govt view on Reliance Jio's liability for RCom's AGR dues
- Domestic coal demand may be subdued in Q2 onlo wer demand: Report
- Hiring picks up 35% in June qtr from a low of -50% in April: LinkedIn
- US to tighten restrictions on Huawei access to technology, chips: Report
- NFRA finds deficiencies in BSR's audit of IL&FS Financial Services
Mint
- Government modifies Partial Credit Guarantee Scheme 2.0
- India asks UAE to invest more in logistics, food parks
- CBI books SEL Textiles Ltd, directors for cheating consortium of banks to the tune of ₹1,530 cr
- Jyothy Labs eyes debt-free status by December
- IHCL inks pact with Tata Power arm for solar energy
- Biological E acquires Indian arm of US pharma firm Akorn
Financial Express
- India invites investments from UAE for highways, defence, ports, airports
- Online trading company Robinhood now valued at $11.2 bn with new fund backing
- L&T Finance sells its remaining CG Power stake for ₹73 crore
- Over 80 million two-wheeler riders need helmets: Studds
- Fed close to making its new inflation strategy official
Financial Chronicle
- Japan’s economy shrinks at record rate,slammed by pandemic
- Samsung plans to produce Rs 3.7 lakh crore worth mobile phones in India
- Kalyan Jewellers now close to same store performance year-on-year: CMD
- Reliance may acquire online start-ups Urbanladder, Milkbasket: Report
- Mutual fund norms violation: Sebi imposes Rs10 lakh fine on Bank of Baroda
- Taxpayers need not reveal high-valuetransactions in ITR
Have a Nice Week ahead
For details contact Email: sunrisefinservpune@gmail.com http://www.Sunrisefinserv.in
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17th Aug 2020 "A positive mind finds an opportunity in everything - APJ"
Indian Markets view this week - Indian markets are likely to see high volatility and some correction as last week's macro economic data showing very slow recovery in economic growth with high rise in Inflation to 6.93% from 6.23%. Exports also fell by 10.2% to ~$23.5 B in July. Global movement esp of US will also impact Indian markets movement
- Indices: NSE Nifty 50 (P/E 31.09);NSE Bank Nifty (P/E 23.01) ; BSE Sensex (P/E 26.46)
- In Aug FII Cash +11,627 Cr ;DII Cash -6,524 Cr
Global Markets: US markets like Indian markets had a see saw ride in all the three Indices DJI, S&P and NASDAQ. FAANG stocks after an excellent rally saw some consolidation.
Europe traded positive most of the week except Friday
Asian Markets Trading mix, Hangseng High and Nikkei lower
Commodities : after last week's huge volatility and decline Gold/Silver are likely to stabilize and may show upward movement however need to be cautious.
Gold : Gold 52,227 INR
Silver: MCX 67,200 INR
Major Results Today:
17th- Lux Ind, CanFin Homes, Petronet, Suven
Stocks To watch for portfolio : IT stocks like LTTS, Tata Elxsi, TCS
Pharma - Divis, DRL, Granules, Alkem, Abbot, Sanofi, Cipla
FMCG - ITC, Nestle, HUL, Britania (or BBTC its holding company), ADF
Communication/cables - Bharti, Dlink, Polycab,Sterlite, KEI and FinolexEnergy - Reliance (After decline), IGL, Gujarat Gas
PSU - PFC, REC, GMDC
Agro/ Chem - Kaveri seeds, Bayer, Deepak nitrite, Sumitomo, Fine organic
Infra/Defence - L&T, JK Cement, Tata Steel, BDL, BEL
Financials - AVOID as of now, SBI cards buy on each decline
Auto - Maruti, Bajaj Auto, Hero on decline, BKI, Minda Ind
News/ Events/ Results
News/ Events/ Results
'Silence is best answer for all your questions and smiling is best reaction in all situations'
- Reliance - SC ordered reliance JIO to pay AGR of INR 31000 Cr for using the spectrum of RCom. Will be a big drag on stock and Index. If it has major fall then buying opportunity at lower levels
- AGR hearing and likely outcome today telecom will be in focus
- In Independence Speech big emphasis was given on 100lakc cr Infra project on 7000 different project including multilevel connectivity and National pipeline project. So Infrastructure and related stocks, including defence stocks may see fresh buying and will be in focus. May be a good buy for 2-3 years horizon
- Education and health has been also been given due attention along with new NEP and Health ID card, stocks related to these sectors may also remain in focus like Navneet and IT companies for digitization of health sector
- Gold imports dip 81% to $2.47B Apr-Jul'20
- Gold ETF Inflows soar 86% to Rs 921 Cr in July
- Major AMC's raised TER for direct plans
- MCX to launch India's first bullion index on Aug 24'20
- Indian Railways constructing world's largest pier bridge in Manipur
- HDFC AMC bought 16Cr shares of yes bank in July
- Good Q1 Results - Glenmark, Trigyn Tech, IIFL Wealth, NESCO, ADF Foods
- Poor Q1 Results - UBL, Finolex, Insecticides, Voltam, Bodal Chem, Clariant chem, Fortis Health, Majesco, LaOpala
Have a Nice Week ahead
For details contact Email: sunrisefinservpune@gmail.com http://www.Sunrisefinserv.in
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15th Aug 2020 "HAPPY INDEPENDENCE DAY"
Indian Markets - Indian markets remained range throughout the week with Nifty moving between 11200-11350 and finally on Friday fell sharply by 1% to close at 11178. FII were buyers the whole week while DII's on the opposite side. Midcaps and small caps continued to out perform the Index. Be cautious next week , market may see volatility due to US stimulus and some correction is healthy now for another move.
- NSE Nifty 50 (P/E 31.09);NSE Bank Nifty (P/E 23.01) ; BSE Sensex (P/E 26.46)
- (In Aug) FII Cash +11,627 Cr ;DII Cash -6,554 Cr
Global Markets: US markets like Indian markets had a see saw ride in all the three Indices DJI, S&P and NASDAQ. FAANG stocks after an excellent rally saw some consolidation.
