..... . VALI disclosures . .....: 07/04/25, Equity benchmarks Sensex on Friday, April 4, slumped over 900 points to crash below the 76,000-level due to an across-the-board sell-off, tracking weak global markets amid growing global trade war fears.

Monday, April 7, 2025

07/04/25, Equity benchmarks Sensex on Friday, April 4, slumped over 900 points to crash below the 76,000-level due to an across-the-board sell-off, tracking weak global markets amid growing global trade war fears.

The 30-share BSE Sensex tumbled 930.67 points or 1.22 per cent to settle at 75,364.69. The broader NSE Nifty declined 345.65 points or 1.49 per cent to close at 22,904.45.

On April 7, Gift Nifty indicated a negative opening of the market. At 6:31 AM, it was 22,343, down 3.8 per cent.

Several stocks to remain in focus today, including Tata Steel, L&T, Zomato, Swiggy, ITC and LIC, among others.

Stocks To Watch Today on Monday, April 7, 2025

Adani, Vedanta, Patanjali Bid for Jaiprakash Associates

Billionaire Gautam Adani's group, mining mogul Anil Agarwal's Vedanta, and yoga guru Baba Ramdev's Patanjali Ayurveda are among the 26 suitors looking to acquire Jaiprakash Associates.

L&T Launches Green Hydrogen Arm

Engineering giant Larsen & Toubro on Friday announced the incorporation of an arm L&T Green Energy Kandla Pvt Ltd for the development of green hydrogen projects.

LIC Rejects USTR Report on Unfair Advantage

Life Insurance Corporation of India (LIC) on Friday said it has been operating in a competitive market for 25 years and has not received any special treatment from the government, as it rejected US Trade Representative's report.

Vedanta Q4 Production: Metal Up, Oil & Gas Down

Vedanta registered an increase in aluminium, mined metal, iron ore, and saleable steel output and decline in production of oil and gas in the fourth quarter of FY25.

Yes Bank Layoffs

Yes Bank has made big changes in its senior management team. The private lender has reportedly removed four senior executives and restructured key departments to simplify operations and improve profits.

ITC Deal

The company has announced the acquisition of a 43.75% stake in Ample Foods Private Limited. The deal was reportedly signed for approximately Rs 131 crore.

Swiggy Tax Demand

Food and grocery delivery platform Swiggy has received an an assessment order for the April 2021 to March 2022 period, amounting to Rs 7.59 crore from the Office of the Profession Tax Officer, Pune.

Zomato Food Delivery COO Resigns

Rinshul Chandra, Chief Operating Officer of Zomato's Food Delivery business, has tendered his resignation, the company has said in a regulatory filing.

Dr Reddy's I-T Notice

Dr Reddy's Laboratories Ltd on Saturday said it has received a showcause notice from the income tax authority with a proposed demand of over Rs 2,395 crore from it related to the merger of Dr Reddy's Holding Ltd (DRHL) with itself.

Trent Ltd Q4

Tata Group retail firm Trent Ltd standalone revenue for the March quarter rose 28.2 per cent to Rs 4,334 crore, as per a quarterly update filed by the company on Saturday.

Tata Steel Tax Reassessment

Tata Steel on Friday said it has received an order for reassessing taxable income for financial year 2018-19 and increasing the taxable amount by over Rs 25,000 crore, and the company has moved the Bombay High Court against the reassessment.

TVS Motor Expands EV Footprint

Two and three-wheeler manufacturer TVS Motor Company integrated the assets of ION Mobility, a full-stack EV company based in Singapore, to strengthen its footprint in Southeast Asian electric vehicle markets, a top official said.

Godrej Properties Target

Godrej Properties Ltd on Friday said the company expects revenue of Rs 1,350 crore from a new housing project in Mumbai.

Mazagon Dock OFS

The government's 2.83 per cent stake sale in Mazagon Dock Shipbuilders was over-subscribed by institutional investors on Friday who put in bids of about Rs 3,700 crore.

IIFL Finance NCD

IIFL Finance Ltd on Friday said it will raise up to Rs 500 crore through a public issue of secured, rated, listed redeemable non-convertible debentures (NCDs) to fund growth.

JFL Q4 Revenue

Leading QSR chain operator Jubilant Foods Ltd (JFL) consolidated revenue from operations increased 34 per cent to Rs 2,107 crore in the March 2025 quarter

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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, April 7, 2025

07/04/25, Equity benchmarks Sensex on Friday, April 4, slumped over 900 points to crash below the 76,000-level due to an across-the-board sell-off, tracking weak global markets amid growing global trade war fears.

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