General Trading Chat
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I have bought back what I had sold....7 days downmove was a good opportunity to re- enter.Could not buy the full qty and still sitting with cash in hand.If there was a deeper correction, would have bought much more .Though index came down by only 3-4 % some stocks were down 7-8 % off their peak....
Smart_trade
Smart_trade
sorry Jumping the Q, but this is the relative movements I see:
During minor corrections:
The index will fall the least due to a bit of sector and stock rotation, followed by LC then MC and lastly SC. [Order from least to most]
In the LC space, even quality stocks will see more selling-off just because they're a bit overvalued.
For Major Corrections
The same like minor corrections, but in this case after all stocks get hammered, the quality stocks will still be respected and appear with higher valuations.
From the long side:
After major corrections, the LC rally the fastest, followed by MC and then SC.
After minor corrections, not like 3-5% what we saw in last week but the MC tend to rally faster at the time reversal is identified than LC bcos they were bigger losers going down.
These are just generalizations, individual stocks may always not positively correlate with the above stats.
During minor corrections:
The index will fall the least due to a bit of sector and stock rotation, followed by LC then MC and lastly SC. [Order from least to most]
In the LC space, even quality stocks will see more selling-off just because they're a bit overvalued.
For Major Corrections
The same like minor corrections, but in this case after all stocks get hammered, the quality stocks will still be respected and appear with higher valuations.
From the long side:
After major corrections, the LC rally the fastest, followed by MC and then SC.
After minor corrections, not like 3-5% what we saw in last week but the MC tend to rally faster at the time reversal is identified than LC bcos they were bigger losers going down.
These are just generalizations, individual stocks may always not positively correlate with the above stats.
Last edited:
Airtel added 23 million subscribers over the past year, while Jio and others lost active subscriber base: Report
https://www.digit.in/telecom/airtel...d-others-lose-active-subscriber-ba-38182.html
https://www.digit.in/telecom/airtel...d-others-lose-active-subscriber-ba-38182.html
Moody's upgrades ratings of four Indian banks
New Delhi, November 17: Close on the heels of India's sovereign rating upgrade, Moody's has upgraded four Indian banks to Baa2 from Baa3 - the same level as the Indian government. The four lenders are State Bank of India, HDFC Bank, Exim Bank and Indian Railway Finance Corporation.
New Delhi, November 17: Close on the heels of India's sovereign rating upgrade, Moody's has upgraded four Indian banks to Baa2 from Baa3 - the same level as the Indian government. The four lenders are State Bank of India, HDFC Bank, Exim Bank and Indian Railway Finance Corporation.
Bad loans in banks could trigger downgrade
The Times of India Published on November 18, 2017
Mumbai, November 17: Bad loans in banks could be the weak spot in India's economy and could risk triggering a future downgrade. Besides the standard risks to the economy arising out of fiscal slippage and from global volatility, Moody's has cited health of the banking system as vulnerability for the economy.
According to Moody's, recapitalisation of PSU banks and proactive steps to resolve bad loans are beginning to address a key weakness in India's sovereign credit profile.
SBI chairman Rajnish Kumar said that large NPA accounts referred to the National Company Law Tribunal in July would come up for resolution in January 2018.
Bankers, however, say that since these are the first transactions the bankruptcy process is likely to get tested. Most bankers feel that bad loans will start declining only from the next financial year.
Banks are also reluctant to take more defaulters to the National Company Law Tribunal as regulations require that they make 50% provisions on loans in respect of which bankruptcy proceedings have been initiated.
There have been reports that the government may force banks to initiate insolvency proceedings against more borrowers.
Besides having to make high provisions, if banks do not get acceptable bids during the insolvency process, they would be required to initiate liquidation proceedings. If this happens banks might be required to make massive write-down of their loans.
The third uncertainty is over bank mergers. According to market players, investors are reluctant to make big bets on bank stocks over fears that government may decide to merge weak banks with some strong banks.
Given that public sector banks do not have the flexibility to clean up their books there is fear that merger with a weak bank would hurt the stronger bank.
"While the capital injection will modestly increase the government's debt burden in the near term (by about 0.8% of GDP over two years), it should enable banks to move forward with the resolution of NPLs through comprehensive write-downs of impaired loans and increase lending gradually," Moody's said.