Europe traded positive most of the week except Friday
Asian Markets again had range bound trades throughout the week
Commodities : Gold and Silver saw a huge volatility with falling with 10 and 20% correction once and recovering some ground later
Gold : Gold fell to low of ~50000 INR from the top of 56000 , finally closing at 52632
Silver: Silver fell close to 61000 INR from to of 79000 and closed at 69200< Major Results this Week:
17th- Lux Ind, CanFin Homes, Petronet, Suven
18th- UFlex, KNR, ZEEL, HAL
19th- Tide water Oil, Kennametal, Balmer Lawrie, Muthoot finance, CSB Bank
20th- Accelya Kale, HC Global,
21st- Suprajit, Oil India
Stocks To watch for portfolio : IT stocks like LTTS, Tata Elxsi
In Pharma - Divis, DRL, Granules, Alkem, Abbot, Sanofi
Stocks To watch for portfolio : IT stocks like LTTS, Tata Elxsi
In Pharma - Divis, DRL, Granules, Alkem, Abbot, Sanofi
Communication/cables - Bharti, Dlink, Polycab, KEI and Finolex
Energy - Reliance, IGL, Gujarat Gas
PSU - PFC, REC
Infra/Defence - L&T, JK Cement, Ambuja, BDL, BEL
Financials - AVOID as of now'The journey to financial freedom is a marathon, not a sprint'
Have a Nice Weekend
For details contact Email: sunrisefinservpune@gmail.com http://www.Sunrisefinserv.in
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13th Aug 2020 "If you are going to rise, you might shine as well"
Markets: Yesterday Nifty & Bank Nifty recovered from day lows to close almost flat at -0.1%. Expect the market to open on a positive note with SGX nifty trading - NSE Nifty 50 (P/E 31.33);NSE Bank Nifty (P/E 23.63) ; BSE Sensex (P/E 26.84)
- FII Cash +351cr ;DII Cash -940 Cr
- US Markets - Dow Jones, NASDAQ, S&P traded positive with 1-2% gains with eye on stimulus
- Europe markets closed positive with major indices gaining 1 to 2 %
- Asian Markets trading mix , Nikkei 1.9% up
Commodities : Precious metals recovered handsomely after falling heavily yesterday- Gold 1946 $/oz ₹/10 gm , INR 52200 on MCX)
- Silver 26.06 $/oz, 66700 ₹/kg on MCX
- Brent Crude 45.39 $/b
- For-ex: $/₹ 74.83 ;€/₹ 88.1; £/₹ 97.36
Stocks in News- Major Results Today: 3M Ind, ABFRL, Balkrishna Ind, BPCL, CUB, DB Corp, DCH Shriram, Eicher Mot, Eldeco, EIL, Endurance, EXCEL, GAIL, GRSE, Godrej Ind, Greaves, Herculis Hoist, Hero Moto, IG Petro, INEOS, India Glycol, Kirloskar Ind, KSCL, Lumax Auto, Mayur Uniq, Milkfood, PPAP, Prestige, Safari, Sharda Crop, Timken TTK Health, Venkys
- Stocks to watch: Aurobindo,HAL, Petronet, SBI, Eicher, 20 Microns
News/ Events/ Results- Tata Power board approved merger of wholly owned subsidiary Mundra UMPP and Tata Solar power
- Affle India to acquire 8% stake in Bobble
- Brigade : board approved raising of 500 Cr via Equity and debt
- IBHsg Fin Executive chairman Gehlot resigns
- Govt allows sale and registration of EVs without batteries
- RBI asks UCBs to implement system based asset classification
- Gadkari calls for global investments in H/Ws and MSMEs
- Mahindra Finance rights subscribed 1.3 time
- FSL Revenue from operations 1,061 Crs 971 Cr (9.21%) YoY | 1,080 Cr (-1.68%) QoQNet profit: 339 Cr Vs. 378 Cr (-10.34%)
- TATA POWER COMPANY: Q1 CONS NET PROFIT 2.07B RUPEES VS 1.63B (YOY); EST 2.5B || Q1 REVENUE 64.53B RUPEES VS 77.67B (-17%) (YOY)
- ADVANCED ENZYME TECHNOLOGIES: Q1 CONS NET PROFIT 34.2 CR VS 33.4 (YOY); EST 30CR, EBITA also good
- VST Tillers reported excellent results - good portfolio stock
- Symphony NP 2 Cr and Revenue 154 Cr vs 249 Cr LY- Buy on dips, time to accumulate
- Aavas Finance Q up 11% to 50 Cr
- Natco Pharma - Net profit declined 15% to 122 Cr
- Ashok leyland Q1 389 Cr loss and revenue declined 88% to 651 Cr
- Thermax Q1: Net loss 15.27 vs 62.7 Cr Profit; Rev 685.86 vs 1414 Cr LY
- Brigade Q1: Net loss 53 cr vs 41 Cr Profit, Rev declined 70% to 214Cr LY
- Aurobindo Ph profit jumps 23% to 781 Cr; EBIDTA Magin 21.2% vs 21.1%
- Sundram fasteners Q1: Net loss 25.73 Cr vs 96.89 Profit; Revenue 381.8 Cr vs 1185 Cr Last year QoQ
Mutual fund updates
Insurance Updates
________________________________________________________________________
12th Aug 2020 "Every failure brings with it a seed of an equivalent success"
Markets: Yesterday Nifty & Bank Nifty both closed higher, All index except Pharma/It closed higher. Expect the market to open on a negative note with SGX nifty trading more than 1% down
- NSE Nifty 50 (P/E 31.37);NSE Bank Nifty (P/E 23.59) ; BSE Sensex (P/E 26.93)
- FII Cash +1014cr ;DII Cash -1416Cr
- US Markets - Dow Jones, NASDAQ, S&P ended lower with uncertainty on stimulus
- Europe markets closed with around 2% gains
- Asian Markets trading lower
Commodities :- Gold 1890$/oz ₹/10 gm , INR 50800 on MCX);(Down 7% )
- Silver 24.22 $/oz, 62000 ₹/kg on MCX (down 12%)
- Brent Crude 45.16 $/b
- For-ex: $/₹ 74.77 ;€/₹ 87.91; £/₹ 97.81
Stocks in News- Major Results Today: Aurobindo Pharma,
- Stocks to watch: RCF, Adani ports, HAL, BEL, Galaxy, SBI cards, L&T, MPS
News/ Events/ Results- HAL got order to make 106 indigenous defence air cfrafts
- Russia developed first Covid Vaccine Official statement by President Putin
- SC declared daughters to be equal partners in parent’s property
- Disinvestment process started in SCI
- LIC declines any interest in buying stake in Vodfone-idea
- CPI numbers to be declared today
- IIP declined to -16.6% in july from 1.3%
- Govt may plan to increase Ethanol prices for FY 20-21
- PV sales down by 62% in Apr to Jul, Auto sales down 29% in July
- Central Bank posted excellent Q1 numbers and better asset quality
- Indoco remedies Proft rise to 17 cr from 1.8 Cr
- Bajaj electric posted 27 Cr loss as compared to 17 cr profit
- Adani ports profit fall 26% to 758Cr profit while revenue declined 18% to 2293Cr - Better than expected
- Bosch posted better than expected result
- Motherson Sumi disappointed with results posting 1192 Cr Loss as compared to 320 Cr Profit last year in the same quarter
- AIA engineering posted decent results in-spite of lock-down
- RCF posted very good Q1 results
- Ashoka Buildcon posted decent results
Mutual fund updatesInternational and Asset allocation fund attracting investors
________________________________________________________________________11th Aug 2020 "Trust the timing of your life"
Indian Markets: Yesterday Nifty & Bank Nifty both closed higher, Pharma and defence stocks gained more than 5%. Expect the market to open on a positive note with SGX nifty trading higher- NSE Nifty 50 (P/E 31.23);NSE Bank Nifty (P/E 23.2) ; BSE Sensex (P/E 26.67)
- FII Cash +303Cr ;DII Cash -505 Cr
Global Markets- US Markets - Dow Jones ended positive with more than 1% gain, NASDAQ was trading -Ve while S&P traded flat.
