Updates

The Indian stock market is expected to remain volatile amid weak global cues and rising geopolitical tensions. In today's Trader's Breakfast, Pravesh Gour, Principal Research Analyst at Swastika Investmart, highlighted the overall market setup, important technical levels, and the top stocks to watch today based on key corporate developments.

Top Stocks to Watch Today

Suryoday Small Finance Bank

Suryoday Small Finance Bank will remain in focus after reporting a 114% year-on-year jump in Q1 FY27 net profit to ₹75 crore, compared with ₹35 crore in the corresponding quarter last year. The strong earnings performance makes the stock one of the key stocks to watch today.

RailTel Corporation

RailTel is on the radar after receiving a ₹32.75 crore order from North Central Railway for railway signalling works. The project is scheduled to be executed by January 2028, providing fresh business visibility for the company.

SEAMEC

SEAMEC is another important stock in focus after signing a $9.42 million diving services agreement with HAL Offshore. The contract strengthens the company's offshore services order pipeline.

Coforge

Coforge will be closely watched after launching Nuuron, its artificial intelligence (AI) operating system. The platform is designed to integrate the company's AI solutions into a unified enterprise operating layer, highlighting its continued focus on AI-led digital transformation.

Market Setup for Today

Global sentiment remains weak as geopolitical tensions continue to weigh on investor confidence.

• US markets closed sharply lower, with the Dow Jones declining 506 points.
• Dow futures are trading modestly higher.
• Asian markets are trading on a negative note.
• GIFT Nifty indicates a gap-down opening of around 195 points.

FII & DII Activity

• FII: Sold ₹2,999 crore
• DII: Bought ₹2,947 crore
• Net cash market flow: -₹52 crore

According to Pravesh Gour, FII derivatives data also remains on the negative side, indicating cautious market sentiment.

Key Support & Resistance Levels

Nifty

• Immediate support: 23,700, 23,640, 23,480
• Immediate resistance: 23,800, 24,000–24,100

Nifty is expected to witness a gap-down opening below the crucial 23,800 level, making these support zones important for today's trade.

Bank Nifty

• Support: 56,000, 55,500, 54,500
• Resistance: 56,500, 57,100, 57,500

Bank Nifty is also approaching a major support area around 56,000, making these levels important for traders to monitor.

Q1 Results to Watch Today

F&O Stocks

• Bank of Baroda
• Bank of India
• CG Power
• Container Corporation of India (CONCOR)
• Dalmia Bharat
• Hindustan Zinc
• Jindal Steel & Power
• KFin Technologies
• Laurus Labs
• Lodha Developers
• REC
• Shriram Finance
• Tata Consumer Products
• NTPC
• SAIL
• SBI Cards
• SBI Life Insurance

Other Companies

• ACC
• Dr. Lal PathLabs
• Neogen Chemicals
• Shakti Pumps

Corporate Actions (Ex-Date: 27 July 2026)

The following companies have dividend ex-dates on 27 July 2026:

• Zydus Lifesciences
• Amara Raja Energy & Mobility
• Birla Cable
• CRISIL
• Deepak Nitrite
• DLF
• Persistent Systems
• Universal Cables
• Vindhya Telelinks
• Wipro

Conclusion

These are the top stocks to watch today, along with the latest market setup, Q1 results calendar, corporate actions, and key technical levels discussed in Trader's Breakfast, the daily live market session hosted by Santosh Meena/Pravesh Gour at Swastika Investmart, every morning at 8:30 AM on YouTube. Stay connected with Swastika Investmart for daily market updates, expert research, and actionable insights to help you stay ahead of the markets.

If you're looking for the top stocks to watch today, tracking earnings, corporate developments, and key technical levels can help identify important trading opportunities. In the latest episode of Trader's Breakfast, Swastika Investmart's daily live market show streamed on YouTube every weekday at 8:30 AM, Santosh Meena, Head of Research at Swastika Investmart, discussed the market setup and highlighted the stocks that investors and traders should monitor closely during today's session. Based on today's market discussion and key corporate updates, here are the top stocks to watch today.

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Hot Stocks to Watch Today

_{Sona BLW Precision Forgings}

Sona BLW is among the key top stocks to watch today after announcing a partnership with Japan's DENSO Corporation to form two joint ventures focused on developing and manufacturing advanced electric and hybrid powertrain systems. The collaboration strengthens the company's position in the fast-growing EV and hybrid mobility ecosystem and could support long-term business expansion.

_{Azad Engineering}

Azad Engineering comes into focus after delivering its first indigenous expendable turbojet engine to DRDO and the Ministry of Defence. The development highlights the company's growing capabilities in the defence and aerospace segment and is likely to keep investor attention on the stock.

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_HCLTech

HCLTech is another important stock to watch after TIM Brasil selected the company to enable South America's first cross-platform eSIM transfer capability using HCLTech's Device Entitlement Gateway platform. The announcement reinforces HCLTech's presence in global telecom technology solutions and highlights its expanding international business opportunities.

_{Waaree Energies}

Waaree Energies remains in focus after Waaree Solar Americas secured an international order to supply 125 MW of HJT solar modules, with deliveries scheduled during FY27. The order strengthens the company's global renewable energy business and supports visibility for future revenue growth.

Companies Announcing Q1 Results Today

Several companies are scheduled to announce their quarterly earnings today, making them important top stocks to watch during the session.

_{F&O Stocks Reporting Results}

• Cipla
• IEX
• IndiGo
• Infosys
• Motilal Oswal Financial Services
• Mphasis
• Sona BLW Precision Forgings
• VMM

_{Other Companies Reporting Results}

• ABDL
• Chennai Petroleum
• Coromandel International
• Cyient
• Mahindra Lifespace
• Meesho
• PVR INOX
• Ramco Systems

Among these, Infosys, Cipla, IndiGo, Motilal Oswal, Mphasis, and Sona BLW are likely to attract significant market attention due to their broader influence on benchmark indices and sector sentiment.

Corporate Actions (Ex-Date: 24 July 2026)

Several companies are trading with an ex-dividend date of 24 July 2026, while two companies are also undergoing stock splits.

_{Dividend Stocks}

• Abbott India Ltd – Final Dividend ₹525 & Special Dividend ₹131
• Advanced Enzyme Technologies Ltd – Dividend ₹1.35
• Bhageria Industries Ltd – Final Dividend ₹2.50
• Bharti Airtel Ltd – Final Dividend ₹24.00
• Birla Corporation Ltd – Final Dividend ₹12.50
• Bombay Cycle & Motor Agency Ltd – Dividend ₹5.00
• Concord Biotech Ltd – Final Dividend ₹7.55
• Crompton Greaves Consumer Electricals Ltd – Final Dividend ₹3.00
• Data Patterns (India) Ltd – Final Dividend ₹10.00
• Divis Laboratories Ltd – Final Dividend ₹30.00
• Elcid Investments Ltd – Final Dividend ₹25.00
• Hero MotoCorp Ltd – Final Dividend ₹75.00
• Voltamp Transformers Ltd – Final Dividend ₹100.00
• Zydus Lifesciences Ltd – Final Dividend ₹1.00
• Info Edge (India) Ltd – Final Dividend ₹3.60

_{Stock Split}

• Kalind Ltd – Face value split from ₹10 to ₹2
• Jupiter Life Line Hospitals Ltd – Face value split from ₹10 to ₹2

Market Key Levels to Watch Today

_{Global Cues}

• US markets ended lower, with the Dow Jones down 6 points.
• Dow Futures were trading nearly flat.
• Asian markets were trading on a mixed note.
• GIFT Nifty indicated a weaker opening by around 120 points.

Interpretation: Santosh Meena noted that FII positioning in F&O appears mixed to negative, indicating caution in the broader market setup.

_{Nifty Technical Outlook}

• Nifty is drifting toward the lower end of its trading range near 23,800.
• Below 23,800, the zone of 23,700–23,640 becomes the next crucial support area.
• Immediate resistance levels are placed at 24,000 and 24,100–24,150.

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_{Bank Nifty Technical Outlook}

• Bank Nifty is also moving toward the key support area around 56,500.
• Below 56,500, the next support levels are 56,000 and 55,555.
• Immediate resistance levels are 57,100, 57,500, and 57,770.

Conclusion

Today's top stocks to watch include Sona BLW, Azad Engineering, HCLTech, and Waaree Energies, driven by important corporate developments and business announcements. Alongside these names, investors should also track major earnings announcements from companies such as Infosys, Cipla, IndiGo, Mphasis, and Motilal Oswal, while keeping a close eye on the key support & resistance levels discussed by Santosh Meena.

For daily market analysis, stock ideas, and technical levels, watch Trader's Breakfast, Swastika Investmart's live YouTube series every trading day at 8:30 AM. Stay connected with Swastika Investmart for research-backed market insights, corporate news, and timely updates on the top stocks to watch across Indian markets.

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Looking for the top stocks to watch today? In today's edition of Trader's Breakfast, Swastika Investmart's daily live market show, Santosh Meena, Head of Research at Swastika Investmart, discussed the key stocks and market-moving developments that traders and investors should monitor before the opening bell.

The session covered important corporate announcements, earnings updates, market setup, institutional activity, and technical levels that could influence today's trading session. Below are the top stocks to watch based on the discussion.

