Today market is down more than 500 points. This will effect gmp and subscription of EHL. Today, world markets are also down. This is also one reason for sharp fall of 500 points. Investors should not worry becathis ipo comes with right price and right valuations. Company is showing good growth. Investors will get good return in long term.
As per today''s RBI policy banks should reduce interest rate by 0.25% on fixed deposit and lending rate. But it is up to banks to decide. I think banks will not react immediately beca25 bps is very low. Already fixed deposit interest rate are very low. If we find another 25 bps rate cut in next policy review then banks needs to react fast.
This rate cut will not be a catalyst for market. Market expected 25 bps rate cut. There is no big surprise from Mr. Rajan this time. Everything is as predicted. Market will be in it''s normal mood within 2 - 3days.
367.1. Chem cho| Link| Bookmark|
April 5, 2016 6:11:39 PM
IPO Guru (2600+ Posts, 2700+ Likes)
As per my knowledge bank like SBI who have the lowest FD interest rates in market are not getting fresh deposits from public , as some nationalised bank offer .25 to .5 % higher interest rates than SBI , interest rates of cooperative banks are also higher than sbi , only renewals are done , of senior citizens who do not care for interest rates , also men , women in age group of 40 to 60 years do not have time to swap deposits from one bank to other due to their office / commitments prefer renewal at same bank , /branch as on 31 march 16 most of the people had rushed to post office , and govt ssc of 9.3 %
even though .25 % rate cut , announced today by RBI it will be difficult for bank to get new deposit from public for another 2 to 3 months ( note i am not taking about old renewals )
BUT RBI will force banks to reduce interest rates for general public , Banks will borrow money by bonds , etc but general public like senior citizens will suffer , Loan will be cheaper
1. Now the rate cut is done by 25 BDS. now what will happen to the Fixed deposit interests given by bank to us? will it come down? If so how much it come down say for 7.25% interest/per year, comes down to what?(or) goes up to what?
2. Becaof this rate cut, what is the impact on stock market, what stocks wil go up and what will come down?
Ideally banks should reduce interest rate by 0.25% on fixed deposit becalending rate is going to be reduce by 0.25%. But it is up to banks to decide. Many banks will not react immediately beca25 bps is very low. Already fixed deposit interest rate are very low. If we find another 25 bps rate cut in next policy review then banks needs to react fast.
Market expected 25 bps rate cut. There is no surprise from Mr. Rajan this time. Everything is as predicted. This rate cut will not be a catalyst for market momentum. If we got 50 bps rate cut then story should be different.
Shivajee, small savings rate are expected to remain unchanged,i.e, my n ur savings bank account rate as banks won''t want to reduce the clients as they need money to grow. However, banks offering 6-7% interest rate on savings accts will definatly reduced it by 0.25 basis points. Now coming to FD. Safely can be assumed that the rates for FDs n RDs would reduce by 0.25 basis points within next 2 months. Now coming to home loans. Expect 0.25 to 0.10 basis points reduction from institutions providing such loans whenever the next rate revision date is due for such institutions. Effect on stock market- expect negative impact on banking sector. However, it is good for loaning institutions, auto inds, consumer companies, power inds etc..
359. Eagleye| Link| Bookmark|
April 5, 2016 1:32:33 PM
IPO Guru (6600+ Posts, 22000+ Likes)
Equitas GMP 16.00 - 16.50 per share (dropping ... )
358. Eagleye| Link| Bookmark|
April 5, 2016 1:21:09 PM
IPO Guru (6600+ Posts, 22000+ Likes)
Highlights of the Reserve Bank of India''s first Bi-Monthly Monetary Policy Statement for 2016-17:
MAIN HIGHLIGHTS * Repo rate cut by 25 bps to 6.50% * CRR kept unchanged at 4.00% * To cut daily CRR maintenance to 90% of requirement * Cut in daily CRR maintenance effective from Apr 16 * Cut MSF rate by 75 bps to 7.00% * Increase reverse repo rate by 25 bps to 6.00% * Narrow rate corridor to align weighted avg call, repo rates * To continue to provide liquidity as required * To progressively cut avg ex ante liquidity gap to near neutral * Stance of monetary policy will remain accommodative * To eye developments in months ahead with a view to respond * To respond with further action in mos ahead as space opens up * Narrowed rate corridor to align weighted avg call, repo rates
