..... . VALI disclosures . .....: 23/02/26, The FinancialExpress Report on Supreme Court Ruling

Monday, February 23, 2026

23/02/26, The FinancialExpress Report on Supreme Court Ruling

The Indian markets are set for a fresh round of uncertainty after the US Supreme Court struck down President Donald Trump's global tariff order.

Most experts believe that the market would open with a gap up because the new rate of 15% for 150 days, which the US government proposes to impose, will be lower. However, there won't be any material directional change.

While the Gift City Nifty was up 320 point or 1.25% on Saturday, Pratik Gupta, CEO and Co-Head, Kotak Institutional Equities and Sudeep Shah, head - technical & derivatives research, SBI Securities believe that the optimism will be tempered by realism and any change is likely to short lived.

Both Pratik Gupta, CEO and Co-Head, Kotak Institutional Equities and Sudeep Shah, head - technical & derivatives research, SBI Securities said that the optimism will be tempered by realism and any change is likely to short lived.

A Balasubramanian, CEO, Aditya Birla Sun Life AMC, said the ruling is "a positive development from the emerging markets point of view," especially for sectors like textiles, chemicals, and auto components. He added that US companies, which had not fully passed on tariff costs to consumers, may also benefit.

Gupta believes that there is some uncertainty in global trade again after the US Supreme Court order. That is why the US market has not reacted significantly to the ruling. "In India, the concern was not so much about the tariffs in themselves but about the state of bilateral relations with the US," he said.

The rupee, too, is expected to strengthen modestly. "Sentimentally positive for the rupee but may not lead to much appreciation," an economist said.

Market researches on Rupee value

Ritesh Bhansali, Deputy CEO of Mecklai Financial Services, expects the rupee to trade in the 90.40-91.50 range in the near term. "The rupee is likely to give back some of its gains and open around 90.80-90.85 on Monday, especially with the tariff structure now shifting to 15%, compared with the earlier 18%."

He added that there could also be two way volatility next week as markets react to President Trump's tariff moves and any fresh developments on the US-Iran front. Alok Singh, treasury head of CSB Bank, added that while the ruling is positive, "much of it is already priced in"

Gupta pointed out that while clarity is needed on the tariffs on Indian exports to the US, institutional investors (both Indian and overseas) are more focused on other issues, as India's exports are only ~17% of GDP.

Impact of a potential US-Iran conflict

Near-term concerns like a potential US-Iran conflict and its impact on oil prices, as well as medium-term challenges such as the effect of AI (artificial intelligence) on IT sector jobs, weigh more heavily. "The corporate earnings outlook, the monsoon's impact on agriculture, and India's export diversification with the EU are also critical," added Gupta.

A SBI Research note stated that this has immediate implications for India's exporters. Higher landed costs, double exposure for steel and aluminium (which continue to face Section 232 duties), and uncertainty over Congressional ratification all weigh on trade flows. The research note flags the unresolved question of refunds for the $160-175 billion collected globally under earlier tariffs, a process that could take years.

In the near term, the tariff reset eases the burden on Indian exporters. The effective rate for India drops from 25% to 15%, compared with the 18% rate that had been agreed upon but not formally notified. Export oriented sectors - IT, pharma, metals, textiles, engineering goods - stand to benefit from the reduction in uncertainty, added Shah.

Indian equities have shown resilience over the past year. The BSE Sensex has risen nearly 10%, while the Nifty 50 index has gained over 11%, supported by strong domestic liquidity, improved earnings, and macro stability.

While the tariff ruling removes one layer of uncertainty, it does not change the market's concern about the risk of a US-Iran conflict. With crude prices already elevated and India heavily dependent on imports, any escalation could pressure inflation, the rupee, and corporate margins, overshadowing the tariff breather.

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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, February 23, 2026

23/02/26, The FinancialExpress Report on Supreme Court Ruling

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Today's

23/02/26, Adani Ports share price: Shares of Adani Ports and Special Economic Zone (APSEZ) surged as much as 3.51% to an intraday high of ₹1,564.50 per unit on the National Stock Exchange (NSE) on Monday, February 2023.

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