- Europe markets closed with positive bias;
- Asian Markets trading higher
Commodities- Gold above 2018 $/oz ₹/10 gm , above INR 55000 on MCX);Silver 28.94 $/oz, above 75300 ₹/kg on MCX
- Brent Crude 45.16 $/b
- For-ex: $/₹ 74.89 ;€/₹ 87.94; £/₹ 97.95
Stocks in News- Major Results Today: AIA, Bosch, Galaxy Surfactants, KRBL, Metropolis, Oracle Finserve, VST Tillers, PTC India, Ashoka Buildcon, Vesuvius India, Indoco Remedies, Gujarat Alkalies, RCF, RITES, Star Cement, Vardhman holding
- Brokers Radar – Divis tgt 3350 by Motilal, Amararaja tgt 845 by Edelweiss, HPCL -304 ,Lupin -1015, Alkem -3600 by Motilal, Britania 4300 by Axis sec
- Stocks to watch - Majesco, NMDC, Praj, KRBL, Galaxy, LT foods
News/ Results
- Corona toll in India crossed 22.5 L with more than 62 patients 3 days in a row
- ICICI Bank took control of Mantri developers building in Bangalore
- ICICI bank launched QIP at floor price at 351 INR
- Prestige Estate - Blackstone set to acquire Prestige estates
- AGR hearing postponed till Friday (14th Aug)
- Agriculture infra fund to open new opportuities
- BoB posts Rs 864 Cr loss in Q1 due to higher provisions for Covid impact, NII grew 5% & asset quality improved
- Emami reported healthy Q1 numbers
- Shree cements NP drops 13.5% to 330 Cr
- Akzo noble net loss of 20Cr in Q1
- Titan posts Rs 270 Cr loss in Q1 as lock-down hits it hard
- Equitas Holding Q1 profits down 25% to 52Cr
- IPCA labs posted excellent Q1 number profit zooming almost 4 times
- Astrazeneca NP declines 13% to 18.6 Cr
- TTK Prestige net profit down 94% to 2.1 cr
- Cochin Ship NP down 65% to 43 Cr
- Kajaria ceramics disappointed with Q1 numbers
Mutual fund updates
Franklin templeton received 4200 Cr in 6 bound up schemes________________________________________________________________________6th Aug 2020 "Think positive, talk positive, invite Positive and make Mr Positive your close buddy"
Indian Markets: Expect the market to open on a flat note
NSE Nifty 50 (P/E 30.41);NSE Bank Nifty (P/E 22.38) ; BSE Sensex (P/E 26.24)
FII Cash -60Cr ;DII Cash -426 Cr
Global Markets
US Markets - Dow Jones , NASDAQ and S&P indedx all ended positive with handsome gains on the hope of Stimulus package
Europe markets closed on a positive note
Asian Markets are trading mix with, SGX nifty trading flat
Commodities
Brent Crude 45.2 $/bGold above 2050 $/oz ₹/10 gm , above INR 55000 on MCX)
Silver 26.64 $/oz, above 72000 ₹/kg on MCX
For-ex: $/₹ 74.94 ;€/₹ 88.79; £/₹ 98.29
Major Results Today: Adani Enterprises, Apar Ind, BASF, Blue Star, Canfin Homes, Dalmia bharat, Deepak Nitrite, ESAB, GSPL, Honeywell, HPCL, IFB ind, Jamna Auto, JK tyre, KEI, Lemon Tree, Lupin, Maithan Alloys, Novartis, Pidilite, Sumitomo, Torrent Power, Vodafone Idea, Whirlpool,
Brokers Radar – HDFC Bank CITI TGT 1350, Macquarie at 1114.
Gujarat Gas TGT by CLSA at 370, Jefferies at 415.
Stocks in News/ Major Events
- MPC to declare interest rates today
- LIC Purchased 105 cr shares of Yes bank
- Alkem labs launched Alfluenza for flavipir as covid-19 vaccine - Positive on stock
- EID Parry posted muted Standalone results but decent consolidated numbers that include Coromandel International gains
- Adani Gas posted disappointing Q1 numbers
- Birla Soft Posted good Q1 Numbers
- Jyothi Labs posted decent Q1 numbers
- Apollo tyres posted bad numbers
- VIP also disappointed in Q1 results
- Hawkins cooker Posted decent numbers
- Godrej Properties met Expectations in Q1
- DLF also met Expectations in Q1
- JK Lakshmi Cement posted good Q1 numbers
- Visaka Industries posted good Q1 numbers
- Orient Abrasives posted good Q1 numbers
- Intellect Design posted good numbers
- PSP Projects disappointed in Q1 numbers
Mutual Fund update
Six Franklin schemes likely to get ₹3,529 crore more by October
Have a Nice Day
For details contact Email: sunrisefinservpune@gmail.com
______________________________________________________________________5th Aug 2020 "Yesterday's mistakes and failures cannot be changed. Don't let them obstruct your future"
Indian Markets: Expect the market to open on a positive note on account of global cues. U.S. equities eked out a gain as investors tried to gauge the outlook for a stimulus bill to blunt the economic impact of the corona-virus pandemic
NSE Nifty 50 (P/E 30.39);NSE Bank Nifty (P/E 22.81) ; BSE Sensex (P/E 26.27)
FII Cash + 704Cr ;DII Cash -666 Cr
Global Markets
US Markets The S&P 500 Index ended 0.4% higher , Nasdaq closed on a record high up 0.3%
Europe markets closed on a mix bag
Asian Markets are trading mix with, SGX nifty trading flat to positive
Commodities
Brent Crude 44.1 $/b
Gold above 2020 $/oz ₹/10 gm INR 54700 on MCX)
Silver 26 $/oz, above 69000 ₹/kg on MCX
For-ex: $/₹ 75.06 ;€/₹ 88.72; £/₹ 98.21
Major Results Today: Adani Gas, Birla Soft, Apollo Tyres, Cadila, Canara Bank, Cera Sanitaryware, DLF, EID Parry, Godrej Properties, Hawkins Cooker, Inox Leisure, Intellect Designs, JK Lakshmi Cement, Strides, Tasty Bites, Trents, Jyothy Labs and VIP Industries.
