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5 stock market youtube

September 6, 2022 by Learningsharks

5 Individual Channels with the best stock market knowledge

Here Are

Stock Markets with KR
Stock Market Psychology
Stock Market with ST
SMG STOCK MARKET GURKUL
STOCKACE

Stock Markets with KR

Lets talk about kunal he is On a mission to make finance accessible & engaging for all! He is a Trader | Trainer | Creator as well. He’ve been training people to become independent traders since 2019. This includes everything from technical analysis, to personal finance and even psychology & mindset.Outside finance, he have been a content marketer for the past six years. It’s helped his work with some amazing brands including Porsche, Lamborghini, Crafty Nectar, and many more. This experience has helped him foster my passion for marketing and come up with innovative campaigns.

He is a good trader and Podcast Host & YouTuber and he has more then 2k suscriber on youtube.

Stock Market Psychology

Stock Market Psychology is the underrated youtube channel they provides the best berifely details about stock market and they also tell about nifty and sensex every evening

he has more then 3.18K on youtube and 2000 + members on telegram channel

Stock Market with ST

Stock Market with ST is the best youtube channel if you are seeking to accelerate your knowledge this channel will definitely help you a lot and they also tell about nifty and Sensex points. He also tells us about Sebi’s latest news and chart analytics also.

he has more then 2K on youtube

SMG STOCK MARKET GURKUL

If you want to learn the stock market from basic to advance and you want to see a daily video about the stock market you can subscribe to this channel. they provide the nifty and Sensex chart analytics and they also provide SEBI latest news and one of the best things this channel provides is berefily analytics about penny stock

He has more then 8k on youtube

STOCKACE

This channel is for share market learning & Knowledge sharing. They don’t provide any tips. This is for educational purposes. They are NISM Certified Research Analysts. We don’t have any advisory services or paid tip services. Stop taking tips and wasting your money. Learn to Analysis easily. We are not recommending any security to buy/ sell/hold All the shares which are mentioned in all the public channel/private channels, only for reference purposes. We are not responsible for your Losses / Profit, Please use your own analysis before investing/ trading.

He has more then 13k on youtube

Evaluation of Investor Awareness

September 6, 2022September 6, 2022 by Learningsharks

The Indian stock exchange is one of the world’s largest. As of February 2018, it has 16,993,616 active demat account investors who traded shares. An equity investment entitles the investor to a portion of the company’s capital. The value of the investment increases as the company grows; initially, it begins with the Initial Public Offering (IPO) that the companies will allocate. This will be listed on the stock exchange as a secondary market item. Depending on the percentage of returns, the investor determines whether to retain the stock for a longer or shorter amount of time. The majority of research investigations indicated that the Indian stock market is highly volatile, sensitive, and reacting to news and unexpected shocks.

This has an immediate influence on market trend activity, but it is resilient and rebounds quickly. The investor seeks large returns on investing while taking a considerable risk. Fear of investing in the stock market arises from the market’s unpredictable trajectory and a lack of awareness about the success criteria. In practice, risk and return are directly proportional. However, the investor’s risk-return perceptions may differ. Before investing, the goal of this study is to assess the investor’s level of familiarity with stock trading and technical knowledge in order to overcome risk factors while trading in the live market.

1) Primary market –

Purchase of shares through IPO (Initial Public Offering) allotted by corporations that issue public offers of shares.

2) Secondary market –

Stock trading is done through exchanges where buyers are willing to buy from primary shareholders after listing on exchanges and reselling in the secondary market. Stock trading refers to a person or corporation who trades equity securities on a stock market using a Demat Account. The investor can trade stocks with the assistance of a stock broker/sub-broker, or an agent registered with SEBI, the stock market regulator (12). Agents receive a commission from traders who trade on behalf of investors for each trade of stock or equity.

A stock market (sometimes known as a share or equity market) is a collection of investors who purchase and sell stocks (buyers and sellers). A broker and trader can purchase and sell a stock, bonds, and other assets at agreed-upon prices listed on a public stock market. A mutual fund (SIP), commodities, equity shares, options, futures, initial public offering (IPO), foreign exchange, gold ETF, bonds, post office savings schemes, company fixed deposits, insurance plans, retirement plans, PPF, and other investment modes are available to investors. Retail investment and institutional investment are two different ways for traders to invest; traders must do technical or fundamental analysis to maximixe returns while minimising risk.

Exchanges serve as the central point for each transaction, collecting and delivering shares and guaranteeing payment to the seller of a security. Individual traders are no longer exposed to the risk that the counterparty will renege on the transaction. There are numerous exchanges, with the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) accounting for the majority of trading shares in India. Stock market trading types include:

Equity trading (no expiry), purchasing shares, and profiting within a day, week, month, or year according to the percentage of returns desired by the investor. Derivatives (expiry on the last Thursday of the month), Derivative trading is a place where the trader can keep or trade the shares by providing a margin amount till a specific period. The lot holdings will expire on the last Thursday of that particular month. It is up to the trader to select the right month of the lot for trading and the amount of investment to hold. If the trader does not close the position by the expiry date, it will be squared off. The trading will be done in lots, which may vary in number depending on the weightage of the equities. The margin will be worth 10% of the total shares and can be held until the end of the month.