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Key Market Levels for Today

Before the opening bell, Santosh Meena also highlighted the broader market setup:

• US markets closed higher, while Dow Futures traded lower.
• Asian markets showed mixed performance.
• GIFT Nifty indicated a weaker opening by around 75 points.
• FIIs remained net buyers, while DIIs were net sellers during the previous session.
• On the technical front, 24,350–24,530 remains the key supply zone for Nifty, while 24,100 and 24,000 act as immediate support levels.

These indicators will play an important role in shaping today's market sentiment.

Hot Stocks to Watch Today

Maruti Suzuki

Maruti Suzuki is among the top stocks to watch today after announcing a price increase of up to ₹30,000 across its vehicle lineup, effective from August 2026. The company cited rising input costs as the reason behind the hike.

Investors will be watching whether the price revision impacts demand while also assessing its effect on future margins and profitability.

Aurobindo Pharma

Aurobindo Pharma comes into focus after its subsidiary CuraTeQ Biologics received ANVISA (Brazil) GMP approval for its Hyderabad biosimilars manufacturing facility. The approval strengthens the company's global biologics business and could support its expansion into regulated international markets.

Bandhan Bank

Bandhan Bank reported a 35% year-on-year rise in Q1 FY27 net profit, with earnings increasing to ₹502 crore from ₹372 crore a year ago. In its post-earnings call, the Bandhan Bank management has stated that it has cut its exit RoA guidance to 1.2% to 1.4% from 1.6% to 1.8% earlier. The management also said that margins are likely to remain under pressure from higher deposit costs.

JSW Energy

JSW Energy has acquired an additional stake in TJPS for ₹150 crore, increasing its ownership to 20.7%. The transaction aligns with the company's expansion strategy and keeps the stock on investors' radar for potential long-term growth.

Companies with Corporate Actions Today

Several companies are trading with an ex-dividend date of 23 July 2026, including:

• ABM Knowledgeware Ltd
• Banswara Syntex Ltd
• Afcons Infrastructure Ltd
• Bhansali Engineering Polymers Ltd
• D.B. Corp Ltd
• ESAB India Ltd
• ICRA Ltd (Final & Special Dividend)
• Oberoi Realty Ltd
• Paushak Ltd
• Pidilite Industries Ltd
• Sudeep Pharma Ltd

These stocks may witness price adjustments due to their dividend payouts.

Companies Announcing Q1 Results Today

A number of companies are scheduled to announce their quarterly earnings today, making them important stocks to monitor.

Key names include:

• Adani Green Energy
• Adani Power
• BPCL
• Dr Reddy's Laboratories
• Eternal
• Hindustan Petroleum
• IndusInd Bank
• JSW Energy
• Nestlé India
• OFSS
• SRF
• United Spirits

Conclusion

Today's top stocks to watch include Maruti Suzuki, Aurobindo Pharma, Bandhan Bank, and JSW Energy, along with companies announcing quarterly earnings and corporate actions. Investors should also keep an eye on global cues, institutional activity, and key technical levels discussed in today's market outlook.

For expert market analysis every trading day, watch Trader's Breakfast, Swastika Investmart's live YouTube series at 8:30 AM, hosted by Santosh Meena, Head of Research at Swastika Investmart. Stay connected with Swastika Investmart for research-backed market insights, trading ideas, and timely updates to help you make informed investment decisions.

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If you're looking for the top stocks to watch today, tracking the latest market developments and technically strong stocks can help you identify potential trading opportunities. In the latest episode of Trader's Breakfast, Swastika Investmart's daily live market show streamed on YouTube every weekday at 8:30 AM, Santosh Meena, Head of Research at Swastika Investmart, shared his market outlook and highlighted the key stocks that investors and traders should watch during today's session. Based on his latest market analysis, here are the top stocks to watch today.

Manappuram Finance

Manappuram Finance is one of Santosh Meena's top technical picks for today's session. He highlighted that a recovery in gold and silver prices could support the stock, while expectations of strong quarterly results also remain positive. From a technical perspective, the stock has given a breakout after a healthy pullback and consolidation, with an immediate target of around ₹350 and a possibility of extending towards ₹375. He also identified the ₹320 level as an important support zone.

United Spirits

United Spirits is another stock that features among today's top technical picks. According to Santosh Meena, the company has reported strong quarterly business updates, while the stock has formed a double-bottom pattern after a pullback and is witnessing a positive bounce from an important support area. He also mentioned that market participants are watching reports regarding a possible dividend announcement linked to the company's RCB stake sale. The immediate target shared during the session is around ₹1,440, with positional upside extending towards ₹1,560.

Solar Industries

Solar Industries completes today's list of top technical picks. Santosh Meena highlighted that the stock has witnessed a breakout from a bullish technical pattern and continues to trade near its all-time highs. He believes the stock continues to display strong momentum and remains one of the preferred counters within the defence space. He also noted that the company's fundamentals remain strong, making it a stock worth tracking.

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Watch the complete episode of Trader's Breakfast, where Santosh Meena, Head of Research at Swastika Investmart, explains today's market outlook, important global and domestic triggers, and the top stocks to watch today in greater detail.

Paytm

Paytm will remain in focus after reporting strong quarterly results. Santosh Meena noted that while the company's decision to defer its bonus plan may create some short-term reaction, the earnings themselves were encouraging. He also mentioned that the stock has been consolidating over the last few sessions and expects the positive momentum to continue, supported by discussions around potential FDI-related developments.

UltraTech Cement

UltraTech Cement is another stock to watch following its strong quarterly results. Santosh Meena highlighted that the management commentary after the earnings announcement was also positive, leading to several brokerages upgrading the stock. Based on these developments, he expects the stock to continue trading with positive momentum.

Sona BLW Precision Forgings

Sona BLW has come under the spotlight after UBS initiated coverage with a target price of ₹1,000. Santosh Meena pointed out that the auto ancillary segment has been showing improving momentum, making Sona BLW a stock that investors should keep on their radar.

Akme Solar

Akme Solar is also among the top stocks to watch after the company announced the commissioning of a 160 MW battery energy storage system. The development places the stock in focus as investors monitor corporate announcements and sector-specific developments.

Conclusion

Today's top stocks to watch include a mix of technically strong opportunities and companies driven by earnings and corporate developments. Manappuram Finance, United Spirits, and Solar Industries were Santosh Meena's key technical picks, while Paytm, UltraTech Cement, Sona BLW, and Akme Solar remain in focus due to recent business updates and market-moving developments.

To stay updated with daily market analysis and expert stock ideas, watch Trader's Breakfast, Swastika Investmart's live YouTube show every weekday at 8:30 AM. Stay connected with Swastika Investmart for research-backed market insights, trading ideas, and timely updates to help you navigate the markets with confidence.

If you're looking for the top stocks to watch today, keeping an eye on both technical setups and fundamental developments can help you identify potential market opportunities. In the latest episode of Trader's Breakfast, Swastika Investmart's daily live market show streamed on YouTube every weekday at 8:30 AM, Santosh Meena, Head of Research at Swastika Investmart, shared his outlook on the markets and highlighted the key stocks investors and traders should keep on their radar. Based on his latest market analysis, here are the top stocks to watch today.

ITC

ITC is among the top stocks to watch today from a technical standpoint. The stock continues to trade with positive momentum and has witnessed consistent buying interest over the past few sessions. Santosh Meena believes that maintaining strength above key support levels could help the stock extend its upward move. Traders should keep an eye on price action around important resistance levels for confirmation of the next leg of the rally.

Anant Raj

Anant Raj continues to attract attention due to its strong technical structure. The stock has been outperforming many of its peers, supported by improving momentum and positive price action. With the real estate sector witnessing renewed investor interest, Anant Raj remains one of the top stocks to watch for traders looking at momentum-driven opportunities.

Bharat Dynamics

Bharat Dynamics is another stock highlighted in today's market outlook. The defence sector continues to benefit from long-term government spending and increasing order visibility. Technically, the stock is showing encouraging signs of strength, making it an important counter for traders to monitor during today's session.

Watch Today's Trader's Breakfast

For a detailed market outlook and the rationale behind these stock selections, watch the latest episode of Trader's Breakfast, where Santosh Meena, Head of Research at Swastika Investmart, discusses the day's market setup, important news, and the top stocks to watch today.

Reliance Industries

Reliance Industries will remain one of the key stocks in focus following its latest quarterly earnings. As India's largest listed company, its financial performance often influences benchmark indices and overall market sentiment. Investors will closely monitor management commentary, business outlook, and future growth plans for additional market cues.

ICICI Bank

ICICI Bank is expected to remain active after reporting its quarterly results. Strong fundamentals, healthy asset quality, and its significant weight in benchmark indices make it one of the top stocks to watch. The stock could continue to attract investor attention depending on the market's reaction to its earnings performance.

Tata Power

Tata Power has come into focus after announcing a new pumped storage project, highlighting the company's continued expansion in the renewable energy and power infrastructure space. The development reinforces its long-term growth strategy and makes it one of the top stocks to watch for investors tracking opportunities in the energy sector.

HCLTech

HCLTech is also on investors' radar after announcing a new Global Technology Centre in GIFT City. The expansion reflects the company's continued focus on digital transformation and innovation. With the IT sector responding to global technology spending trends, HCLTech could witness increased investor interest in the coming sessions.

Conclusion

Today's watchlist features a balanced mix of technical opportunities, earnings-driven stocks, and companies with important business developments. While ITC, Anant Raj, and Bharat Dynamics stand out for their strong technical setups, Reliance Industries, ICICI Bank, Tata Power, and HCLTech remain in focus due to earnings updates and recent corporate announcements.