Brokers Radar – HDFC Bank CITI TGT 1350, Macquarie at 1114.
Gujarat Gas TGT by CLSA at 370, Jefferies at 415.
Stocks in News/ Results
- MPC to decide interest rate tomorrow
- Lupin Gets US FDA approval on Tentative Nod for Generic Treating Type-2 Diabetes,
- HDFC Bank RBI Approves Sashidhar Jagdishan as CEO replacing Aditya Puri in October
- L&T Technology expands ties with Microsoft by launching an enhanced version of state-of-the-art i-BEMS solutions
- Sun Pharma launches Favipiravir in India at Rs 35 per tablet
- Cipla witnesses 3 senior-level exits including India biz CEO,
- SBI Cards appointed Ashwini Kumar Tewari as MD & CEO
- TCS, 2 others shortlisted for implementation of RBI's market surveillance system. TCS Digitate launches ignio AI. Assurance to transform software testing - Digitate, a software venture of TCS,
- Info Edge QIP Floor Price Set at Rs3,177.18 a share– Positive.
- Axis Bank launches Rs10,000-cr share sale, sets Rs442 as floor price for QIP.\
- Dilip Buildcon has been declared as the L-1 bidder for a new HAM project worth Rs 1,140.5 crore. – Positive.
- Tata Consumers reported better than expected Q1 results,Both EBITDA and EBITDA margin reported ahead of expectation
- Jindal Steel - Standalone steel sales in July rose 29% as compared to the previous year to 6.37 lakh tonnes – Positive on account of significant growth in July sales.
- Government blocks firms from China, other neighbours in commercial coal auction – Government will restrict its neighbours from joining commercial coal auctions. The Centre had allowed 100 per cent foreign direct investment (FDI) under the automatic route for coal mining, including associated processing infrastructure.
- Godrej Consumers reported better than expected Q1 EBITDA and EBITDA margin.
- SAIL: July steel sales up 50% at 1.58 million tons.
- Adani Ports & SEZ has raised $750 million via unsecured notes.- Positive
- SRF stated it has capitalized and commissioned its BOPET film line in Hungary by its European arm for Euro 80 million. – Positive
- Astral Poly Technik Q1 (Consolidated, YoY) Revenue down 33.4% at Rs 403.9 crore (Est Rs 360 crore) Net profit down 57.7% at Rs 19.9 crore (Est Rs 12 crore).Board appointed existing Managing Director, Sandeep Engineer as the new chairman with effect from Aug 25.
- PI Industries Q1 (Consolidated, YoY) reported better than expected Q1 results on all fronts
- Dixon Tech reported mixed bag of results, However it has great potention for future growth. Buy only on dips
- Gujarat Gas reported strong Q1 results both EBITDA and EBITDA margin
- Varun Beverage Q1 mixed bag of resuts
- SPARC reported excellent Q1 results
- Ashok Leyland subsidiary Optare delivers first of 21 battery-electric Metrodecker EV with First York
- The Finance Ministry on Tuesday said banks have sanctioned loans of about Rs 1,37,586 crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector, hit hard by the economic slowdown due to COVID-19 pandemic. – Positive for market and Banks (SBI, Canara Bank, PNB, BoB)
- HPCL issues NCD worth Rs1,200cr on private placement – Positive.
Insurance Corner
Tax Benefits u/s 80D: Dividing health insurance premium to claim deduction for more than 1 year
Case: While filing the Income Tax Return (ITR), Investors get confused while putting the amount of health insurance premium u/s 80D. Say investor paid premium of over Rs 59,000 on the family floater policy for two years on January 2020, but the insurance company, in the 80D Certificate for the purpose of claiming tax benefits u/s 80D, had divided the premium in three Financial Years (FY) – FY 2019-20, FY 2020-21 and FY 2021-22 – as the 2-year policy overlaps the three FYs or give a one financial Year certificate
Clarification: Section 80D provides that the single premium paid should be divided over the years for which the benefit of health insurance is available. As such, the premium would be divided over three years as technically three financial years are covered. “Finance Act 2018 provided the taxpayer to avail the benefit of the premium paid for multi year health policies to be distributed pro-rata over the policy term. As per the rule, in a case where premium for health insurance for more than a year has been paid in one year (i.e. single premium/ lump sum premium paid for multiple years), the deduction shall be allowed proportionately over the years for which the benefit of health insurance is available.”
“I will not let anyone walk through my mind with their dirty feet.” – Mahatma GandhiHave a Nice Day
For details contact Email: sunrisefinservpune@gmail.com
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4th Aug 2020 "Strong people don't put others down, they lift them up - Michael Watson"
Indian Markets:
Expect Indian Markets to open on a positive note with strong global cues from US ,Europe and Asia. After stellar rally in July markets will look to consolidate in this month.
India reported more than 50000 corona virus case consecutively for the 3rd day may dampen the market sentiments.
Yesterday Indian stocks saw heavy selling though broad market was not that worse, led by small and mid caps. Pharma and chemicals again were at the forefront.