Monthly Trade with Futures Delivery – The trader purchases the lot and sells after enjoying the expected profit. Futures Square Off – If the trader fails to cancel the position, the lot is automatically wound up based on the live stock price before the market closes at 3:00 PM. The OPTION function is a decision to predict the value of a stock in a week or month. An investor chooses the stock by analysing the market trend as it increases or decreases in the price of a specific stock. If the forecast comes true, the investor benefits; otherwise, the investor loses.

CALL OPTION and PUT OPTION are the two trading options offered to traders. The premise of a call option is to buy a stock and sell it at a certain price based on the market flow. Put options are a theory that allows you to sell a stock at a specified price and then buy it back at a lower price; this type of trading is most common in a bear market. Weekly choice: Bank This feature is exclusive to the Nifty index (every Thursday of the week it gets expires of that particular holding ) Commodity markets facilitate the trading of commodities such as silver, gold, crude oil, live cattle, rice, wheat, soybean, coffee, cotton, and sugar, etc. which belong into four categories: metal, energy, livestock and meat, and agricultural products.

Trading can take place in either a Spot or a Derivatives market. Commodities are bought and sold for immediate delivery in the Spot market, whilst financial instruments based on commodities are traded in the Derivatives market. Mutual Funds: Mutual funds are sophisticated controlled devices that exchange a lot of money from many people to invest in stocks, bonds, and other securities. An investor obtains mutual fund ‘units’ by investing in a specific scheme. The current net asset value (NAV) of the fund serves as the value of the unit to be purchased by the investor. NAVs fluctuate based on the fund’s holdings of the specific mutual fund product. As a result, each investor chooses to invest based on the proportionate gain or loss of the fund.

Capital market investors can invest in a variety of instruments. Before investing or trading on a certain platform, the trader or investor must thoroughly research the strategies, trends, and tactics available in each instrument. Investors may incur substantial risk even for little profits due to a lack of information.

The majority of research investigations indicated that the Indian stock market is highly volatile, sensitive, and reacting to news and unexpected shocks. The investor seeks large returns on investment and is willing to take a high risk to accomplish it. The market’s path is unexpected, and a lack of awareness about the success elements causes investors to be fearful of participating in the stock market. The study’s goal is to use a survey to investigate investors’ knowledge of trading (technics) technologies prior to investing in the stock market.

Why Do Stock Prices Fluctuate?

September 5, 2022September 5, 2022 by jyoti rawat

A simple and quick approach to multiplying your wealth is through the stock market. People are reluctant to begin trading because of the continual swings of the market. Buying stocks and selling them for a profit is the main objective of stock market trading.

Demand-supply economics has an impact on stock market values. A stock’s price will increase when there is more demand than supply for it. The price increases as the demand-supply imbalance widen. For instance, the price per share of stock X will rise when numerous traders buy it, and the opposite is also true. This fluctuating demand and supply are the ones experts are referring to when they talk about market dangers.

How do Company Earnings Affect Stocks Prices

People make long-term investments in companies that are profitable and draw more investors, which increases the share price of the company. Every quarter and annually, companies who are listed on the stock exchange are required to report their earnings in an Earnings Report or Quarterly Report, which allows you to determine whether the company’s earnings have met or surpassed expectations.

A corporation that announces strong share price increases will inevitably see increased demand. However, if a company’s earnings fall short of expectations or if actual earnings are lower than expected, the share price would certainly decline.

How Do Supply And Demand Affect Stock Prices

Similar to other markets, the share market operates. The forces of supply and demand in the market drive stock values. Stock prices would be impacted by the variables affecting supply and demand in the stock markets.

Let’s say a reliable report reveals that a business is performing poorly or worse than anticipated. In this scenario, fewer people will desire to purchase shares of this corporation. Thus, demand will decline. A spike in supply is also indicated by the fact that more people will desire to sell their shares at the same time. As a result of the supply being greater than the demand, stock prices will decline. The demand and supply of these stocks typically respond negatively to good news. It should be highlighted that supply and demand curves must always be approximated depending on the actions of investors and the state of the market.

Effects of Changes in Demographic on the Stock Prices

The statistical information about a population and the subgroups (by age, geography, etc.) inside it is referred to as demographics. Some businesses might solely market their goods to a particular demographic, such as persons in a particular age range or geographic area.

Stock prices may be more influenced by the demographics of the target audience than by stock market investors.

Stock prices may be more influenced by the demographics of the target audience than by stock market investors.

Good News or Bad News Affecting Stock Prices

A company’s stock price will increase if it announces an increase in interest rates, makes an acquisition, enters a new market, or reveals other positive financial news. Similar to this, a business that must sell a portion of its stock, fire staff, or shut down branches will face financial difficulties or a decline in profits.

People sometimes tend to sell these stocks out of concern that the shares’ price would plummet or, worse yet, that the company may shut down, making the shares worthless. The value of stocks in the industries impacted by these announcements/events may also be impacted by changes in government policy and significant financial announcements like the yearly budget.