To stay ahead of the markets, tune in to Trader's Breakfast, Swastika Investmart's live YouTube show every weekday at 8:30 AM, where Santosh Meena, Head of Research, shares his daily market outlook, key news updates, and actionable stock ideas before the market opens. For more research-backed insights, investment ideas, and market analysis, stay connected with Swastika Investmart.

Introduction

In the world of algorithmic trading, having a well-structured algo trading strategy is crucial for success. A profitable automated trading strategy can help you execute trades with precision, minimize risks, and optimize profits. In this blog, we will guide you through the steps to develop a winning algorithmic trading strategy, along with key factors to consider.

Steps to Develop a Profitable Algo Trading Strategy

1. Define Your Trading Goals

Before creating an algo trading strategy, you need to clarify your objectives:

• Are you looking for intraday trading, swing trading, or high-frequency trading?
• What is your risk tolerance?
• What markets will you trade in (stocks, forex, commodities, or crypto)?

2. Choose a Reliable Algo Trading Platform

Selecting the right algo trading software is essential for successful automated trading. One of the most reliable platforms is Swastika’s Logic Bag, which offers advanced algorithmic trading features, seamless execution, and user-friendly tools. Other platforms include:

• Zerodha Streak (No coding required)
• Tradetron (Cloud-based, supports multiple assets)
• Amibroker (Ideal for custom strategy development)
• Python-Based API Trading (For advanced traders)

3. Select and Test Your Trading Strategy

A good algo trading strategy is based on historical data and real-time market conditions. Some common algorithmic trading strategies include:

• Trend Following Strategy – Uses indicators like moving averages and RSI.
• Mean Reversion Strategy – Focuses on price deviations from average levels.
• Scalping Strategy – Executes multiple small trades for quick profits.
• Arbitrage Trading – Exploits price differences in different markets.

Use backtesting to evaluate the performance of your trading algorithm before deploying it live.

4. Implement Risk Management

A successful algo trading system should have built-in risk controls:

• Set stop-loss and take-profit levels.
• Use position sizing to limit exposure.
• Diversify across different assets and strategies.

5. Optimize and Monitor Your Strategy

Even after deploying a profitable algo trading strategy, continuous monitoring and optimization are necessary. Adjust parameters based on market conditions and performance analytics.

Key Considerations for a Profitable Algo Trading Strategy

• Market Liquidity: Avoid strategies that may not work in low-liquidity markets.
• Latency Issues: Ensure your platform executes trades at high speeds.
• Regulatory Compliance: Follow SEBI guidelines for algorithmic trading in India.
• Brokerage and Transaction Costs: Factor in costs to maximize profitability.

Frequently Asked Questions

Can Beginners Develop an Algo Trading Strategy?

Yes! Platforms like Swastika’s Logic Bag allow traders to use no-code algo trading without programming skills.

What is the Best Algorithmic Trading Strategy?

The best-automated trading strategy depends on your goals. Trend-following strategies work well for long-term traders while scalping strategies suit those looking for quick profits.

How Much Capital Do I Need for Algo Trading?

It depends on the broker and the market. Some platforms allow low-cost algo trading, while others require a higher initial investment.

Is Algo Trading Legal in India?

Yes, SEBI-approved algo trading is legal in India, but you must use authorized algo trading platforms.

Conclusion

Developing a profitable algo trading strategy requires careful planning, testing, and optimization. By choosing the right trading algorithm, platform, and risk management techniques, you can enhance your chances of success in algorithmic trading. Start by backtesting your trading strategy, monitoring results, and refining it to stay profitable.

If you are serious about automated trading, consider using Swastika’s Logic Bag, a powerful algo trading platform, to enhance your trading efficiency. Happy trading!

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Can the Union Budget be the turning point investors are waiting for? With the Indian stock market facing a short-term bearish trend, all attention is on the upcoming budget for clues of a potential revival. Let’s explore how these changes could impact the market and revive investor confidence.

Why is the Market Bearish?

Since September 2024, the Indian stock market has been experiencing a short-term bearish trend, primarily driven by the economic slowdown, along with other contributing factors. To get out of this slump and start growing again, something big needs to happen. The Union Budget offers hope and could be crucial in restoring investor confidence.

Can Tax Reforms Help Boost Consumption?

To reverse the bearish trend, boosting domestic consumption—a key driver of economic growth—is essential. While demand in rural areas is recovering, urban demand still needs support. Increasing disposable income through tax exemptions or creating more jobs could provide the significant boost. There’s talk that the government might raise the tax exemption limit to ₹10 lakh, which might boost overall consumption and help the economy.

Capex Revival: Economic Growth's Backbone

Government capital expenditure (capex) has been a key driver of growth, but it has slowed down recently because of the election cycle, affecting fiscal spending targets. A renewed focus on sectors like railways and defense could give the necessary momentum.

The Production Linked Incentive (PLI) scheme has helped certain industries grow, but stronger efforts are needed to attract private investment. Since consumption, private investment, and government spending are the three main pillars of GDP growth, all of them need to be addressed in the upcoming budget for a strong recovery.

Sectors that Could Benefit from the Budget

• Healthcare: With the possibility of viral infections making a comeback, the government may increase funding for healthcare to strengthen medical infrastructure.
• Real Estate: Raising tax exemptions on home loan interest could make housing more affordable and stimulate demand in the real estate sector.
• Green Energy: Ongoing support for renewable energy projects is expected, in line with India’s goals for sustainability.
• Life Insurance: Lowering the GST on insurance premiums could help offset the effects of the new tax system, allowing the sector to recover.

Conclusion

The upcoming Union Budget is crucial for getting India’s growth back on track. By focusing on boosting consumption, increasing government spending (capex), and supporting key sectors like healthcare, real estate, and green energy, the government can lay the groundwork for a wide-reaching recovery. The question remains: will these measures be bold enough to reverse the current bearish trend and spark a long-term bull run? Investors should stay tuned—this budget could be the key to a more promising and prosperous market ahead.

Stay updated with Swastika Investmart for more financial insights. Invest now

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Understanding the Union Budget

The Union Budget of India is the comprehensive financial plan of the government for the fiscal year, outlining its revenue and expenditure projections. Presented annually by the Finance Minister in Parliament, it serves as a blueprint for the country's economic policies and priorities. Beyond financial allocations, the budget addresses key aspects such as taxation, borrowing, and expenditure management, shaping the socio-economic landscape of India. It reflects the government's strategies to stimulate growth, promote development, and address fiscal challenges while aiming to achieve sustainable economic progress. As a critical policy document, the Union Budget influences sectors ranging from agriculture and infrastructure to healthcare and education, impacting the lives of millions across the nation.

Budget 2024-25

The Union Budget 2024-25 is set to be an important event for India, scheduled for presentation on July 23, 2024, by Finance Minister Nirmala Sitharaman. As the first budget of the re-elected government's new term, it carries significant weight and anticipation among various stakeholders, including investors, economists, and the general public.

Why is this Budget Special?

This budget is the first financial plan of the re-elected government's new term. There is great anticipation about the government's fiscal policies and economic strategies.

Post-election, the political scenario emphasizes the importance of addressing both regional aspirations and national priorities, ensuring a balanced approach to governance and development.

Economic Context and Expectations

Economic indicators, including robust GST collections and substantial dividends from the Reserve Bank of India (RBI), are expected to strengthen the budgetary framework. These factors provide a solid foundation for improving fiscal health and implementing growth-oriented policies.

In the last ten years, each budget has shown how the government aims to double farmers' incomes and increase money flow directly to them. Budgets have set aside more funds for agriculture, focusing on rural development and improving farming methods.

Initial indications suggest that in FY25, the government will continue focusing on consolidating finances to boost economic growth and control inflation. Meeting the fiscal deficit goal of 4.5% of GDP by FY26 is crucial, requiring careful allocation of resources to sectors such as Minimum Support Price (MSP), food, fertilizers, and LPG subsidies.

Key Focus Areas

Union Budget 2024-25 is expected to align closely with the Modi government's inclusive development agenda, prioritizing initiatives such as:

• Ujjwala Scheme: Ensuring clean cooking fuel access for rural households.
• Jal Jivan Mission: Facilitating water supply and sanitation in rural areas.
• PM Kisan: Providing income support to small and marginal farmers.
• Swachh Bharat Abhiyan: Promoting cleanliness and sanitation nationwide.

The railway sector is set to receive increased funding for capital projects, continuing the government's efforts to rejuvenate infrastructure. In the Interim Budget 2024, the railway ministry secured unprecedented financial support, highlighting the government's dedication to improving railway infrastructure.

Impact on the Stock Market and Sectors

Expectations of a favorable budget, without negative tax changes, are likely to maintain a positive trend in the stock market. Sectors like FMCG, infrastructure, renewable energy, housing, and railways, which stand to gain from rural sector improvements, are anticipated to see favorable market responses after the budget is announced.

Conclusion

As we await Finance Minister Nirmala Sitharaman's budget speech on July 23, 2024, expectations are focused on the Union Budget reinforcing the core policies of the re-elected government, while steering clear of significant long-term expenses. Robust revenue streams from GST and RBI dividends are set to enhance fiscal flexibility, facilitating targeted investments in rural infrastructure and agriculture. The budget aims to prioritize inclusive growth and revive sectors, though it is not anticipated to introduce major reforms or extensive expenditures in this fiscal cycle. All eyes are on how the government addresses economic challenges and charts a path towards sustainable development and prosperity in India.