INFLATION * Inflation has moved along projected trajectory * Expect CPI inflation to decelerate modestly going ahead * See inflation around 5% FY17 with small inter-qtr variations * Uncertainty surrounding inflation from recent unseasonal rains * Likely spatial, temporal rain distribution a risk to inflation * Inflation persistence in certain svcs warrants watching * Jan-Mar household survey show inflation expectations softening * Current, 3-mo ahead inflation expectation lowest since Sep ''09 * Professional forecasters see CPI inflation at 5.2-5.3% FY17 * Pay panel recommendations to impact CPI for up to 24 months * Inflation currently within the adopted 2-6% band * Next CPI inflation milestone is 5% by March 2017 * To adjust path to 4% CPI to even disinflation''s output effect
GROWTH * Uneven FY16 recovery likely to strengthen gradually in FY17 * Gradual growth recovery in FY17 assuming normal monsoon * Retain gross value added forecast for FY17 at 7.6% * FY17 gross value added forecast risks evenly balanced * Monetary policy committee will further strengthen credibility
FISCAL * Govt adhering to fiscal deficit aims to support disinflation * 25 bps repo rate cut will help strengthen activity * 25 bps repo rate cut will aid govt''s budget initiatives * More important to ensure transmission of repo rate cuts * Cut in small savings scheme rates should improve transmission * Refined liquidity mgmt framework should aid rate transmission * Marginal cost-based lending should aid rate transmission * Have kept system liquidity in ex ante deficit mode on avg * To add durable liquidity by adjusting net foreign asgrowth * To add durable liquidity by varying net domestic asgrowth * To modulate net assets growth to meet econ''s transaction needs * Short-term liquidity not a substitute for durable liquidity * To place draft on large exposure framework in Jun for comments * To allow interest rate futures on appropriate money mkt rates * To decide on money mkt rate futures contract details Sep-end * To review collateralised money market segment * To mull introducing tripartite repo as part review * To detail draft on disclosure needs for CP issuance Jul-end * Norms on accounting of repo, reverse repo trade by May-end * Intend to first meet durable liquidity needs going ahead * To manage short-term liquidity after giving durable liquidity * Don''t need significant liquidity deficit in system anymore * Rationale for significant liquidity deficit not compelling now * Allow substitution of securities in market repo transactions * To consult with govt on moderating cash balance build-up
Great hidden fight seen between Raghuram and Jaitly since last year when govt pressuring Raghuram to reduce rates,Raghuram then reduced RR, again Jaitly pressuring to reduced rates clever Raghuram now reduced rates but increase RR
Actually great Raghuram do know well that sugar , arahar , wheats and rise prices are skyrocketing and bjp wants to keep Raghuram in dark by reducing sukany yojna and epf rates reduction
356. PearlRohit| Link| Bookmark|
April 5, 2016 12:43:23 PM
Top Contributor (200+ Posts, 100+ Likes)
Equity Capital Bahot Jyada Hai. IsLiye Issue Success karane ke liya Gray Market Premium Very High Hai. Retail Application me Allotment Chance 100% Hai. Isliye Gray Market me Sell Karke hi Applied Karna. Yad Rakhna QuickHeal & Healthcare Global ka Issue
So it is giving me only loss of around 1500 Rs if I get 10 shares of HCL for 43 of Geometric...! Can''t understand why we should buy for loss booking? Correct me if anything wrong, I m finding this concept new!!
I think one should buy HCL not geomatric, becawhen the actual swap happens either geomatric will go to around 194 or HCL will go to around 997. at least that''s what math says.
No Shivajee. U r wrong. Every shareholder of Geometric would get one redeemable preference share of 68Rs carrying a dividend of 7%/annum in 3DPLM which is a joint venture with Assault Systems, France. Now calculate n tell me if u will be in profit or loss.
I think you meant one share of Geometric @ 232 not HCL. Ok Let me explain to you properly about the deal:
1.Geometric shareholders will receive 10 shares in HCL for every 43 shares of Geometric as part of the stock-swap. Assume 43 shares as 1 lot. If you do not have 43 shares then your shares will be automatically sold and money given to you (happened to me in satyam-techM merger)
2.The deal, which does not include Geometric''s 58 percent stake in its 3DPLM joint venture with France’s Dassault Systemes.
3. In a separate transaction, Geometric has also agreed to offits 3DPLM ownership to Dassault Systemes, for which Geometric shareholders will receive one PREFERENCE shares in 3DPLM worth 68 rupees for every Geometric share,
I dont think transfer date has been announced yet.
Buy now in multiples of 43 if you can. I have read that Credit Suisse has given Outperform rating on HCL with 12 month target of 1150. If you 10/43=23.25% of 1150 equals to 267.4. In addition to this you will get Rs.68 preference share(redeemable 7% dividend) you are looking at 335.4 (30% increase in 1 year)
This method to calculate may be crude and it may be wrong but i calculate things this way by keeping stocks for atleast an year