Overvaluation and Undervaluation

When a corporation releases negative news and investors sell their stock as a reaction, undervalued share prices may become worthless. Some seasoned traders keep an eye out for opportunities to buy in when the market is undervalued because they predict that the company will soon perform better, increasing demand. They are betting that the subsequent increase in share price will bring them money.

Similar to this, a company’s share price increases when it is anticipated to perform well in the future. For instance, dot-com businesses that were listed on the stock exchange overspent shareholders’ funds, failed to meet expectations, and eventually shut down, costing individuals who had purchased their shares money.

Technical Factors Affecting Stock Prices.

Technical factors are a group of outside variables that have an impact on stock prices. These variables include macroeconomic conditions (economy growth expectations, the state of global trade, etc.), the potency of alternatives and complementary industries, unplanned transactions, and demographics.

Inflation Affecting Stock prices

Depending on the level of inflation, different inflation rates have different effects on stock markets. Investors frequently keep a close eye on inflation rates and make predictions about how it would affect Indian stock markets.

Inflation has a negative impact on stock values when raw material costs increase and consumer demand declines. Stock prices are also affected by deflation. A sign of an overproducing economy is considered to be deflation. Consequently, industries stop growing, and some companies may even close their doors as a result of weak demand.

Substitutes Affecting Stock prices

Assume Sada Soda and Naya Soda are the two manufacturers of soda. The stock price of Naya Soda could increase if it starts outperforming its rival. The stock price of Sada Soda could decrease concurrently. The availability of rival items may limit a company’s ability to expand.

Institutional Transactions Affecting Stock prices

The demand for a stock may occasionally be impacted by the news of institutional investors buying or selling a certain stock. Let’s say we learn that a well-known institutional investor with millions of dollars under management has decided to purchase a sizable number of shares of a specific company. Investors might anticipate that the company’s stock price will increase.

Therefore, stock prices may also be impacted by transactions made by reputable investors.

Trends Affecting Stock Prices

Based on historical stock price data and factors like the P/E ratio, trend analysis forecasts future stock price patterns. Stock price patterns are presumed to exist for the purposes of trend analysis.

Liquidity Affecting Stock Prices

Liquidity has two meanings in the context of the stock market. The ratio of a company’s assets that can be easily transformed into cash without losing value is one possible starting point. Or it may refer to how simple it is to buy or sell a specific stock without suffering a significant loss.

A corporation may be forced to rely on external debt to cover interest payments when it has little liquid assets, which could result in increased debt levels.

You can end up with losses in stock if you can’t readily sell it without losing value. Therefore, if investors see that a stock’s trading volume is declining, they might sell those shares, which would cause the price of the stock to decline.

Market Sentiments Affecting Stock markets

Market sentiment is the collective opinion of all investors towards a stock or a market. People frequently use phrases like “investor sentiment in the stock market remains positive” in their statements. In essence, they are saying that the stock market may still climb based on recent investing activity.

A trend analysis of the stock price is used to gauge market sentiment. Moving averages, high-low indexes, bullish percent indexes, volatility indexes (VIX), and indexes of highs and lows are a few of the indicators used to gauge market mood.

Final Thoughts

There are various factors at play when equities rise and fall. Stock prices may change in response to attitudes in the market, liquidity, trends, technical elements, and demand and supply dynamics. It’s critical to monitor news and reports that can have an impact on a stock’s price when you invest in it.

Why do people buy stocks?

October 17, 2022September 5, 2022 by Learningsharks

Most people acknowledge that the stock market may be a very profitable investment. In fact, most investment strategies include some type of stock component. Stocks have proven their ability to generate massive wealth and returns for their owners over centuries of investment.

However, the reasons why someone purchases a stock are not always obvious. Sure, “making money” is frequently at the top of the list of motivations for stock purchases, but this is not always the case. More specifically, there are numerous ways to profit from a stock purchase, as well as various tactics for selecting equities that meet a person’s financial objectives.

As a result, let’s take a closer look at why someone buys a stock.

Capital Appreciation

The primary purpose for purchasing stock is to profit from a share price rise.

At its most basic, this means that someone buys a stock with the hope that its value will rise over time. That share will be sold at a later period, allowing the initial investor to benefit handsomely.

People that buy stocks for capital appreciation are looking for a few different types of equities:

Value stocks: Some believe that value stocks are trading at prices lower than their intrinsic value. This indicates that the price may be suppressed for a variety of reasons, potentially giving investors a “deal.” Investors feel that value stocks are likely to rise in value over time. As a result, investors can purchase these equities and benefit afterward.

Growth Stocks: These are companies that are not yet profitable but appear to be on the verge of becoming so. Generally, they are growing top-line sales at a quick pace. As a result, investing in them represents the potential to diversify one’s portfolio while earning a high return on investment. These are frequently technology or medical stocks with a hot new product that has the potential to take their industry by storm.

Blue chip stocks: Because these are older, more mature enterprises, they are more prudent investments. They are unlikely to grow rapidly, but they should gain over time. They will also most likely provide dividends.

Distinct financial methods can have a different impact on the stocks that are acquired. For example, a younger person who can afford losses may try to invest in growth enterprises. These stocks may be riskier, but a younger person will likely have more time to recover any losses.