NSE Nifty 50 (P/E 29.70);NSE Bank Nifty (P/E 23.01) ;BSE Sensex (P/E 25.72)
FII Cash + 7,818 Cr ;DII Cash -136 Cr
Global Markets
US Markets gained with record closing in NASDAQ. NASDAQ rally led by Apple, MSFT and Tesla. Apple is just about $30/ share away for 2 Trilion Dollar MCap
Europe markets closed higher yesterday with all major Indices gaining 2%
Asian Markets are trading higher with SGX nifty about .4% up
Commodities
Brent Crude 43.38 $/b
Gold 1,987 $/oz ₹/10 gm 53,721 (Crossed 54000 intra-day)
Silver 24.39 $/oz 65,700 ₹/kg
For-ex: $/₹ 75.01 ;€/₹ 88.18; £/₹ 97.98
Major Results Today: Astral Poly,Alkali Metals,Dixon, Godrej Consumer, Gujarat Gas, PI Ind, Tata Consumer, Varun Beverages, SPARC, Apollo Pipes Igarashi Motors, Eris Life, Hikal, MRPL, Neuland Labs, Unichem, Vinyl Chem
Stocks in News/ Results
- RBI MPC committee meeting commences today
- Banking stocks witnesses profit booking… RBI Credit policy on 6th Aug.. expects interest rate cut by 25bps … Positive for interest sensitive sectors - Banking stocks are witnessing profit booking today. RBI credit policy will be announce on 6th August. Market expectation of RBI to cut interest rate by 25bps from 4% to 3.75%. It will be positive for the market if RBI cut interest rate. Interest sensitive sectors like Banking (SBI, ICICI, HDFC Bank, Axis Bank), Auto (Maruti, Tata Motors, Eicher Motors), Housing Finance (LIC Housing, HDFC) stocks will be positive if the RBI cut interest rate
- Manufacturing Purchasing Managers' Index(PMI) for the month of July stood at 46, as compared to 47.2 in the month of June last year in 2019 stood at 52.5
- Bajaj Auto July sales at 238556 units, down 26% YoY – Bajaj Auto improved on month on month sales volume
- Wockhardt entered into an agreement with the UK government to fill-finish COVID-19 vaccines
- Sun Pharma’s American arm acquires Canadian Aquinox after paying $8.2mn
- Jubilant Life launched Cocid -19 medicine Remedisvir in the market
- Century Ply announces use of nano technology in manufacturing process to kill viruses
- Bandhan Bank shares tanked 10% after promoters sold 20% of their shares
- Kansai Nerolac reported avg. Q1 numbers with NP falling 79%
- BSE net profit drops 21%
- BOI reported good Q1 numbers with decreased NPA's
- Credit-Access Grameen Q1 net profit down 22%
- KPIT Net profit dipped 22%
- VST Ind reported better than expected numbers
Business Standard
- Tata Motors on disciplined growth path'
- MoD plans to boost domestic arms buys
- India's manufacturing activity contracted at a
sharper pace in July: Survey - India's manufacturing activity contracted at a
sharper pace in July: Survey - America's oldest retailer seeks bankruptcy
- GMR Infra to divest part of non-core assets
- Rising real lending rates causing steep fall in
credit flows, GDP: Report - Shortest ruling 10-year benchmark bond ever:
Changes within three months - Covid-19 impact: HSBC warns loan losses could
hit $13 bn as profit dips 65% - Bank of India Q1 net profit rises three-fold to
Rs 844 cr as bad loans ease - Google to buy 6.6% stake in home security firm
ADT for $450 million
- SEBI tightens disclosure norms for proxy
advisory firms - Reliance Ind ‘not to bid’ for BPCL
- Lockdowns bring down Manufacturing PMI to 46 in
July - Investments in Indian start-ups soar 322% in
July - Jain Irrigation close
to signing debt restructuring - Apollo Tyres to
consolidate, de-risk by expanding into new geographies: Vice-Chairman Neeraj
Kanwar
- Moody's upgrades Yes Bank following capital
raise - DGCA objects to SpiceJet's promotional offer
- Bandhan Bank holding firm sells 20.95% stake to
meet RBI norms - Tech Mahindra starts covid-19 screening service
for ₹1,200 per person - Franklin Templeton debt funds see further dip in
NAV as Future Group defaults
- FDI in commercial mining: Govt nod needed for
firms from nations sharing border with India - SBI economists pitch for loan recasts in
select sectors - Asia’s factory pain eases as China’s
activity jumps - COVID-19: BHEL grapples with uncertainty over
returning to normal business operations - FPIs remain net sellers of Indian debt for fifth
straight month - Real estate sentiment hit an all-time low
in Apr-Jun due to pandemic, survey states - Indices extend loses for 4th day, Sensex plunges
667 points, Nifty below 10,900 - Manufacturing activity shrinks faster in July,
PMI below June-level - Serum-Oxford COVID-19 vaccine gets DCGI grant
for human trials in India
Mutual Fund Updates
4 Franklin Templeton debt funds see further dip in NAV
Four of the six debt schemes of Franklin Templeton Mutual fund which are under winding up saw further dip in their NAVs due to default in payment of dues by the Future Group. The net asset value of Franklin India Income Opportunities Fund fell by 4.85% on Friday. Franklin India Credit Risk Fund saw a dip of 2.28%, Franklin India Short Term Income Plan dipped 1.75% and Franklin India Dynamic Accrual dropped 1.34%.
