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June 02 Voluntary Retention Route (VRR) refers to a channel brought about by the Reserve Bank of India (RBI) to enable Foreign Portfolio Investments (FPIs) to invest in India’s debt markets. The main objective of the Voluntary Retention Route is on attracting long-term as well as stable FPI investments in the country’s debt markets. Know all about debt instruments VRR also gives the FPIs flexibility in their investments as well as checks the depreciation of the Indian rupee at the times when there is outflow of...
June 01 A preferential issue is an issue of shares or of convertible securities (debt instrument) by listed companies to a select group of persons under Section 81 of the Companies Act, 1956. This is a faster way for a company to raise equity capital. The shares which the investors receive on their investment is known as Preferential shares. Preferential allotment is an important tool for companies seeking targeted capital infusion. Companies choose preferential allotment to issue shares to a select group of investors such as...
May 28 The NIFTY 50 index represents the performance of the top 50 companies listed on the National Stock Exchange (NSE) of India and they may represent 12 various sectors of the economy, such as financials, energy, healthcare, technology, and consumer goods. How is NIFTY 50 Calculated? To arrive at the value of the NIFTY 50 index, the current market cap of all the stocks that are part of NIFTY 50 is divided by the Market Cap of the base period. The companies included in the index are chosen based on their market...
May 27 Some shares in the stock market are bought heavily and some are sold heavily. RSI or The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements and tells an investor whether the share is overbought or oversold. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. The RSI the overbought or oversell zone is often seen by traders as a signal to buy or...
May 21 TREPS, short for "Treasury Bills Repurchase," is a financial instrument widely used in the money market. In simple terms, it represents a short-term borrowing and lending arrangement between two parties – a borrower and a lender. In a TREPS transaction, the borrower, often a mutual fund, pledges government securities, such as Treasury Bills, with the lender (usually a bank or a financial institution) to borrow funds. The lender provides the funds to the borrower, and in return, the borrower agrees to...
May 07 The month of May has so far been witnessing a fall in Sensex and Nifty together. On May 7th Sensex closed with a loss of 384 points, or 0.52 per cent, at 73,511.85 while the Nifty 50 closed 140 points, or 0.62 per cent, lower at 22,302.50. So what are the possible causes? One reason is the FIIs selling. According to the experts, the biggest reason behind the recent volatility in the Indian stock market is the strong selloff by foreign institutional investors (FIIs). Based on the last 20 years data, it can...
May 01 The month of may is filled with many IPOs. Lets have a look on them. The first is the Indegene IPO who will launch its IPO on May 6. This company helps the emerging biotech and medical device companies develop products and get them to the market. It provides digital services to the life sciences industry. The issue size is Rs 1,842-crore and the price band has been fixed at Rs 430-452 per share. The IPO closes on May 8, comprises a fresh issue of equity shares worth Rs 760 crore and an...
April 29 One always wants to pick those shares where maximum returns can be generated while minimising the risks associated. There are some steps which if followed would help you choose the best among thousands of the shares around. The first step is about determining your goals. Decide whether do you want to maximize your returns or want safety of your money. Your goals depends upon your age, financial conditions or other factors such as your risk appetite that how much risk can you take. At early ages, e.g in your...
April 25 Reliance Industries Ltd (RIL) is planning to disrupt the dominance of multinationals like Samsung, LG in the local consumer electronics and home appliances market with a new made-in-India brand Wyzr. The company is therefore finalising production agreements with domestic contract manufacturers Dixon Technologies and Onida parent Mirc Electronics. In future, the company wants to set up its own plants after the brand gains market share. Reliance has already launched Wyzr brand air coolers and plans to extend...
April 01 Lock in period refers to that period for which investments in the shares or Mutual funds cannot be sold or redeemed. It also stands for the time duration for which investors must hold their shares or investments before they could be sold. There are different types of lock ins for different types of investors. For example anchor investors typically have a lock-in period where 50 percent of their shares are locked for 30 days and the remaining 50 percent for 90 days from the date of allotment. Similar restrictions are also placed on...
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