In contrast, someone who is older may not have as much time to lose a significant portion of their nest egg. As a result, they may invest in more conservative assets, such as blue-chip equities. An older individual is also more likely to invest in stocks for income, which may be easier to achieve by investing in specific dividend equities.

Dividend payment

Some stocks pay out dividends. These are periodical payments, typically made quarterly, that return a percentage of profits to shareholders.

Divide the amount given to shareholders by the share price to calculate the dividend offered. The dividend yield is 5% if the share price is $20 and the dividend payment is $1.

The dividend is often set at a fixed level, with management aiming to maintain or raise it over time.

Dividends can offer investors a consistent stream of income. To be clear, it is not a legal obligation for stock to pay a dividend. Dividends are subject to reduction or elimination at any time. Many investors, however, invest in dividend-paying companies in order to generate consistent income.

Dividend-paying equities are often preferred by more mature or income-seeking investors. As a result, reducing or removing a dividend is regarded as a sign that a company is experiencing financial difficulties. As a result, management is extremely hesitant to lower or cancel dividends.

Voting Rights

Stock ownership can be about more than just making money. In some circumstances, an individual or company may buy shares in order to obtain more influence over a company.

Stockholders have various voting rights under the law. The more shares a person holds, the more votes they have. These votes have the potential to influence the company’s destiny and strategic direction.

Some stakeholders may purchase stock in order to carry out a hostile takeover. Companies will frequently buy huge amounts of stock and then utilise their voting rights to carry out a corporate takeover of that organisation.

Votes do not have to be cast in person; instead, proxies are typically distributed to shareholders prior to any vote.

ESG vs SIN Stocks Philosophy

Sometimes business decisions are made based on what is good or bad for society as a whole and for the earth. This is exemplified by two categories of stocks: ESG and Sin Stocks.

ESG is an acronym that stands for Environmental, Social, and Governance. ESG stocks are those that conform to particular moral norms in terms of the company’s impact on the environment and society at large. They have strong and “moral” leadership as well.

Sin stocks, on the other hand, include companies that produce a product or service that is often regarded as ethically problematic, such as selling cigarettes and alcohol or facilitating gambling.

Selling calls for income

The call option seller is a final type of shareholder. These are investors that own company stock not just for capital appreciation and dividends but also to generate money by selling call options against the stock.

Some corporations provide huge call premiums that are appealing to shareholders. When implied volatility of options is significant, it is feasible to obtain up to 10% of the value of a company in call premium before an earnings announcement.

Covered call sellers can achieve significant profits and income streams by repeating this approach. It’s not simply a technique for volatile share prices; the same strategy can be applied to extremely stable, mature corporations as well, but with smaller percentage returns.

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What Is SIP In Stocks?

September 5, 2022September 5, 2022 by jyoti rawat

A monthly commitment to saving and investing is necessary for the SIP method of investing. A predetermined amount is deducted from your bank account in this case and invested in the mutual fund schemes you choose. This is a recurring event that takes place for a predetermined period of time on a predetermined day.

Stock SIP, also referred to as DIY SIP (Do It Yourself – SIP), is a straightforward method of investing in stocks. It enables investors to buy equities on a regular basis in a methodical, quantity-based manner (weekly, monthly, etc.). For long-term investors, it is the most effective investment approach. It enables you to use a disciplined investment strategy to profit from the market’s unpredictability.

What Is The Mechanism Behind It?

The stock SIP is only a technique for making gradual stock investments. Investing is done in shares as opposed to purchasing units in mutual fund schemes. Once you have decided how much money you would want to invest, your brokerage firm places a “buy” order for a predefined number of shares equal to your monthly commitment. SIPs are accessible through brokerage companies on a daily, weekly, and monthly basis.

You can invest in many businesses at once with stock SIPs. A maximum buy price can be specified with some brokerages. The amount of installments can be chosen, and your trading account can be populated accordingly. You might also just consent to a debit from your account being used to buy shares. Depending on the brokerage, the minimum investment for each installment is typically kept modest at between Rs 100 and Rs 500. You can pause, halt, or even extend your stock SIP. You will be charged the brokerage fee for each trade that is carried out. Brokerages including ICICI Direct, HDFC Securities, and Sharekhan offer stock SIPs.

Benefits Of Equity SIP

Reduces Volatility Risk: To lower risk, equity SIPs employ the rupee cost averaging theory. It’s a tactic where you make frequent investments of a certain amount. This implies that you purchase more units when stock prices are low and less units when they are high. It helps you navigate market fluctuations.

It Helps Salaried People Achieve Long-Term Goals Without Putting a Significant Amount of Money Into It: It is helpful for salaried people who want to reach long-term objectives without making a big financial commitment. Investors can start by making a small first investment in the top stocks for equities.

Discipline is inculcating:

Inculcating discipline SIPs are recurring monthly investments that can be scheduled for a specific day. Your bank account will be automatically debited for SIP payments. Because they are taken out even before you set up your monthly spending, this motivates you to be more strict with your savings.

Long term investing

Equity SIPs are suitable for long-term passive investors who are illiterate about the market. Over time, the power of compounding can assist you in amassing a substantial sum of money.