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The decline in the Indian rupee this year has been attributed to the higher crude oil prices, the tightening policy of the US Federal Reserve, and the overall strength of the US dollar. Added to this the global uncertainty due to the geopolitical crisis caused by the war between Russia and Ukraine caused the weakening of the dollar.

US Fed Rate Hike

The US Federal Reserve (Fed) raised interest rates by 75 basis points at its last meeting and said it would raise interest rates further by 75 basis points in November and 50 basis points in December.

Stocks plunged, Asian currencies fell, and markets went risk-off following the US Federal Reserve's announcement on Sept. 21.

US bond Yields and Dollar index at multiyear highs

Yields on dollar-denominated investments rose relative to emerging markets such as India. There is speculation that a more aggressive rate hike by the US Federal Reserve could take place, which could put further pressure on India's currency.

High Demand for dollars

The Indian Rupee's value against the US Dollar works based on supply and demand. As the demand for the US dollar increases, the Indian Rupee depreciates. When a country imports more than it exports, demand for the dollar exceeds supply, causing domestic currencies such as the Indian rupee for India to depreciate against the dollar.

High Crude Oil Prices

Supply-demand imbalances and geopolitical tensions between Russia and Ukraine led to a sharp rise in oil prices in February 2022. India’s crude basket price fell 43.8% from April 2021 to February 2022.

Foreign Investors withdrawing money from the Indian market

Foreign institutional investors (FIIs) have also sold $28.4 billion worth of equities so far this year, surpassing the $11.8 billion sold during the global financial crisis in 2008, because of which more foreign capital outflow from the domestic market The rupee has fallen 5.9% against the dollar so far this year.

High Inflation Globally

The outflow of money from India will affect the rupee-dollar exchange rate and depreciate the rupee. Such a weakening would put significant pressure on the already high import prices of oil and commodities, paving the way for import inflation and higher production costs, along with higher retail inflation.

A strong US dollar measures the value against a basket of six foreign currencies.

The dollar index, which tracks currencies against a basket of major currencies, is up more than 9% this year, reaching its highest level in 20 years.

Impact on Market

The market fell for the second week in a row as the depreciation of the rupee against the dollar put pressure on the domestic market to reverse two months of positive inflows. Rate hikes by the US Federal Reserve and tightening of monetary policy by central banks around the world signaled a selloff among investors. The market started the week subdued, led by weak global markets.

Weakness in global markets finally pulled the index down over the weekend. Nifty posted his second straight day of positive closings, and his benchmark index corrected for his second week in a row, with sessions just above 17300, down 1.16% from the previous week's close.

RBI Intervention

RBI is responsible for maintaining the stability of the rupee. Whenever the rupee falls significantly, the RBI sells dollars from the forex pool to enter the market. The central bank sold $19.05 billion in the spot market in July, according to RBI data.

Another reason the rupee may come under pressure is that RBI intervention may become less aggressive, analysts say. This could help the rupee catch up with other emerging economies and protect rapidly depleting foreign exchange reserves, experts said.

The September 28-30 RBI Monetary Policy Committee meeting will be closely watched by stakeholders as the market expects repo rates to rise by 50 basis points (bps). FX reserves, down 14% from their peak, also keep the market on edge.

SBI Financials

State Bank of India's net profit in the first quarter of the current financial year on a standalone basis has declined by 7 percent.

State Bank of India (SBI) reported a net profit of Rs 6,068.08 crore compared with Rs 6,504 crore in the same quarter last year. Due to Mark to Market (MTM) losses on its investment book, the bank's operating profit decreased by 33% to Rs 12,753 crore from Rs 18,975 crore in the April-June quarter of the previous fiscal.

The bank's interest income increased to Rs 72,676 crore from Rs 65,564 crore previously. Net interest income grew from Rs 27,638 crore in the first quarter of the previous fiscal to Rs 31,196 crore which is 12.87 percent. The net interest margin increased from 3.15 to 3.23 percent.

Core operating profit jumped by 14.39 percent year over year,  from Rs 16,873 crore in Q1 FY22 to Rs 19,302 crore in Q1 FY23, when trading income and MTM were excluded.

The bank's gross (NPA) ratio increased from 5.32 percent at June's end of the previous year to 3.91 percent today. Similar to this, net NPAs decreased from 1.7% in June 2021 to 1.02 in June 2022. Domestic NIM for Q1FY23 climbed by 8 bps YoY to 3.23 percent. While the net NPA ratio decreased by 77 bps YoY to 1.00 percent, the gross NPA ratio decreased by 141 bps YoY to 3.91 percent.

The Provision Coverage Ratio (PCR), which was 75.05 percent, increased by 719 bps YoY. A 90.14 percent PCR (Inclusive AUCA) was reported. The slippage ratio for the reviewed quarter was 1.38 percent, an improvement of 109 bps year over year. Corporate loan volume increased by 10.57%, while SME and agricultural loans also saw year-over-year increases of 10.01% and 9.82%, respectively.

Deposit increased by 8.73% to Rs. 40 lakh crore. As of June 30, the bank's CASA ratio dropped 64 basis points to 45.33 percent. Retail bank deposits are up 8.73% year over year. Credit Cost for Q1 FY23 was 0.61 percent, up 18 basis points year over year. At the end of the June quarter of 2022–23, the capital adequacy ratio (CAR) was 13.43%.

SBI added that 38% of retail asset accounts and 65% of savings bank accounts were opened online using YONO. The proportion of alternate channels in all transactions climbed from 95.1% in the first quarter of FY22 to 96.6 in the first quarter of FY23.

Reasons:

Due to Mark to Market (MTM) losses on its investment book, the bank's operating profit decreased by 33% to Rs 12,753 crore from Rs 18,975 crore in the April-June quarter of the previous fiscal.

The bank's Return on Asset and Return on Equity, which was 0.48 percent and 10.09 percent, respectively, suffered from the MTM hit.

Non-interest income fell significantly. The sharp reduction in SBI's non-interest income was a significant factor in the company's profit decline. In the June quarter, SBI's non-interest income was barely Rs 2,312 crore, compared to Rs 11,802 crore in the same quarter of the prior fiscal year.

How much return did SBI share give?

Talking about the stock of SBI, the company's stock has given a return of 13 percent to the investors in YTD time. At the same time, it has given a return of 22.20 percent in the last year and has given a return of 90.02 percent to the investors in the last 5 years.

Performance of SBI Share Price

Promoter ownership of SBI was 57.57 percent as of June 2022, with no shares pledged.

Dividends of Rs 07.10 per share have been issued by SBI for the fiscal year that ended in March 2022.

SBI's share price increased by 84.45, or around 19.38 percent, during the course of the past year, from Rs 435.7 to Rs 520.1.

At 43,884.2, the S&P BSE BANKEX Index is now trading (up 0.77 percent). It increased by 3,153.0 points (up 7.74 percent) in the past year, from Rs 40,731.3 to Rs 43,884.2.

The S&P BSE SENSEX has increased 8.25% overall.

Introduction

India's largest-ever 5G spectrum auction in India finished on Monday with bids totaling more than Rs 1.5 lakh crore. The auction procedure lasted seven days and 40 rounds of bidding. During the 5G spectrum auction, Reliance Jio ended up being the biggest bidder. The next-generation network is considered to be essential for new technologies like artificial intelligence and self-driving automobiles, enabling the use of advanced linked gadgets using cloud computing technologies and permitting video downloads in seconds. In addition to providing customers with fast data access, 5G has the potential to support a variety of enterprise-level applications, including more immersive augmented reality and metaverse experiences, connected vehicles, and machine-to-machine communications. Keeping this in view, By October of this year, the Indian government hopes to start rolling out 5G, which it claims can deliver data speeds around ten times faster than 4G.

5G spectrum Auction Results

In the 5G spectrum auction, Bharti Airtel, Vodafone Idea, Adani Enterprises Ltd., and Reliance Jio participated Reliance Jio bid Rs 88,078 crore For 24,740 MHz of spectrum. Airtel purchased 19,876 Mhz of spectrum For Rs 43,084 crore. Vodafone Idea Ltd paid just Rs 18,799 crore for 6228 MHz of spectrum. Adani Enterprises only invested Rs 212 crore in six circles, including Gujarat, Mumbai, Karnataka, Tamil Nadu, Rajasthan, and Andhra Pradesh, for 400 MHz in the millimeter band.

Reliance JIO 5G SPECTRUM details

Within six years of its formal launch, Jio has established itself as the market leader with its 4G services, serving more than 400 million subscribers.- Jio has purchased low-band, mid-band, and mm Wave spectrum.- Jio will be the sole telecommunications provider using the 700Hz spectrum footprint to offer 5G internet access.- Jio has acquired 22 circles' worth of 700Hz and 800Hz bands.- Jio will pay Rs 7,877 crore every year with interest calculated at a rate of 7.2% per year for the next 20 years.