According to Care Ratings, gross NPAs of 36 top banks have increased from Rs 2.94 lakh crore in March 2015 to Rs 3.32 lakh crore in Sept 2015 and then sharply to Rs 8.38 lakh crore in Sept 2017.
"The next two quarters would be crucial from the point of view of NPAs as it is still not clear whether or not they have been fully recognized and provided for. Private Banks too have witnessed an increase in their NPA ratios and the final picture will emerge by March 2018," said Madan Sabnavis, chief economist, Care ratings in a report on Friday.
According to Bloomberg data, Indian companies and banks have sold $12.5 billion of foreign-currency bonds so far this year with a fourth of them coming from banks.
Bankers said that the upgrade would also draw more investors into these bonds as the earlier rating was the lowest above-investment grade. Many pension funds, which are mandated to invest in only investment-grade securities, avoid bonds that are at the edge of investment grade.
SBI chief economist Soumya Kanti Ghosh said, "The ratings upgrade will have a profound impact on bond yields and lift the morose sentiments in the bond market, apart from impacting the movements in the domestic currency. The greatest irony is that despite India's improved fundamentals, bond yields have moved in a contrarian direction. For example, if we compare India's bond yield from the levels of 2008, it is highest among select economies. India's bond yields are around 170 bps higher than the 2008 level."
https://timesofindia.indiatimes.com...ld-trigger-downgrade/articleshow/61696148.cms
The Times of India Published on November 18, 2017
Mumbai, November 17: Bad loans in banks could be the weak spot in India's economy and could risk triggering a future downgrade. Besides the standard risks to the economy arising out of fiscal slippage and from global volatility, Moody's has cited health of the banking system as vulnerability for the economy.
According to Moody's, recapitalisation of PSU banks and proactive steps to resolve bad loans are beginning to address a key weakness in India's sovereign credit profile.
SBI chairman Rajnish Kumar said that large NPA accounts referred to the National Company Law Tribunal in July would come up for resolution in January 2018.
Bankers, however, say that since these are the first transactions the bankruptcy process is likely to get tested. Most bankers feel that bad loans will start declining only from the next financial year.
Banks are also reluctant to take more defaulters to the National Company Law Tribunal as regulations require that they make 50% provisions on loans in respect of which bankruptcy proceedings have been initiated.
There have been reports that the government may force banks to initiate insolvency proceedings against more borrowers.
Besides having to make high provisions, if banks do not get acceptable bids during the insolvency process, they would be required to initiate liquidation proceedings. If this happens banks might be required to make massive write-down of their loans.
The third uncertainty is over bank mergers. According to market players, investors are reluctant to make big bets on bank stocks over fears that government may decide to merge weak banks with some strong banks.
Given that public sector banks do not have the flexibility to clean up their books there is fear that merger with a weak bank would hurt the stronger bank.
"While the capital injection will modestly increase the government's debt burden in the near term (by about 0.8% of GDP over two years), it should enable banks to move forward with the resolution of NPLs through comprehensive write-downs of impaired loans and increase lending gradually," Moody's said.
According to Care Ratings, gross NPAs of 36 top banks have increased from Rs 2.94 lakh crore in March 2015 to Rs 3.32 lakh crore in Sept 2015 and then sharply to Rs 8.38 lakh crore in Sept 2017.
"The next two quarters would be crucial from the point of view of NPAs as it is still not clear whether or not they have been fully recognized and provided for. Private Banks too have witnessed an increase in their NPA ratios and the final picture will emerge by March 2018," said Madan Sabnavis, chief economist, Care ratings in a report on Friday.
According to Bloomberg data, Indian companies and banks have sold $12.5 billion of foreign-currency bonds so far this year with a fourth of them coming from banks.
Bankers said that the upgrade would also draw more investors into these bonds as the earlier rating was the lowest above-investment grade. Many pension funds, which are mandated to invest in only investment-grade securities, avoid bonds that are at the edge of investment grade.
SBI chief economist Soumya Kanti Ghosh said, "The ratings upgrade will have a profound impact on bond yields and lift the morose sentiments in the bond market, apart from impacting the movements in the domestic currency. The greatest irony is that despite India's improved fundamentals, bond yields have moved in a contrarian direction. For example, if we compare India's bond yield from the levels of 2008, it is highest among select economies. India's bond yields are around 170 bps higher than the 2008 level."
https://timesofindia.indiatimes.com...ld-trigger-downgrade/articleshow/61696148.cms
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