Averaging rupee prices

Rupee Cost Averaging: Averaging rupee prices safeguard all of your SIP investments. Rupee cost averaging helps manage market volatility and shifts. A SIP automatically distributes you more units when stop prices decline and fewer units when stock prices increase, smoothing out your savings.

Compounding's power

The power of compounding: By reinvesting your initial investment, SIPs enable you to increase your savings. SIPs aid in averaging out the cost of mutual fund investing. The earlier you start, the better, as you will be able to benefit from compounding’s power.

Features of SIP

A specific amount is invested for a continuous period at regular intervals under this plan.
Tenure of lending and borrowing available upto a period of 12 months
SIP is similar to a regular saving scheme like a recurring deposit. It is a method of investing a fixed sum regularly in a mutual fund.
SIP allows the investor to buy units on a given date every month. The investor decides the amount and also the mutual fund scheme.
List ItemWhile the investor's investment remains the same, more number of units can be bought in a declining market and less number of units in a rising market.
While the investor's investment remains the same, more number of units can be bought in a declining market and less number of units in a rising market.
The investor automatically participates in the market swings once the option for SIP is made

Who should Consider?

Stock SIPs involve more risk than mutual funds do. You run the risk of falling behind the competition or even going broke. If you are the sort who can comprehend business trends and examine company reports, think about investing in stock SIPs. We advise first-time investors to begin with mutual fund SIPs before expanding. Only experienced stock market investors are eligible to participate in stock SIPs. Try investing in equities mutual funds through a systematic investment plan if you are new to stocks (SIP). A long-term investor who is aware that wealth can only be accumulated by sustained investment in top-notch stocks. A seasoned investor who is knowledgeable about the nuances of the stock market and has amassed a fortune in equity markets.

Federal Bank and Kotak Bank

September 5, 2022 by Learningsharks

Federal Bank and Kotak Bank are in preliminary merger negotiations.

According to the sources, the top management of both banks has probably met to discuss a prospective transaction.

Kotak Bank has declined to comment on the story in any way.

After the news broke, shares of the Federal Bank saw a strong increase; they increased by almost 7% to trade at Rs 127.45 per share.

Pre-login and post-login e-Pay Tax services are now available on the e-Filing website through two additional recognised banks, Kotak Mahindra Bank and Federal Bank. Both Over the Counter and Net Banking tax payments are now accepted by these two banks.

According to a press statement from the bank, people can now pay their taxes instantly using any of the various payment options, including as cash, NEFT/RTGS, net banking, debit/credit cards, UPI, and so forth. Any tax-paying citizen of India, including NRIs and domestic customers, may present a tax challan and pay it at any of the bank’s locations.

If growth is robust, the bank will raise capital because it is now properly capitalised (CAR of 14.57 percent).According to reports cited by CNBC Awaaz on September 5, Federal Bank and Kotak Bank are in the preliminary stages of talks regarding a merger.

In October 2021, Kotak Bank became the first Scheduled Private Sector Bank to be approved as a partner in tax collection, according to a bank press statement.

Below are the authorized banks according to the Tax Information Network (TIN) website:

Allahabad Bank
Andhra Bank
Axis Bank
Bank of Baroda
Bank of India
Bank of Maharashtra

Dividend

September 5, 2022 by Learningsharks

What Is a Dividend?

A sum of money is paid as a dividend by a firm to its shareholders.

The most typical frequency of payment is quarterly, although a business can also opt to make payments monthly, semi-annually, or annually.

Although dividends are frequently given on a schedule, they can sometimes be “special,” which means that they are a one-time payment that won’t happen again (or won’t happen at the same amount).

What Is a Dividend in Finance?

Dividend payments are funded entirely by a company’s earnings.

There are a variety of reasons why a business would decide to distribute this cash to investors rather than use it elsewhere.

Dividends are typically issued when a business is making a sizable profit and has no practical use for the money that remains after paying other obligations.

This event is uncommon in smaller companies or companies investing in quick expansion, but it frequently happens in massive firms with significant cash flow, like Walmart.

Walmart uses some of its extra funds to reward its numerous investors with dividend payments because it has nowhere else to open new stores and its production rate exceeds demand.

Some businesses, known as dividend aristocrats, have increased their dividend payments for more than 25 years.

For investors, the sustainability of a company’s dividend is crucial.

A company’s ability to maintain or raise its dividend payments is called dividend sustainability.

The dividend yield and dividend payout ratio are the two indicators that are utilized to determine this.

The portion of the share price that is returned as a dividend is referred to as dividend yield.

The dividend yield, for instance, would be 2% if shares were sold for $10 each and paid a $0.20 yearly dividend.

The percentage of a company’s earnings utilized to pay dividends to investors is known as the dividend payout ratio.

The payout ratio is 20%, for instance, if a corporation expects to earn $1 per share and pays out $0.20 per share.

The likelihood that the percentage will be decreased in the future increases with its level.

Reduced ratios have declining rewards and are less costly on a company, making them more likely to be steady and sustainable.

How Are Dividends Paid?

Although some corporations let the dividend payment be reinvested as more partial shares of the company, dividends are typically distributed to investors as cash.

A Dividend Reinvestment Plan, or DRIP, is what this is.

This may be especially enticing to investors who like to maximize their returns over the long term to reap the rewards of quick profits.