Financials of Reliance Jio

Jio Platforms, a division of RIL  reported a 17.1% increase in gross revenue for FY22, totaling INR 95,804 Cr, while net profit increased by 23.6 Percent to INR 15,487 Cr. During FY22, Jio Platforms' EBITDA increased 20.9 percent to INR 39,112 Cr. Reliance Jio's June quarter profit jumped from 23.82 percent YoY to Rs 4,335 crore. The telecom operator's Q1 revenue saw a growth of 21.55 percent to Rs 21,873 crore. Jio had gained over 31 lakh, mobile subscribers, in May, taking its mobile customer count to 40.87 crores according to TRAI.Jio's extensive fiber network and home-grown technology platforms guarantee seamless internet access for both consumers and enterprises. Reliance will get benefit in the form of 5G tariff plans will likely lead to higher revenues for telecom companies

Latest Updates

According to Reliance, the planning for 5G coverage in 1,000 of the biggest cities of India has been finished. Using a variety of services, including heat maps, 3D maps, and ray-tracing technologies, Jio said that it is now testing the implementation of its 5G services throughout India. Jio is presently testing its own 5G RAN and Core technologies that it built on its own.

Impact on India

India will adopt 5G gradually, especially given the possibility of price hikes and the fact that just roughly 7% of all smartphones in India are 5G-capable. During the next 20 years, India's Department of Telecommunications will receive an upfront payment of $1.6 billion. The auction record the largest earnings that will aid in bolstering the government's finances at a time when India's budget deficit, is predicted to reach 6.4 percent.

Conclusion

For Indian telecoms to fuel their revenue growth by delivering ultra-high speed wireless network services, the 5G spectrum is essential. 5G can provide enterprises the ability to create their own networks. In India, mobile data consumption is expected to increase by 29% and data income to increase by 67% between 2020 and 2026 as a result of the next generation of mobile broadband, despite unsubstantiated worries about radiation levels or worries about increased pricing. The technology will also enable the country's ongoing smart city initiatives and enable manufacturers to start their Industry 4.0 journey. This ought to boost the adoption of 5G in India by e-commerce, fintech, agritech, health tech, and other digital industries.

ITC Ltd’s AGM key highlight was the total FMCG portfolio’s addressable market potential of Rs. 5 lakh crore by 2030. This is the highest for any Indian FMCG company and provides a huge runway of growth for the ITC’s FMCG division.

Further, the current EBIT margins remain below its peer FMCG companies, hence, we expect significant volume growth combined with a rise in the company’s bottom line in the upcoming decade. Additionally, cigarette volumes have recovered and surpassed the pre COVID levels.

In the hotel segment, the company has launched 9 hotels recently and plans to add more properties in the coming quarters.

The paper segment is expected to gain due to the ban on plastic products and the Agri segment has a huge potential due to the current opportunity in exports and the sourcing advantages of the company.

In short, the company is firing on all cylinders, and being a cash-generating machine, it has the potential to grow both organically and inorganically.

Regarding the demerger and spinoff of hotels and the IT division, the company is open to suggestions and is constantly evaluating options to do the same. ITC Ltd. has been one of the best performers this year rising 36% compared to a negative 6% return of the Nifty 50 and has witnessed a whopping 13% return in one month.

Corporate Earnings and Macro Data will dictate the trend along with Global Cues.

It was a good week for the Indian market where it outperformed most of its global peers amid worries of global energy crises and inflation worries.

IT and Auto sector added most of the gain while the broader market also did well with a gain of more than 3.5%.

The Q2 earnings season has started with TCS' results which is a minor miss on expectations and we could see some profit booking in the IT sector as IT stocks have rallied a lot in expectation of strong earnings however any correction will be a buying opportunity.

Infosys, Wipro, and HCL tech will come out with their numbers next week therefore we are going to see lots of volatility in the market, especially in the IT sector.

Along with corporate earnings, the market has to deal with macro numbers. The government will release IIP and CPI numbers on 12th October and WPI will be announced on 14th October.

The market is expecting strong growth in industrial production but at the same time, it worries about inflation.

Global factors will also play an important role in the direction of the market.

The headline numbers of US Nonfarm payroll are slightly weak however the internals are strong. The US bond yield is above the 1.6 mark, the Dollar index is above 94 and the price of Brent crude is above $83 that may lead to any correction in the market however market is ignoring all of them for time being as momentum is very strong.

Technically, Nifty is trading near-critical resistance zone of 17950-18000 where it could again witness selling pressure but if it manages to trade above this zone then we could see a rally towards 18200/18300 levels.

On the downside, 20-DMA of 17650 is immediate and important support; below this, 17450 is a critical support level because below 17450 we could see any meaningful correction.

If we talk about the data then the market is lacking FIIs' buying but getting strong support from DIIs, HNIs, and retail investors.

Put call ratio stands at 1.3 level whereas FIIs' long exposure in index future stands at 59% that is neutral to positive. On the options front, the 18000 strike call option has the highest OI of 37lac for14-Oct expiry while the 17800 strike put has the highest OI of 32.7lac therefore 18000 is an important and psychological hurdle.

Banknifty is trading near-critical resistance zone of 3800-38300; above this, we can expect a strong short-covering rally towards 39000 otherwise there is a risk of profit booking where 20-DMA of 37500 is critical support; below this, we can expect further selling pressure towards 36500/36000 levels.

In terms of sector, the Nifty PSU banking index is looking interesting because it is trading near-critical resistance however most of the PSU banks witnessed bullish momentum in Friday's trading session and if the market remains supportive and the Nifty PSU banking index manages to cross-resistance of 2660 then PSU banks may outperform.

Tata wins back Air India that is a historical moment and this is a sigh of relief for the lenders.  PSU banks mainly the Bank of Baroda will be the biggest beneficiary as it has substantial exposure to the airliner.

If we talk about the Airline stocks then competition will increase so we could have a sentimental negative impact on listed players but the opportunity of scale is high so the long-term outlook is positive for the overall industry however investors should understand the unsystematic risk of the industry or company.

Investment banking is a broad term that is described by several functions including capital market intermediation and stock trading. However, both the terms that are stated above are distinct from the functions associated with commercial banking which majorly involves the acceptance of deposits and providing loans to common people.

Unlike commercial banks, investment banks primarily focused on capital formation and price setting. These are the large financial institutions that assist all the businesses (small scale or global) with capital financing and trading both.

There are many things an investment bank does which in turn uplift the economy to a better position.

Here are a bunch of questions you need to ponder:

If a company XYZ limited, is planning to go with the merger with another company? How to find out whether it’s going to benefit your company?

How does the Company Raise Funds?

Who handles the whole documentation process or figures out the new investment strategies?

The answer is Investment Banks. Investment banks are the ones that help many small and mid companies go public so that they can increase their wealth by a large percentage. Also, they assist many companies to underwrite bond offerings and are involved in stock trading and other major investments with handsome investment amounts.

What is the Need of an Investment Bank?

The need for investment banks is extremely large. For instance, the division of banking is responsible for the formation of capital for companies, governments and other entities. Also, investment banks act as an intermediary between investors and corporations. They perform several activities such as negotiation and structuring of mergers and acquisitions and many more.

The involvement of investment banks in the meeting of sellers and investors, also add liquidity to the stock market.

The actions taken by investment banks promote business growth, which in turn boost the economy. As said earlier, investment banks help companies issue stocks for the first time in the form of an IPO, make it public and allow it to trade in the capital market. They also help companies in finding large scale investors for corporate bonds to arrange debt financing.

Investment Banking offers a variety of functions by which they play a major role in uplifting the economy. Here are some of the functions performed by these banks:

‍

IPO Launching

IPO launching - Launching an IPO cannot be done without the investment banks. An IPO or initial public offering is a way through which private corporations raise capital by issuing their shares to the public.

By issuing SME IPO’s, they gather public attention in which in turn help companies to not just create capital but also do build branding.

Going public is important for any company and therefore they select a wealthy investment bank based on few merits: quality of work, reputation, experience and more.

The foremost thing an investment bank does is draft a financial statement for the IPO which comes in an underwriting agreement.

Then, the next thing is that it files a financial statement with the SEC.

The investment bank now waits to take the approval of the SEC. Once the offer comes, it sets an offer price.

After issuing the shares, the investment bank starts an aftermath stabilization analysis and monitors the performance of shares in the public market.

The investment bank then receives a commission for its service from the organization.

Underwriting

Underwriting is a process where bankers sell stocks or bonds to investors so that they raise capital. For instance, a corporation takes on financial risk for a fee.

The first process of underwriting comes in when the investment bank first makes a prospectus with a price range. On seeing the price range, investors finalize a firm price.

In the next process, a book of demand is built where the prices that are already set are cleared. Finally, the funds are allocated. Here, we call it a firm’s commitment.

Merger and Acquisition

If a company wants to do a merger, firstly it goes to an investment bank. The investment bank. An investment bank needs to perform several things during merger and acquisition:

Investment banks help in raising funds for the merger company.

Investment banks deliver the best strategy for the merger.

These banks firstly analyze the merging company, gather all the necessary information, find out its actual value and present it to you.

Risk Management

Investment banks also help in minimizing the risks associated with the business. A business is associated with many risks such as business risk, investment risk, compliance risk, legal risk, operational risk and more. Investment banks here figure out all these risks, try to minimize them and find out how they will affect the bank.

Market risk is the most important factor an investment bank needs to figure out. For that, they need to keep an eye on critical factors such as credit risks. Investment banks set up a strong team whose major job is to do a risk assessment.

Research the Stock Market

Research is the primary objective for any job and so is investment banks. That’s the reason investment banks do thorough stock market research such as analyzing a company’s performance, reading the financial statements, and more. Also, they always keep an eye on the stock market which in turn helps you make a profit by giving advisory services such as sales and trade.

Investment banks perform various stock market research such as fixed income research, qualitative research, equity research, macroeconomic research.