"Knowledge isn't power until it is applied."-Dale CarnegieHave a Nice Day
For details contact Email: sunrisefinservpune@gmail.com
_________________________________________________________________________________________
3rd Aug 2020 " Wish every one a happy Raksha Bandahn"
Indian Markets:
All world markets were down , Asia is negative so is SGX nifty.. Expect market on Negative side during the day
Gold Touched all time highs of 54300 RS
Corporate Results Calendar/ Upcoming events
Aug 3 – Results: BOI, BSE, CreditAccess, Kansai Nerolac
Aug 4 – RBI MPC meeting
Results: Dixon, Godrej Consumer, Gujarat Gas, PI Inds, Tata Consumer, Varun Beverages
Aug 5 – RBI MPC meeting
Results: Apollo Tyre, Cadila, Cera Sanitary, DLF, Godrej Properties, Inox Leisure, JK Lakshmi Cem, Jyothy Labs, Strides Pharma
Aug 6 – RBI MPC meeting
Results: Blue Star, Dalmia Bharat, Deepak Nitrite, Gujarat Pipavav, GSPL, HPCL, Lupin, Pidilite, Torrent Power
Aug 7 – Results: Alkem, Amara Raja, Cipla, Concor, Emami, Kajaria Cera, Mahanagar Gas, M&M, Ramco Cement, REC, Sobha, Sudarshan Chem
Aug 8 – Results: Divis Lab, Magma Fincorp
Corporate NewsAug 4 – RBI MPC meeting
Results: Dixon, Godrej Consumer, Gujarat Gas, PI Inds, Tata Consumer, Varun Beverages
Aug 5 – RBI MPC meeting
Results: Apollo Tyre, Cadila, Cera Sanitary, DLF, Godrej Properties, Inox Leisure, JK Lakshmi Cem, Jyothy Labs, Strides Pharma
Aug 6 – RBI MPC meeting
Results: Blue Star, Dalmia Bharat, Deepak Nitrite, Gujarat Pipavav, GSPL, HPCL, Lupin, Pidilite, Torrent Power
Aug 7 – Results: Alkem, Amara Raja, Cipla, Concor, Emami, Kajaria Cera, Mahanagar Gas, M&M, Ramco Cement, REC, Sobha, Sudarshan Chem
Aug 8 – Results: Divis Lab, Magma Fincorp
Major News Papers
Business Standard
- RBI's Monetary Policy Committee meets next week amid urgency to
revive growth - CG Power lenders' negotiate a higher bid
- Trai's scrutiny of Airtel & Voda Idea's premium plans isn't
over yet - Govt amends IRDAI rules to permit insurance intermediaries to
operate in all SEZs - Ujjivan open to acquisition and partnerships
- Reliance Comm liable to pay SSTL AGR dues, DoT identifies combined
liability worth more than Rs 25k cr
Business Line
- Apple plans to move 10% of its global manufacturing to India in 5
years - India's June crude oil imports lowest in over 5 yrs; exports fall
- AIIB in talks with India for financing of $8-billion health infra
scheme - Steel firms hike prices by Rs 2,000 a tonne in 10 days on demand
spike - Fitch cuts US credit outlook to 'negative' due to budget loss amid
Covid-19 - Trai poses more questions to Airtel, Voda Idea on priority plans
Mint
- IndianOil to invest ₹13,805 cr to set up new plant in Odisha
- Lupin recalls 35,928 bottles of generic antibiotic drug in the US
- IRB Infra gets award letter for executing ₹1,755 cr
Vadodara-Mumbai Expressway stretch - Tata Motors takes Covid hit; Q1 loss widens to ₹8,443 cr
- Audit of listed companies may be done digitally during Covid-19
Financial Express
- FPIs net buyers for 2nd month in July, invest ₹3,301 crore
- Siemens Healthineers expands into cancer care with $16.4 bn deal
for Varian - The govt and RBI face a trilemma regarding PSBs
- Bengal takes ₹1,022-cr loan from Centre to iron out discom
liquidity stress - NHAI, REC cut interest rate on capital gains bonds
Deccan Chronicle
- Centre’s finances: Q1 fiscal deficit at 83% of FY21 target
- India’s forex reserves at new record high of $523 billion
- Liquor sales decline up to 60% in May-June in states with high
Corona cess: Report - Covid drags down PE investment in warehousing segment by 92%
in Jan-June - Microsoft in advanced talks to buy TikTok’s US business
- Apple now world's most valuable company, dethrones Saudi Aramco
- Maruti domestic sales were up 1.3% in July but don't exhale yet
- GST collection slips over 14% to Rs 87,422 crore in July
1st Aug 2020 "Don't give your past the power to define your future"
Weekly Wrap up
Indian Markets
- Indices: NIFTY -121 points, SENSEX -522 points for the week,
- Index moves: Nifty -1.1%, Sensex -1.4%Index moved ~ +7.5% in the month of July, caution in Aug
- NSE Nifty 50 (P/E 30.20) ;NSE Bank Nifty (P/E 23.63) ;BSE Sensex (P/E 26.20)
- BSE midCap (P/E 29.73);BSE smallCap (P/E -409.64)
Top Gainers/Losers (27/Jul/20 – 31/Jul/20):
Nifty outperformers:
- Dr Reddy's +11.2%
- Sun Pharma +9.5%
- UltraTech Cement +9.2%
- Grasim +8.6%
- Cipla +8.1%
Nifty underperformers:
- ICICI Bank -9.2%
- Zee Ent -8.5%
- BPCL -7.7%
- HDFC Bank -7.7%
- IOC -4.7%
Commodities
- BrntCrude 43.14 $/brl
- Gold Commexx 1,976 $/oz ₹/10 gms *53,799 ⬆️ ;
- Silver Comexx 24.15 $/oz 65,143 ₹/kg ⬆️
Sector Performances (27/Jul/20 – 31/Jul/20):
Out performers
Healthcare/Pharma +7%
IT +5%
Comm Tech +3.7%
Healthcare/Pharma +7%
IT +5%
Comm Tech +3.7%
Under performers
Banking -4.2%
Oil & Gas -3.7%
Consumer Durable -1.7%
Banking -4.2%
Oil & Gas -3.7%
Consumer Durable -1.7%
Market Net Inflow/Outflow
- Foreign net outflow USD : $ -47m
- Domestic net inflow USD : $ -386m
- Foreign (Debt) net outflow USD: $ -55m
Corporate News
- Bharti Airtel said that telecom tariffs have to increase as the average revenue per user (ARPU) should be around Rs200, up from the current Rs157 (BS)
- Life Insurance Corporation (LIC) of India clocked 12.42% growth in 2019-20 (FY20) in total premium income at Rs3.79trn, compared to Rs3.37trn in 2018-19 (FY19). The insurer’s new business premium (NBP) was up 25.17% in FY20 to Rs1.77trn (BS)
- ICRA has reaffirmed IndiGo's long-term rating at A-plus with a negative outlook but downgraded short-term rating by one notch from A1-plus to A1 (BS)
- Tech Mahindra and Hinduja Group's CyQureX announced a global partnership to jointly offer cyber security solutions (BS)
- Dr Reddy's Laboratories (DRL) is gearing up for two major launches next month - injectable drug remdesivir for hospitalised Covid-19 patients, and oral drug favipiravir that is given to mild-to-moderate patients (BS)
- Mindspace Business Parks REIT IPO saw 13 times more demand than the shares on offer.