Important Dates with Regard to Dividend Payments

The following four dates are crucial for dividend payments:

Date of the declaration
the day of payment
the entry’s date
the date of ex-dividend

Simply put, a firm proclaims its intention to pay dividends on the declaration day, and on the payment date, the payment is actually made.

A recent share purchaser’s ability to receive a dividend payment for that time is determined by the record date.

According to stock market regulations, buyers are only eligible for payment if they purchased the shares at least two days prior to the record date.

The traded share will not pay a dividend to its new owner after the ex-dividend date.

The next payment will be sent to the original owner following this date.

CONCLUSION

Dividends and dividend policy will be a continuing cause of debate and comment. The theoretical position is clear: provided retained earnings are reinvested at the cost of equity, or higher, shareholder wealth is increased by cutting dividends. However, in the real world, where not necessarily all investors are logical and where transaction costs and other market imperfections intervene, determining a successful and popular dividend policy is rather more difficult.

Tamilnad mercantile bank ipo

September 3, 2022 by Learningsharks

Tamilnad Mercantile Bank Limited IPO

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IPO date	05 Sep 2022 – 07 Sep 2022
Listing date	15 Sep 2022
Price range	500 – 525
Minimum order quantity	28
(D)RHP	View

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With a nearly 100-year existence, Tamilnad Mercantile Bank Limited is one of India’s oldest and most prestigious private sector banks. They provide a comprehensive range of banking and financial services primarily to retail, agricultural, and micro, small, and medium-sized businesses (MSME) clients (RAM). The bank had 509 locations as of March 31, 2022, with 106 in rural areas, 247 in semi-urban areas, 80 in urban areas, and 76 in metropolitan areas.

As of March 31, 2022, Tamilnad Mercantile Bank had roughly 5.08 million customers overall. Of those, 4.05 million (or 79.78%) have been with the bank for more than five years and have contributed Rs. 350,142.39 million (or 77.93%) in deposits.

As per the CRISIL Report, it had the second highest Net Profit for Fiscal 2022 amongst its peers, and its Return on Assets was also higher at 1.66% compared to a median of 0.80% for Peers for Fiscal 2022.

The public offer of Tamilnad Mercantile Bank comprises a fresh issue of 1.58 crore equity shares aggregating up to Rs. 831.6 crores at the upper end of the price band.

Financial Snapshot

Financial Year Ended	Revenue (₹ Crores)	Profit for the period (₹ Crores)	EPS (₹)
March 2020	3,992.52	464.89	28.61
March 2021	4253.40	654.04	42.34
March 2022	4,656.44	901.90	57.67

IPO Schedule

Issue Period	5th September to 7th September 2022
Finalization of Allotment	12th September 2022
Initiation of Refunds	13th September 2022
Credit of Shares	14th September 2022
Date of Listing	15th September 2022
Mandate end date	23rd September 2022
Anchor Investors Lock-In End Date	7th October 2022

Why should you invest in the Tamilnad Mercantile Bank IPO?

The top two reasons are listed below:

Dependable risk management methods and effective underwriting procedures
Solid 100-year history and a 4.91 million-strong client base that has grown by 5% CAGR over the last three years.

Particulars	FY21	FY20	FY19
Revenue (Cr)	3,635.79	3,992.52	4253.4
Profit (Cr)	294.61	464.89	654.04
EPS (INR)	18.14	28.61	28.61

Highlights of the Tamilnad Mercantile Bank

The digital and branch transactions increased by a CAGR of 47% in the last 3 years
The treasury portfolio increased at CAGR of 13.27% from ₹ 91,924.51 million as of March 31, 2019 to ₹ 117,948.80 million as of March 31, 2022

SWOT analysis of the IPO of Tamilnad Mercantile Bank

Strength	Opportunity	Weakness	Threat
The bank reported second highest Net Profit for the Fiscal 2021 at 6.03 billion lagging only behind Federal Bank.	Banking sector in india is under penetrated which provides immense opportunities for banks and financial institutes to grow	Around 37% of paid up equity share capital is subjected to outstanding legal proceedings	If India’s debt rating by an international rating agency is downgraded could have a negative impact on performance of Tamilnad mercantile bank
Net non performing assets has been lower than its peers	The RBI along with the Center and the state governments is taking measures to improve demand for housing loans	The bank cannot open new branches unless it is listed and also require to obtain prior permission from the RBI	Another Pandemic like COVID can adversely impact the banks cash flows and growth
Tamilnad mercantile bank also had second highest provision coverage ratio among its peers		It is dependent on Retail, MSME and Agricultural customers and any adverse developments in these segments could adversely growth strategies	Increase in inflation might reduced the revenue for the Tamilnad mercantile bank
Current accounts savings accounts (CASA) has grown by a CAGR of 16% in last 3 years		The bank’s lion share of revenue is from tamil nadu, any political / economic instability in the state can disrupt the business	Any slowdown or perceived slowdown in the Indian eco nomy, could adversely affect banking business.
			Banking has been a fundamentally high competition business, the penetration of competitors in Tamilnad mercantile banks locations can reduce the market share and eventually revenue

Competitive Analysis/ Market Peers

The performance of Tamilnad Mercantiles peer banks is summarised here.