Merchant Banking

Some investment banks offer merchant banking services in several areas such as financials, legal, marketing, and managerial divisions.

• Merchant banks do several things:
• Raising capital for a client
• Project management
• Lease services
• Maintaining and Managing Public Issue of a company.
• Special assistance to small companies and entrepreneurs.

How Does Investment Banking Benefit the Economy?

Investment banks give a huge contribution to the country's economy as investment banks help companies to generate more funds. Secondly, a commercial bank primarily focuses on transactions, investment banks, on the other hand, devise a plan for efficient business ventures.

The Bottom Line

Investment banking is very important for today’s economy. These banks perform several functions which include IPO launching through which they can raise funds as well. Also, the investment banks easily manage your assets so that they will make more and make profits. We have a team of highly profound investment bankers that has helped many SME’s grow their business via IPO launching and M&A and venture capital.

Firstly Ami Organics Limited affords to its home and worldwide clients the subsequent commitments. Ami Organics Limited is devoted to efficaciously assemble your expectancies of a varied product range.

Secondly Ami Group has the aim of converting affordable cash into speciality chemical substances for Agrochemicals, Cosmetics, and Polymers.

At last Ami Organics Limited employs professional and devoted employees those who run the centres supported via way of means of superior and modern equipment.

They have extended to offer New Chemical Entity (NCE) in addition to huge-scale shipping of pharmaceutical intermediates. Fine and strong point chemical substances that meet ISO requirements. In order to set up the role with inside the international market.

Objectives:

• Repayment or prepayment of certain financial centres of the company.
• General company purposes.
• Funding work for capital necessities of the Company.

Proceeds from the fresh issue could be used toward compensation of resolving debt and investment capital necessities.

The IPO of Ami Organics accommodates the fresh issue of equity stocks really well worth Rs 200 crore and an offer for sale of as much as 6,059,600 equity stocks via way of means of present shareholders.

The enterprise has decreased its fresh issue size to Rs 200 crore from Rs 300 crore after elevating Rs 100 crore in a pre-IPO placement. The price band has been set at Rs 603-610 percentage for the general public issue. At the upper end of the price band, the initial percentage sale is anticipated to fetch Rs 569.63 crore.

Earlier Ami Organics had filed initial papers with SEBI in 2018 and had acquired the regulator's nod to release the general public issue. However, it did not float the IPO.  This is the enterprise's second try to issue the public offer.

Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the last 15 per cent for non-institutional investors.

IPO Details:

Ami Organics IPO details Subscription Dates1 – 3 September 2021Price BandINR603 – 610 per share Fresh issueINR200 crore Offer For Sale6,059,600 shares (INR365.39 – 369.64 crore)Total IPO sizeINR565.39 – 569.64 crore Minimum bid (lot size)24 shares Face Value INR10 per share Retail Allocation35%Listing On NSE, BSE

Financial Highlights

The company had consistent revenue growth in the last 3 years. Revenues of the company have grown at a CAGR of 12% from Rs 239 cr to Rs 342 cr over the period of FY19 to FY21 while we saw much better improvement profits as it grew from Rs 25 cr to Rs 53 Cr at a CAGR of 29%. The profit margins have grown continuously over the years.

Strength

• Big geographic footprint and a diverse consumer base with long-time period partnerships
• It has a large and diverse product portfolio, subsidized up via way of means of strong R&D
• Proficiency in sales and marketing
• Stable financial results
• Good management team

Risks

• Continuing effect of the Covid-19 pandemic on enterprise and its operations is unpredictable.Covid-19  can have a vast effect and it can have an effect on the future too.
• Investors need to study threat elements indicated with inside the RHP of the IPO report earlier than making an investment on this IPO.
• The company is concerned with strict requirements, some inspections and audits. Any production or management troubles can be a concern to regulatory movement and may harm the enterprise reputation.
• Company derive vast part of its sales from the sale of merchandise in different regions and any discount in call for from such merchandise can have an effect on business.
• The company is concerned with stringent environmental, and legal guidelines and other requirements.

Recommendation

The Indian API market is estimated to witness a growth rate of over 9.5% while the Indian pharmaceutical market has increased by 7.4% and reached around $19 billion in FY17 and is expected to reach nearly $29 billion in FY22 on the back of Increasing Incidences of Chronic Diseases. IPO is priced at a PE of 35x on the EPS of Rs. 17.14 which is lower as compared to its peers average. We saw that a few recent IPOs have not performed well in the last couple of months as the market is being choppy. Thus we assign a "Subscribe" rating to the IPO for Mid to Long Term Investors. To invest in Ami Organics Limited IPO, open your demat account and start your investment journey.

We have seen a lot of companies listing on the stock exchange as they have got a lot of benefits by doing so.

Getting listed on the stock exchange stimulates liquidity thereby providing shareholders with an opportunity to realize the value of investments.

Also, listed companies get more exposure than unlisted companies. This is because the companies which are listed on the stock exchange give investors a choice to buy/sell the securities at a given time.

Likewise, the companies which are likely to get listed on the stock exchange get bountiful benefits.

Before discussing the advantages of listing on the Stock Exchange, let's go with the term Stock Exchange.

Stock Exchange is a place where securities such as stocks, bonds, commodities are traded. The stock exchange is a platform where financial instrument participants such as buyers and sellers come together and perform transactions (i.e. buying and selling of securities) during the business days.

In other words, the stock exchange is an organization or association where the stocks are traded. Therefore, if a company needs to trade in the stock market it should be listed on either of the exchanges i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

The exchange facilitates the issuance and redemption of financial instruments which makes it important for the investors.

What is a Listed Company?

A listed company is the one whose shares are publicly traded on the stock exchange. Such companies need to confirm the listing requirements of that exchange strictly. This consists of a minimum earning level and the number of shares listed.

Companies that are listed on a stock exchange take out an SME IPO or Initial Public Offering by which they sell shares to the public and in return they raise a whopping amount which in turn helps them to grow business to a new level.

Here, the prices of the shares are based on the supply and demand of the share. The Bombay Stock Exchange or BSE India currently lists more than 600 companies.

Companies that are listed on the stock exchange get enough exposure, capacity to uphold control etc. Aside from such benefits, there are lots of benefits associated with the listing in the stock exchange.

Below are the Advantages of Listing a Company on the Stock Exchange

1) Boosted Profile

One of the primary benefits of listing companies on the major stock exchange is that the listed companies have a promising profile. Also, the listed companies are recognized and visible to the public quickly if we compare them to other companies.

After getting listed on the major stock exchanges, the company has started to attract new customers in the form of shareholders and clients.

2) Access to Capital Growth

Many companies which are doing well, reach a level where they need additional capital for further expansion or growth. In such conditions, going public is the best way to overcome such financial constraints.

Companies listed on the stock exchange can increase capital by releasing more shares for investor purposes.

In addition to this, the raise could be utilized for the company’s growth and other needs.

3) Collateral Value of Securities

Lenders accept listed securities as collateral for credit facilities. In addition to this, a listed company is eligible to borrow capital from the highly-rated financial institutions because the companies are rated by the lenders of capital.

Also, by listing on the stock exchange, the companies can raise extra funds from the public by issuing their shares in the new issue market. Therefore, listing a company on the stock exchange is quietly beneficial for the investors.

4) Liquidity

Another advantage of listing your company on the stock exchange is that it provides your company with adequate liquidity by providing an opportunity for shareholders to realize their investment value. Also, it authorizes shareholders to negotiate in the shares of the company thereby sharing risks.

5) Capacity to Uphold Control

The companies listed on the stock exchange have nothing to do with venture capitalists. In return for acquiring shares for a confidently held company, venture capitalists have to regularly uphold the company’s regulation.

Stock exchanges allow companies to maintain enough control and power as the people who get shares of a publicly traded corporation hold limited rights which can be easily accessible to the shareholders.

6) Better Visibility

Going a company public means it provides visibility among HNIs and institutional investors, investing agencies. Also, the company ensures total transparency whenever the time of conducting operations is done.

7) Higher Returns

Achieving higher ROI is the goal of any company. By listing a company in the stock exchange, the company expects the highest stock market trading returns which couldn't be possible by other methods. Therefore, it can be counted as one of the main advantages of stock listing.

8) Increased Accountability

Companies who are listed on the stock exchange maintain their transparency while dealing in the business and reporting. Transparently keeping all the things allows a company to enjoy success in a much better way. Hence such companies have better financial accountability.

9) Increased Exposure

Needless to say, companies listed on the top exchanges automatically come into the eye of top-notch investors and institutional investors. Such companies attract potential stock market trading investors which in turn helps them to generate more capital which can be used for the company’s growth or expansion.

10) Increase in Employee Morale

Listing on the stock exchange increases the visibility of the people which in turn improves the public perception of the organization, therefore, increases the employee value.

Takeaway

Listing on the stock exchange comes with bountiful benefits. A company that wants to expand its growth often seeks to go public. Launching a stock trading IPO helps them to raise capital to a greater extent which in turn improves the overall efficiency of the company which is important for a company’s growth.

Other advantages include uplifting the reputation and prominence of the company.

Want to list your company on the stock exchange; connect with us!

We carries lot of business under one roof from a stock broking to investment banking. This includes IPO launching, M&A, providing business loans, company valuation services and more.

The much-awaited IPO of the largest insurance company will be coming at the end of the current financial year. This can only be done after the government finishes the process of disinvestment of at least three PSUs.

