..... . VALI disclosures . .....: 24/03/25, Market Performance Today

Monday, March 24, 2025

24/03/25, Market Performance Today

POSTMARKET REPORT

All Sectoral Indices closed in Green
Nifty PSU Bank closed higher for the 5th day in a row.
Nifty Bank closed higher for the 8th day in a row.
Nifty Financial Services, Auto, Pharma, closed higher for the 6th day in a row.
Nifty Oil and Gas, Realty closed higher for the 5th day in a row.
Nifty IT, FMCG closed higher for the 3rd day in a row.
Nifty gains 1.4% for the day, led by Kotak Mahindra Bank, NTPC and SBI
Sensex gains 1.44% for the day.
Nifty Midcap 150 gains 1.1% for the day, led by IREDA, Bharat Dynamics and Nippon Life AMC.
Nifty smallcap 250 gains nearly 1% for the day, JBM Auto, Finole Cables.
Nifty PSU Bank top sectoral for the day, led by Canara Bank, Union Bank of India.

Nifty: Nifty 50 added 307.95 points to close at 23,658.35, marking a 1.32% increase.
Sensex: BSE Sensex added 1,078.87 points to close at 77,984.38, reflecting a 1.40% gain.

"What we are expecting on April 2 is that there will be some higher tariff element...we should expect even after the end of tariff war, higher level of tariff," says Gustavo Medeiros, Head Of Research at Ashmore Investment

Medeiros stated that he expects to see more volatility in 2025. Despite being structurally very bullish on India, he mentioned that they have reduced their exposure in the country.

Nifty Defence was up 3.70% on Monday. This was in sync with benchmark indices registering steady gains for sixth consecutive session. MTAR Tech and Zen Tech were the top gainers in the index as they gained over 7% each.

Both Sensex and Nifty 50 continued to surge during Monday's trading session as they rose above 1.5%. Nifty 50 was up 334 points to trade at 23,685 points meanwhile Sensex was up 1,113 points to trade at 78,019 points

JTL Industries' share price rose by over 3% following the company's announcement that it has deployed 2.5 lakh metric tonnes of advanced direct forming technology to manufacture tubes at its Maharashtra facility.

Source: Exchange filing

Varun Beverages has commenced commercial production of carbonated soft drinks and packaged drinking water at its Kangra facility.

Source: Exchange filing

Foreign money has returned to India by a healthy measure. Last week, FIIs bought over Rs 6,500 crore worth of stocks, after 14 weeks of selling.

REA India, which owns proptech platform Housing.com, has appointed Amit Chand as its Chief Financial Officer.

Amit Chand will join REA India's Executive Leadership Team and oversee key functions including finance, risk assurance, legal and compliance, and procurement, a company statement said on Monday.

Diamond Power share price gained 5% after it received a latter of intent for Rs 215-crore order to supply cpnductors from Adani Green Energy.

Source: Exchange filing

Rupee strengthened 35 paise to 85.62 against US Dollar, touching the highest level since Jan 1. It ended at 85.97 a dollar on Friday

The local currency rose 3.56% from mid-March and erased yearly losses against US dollar.

Source: Bloomberg

Nifty surged by 1.28% to reach 23,650 during noon trade, as India's Nifty 50 Index erased its losses for the year. Meanwhile, the Sensex gained as much as 1.34%, climbing to 77,934.

Several stocks including Kotak Mahindra Bank and DLF were making headlines on Monday afternoon, driven by various corporate developments and market reactions, as both Sensex and Nifty 50 were trading in the green.

Bajaj Finance's share price has surged to a 52-week high, reaching Rs 9,111.00. The scrip is currently trading 1.95% up at Rs 9,090 apiece

Hindustan Unilever Limited (HUL) has announced that its board will convene on April 24 to review and consider the company's Q4 earnings, according to an exchange filing.

The SEBI Board meeting will focus on three key agendas aimed at enhancing investor protection, advancing market reforms, and boosting transparency in financial regulations.

Tune in to the video below to know more.

J Kumar Infraprojects' share price increased by 4.33% following the company's announcement that it has secured an order worth Rs 1,020 crore for the construction of a coastal road in Maharashtra, as per an exchange filing.

Railtel Corp of India Ltd.'s share price surged by over 9% after the company secured a work order valued at Rs 25 crore from HPCL.

Kama Holdings' share price saw a nearly 2% increase following the company's announcement that its board has declared an interim dividend of Rs 17.75 per share, as per an exchange filing.

India's private sector economy ended FY25 robustly, with the manufacturing sector showing a faster increase in sales and output.

The HSBC Flash India Composite Output Index remained stable at 58.6 in March, slightly down from February's 58.8 but still above the long-term average of 54.7.

The HSBC Flash India Manufacturing PMI increased from 56.3 in February to 57.6 in March

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Monday, March 24, 2025

24/03/25, Market Performance Today

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