Peer	Revenue( In Mn)	P/E
Tamilnad Mercantile bank	42,534	NA
City Union Bank Limited	48,394	18.26
CSB Bank Limited	22,731	23.49
DCB bank ltd	39,167	8.00
Federal Bank Limited	1,62,719	9.61
Karur Vysya Bank Limited	65,270	8.97
Karnataka Bank Limited	77,274	3.36
RBL Bank Limited	1,06,098	16.64
South Indian Bank Limited	84,909	27.71

FAQS

What is the IPO for Tamilnad Mercantile Bank?

The 1,58,27,495 new shares in the Tamilnad Mercantile Bank IPO are offered for sale, together with 12,505 more shares.

When will the IPO allocation for Tamilnad Mercantile Bank be made available?

On September 12, 2022, shares in Tamilnad Mercantile Bank will be allocated.

What would the IPO lot size for Tamilnad Mercantile Bank be?

28 shares make up each lot in the IPO of Tamilnad Mercantile Bank.

When will the subscription period for the IPO of Tamilnad Mercantile Bank begin?

On September 5, 2022, subscriptions for the IPO of Tamilnad Mercantile Bank will be accepted.

How small of a lot must a retail investor subscribe to?

Retail investors are eligible to apply for at least one lot.

What date will the Tamilnad Mercantile Bank become public?

The IPO date for Tamilnad Mercantile Bank is not disclosed.

How can I get shares?

The shares will be delivered to your Demat account.

Is it required to grant a UPI mandate request right away?

The UPI requirement must be approved in order for your application to be accepted; otherwise, it will be denied. Not to worry! The payment demand must typically be accepted within T+1 weeks.

Who is the Tamilnad Mercantile Bank's owner?

Tamilnad Mercantile Bank’s MD and CEO is K. V. Rama Moorthy.

How do I apply to the Tamilnad Mercantile Bank Limited IPO?

You can apply for the Tamilnad Mercantile Bank Limited IPO using any supported UPI app by following two steps:

Enter your bid on Kite
Accept UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account.

Where can I find the Tamilnad Mercantile Bank Limited IPO's allotment status?

You can check the allotment status for the Tamilnad Mercantile Bank Limited IPO on the website of the Registrar and Transfer agent.

Alternatively, you can also check the allotment status on the NSE website.

Recession or inflation

September 3, 2022 by Learningsharks

Recession or inflation? US Inc. places its cash at the ready

From banking to medicine to Big Oil, all are certain that the future will be bright despite stubborn inflation and a tumultuous geopolitical environment.

The Federal Reserve’s stance on interest rates may encourage lenders to raise the interest rates they charge US residents for debt.

There are concerns that credit quality may decline in the future due to the high household indebtedness relative to other nations. However, lenders are certain that the demand for credit will stay high.

American Express, for instance, hasn’t discovered any evidence of a decrease in consumer spending. Despite their concerns about an impending recession, bankers find solace in the economy’s low jobless rate. They claim that because of tight labour markets, households would be able to pay off their debt and perhaps be eager to take on more.

The impact of the exchange rate is currently being prepared for by pharma producers as a strong dollar reduces their profits. Fuel and freight cost concerns are also reducing their income. Pharma companies do not anticipate a significant drop in demand as long as Covid is still affecting some nations. Walgreen, a chain of pharmacies, is altering its approach as demand for Covid declines.

We include information on US financial institutions including Visa, Goldman Sachs, JP Morgan Chase, and American Express in the second of our three-part series, along with pharmaceutical companies like Johnson & Johnson, Procter & Gamble, Amgen, and others.

AMERICA ONLINE

America Online (FY January-December)

Q2 FY22: $13.39 billion in revenues; $1.93 billion in net income

Net income for the second quarter of fiscal year 21 was $2.28 billion.

The business benefited from a strong increase in consumer expenditure on travel and entertainment. Both inside and outside of the US, customer acquisition growth was strong. The management went into detail on the rise in operating expenditures brought on by higher salaries to recruit and retain talent.

Due to the high cost of hiring due to a tight labour market, American Express has increased its operating expenses. It is not overly concerned about inflation because its credit quality and spending growth are both encouraged by a record low jobless rate.

The management predicts a recession, but that the labour market’s deterioration will be a bigger issue. The business does not see that happening and is fairly optimistic about growth resulting from consumer demand.

GOLDMAN SACHS

Silverman Sachs (FY January-December) Q2 FY22: $11.86 billion in revenue; $2.93 billion in net income

Q2 FY21: $15.38 billion in revenue; $5.49 billion in net income

Given the unfavourable interest rate environment brought on by the Fed’s fast rate hikes, the financial giant reported a decline in income.

Although revenues fell, the lending industry held up well.

Equity investments caused the bank to suffer a significant loss, and investment banking income fell by 41%. However, the loan industry—consumer and corporate—grew. Revenues from consumer banking increased by 25%. Revenues from corporate lending more than doubled year-on-year.

According to Goldman Sachs, there is a good likelihood that the US economy will enter a recession. In the event of a recession, it anticipates that the strain on its loan portfolio will intensify.