As per the economic time’s reports, three companies National Fertilizers Limited, Mishra Dhatu Nigam Limited and Rashtriya Chemical and Fertilizers Limited will get divested through a simpler method called to offer for sale or OFS before the launching of LIC IPO.

A senior finance ministry official has declared that the LIC’s IPO will hit the market in the next year, adding that other issues will be completed before all necessary applications are in place.

It may be noted that LIC had got principle approval from the cabinet committee on the economic affairs before the launching of LIC IPO.

As per the news source, it is estimated that the 10% stake sale of LIC would generate a whopping amount of Rs 1 Crore to 1.5 Crore. To launch the LIC IPO, the government has already started working towards strategic disinvestment in major companies such as Air India and BPCL.

The price band of LIC IPO is estimated at Rs 400-600 shares taking into account total capital and valuation. The paid-up capital is reported as Rs 25000 Crore while the total valuation of the IPO would be between 10 -15 Lakh Crore.

Strength of LIC IPO

• The company offers several life insurance plans, money back plans, term life insurance plans, endowment plans.
• As per the LIC annual report of 2019-2020, LIC occupied a market share of 69% in the life insurance space.
• LIC is also involved in other businesses such as LIC Housing Finance, LIC Pension Fund, LIC Mutual Fund, LIC Cards Services.

How Investors Likely Get Benefit from the LIC IPO

LIC policyholders who have brought over 28.9 crore policies have now got reason to be amazed. This is because the government has decided to allocate a 10% of the issue size for LIC policyholders. Also, they would receive a fair discount on the floor price.

Rules Set by LIC on Such Reservations

Life Insurance Corporation Rules of 2021 said that any reservation made by the corporation in favor of its policyholders on a competitive basis on a public issue should be made in a manner similar to that applicable to a reservation on a competitive basis for employees in a public issue under any regulation made and issued by Security Exchange Board of India.

However, if any company made an allotment of equity shareholders against any reservation made in their favor should be done in consultation with the stock exchanges.

As per the IPO norms, an issuer company offers shares to its employees with a maximum discount of 10% at which the shares are offered to other categories.

Disinvestment of equity shares has recently been approved by the Union Cabinet minister.

Also, they allow merchant bankers to launch their IPOs. The lot size of LIC shares will decide the finance ministry and in conversation with the Finance minister Nirmala Sitaraman, a panel has decided that it will take full responsibility for the size share of LIC IPO.

For the upcoming LIC IPO, the government has decided to amend the LIC Act of 1956. To get the IPO launched, LIC has appointed Arijit Basu. After the amendment, the corporation is now governed by the Companies Act and SEBI Act in order to prepare its quarterly balance sheet with P&L and make public-key developments.

How will Policyholders Benefit?

Even if the government offers a 10% discount to LIC policyholders, the post-issue market capitalization of LIC would go up to Rs 15 lakh Crore valuation once the valuation gets known. According to the new SEBI rule, for a 10 lakh Crore market capitalization, LIC will have to make an issue of Rs 55000 Crore (Rs 10,000 Crore plus 5% of Rs 9 lakh Crore)

Many investors think that LIC policyholders would get less bonus after launching its IPO. However, this is not so true. The sources said that LIC will find new ways to offer the same bonus.

The main concern of LIC is the pricing of the issue. If we look at the past then we get to know that two general insurance companies - General Insurance Corporation of India and New India Assurance Co Limited which were listed in 2017, are now trading at Rs 174.60 and Rs 161.

Why is the LIC IPO matter for the Government?

Since the GOI performed disinvestment of two major companies, it is very important for the government to meet its disinvestment target especially at the time when the government plans to make two PSB banks a privatized banks and one insurance firm.

The government’s main objective is to mop up Rs 1.75 Lakh Crore in the current fiscal from privatization. Out of this, Rs 1.75 Lakh Crore is supposed to come up from selling its share in public sector banks and other financial institutions, while Rs 75000 Crore comes as a CPSE disinvestment receipt.

Why Should Investors Look Forward to It?

According to investors, the LIC IPO will be a turning point for many as the largest life issuers company is all set to launch its IPO for the very first time. Also, LIC covers a total market share of 66% with the first-year premium of Rs 1.84 Lakh Crore. The company has 2.9 lakh employees with a network of 22.78 lakh agents.

As per the internal source, if the 22 lakh agents sell only one extra policy to the people, it will make a huge volume. Apart from it, LIC is considered the biggest institutional investor in India and has a huge investment portfolio that can generate outstanding returns in the future.

A marginal per employee business productivity improvement every year is quite more than the few sized insurance firms; according to a stock market trading expert.

Takeaway

Life Insurance Corporation is a top-notch insurance company that offers many insurance covers to people. The company is known for providing high term benefits to its shareholders.

Also, LIC provides maturity benefits to its shareholders which means if a policyholder completes the maturity of the policy, he/she will receive 40% of the basic sum assured added with bonus and extra bonus.

Now, the company is all set to launch its IPO which will provide many benefits to its shareholders and other investors. Don’t miss out on a chance to subscribe to the LIC IPO.

Stock market on the one hand ropes in fundamental capital required by the companies and on the other hand it allows the buyers to enjoy ownership in businesses with the potential of availing gain in dividends form which would be in accordance with the company’s future performance. Therefore, it can be referred to as the core of the economic system.

Trading on equity with the purpose of investing is buying and selling company stock shares. The shares of distinct publicly traded companies are traded via a stock exchange or over the counter markets. Trading on Equity is a kind of trade-off. The firm makes use of its financing of debt or equity to buy new assets. In turn, it makes use of its new assets to pay for or finance its debt and equity obligations.

Trading on equity is carried out on two markets viz. The primary or the main markets – whereby new issues are first offered. The secondary markets – whereby subsequent buying and selling takes place.

Many buyers who assume common stock are too unstable are fascinated by the advantages of preferred shares. Depending on the company issuing preference shares is considered to be a good option rather than taking on greater debt.

With equity investors, there are no interest obligations and relying on the classification of shares being issued dividends don’t have to be paid annually. This approves the enterprise to reap the capital of which it wishes to increase besides on the spot money outlays for interest. It additionally provides the business enterprise time to make earnings with the new assets.

OBJECTIVES

• It is a means to raise fixed cost capital which is the combination of borrowed capital and preference share capital retaining equity share capital as the base to facilitate an increase in earnings of equity shareholders.
• It is when the organization is in contrast to the value of the interest of the debt.
• Incurs new money owed to gather assets which allow the corporation to earn a larger quantity of return.

TYPES

Trading on Thin Equity: If the equity capital is less than the debt capital of a company.

Trading on Thick Equity: If the equity capital is more than the debt capital of a company.

ADVANTAGES

1. Payment of Dividend on higher rates
2. With dividends, an individual Minimize his Tax Burden
3. It results in an increase in Goodwill of the Company
4. There is a Control on financial Sources hence the business also does not suffer

DISADVANTAGES

1. The income is uncertain
2. There might be a low rate of return
3. Loan on the high rate of interest.
4. There is fear of Over Capitalization.
5. Under intervention of Loan providers.

DIFFERENT BETWEEN TRADING ON EQUITY AND EQUITY TRADING:-

Trading on equity is a simple approach in which the percentage of debt contents is increased in capital structure, however equity trading is buying and selling of shares in the stock market.

Investors are fascinated to buy shares whose rate of Interest is greater than fixed interest charges due to the fact investors can earn extra quantity of income in the form of dividends and it will additionally expand the price of shares.

TRADING ON EQUITY  AND FINANCIAL LEVERAGE:-

Leverage means power. If an organization buys assets and its buy price is paid through getting a loan, then this system of trading on equity is known as financial leverage.  Business enterprises do so because they are aware that the return on investment (ROI) is greater than fixed interest charges.

The company's tries to increase its financial power by purchasing all assets with the help of long term debt in order to earn a greater amount of profits with this system.

It is a well-known fact that option holders are always in all likelihood to cash in their options when there is a rise in earnings.

For this particular reason, buying and selling on equity leads to extra earnings, there are extra possibilities that options will earn a greater return for the holder. Since trading on equity may also lead to uneven earnings, it will increase the already known price of stock options.

The managers (not owners) are more likely to use such an option. Using the concept, managers have the danger of raising the price of stock options. On the other hand, family-run commercial enterprises will exhibit greater interest in financial stability, so they would keep away from this financing technique.

Stocks of the paper industry set a new record high as most of the frontline paper stocks are currently trading up to 15 percent higher with the majority of them experiencing a 52 week high level in intraday trading on this Wednesday.

Star Papers Mills, Orient Paper & Industries, and Seshasayee Paper and Boards have rallied over 10 per cent on the Bombay stock exchange.

Whereas Astron Paper & Board Mill, Andhra Paper, JK Paper, Tamil Nadu Newsprint and Paper, Ruchira Papers and West Coast Papers were on the 8 per cent on the Bombay Stock Exchange.

Yesterday, the S&P BSE Sensex was up to 0.20 per cent at 52,965 points hitting upper circuits.

Let’s look at how the paper stocks performed individually on Wednesday.

Stock Name Highest Stock Price Recorded on Intraday Trade Percentage Change Stock Price at the Time of Writing JK Paper 237.258%226.55Seshasayee Paper & Boards222.812%211.90Emami Paper189.5020%204.70Star Paper Mills17814.5%168.35Pudumjee Paper Products46.5020%44.20Orient Paper & Industries33.3013%31.90Malu Paper Mills38.9019%39.75

For all the companies that are listed above, J&K Paper stocks stood out in gains, jumping more than 40% in the last month.

