General Trading Chat

siddhant4u

Well-Unknown Member
eh.. what is this ?? It's the first time I am hearing this news.

https://www.business-standard.com/a...nk-allahabad-bank-reports-119052101187_1.html

PNB could take control of OBC, Andhra Bank, Allahabad Bank: Reports

The govt has been trying to merge smaller regional state-run banks with better managed larger government-owned lenders as one way to reduce bad loans that stand at more than Rs 9 trn

Reuters | New Delhi

Last Updated at May 21, 2019 18:16 IST

Punjab National Bank could take control of two or three small state-run banks, that could include Oriental Bank Of Commerce, Andhra Bank and Allahabad Bank, two sources familiar with the situation told Reuters.

The government has been trying to merge smaller regional state-run banks with better managed larger government-owned lenders as one way to reduce bad loans that stand at more than Rs 9 trillion ($130 billion), or nearly 5% of the nation's gross domestic output.

Last year, the government engineered state-owned Life Insurance Corp's takeover of IDBI Bank, a step to ensure that the bank with one of the highest levels of bad loans on its books is well capitalised.

PNB could start the process of taking control of the banks in the next three months, according to the sources, who declined to be named, as they are not authorised to speak to the media.

PNB shares fell as much as 4% after Reuters reported the news. Its shares ended down 2.55% at Rs 86.10 on the National Stock Exchange on Tuesday.

Allahabad Bank fell 2.6% to close at Rs 45.15 rupees a share, while Oriental Bank of Commerce ended down nearly 1% at 95.20 rupees per share.

The Indian government is seeking to consolidate the nation's debt-burdened state banking sector.
PNB declined to comment, while the other banks did not immediately reply to an email from Reuters seeking further information.

The finance ministry also declined to comment on the story.
sweep bad news under carpet (election results) may be..
 

ncube

Well-Known Member
I am not kidding but this happend today. How is it possible??

Bnf is -300 in spot

Bnf 32400 CALL is up by +100 which is *+1500%*
@jagadesh, It will be good if you start first with the basics of stock market as it will help you build a strong foundation. One good place to start would be the zerodha varsity https://zerodha.com/varsity/
You can follow the flow from the beginning and progress to advanced topics such as options.
 
@jagadesh, It will be good if you start first with the basics of stock market as it will help you build a strong foundation. One good place to start would be the zerodha varsity https://zerodha.com/varsity/
You can follow the flow from the beginning and progress to advanced topics such as options.
I am doing sir.. I downloaded all 10 modules in zerodha varsity. Parallely i am following market trend today i came across this situation so i asked sir.
 

ncube

Well-Known Member
I am doing sir.. I downloaded all 10 modules in zerodha varsity. Parallely i am following market trend today i came across this situation so i asked sir.
Ok..that's good...having a sound understanding of the working of stock market will make it easy for you to learn new concept and strategies. Knowledge and the Skill/ability to use it correctly is very important in this field.

Options are a complex derivative product and it's pricing is dependent on multiple factors and are called option Greeks. One such factor is the volatility or uncertainty in the market, in this case it is the election results event or some global factors like trade war. When option sellers think there is higher risk...they will charge higher premium on the option strike price to compensate for the additional risk they are taking. In this case even when the BN was down the premium for the Calls did not decrease instead it went up as option sellers think they are taking a risk and there is a higher chance that the BN will go above that strike price in near term.

You will understand this easily once you have finished learning the options basic section.
 

iwillwin

Well-Known Member
I am doing sir.. I downloaded all 10 modules in zerodha varsity. Parallely i am following market trend today i came across this situation so i asked sir.
If you come across an question on option pricing...have you read the module on options...it's easier to go aggressive on learning but it takes time to get patience, discipline.... don't get totally deviated from your current job....focus on job also , understand what has motivated you to come to stock market....
 
Ok..that's good...having a sound understanding of the working of stock market will make it easy for you to learn new concept and strategies. Knowledge and the Skill/ability to use it correctly is very important in this field.

Options are a complex derivative product and it's pricing is dependent on multiple factors and are called option Greeks. One such factor is the volatility or uncertainty in the market, in this case it is the election results event or some global factors like trade war. When option sellers think there is higher risk...they will charge higher premium on the option strike price to compensate for the additional risk they are taking. In this case even when the BN was down the premium for the Calls did not decrease instead it went up as option sellers think they are taking a risk and there is a higher chance that the BN will go above that strike price in near term.

You will understand this easily once you have finished learning the options basic section.
ncube bhai, really good advice. :)

Thanks a lot
 

siddhant4u

Well-Unknown Member
https://www.thehindubusinessline.co...nts-to-avert-default-risk/article27199111.ece



CBT to decide; wary of downgrades, fund may seek early re-payment from troubled firms
Worried about the spate of defaults and downgrades among non-banking finance companies (NBFCs), the Employees’ Provident Fund Organisation (EPFO) is planning to seek early re-payment of some of its investments from troubled firms in the sector, such as DHFL.
Sources close to the development said the issue was discussed by the EPFO’s Finance, Investment and Audit Committee (FIAC) at its meeting earlier this month.
“EPFO has been monitoring the downgrades of certain NBFCs. There is a view that it should seek pre-payment of its investments in any troubled NBFC to avoid any default and loss of money,” said a person familiar with the development, adding that the first priority is to ensure safety of workers’ retirement savings.
The FIAC is a sub-committee of the EPFO’s apex decision-making body, the Central Board of Trustees (CBT). It met in Mumbai to review the performance of the portfolio managers, discuss the appointment of new portfolio managers, and analyse the investments for the retirement fund corpus.
However, a final decision on pulling back investments from select NBFCs will be taken by the CBT, which is chaired by the Union Labour and Employment Minister, after the new government takes office.
“As of now, it is wait and watch, maybe there will be an upgrade in the ratings. There is no need to panic,” the sources said, adding that a meeting of the CBT will be called in June or July.
The sources stressed that EPFO investments in NBFCs are not very significant, adding that till now there have been no defaults by any firms in which it has invested.
The move comes after the EPFO’s difficulties with its investments in debt-ridden Infrastructure Leasing and Finance Company.
Exposure in IL&FS
Data with the Standing Committee on Labour pegs the investment by the EPFO in IL&FS at ₹574.73 crore. As on March 31, 2018, the EPFO’s total debt corpus was at ₹9.78 lakh crore, of which only a small part is expected to be in the NBFC sector. It is not clear which NBFCs the EPFO has invested in.
In an affidavit to the National Companies Law Appellate Tribunal, IL&FS said it cannot immediately repay the ₹9,134 crore investments by pension and provident funds as it will impact the IBC-led resolution process.
This makes it tricky for exempted firms, which manage the retirement savings of their employees on their own; they will have to make good any losses from investments in IL&FS and other risky firms.
“Unlike the EPFO, exempt trusts don’t have the muscle to seek pre-payment of investments from NBFCs,” said an investment manager for such firms. After demonetisation, NBFCs gave some of the best returns, and there was little choice for investing in paper of PSUs, the manager added.
 

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