JPMORGAN CHASE & CO.

Morgan Chase & Co. (FY January-December)

Q2 FY21: $30.72 billion in revenue; $8.28 billion in net income

Although revenues were hurt, the bank saw a respectable year-over-year loan increase of 7%. The bank’s balance sheet took a hit as a result of the unfavourable market conditions. Surprisingly, the bank’s card business’s performance provided crucial consumer information.

The management claims that US consumer expenditure, including discretionary spending, is not slowing down. Spending on necessities is beginning to be affected by inflation.

While the bank’s revolving balances increased nine percent, card outstandings increased by 16 percent. Which demonstrates that the US consumer still has a leveraged balance sheet and is willing to fulfil desires with loans.

“Consumers are doing well. They are making purchases. They earn more money. There are lots of jobs. Spending is up 10% from the previous year and up nearly 30% from before Covid. Businesses are doing well, according to those you speak with, he said.

VISA

Visa (FY September-October)

Q3FY22: Revenue of $7.3 billion and net income of $3.4 billion

Q3 FY21: $6.1 billion in revenue; $2.6 billion in net income

Strong results for the months of April and June were published by the global payments corporation that powers cards. The company’s transaction volume increased as a result of the rise in travel and other discretionary spending.

The total volume of payments increased by 8%, with the US reporting a 12 % increase. Regarding their expectations for the upcoming quarters, management remained optimistic.

While investors fret about inflation, Visa may profit from the erratic market and rising prices. Visa payments have increased, as have transaction sizes, thanks to inflation. The management also has faith that consumers won’t cut back on their spending just yet. The business emphasised that such developments in consumer buying patterns show resiliency.

Asia’s central banks forced to play catch-up in global rush to raise rates

September 3, 2022September 3, 2022 by Learningsharks

While relatively low inflation allowed Asian central banks to stay dovish in order to support the post-pandemic economic recovery, this resulted in currency depreciation and capital outflows.

After defying global pressure to tighten monetary policy for a year, Asian central banks are now scurrying to catch up in order to combat rising inflation and safeguard failing currencies.

Market analysts believe Indonesia, the last remaining dove in emerging Asia, would be the next to raise interest rates on Thursday, as policymakers strive to persuade investors that they are combating increasing costs.

Singapore and the Philippines startled markets this week with unexpected tightening pronouncements, highlighting officials’ mounting eagerness to act.

Asia has lagged as the rest of the globe, particularly emerging nations began raising rates as early as last June after the US Federal Reserve initiated an expedited path for policy tightening.

While relatively low inflation allowed Asian central banks to stay dovish in order to assist the post-pandemic economic recovery, this resulted in weaker currencies and capital outflows, even as the war in Ukraine intensified global pricing pressures.

Have central banks acted too slowly? Yes, I am aware that this is a frequently asked question “The Monetary Authority of Singapore’s managing director, Ravi Menon, stated this at a press conference on Tuesday.

And, without sounding defensive on behalf of my colleagues overseas, few people saw this coming. The markets missed it.

The growth in inflation has been pretty significant. It was extremely rapid… And many people thought the biggest dangers to growth were on the downside, so they didn’t see this coming.”

Currencies and bonds have taken the brunt of the damage. The Philippine peso is one of the hardest hit, down more than 10% year to date and just off a nearly 17-year low of 56.53 per dollar. Government bond yields have risen by around 200 basis points (bps) since the beginning of the year.

The Thai baht has dropped more than 10% this year, and Thailand lost $816 million in June, breaking a five-month string of foreign investment in shares.

A major portion of the selling has been in response to rising Treasury yields and the US dollar, both of which are variables outside the control of domestic authorities, giving Asia a justification to postpone rate hikes.

However, central banks are discovering that they can no longer ignore rising food and oil prices. In Thailand and Indonesia, inflation has reached multi-year highs this month.

Prices in South Korea, which began rising rates as early as August 2021, reached a 24-year high in June, prompting a record half-point rate hike last week.

“I assume they’re still focusing on battling inflation for the next few months because that’s where the issue is,” said Euben Paracuelles, chief ASEAN economist at Nomura.

Peer Pressure

India, which saw its central bank raised rates by 40 basis points in an off-cycle move in May, has seen six straight months of foreign investor stock outflows, adding to a record slide in the rupee.

The typically volatile Indonesian rupiah is only down about 5% against the dollar this year, despite a 2.2 percent monthly drop in June.

It has been assisted to some extent by resource-rich Indonesia’s improving trading position and the fact that foreigners currently hold less than a fifth of its high-yielding bonds.

Others, like the Philippines and Thailand, are far more vulnerable due to current account deficits and, in the latter’s case, reliance on a tourism sector that is still reeling following the COVID.

Indonesia has been able to postpone rate hikes for the most part. But I believe they will increase… simply because everyone has tightened up already “ING senior economist Nicholas Mapa stated.

Despite this, only 11 of the 29 analysts polled by Reuters predict Bank Indonesia to raise interest rates on Thursday.

The room to maintain growth-friendly monetary policy is absolutely coming to an end very soon,” said UOB economist Enrico Tanuwidjaja, referring to central banks that have yet to raise interest rates.