For all the companies that are listed above, J&K Paper stocks stood out in gains, jumping more than 40% in the last month.

How JK Paper is Leading Amongst All!

According to a report, JK paper has booked a net profit of Rs 135.79 crore in the quarter ended in March 2021.

It is more than twice the number was recorded in the third quarter of FY 21. JK Paper’s consolidated net profit stood at Rs 65.94 Crores.

This company increased its net revenue by 20.5% to Rs. 898 Crores in the 4th from Rs 745 Crores in the preceding quarter.

According to the JK Paper, the elevated performance of its stocks results from increased production and sales volume than the previous quarter.

Although the company has yet to witness any impact of the second wave, its management team expects some sort of disturbance in the coming months.

Experts also said the demand is expected to pick up and grow by at least 11-15% in FY22 with school, colleges and office spaces likely to open and drive the demand.

Due to the outbreak of Covid 19, the paper and paper product industry is one of the worst affected industries. Closure of education institutions, work from home by offices,

Moreover, downcast demand also had a great impact on the prices of paper & paper products that further affected the revenues of the industry.

The long term demand of the paper industry always remains favourable as the demand increases by increasing literacy levels, growth in print media, higher government spending on the education sector, upgrading urban lifestyle and economic growth.

As the factors are likely to be continued for an extended period, the paper industry is likely to grow at 5-8% per annum in the coming years.

Going ahead, CRISIL expects a huge demand for printing and writing paper to grow at 1-3 per cent CAGR and reach 5.5 million tonnes by Fiscal 2025.

As the new education policy comes into effect, a slow rise in the education spend by the government (~20% higher spend) and increased expenditure on education is likely to support demand for the P & W segment, the company once said in a report.

Highlights in the Paper Sector

As per the CRISIL Report, P&W paper demand will increase at a CAGR between 1-3%, hence, giving a 5.5 million tonnes mark within fiscal 2025.

Enrolment of students is set to increase faster, ranging between 0.5% to 1% in the coming years.

As per the experts’ estimation, the demand for paper stocks is all set by 11-15% on a y-o-y basis in FY 23. The primary factor behind the rise of paper stocks is the possibility of reopening of schools, colleges, offices etc.

Impact on Consumers

Consumers will have to pay a tad more for buying anything from branded garments to fast-moving consumer goods (FMCG) bought through e-commerce.

The corrugated box industry expects to increase a sharp cost in a short period and raw materials supply disruptions.

Material Shortage

Here, the rise in prices is the main issue. On the other hand, paper mills say they do not have the material.

A paper manufacturing company once said in a letter to its customer, the firm was forced to raise prices after the paper pulp prices increased 70-100% in the last 3 months.

The Kraft Paper Story

Paper prices, particularly kraft paper, have increased by the two factors; one is supply-side problems and the other is the availability of containers and ships.

Kraft paper mills say the prices of domestic and imported waste paper is rising due to supply misery as a result of Covid led lockdowns and international logistics disruptions.

The Chinese Angle

China had been importing waste paper from all over the world before the ban. For instance, it includes all waste paper generated in the US, Europe and other developed nations. The waste paper was recycled to manufacture paper.

Given the ban on wastes, Chinese paper mills were unable to get the main raw materials and they began to import the kraft paper from India. Kraft paper is recycled paper and Chinese mills use it as a fibre source to manufacture paper.

Waste Paper Supply Issues

Companies are also facing issues regarding the availability and prices of waste paper. As the educational institutes closed due to the Covid 19 pandemic, the usage of notebooks and exercise books also declined. This has further increased the demand for paper used for writing and printing dropping.

All these things waste paper supplies. Also, China has set up new units in the US and south-east Asia to convert the waste paper into pulp and send them home.

This has resulted in the domestic industry facing problems in sourcing waste paper and recycling it.

The Bottom Line

As far as the long term is concerned, the demand for the Indian paper industry needs to be increased. Some of the important factors include economic growth, literacy rates, spending on education etc. In addition to this, print media’s growth to a new level is also something that investors need to consider. If these factors do not hamper the growth of the paper industry, the Indian paper industry is likely to expand rapidly over the next few years.

Since the year’s beginning; the stock market’s performance has done exceptionally well with Sensex breaching the 53,000 points mark again.

Here are 8 large-cap funds that have given outstanding stock market trading returns since January 2021.

All of these funds are not rated by some of the leading agencies that conduct research, hence they are not suggested to invest. Before taking a dig deep into large-cap funds; let’s understand the large-cap funds in detail:

Large Cap Funds

Large-cap funds are a part of equity trading; are equity schemes that heavily invest in large-cap companies. These funds constitute at least 80% of their total assets in equity related instruments in large-cap companies.

As per the SEBI, the best 100 companies, having a full market capitalization are categorized as large-cap companies.

Reasons to Invest in Large Cap Funds

Large-cap companies have a competitive edge in their respective sectors. Also, they have a sustainable market share which makes them large-cap companies. The companies that come under large-cap companies have steady cash flows, strong balance sheets that makes them strong enough to handle difficult situations.

These companies are traded more frequently and as a result, they are more liquid than other companies.

The factors stated above make large-cap companies less volatile than other companies and more capable of withstanding stock market downturns.

Hence, by investing in large-cap funds, investors will save themselves from the jeopardy of selecting independent stocks while benefiting from a diversified portfolio that consists of top Indian companies.

Generally, large-cap funds constitute the base of at least 50% of equity’s portfolio.

1. Franklin India Bluechip Fund

As per the stock market research agency, the fund Franklin India Bluechip Fund has given an outstanding return of 23.40%, since the beginning of the year. This is only for mutual funds that come in the large-cap fund. Although the company Franklin India Bluechip fund invests in a variety of companies, they're majorly invested in large-cap companies.

The long term returns from this fund are 13.44% on an annualized return for 3 years and 11.2% on an annualized basis for 5 years. The SIP of Franklin India Bluechip Fund starts with a small amount of Rs 1000 every month.

2. Tata Large Cap Fund

As per the research report from top analysts, the fund comes under the second position among large-cap stocks as they give high returns since the beginning of the year. The fund gave a return of 20.87% from 1 January to 14 July 2021. This fund invests in large-cap blue-chip companies.

SIP of Tata Large Cap Fund starts with Rs 150 per month. The Tata large Cap Fund is not that big company under the management is less than Rs 1000 Crore.

The three-year return of Tata large Cap Fund is 12.6%, while the five-year returns are 11.91%. As per the sources, Tata large Cap Fund has invested in major stocks like ICICI, HDFC etc.

3. Mahindra Manu Large Cap Pragati Yojna

Since January 2021, the stock has been able to generate returns of 19.38%, and that’s the reason the fund has been ranked as No.3 in stock rating for the year to date returns in the large-cap category.

The fund is very small and newly launched, hence it is not possible to analyze the long term returns. The AUM of this fund is Rs 123 Crores. Since the company has holdings in stocks such as ICICI Bank, Reliance Industries and Infosys.

The minimum investment amount of the fund Mahindra Manulife is Rs 1000 every month.

4. Nippon India Large Cap Fund

Like the above companies, Nippon India Large Cap Fund invests in the major listed companies in the business. The fund is ranked fourth in terms of the returns it gave to the investors up to date. Surprisingly, the fund allows investors to start a SIP of Rs 100, and the minimum amount required to invest is Rs 100.

On an annualized return, the three-year return of the fund is almost 13.5%, which is in line with how the markets have performed the previous year.

We wish to emphasize the fact that the Sensex at Rs 53,000 points is at a new record and any large scale exposure to large-cap equity mutual funds can consume wealth. Therefore, it’s more important to invest, if you select the SIP mode of this fund.

5. IDBI India Top 100 Equity Fund

The fund gave 18.21% with the year to date which makes this fund come in the large-cap fund. This large-cap fund gives exposure to stocks like ICICI, HDFC Bank, Infosys. Many investors don't suggest going for the fund as if the stock market goes up or down, it will highly affect the fund’s growth rate.

6. ICICI Prudential Bluechip Fund

The fund heavily invests in large-cap companies as the fund has good quality management, strong fundamentals, growth potential and a proven track record. The strategy is maintained at the ICICI Prudential Bluechip Fund so as to ensure portfolio diversification and minimize concentration risks.

It adopts a buy and holds strategy for investing while selecting the bottom-up approach for the selection of stock.

The fund also takes huge exposure to high conviction scripts in order to generate outstanding returns in a short period of time.

7. SBI Bluechip Fund

The scheme mainly invests in large-cap stocks that have a good brand entity and market sectors in their respective segments. This is because the funds may also invest up to 20% of their portfolio in equities than other funds.

The fund follows a combination of investing and growth with a mix of top-down approach and bottom-up approach for the selection of stocks across different sectors.

8. IDFC Large Cap Fund

IDFC funds invest in large-cap companies with an opportunistic allocation to small and mid-cap companies not exceeding 20% of the fund portfolio. The objective is to generate consistent returns with low volatility.

The fund is based on three pillars - buying the right sectors, buying the sector leaders, and allocation to small/mid-cap stocks.

Takeaway

Mutual funds are always known for better returns. Also, these investments are much less risky than other equity-related instruments.

Therefore, many investors always prefer mutual funds over other equity-related instruments. Amongst all mutual fund schemes, large-cap funds are often associated with fewer risks and also they offer a minimum amount as a SIP.