- IRB Infrastr said it has emerged as the preferred bidder for executing a stretch of the upcoming Vadodara-Mumbai Expressway at a cost of Rs17.55bn in Gujarat (BS)
- Adani Ports said it will raise USD750mn (over Rs56.10bn) to fund its capital expenditure requirements and to retire some of its debt (BS)
- The government has for the third time extended the deadline for bidding for privatization of Bharat Petroleum Corp Ltd (BPCL) by two months to September 30 (BS
- Sanofi and GSK said they had reached an agreement with Britain to supply it with up to 60mn doses of a potential COVID-19 vaccine, and that discussions with other governments were ongoing (BS)
- Havells India said it will raise Rs5bn through issuance of commercial paper (BS)
- Reliance Industries Ltd will pay between Rs240bn-Rs270bn (USD3.2-USD3.6bn) to buy the Indian retail chains owned by Future Group (BS)
- Manappuram Finance said it will raise up to Rs5bn by issuing bonds on a private placement basis (BS)
- Tata Motors Ltd said Thierry Bollore would be the new chief executive officer of its British luxury arm Jaguar Land Rover (JLR) (BS)
- NBCC Ltd said it has bagged orders worth Rs204bn in Seychelles (BS)
- Indian Oil Corporation (IOC) and French energy giant Total formed an equal joint venture to manufacture and market high-quality bitumen derivatives and specialty products for the growing road-building industry in India (BS)
- SBI said its holding in Yes Bank has come down to 30% after the follow on public offer (FPO) (BS)
- ITC acquires spices maker Sunrise Foods in all-cash deal for Rs21.50bn (BS)
- Lupin and Granules India are recalling close to 0.97m bottles of generic diabetes drug in the US due to possibility of the affected lot containing cancer causing nitrosodimethylamine (NDMA) above the acceptable intake limit (BS)
- HDFC Bank chief executive and managing director Aditya Puri has sold more than 7.4mn shares of the private lender to raise Rs8.43bn (BS)
- Tata Steel is reportedly offering the British taxpayer a 50% stake in its Port Talbot steelworks in Wales as part of efforts to secure government backing to secure the future of the business in the wake of the corona virus pandemic lock-down (BS)
- The government has kicked off the process to launch the initial public offer (IPO) of insurance giant Life Insurance Corporation of India (LIC) — the mainstay of this financial year’s ambitious Rs2.1trn disinvestment target.
- MOFSL CEO Aashish Somaiyaa resigned and to be replaced by Navin Agarwal
- Sun Pharma said its American arm Taro Pharmaceutical has resolved all cases involving multi-year investigations by US Department of Justice into the country's generic pharmaceutical industry (BS)
Economy Front Page
- As part of its effort to improve connectivity, Beijing-based multilateral funding agency AIIB is looking to provide loans worth USD3bn for various large infrastructure projects, including Delhi and Meerut Rapid Rail, Mumbai Metro Rail and Chennai Peripheral Ring Road project, over the next 12 months (BS)
- Loan Moratorium down by 25% due to resumption in business activities
- Attorney General K K Venugopal has offered the Centre a way out of the compensation mess under the goods and services tax (GST) system, but has not recommended borrowings by the GST Council (BS)
- The Fifteenth Finance Commission is in discussions with the Centre and the Reserve Bank of India on the issue of bank recapitalization, Commission Chairman N K Singh said (BS)
- Housing sales plunged 79% to 19,038 units across eight major cities in April-June, as demand was badly impacted due to the nationwide lockdown to control Covid-19 pandemic (BS)
- India Inc's borrowing from foreign markets slipped over 81% to USD1.02bn in June this year (BS)
- The Centre revealed that it released around Rs140bn to states as compensation for their losses due to the goods and services tax (GST) for March 2020. This takes the total compensation released for financial year 2019-20 (FY20) to Rs1.65trn, against a cess collection of Rs954bn for this purpose (BS)
- India's holdings of American government securities increased by nearly USD13bn to USD169.9bn at the end of May (BS)
- An amount of Rs30.9bn was sanctioned for five proposals under the special liquidity scheme for non-banking finance companies (NBFCs) and housing finance companies (HFCs), announced under the Atmanirbhar Bharat package (BS)
- The finance ministry said banks have sanctioned loans of about Rs1304bn under the Rs3trn Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector, hit hard by the economic slowdown caused by Covid-19 pandemic (BS)
- The country's foreign exchange reserves surged by USD1.27bn to touch a fresh lifetime high of USD517.6bn in the week to July 17 (BS)
Key Results
Earnings Upgrade: ABB CY20ii EPS by 10%
Agro Tech Foods FY21/22ii EPS by 20%
Asian Paints FY21/22/23ii EPS by 6/3/3% each
Atul FY21ii EPS by 8%
CCL Products FY21/22ii EPS by 9%/8%
Colgate FY21/22ii EPS by 2%/3%
Coromandel FY21/22ii EPS by 8%/5%
Crompton FY21/22ii EPS by 14/1%
Dabur India FY21ii/22ii EPS by 4%/5%
Dr Reddy’s Labs FY21/22ii EPS by 8%/6%
Essel Propack FY21/22ii EPS by 20%/25%
Havells FY21/22ii EPS by 19/1%
Hexaware CY20ii-22ii EPS by 9-11%
Marico FY21/22ii by 9%
Mphasis FY21-23ii EPS by 4-5%
Navin Fluorine FY21-23ii EPS by 2-4%
SIS (I) Ltd. FY21-23ii EPS by 7-17%
Supreme Industries FY21/22/23 EPS by 43%/14%/14%
TechM FY21ii-23ii EPS by 15/6/3%
Torrent Pharma FY21/22ii EPS by 11%/2%
Ultratech Cement FY21 Ebitda estimate by 5%
Vardhaman Textiles FY21 Ebitda by 35%
Quess Corp FY21-23ii EPS by 11-18%
Agro Tech Foods FY21/22ii EPS by 20%
Asian Paints FY21/22/23ii EPS by 6/3/3% each
Atul FY21ii EPS by 8%
CCL Products FY21/22ii EPS by 9%/8%
Colgate FY21/22ii EPS by 2%/3%
Coromandel FY21/22ii EPS by 8%/5%
Crompton FY21/22ii EPS by 14/1%
Dabur India FY21ii/22ii EPS by 4%/5%
Dr Reddy’s Labs FY21/22ii EPS by 8%/6%
Essel Propack FY21/22ii EPS by 20%/25%
Havells FY21/22ii EPS by 19/1%
Hexaware CY20ii-22ii EPS by 9-11%
Marico FY21/22ii by 9%
Mphasis FY21-23ii EPS by 4-5%
Navin Fluorine FY21-23ii EPS by 2-4%
SIS (I) Ltd. FY21-23ii EPS by 7-17%
Supreme Industries FY21/22/23 EPS by 43%/14%/14%
TechM FY21ii-23ii EPS by 15/6/3%
Torrent Pharma FY21/22ii EPS by 11%/2%
Ultratech Cement FY21 Ebitda estimate by 5%
Vardhaman Textiles FY21 Ebitda by 35%
Quess Corp FY21-23ii EPS by 11-18%
Earnings Downgrade: Bharti Infratel FY21/22ii PAT by 8/7%
RBL Bank FY21/22/23ii by 7.8/5.4/5.0%
TVS Motor FY21-23ii EPS by 3-5%
V-Guard FY21ii EPS by 8% Westlife Development FY21ii Ebitda by 24%
Zee FY21/22ii EPS by 67%/22%
RBL Bank FY21/22/23ii by 7.8/5.4/5.0%
TVS Motor FY21-23ii EPS by 3-5%
V-Guard FY21ii EPS by 8% Westlife Development FY21ii Ebitda by 24%
Zee FY21/22ii EPS by 67%/22%
Corporate Results Calendar/ Upcoming events
Aug 3 – Results: BOI, BSE, CreditAccess, Kansai Nerolac
Aug 4 – RBI MPC meeting
Results: Dixon, Godrej Consumer, Gujarat Gas, PI Inds, Tata Consumer, Varun Beverages
Aug 5 – RBI MPC meeting
Results: Apollo Tyre, Cadila, Cera Sanitary, DLF, Godrej Properties, Inox Leisure, JK Lakshmi Cem, Jyothy Labs, Strides Pharma
Aug 6 – RBI MPC meeting
Results: Blue Star, Dalmia Bharat, Deepak Nitrite, Gujarat Pipavav, GSPL, HPCL, Lupin, Pidilite, Torrent Power
Aug 7 – Results: Alkem, Amara Raja, Cipla, Concor, Emami, Kajaria Cera, Mahanagar Gas, M&M, Ramco Cement, REC, Sobha, Sudarshan Chem
Aug 8 – Results: Divis Lab, Magma Fincorp
Aug 4 – RBI MPC meeting
Results: Dixon, Godrej Consumer, Gujarat Gas, PI Inds, Tata Consumer, Varun Beverages
Aug 5 – RBI MPC meeting
Results: Apollo Tyre, Cadila, Cera Sanitary, DLF, Godrej Properties, Inox Leisure, JK Lakshmi Cem, Jyothy Labs, Strides Pharma
Aug 6 – RBI MPC meeting
Results: Blue Star, Dalmia Bharat, Deepak Nitrite, Gujarat Pipavav, GSPL, HPCL, Lupin, Pidilite, Torrent Power
Aug 7 – Results: Alkem, Amara Raja, Cipla, Concor, Emami, Kajaria Cera, Mahanagar Gas, M&M, Ramco Cement, REC, Sobha, Sudarshan Chem
Aug 8 – Results: Divis Lab, Magma Fincorp
Margin Trading Regulation by SEBI w.e.f !st Aug 2020
SEBI vide its circular no. SEBI/HO/MIRSD/DOP/CIR/P/2020/
Kindly note the following in this regard:
1. Margin/limit for trading against securities as collateral will be available, by way of pledge only.
2. Transfer of securities to the demat account of the broker for margin purposes shall not be allowed.
3. Power of attorney (POA) shall not be considered for the purpose of the limit/margin by the broker in respect of securities held in the demat account of the client.
1. Margin/limit for trading against securities as collateral will be available, by way of pledge only.
2. Transfer of securities to the demat account of the broker for margin purposes shall not be allowed.
3. Power of attorney (POA) shall not be considered for the purpose of the limit/margin by the broker in respect of securities held in the demat account of the client.
4. The clients can obtain limit/margin for trading by creating a pledge against the securities in favour of the new demat accounts titled “Client Securities Margin Pledge Account” only.
Please contact your respective broker for more Details
Insurance Corner
6 Ratios to know before buying any Insurance
- Persistency ratio :This ratio helps you understand how persistent customers have been in renewing their policies every year. It is measured at different intervals —13th month, 25th month, 37th month and 61st month.
- An indicator of customer satisfaction. A high ratio indicates a large pool of satisfied customers
- Solvency Ratio: It defines how good or bad an insurance company’s financial situation is on defined solvency norms. According to IRDAI guidelines, all companies are required to maintain a solvency ratio of 150% to minimise bankruptcy risk. “Solvency ratio helps identify whether the company has enough buffer to settle all claims in extreme situations”
- An indicator of a company’s financial capacity to meet both short-term and long-term liabilities
- High solvency ratio may not always mean good financial health e.g. LIC has one of the lowest Solvency ration in Life Insurers with SR of 1.54%
- Combined operating ratio (COR):This indicates a general insurance company’s total outflow in terms of operating expenses, commissions paid, and incurred claims and losses on its net earned premium. Opt for companies with lower combined ratio as it means that the expenses or losses of the company are lesser than its premium revenue for that time period.
- An indicator of operating expenses. A low ratio means expenses are less than premium revenue
- Incurred Claim Ratio (ICR) : The ICR metric indicates a general insurer’s ability to pay claims. It is calculated as the total value of all claims paid by the company divided by the total amount of premium collected in a financial year. For instance, an ICR of 85% implies that the company has spent `85 on claims for every Rs 100 collected as premium. It is
- An indicator of insurer’s ability to pay claims. A high ratio is not always good news. A healthy ratio is between 75 & 90%
- Commission Expense Ratio : This ratio tells us what is the outflow towards commissions from the written premium during a particular period. It is important to keep a tab on this ratio as it directly impacts the premium that you pay.
- An indicator of expenses towards commissions
- A low commission expense ratio will usually translate to lower premiums
- Claim settlement Ratio (CSR): Most Important to be looked at before you buy any insurance policy. Claim settlement ratio (CSR) indicates how many claims a company has settled against the number of claims received. Higher the CSR, the greater are the chances of settlement of a claim. Among life insurers, LIC,HDFC,ICICI and MAx Life has the highest claim settlement ratio of +98%.
- An indicator of the number of claims settled
- Always look for a high ratio
"Worrying is misusing your imagination power, remember, about 97% of the things you worry about don’t ever happen"
Have a Nice Weekend
For details contact Email: sunrisefinservpune@gmail.com
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