WHAT IS STOCK MARKET?

The board of Axis Bank on Friday approved stake sale to private equity player Bain Capital and other investors in its bid to raise capital by issue of equity linked securities on a preferential basis. The board of Axis Bank on Friday approved a 9 percent stake sale to Bain Capital and other investors including LIC in its bid to raise capital worth Rs 11,626 crore by issue of equity of equity linked securities on a preferential basis. The issue price of equity Shares at Rs 525 per share while the issue price of convertible warrants is Rs 565 per share. Entities affiliated with Bain Capital propose to invest Rs. 6,854 crore while LIC or Life Insurance Corporation will be issued around 3.02 crore equity shares on a preferential basis to help the bank raise over Rs 1,583 crore, the bank said. Approved by the Board today, Axis Bank proposes to raise Rs 9,063 crore through issuance of equity and the remaining Rs 2,563 crore through issue of warrants. The capital raise ...

GVK Power Q2 net loss widens to Rs 77 crore GVK Power and Infrastructure on Saturday reported a net loss of Rs 76.94 crore for the quarter ended September 30, 2017. GVK Power and Infrastructure on Saturday reported a net loss of Rs 76.94 crore for the quarter ended September 30, 2017. GVK Power and Infrastructure on Saturday reported a net loss of Rs 76.94 crore for the quarter ended September 30, 2017. The company had posted a net loss of Rs 13.41 crore in the corresponding period a year ago, GVK Power and Infrastructure said in a regulatory filing to stock exchanges. Total revenue during the quarter rose to Rs 20.16 crore as compared to Rs 18.55 crore, it said. In a separate filing, GVK Power and Infrastructure said its board has accepted the resignation of GVK Reddy as managing director of the company. He, however, will continue on the board as a non- executive chairman, it said. The board also approved the appointment of P V Prasanna Reddy as a...

SILVER Orientation As you know, there are two commodity exchanges in India – Multi Commodity Exchange (MCX) and National Commodity and Derivative Exchange (NCDEX). MCX is particularly popular for the Metals and Energy commodities while NCDEX for all the agri commodities. However, there is a lot of activity picking up on MCX for agri commodities as well. My job over the next few chapters is to discuss these commodities which are traded on the exchanges, and get you familiar with the commodity contracts. We will look into each and every commodity that is actively traded on the commodity exchanges. The idea is to know how the commodity contract works (contract specification), figure out which contract to trade, and identify the factor which influences the commodity. I will skip the usual background to commodities market part, the one which talks about the history, forwards markets, the farmers in US, the Chicago Mercantile Exchange etc. You will find this in almo...

EUR, GBP AND JPY CURRENCY TRADING.  The other currency pairs We focused on the USD INR pair extensively over the last few chapters, and we now look into the other currency pairs that are traded in the Indian markets, namely the EUR INR, GBP INR, and JPY INR. The functioning of the other currency pairs is very similar to the USD INR. Think about it this way – you know how the Nifty 50 contracts work, then you pretty much know or are capable of knowing how Bank Nifty works. Given this, the agenda for this chapter is to quickly run through the contract specifications of the other three crosses available for us to trade. In the 2 nd  part of this chapter we’ll dwell on some of the common trading techniques, mainly employing technical analysis, and with this we will conclude our discussion on currencies and start looking into commodities. So let’s get started. EUR INR Globally the EUR USD is one of the most actively traded currencies, however we d...

THE UDS INR PAIR [PART 2]   The other currency pairs For a quick low level recap on that, consider this scenario where there is arbitrage opportunity between Spot and Futures – Futures trade at a lower price  – Assume the spot price is at 100, and the fair value of its future is at 105. Fair value of the future can be calculated using the futures pricing formula. The ‘no arbitrage spread’ is the difference between spot and Future’s fair value i.e 105 – 100 = 5 Given this, for whatever reasons (read as market mispricing) assume the future is trading at 98, this leads to a spread of 7 (105-98) between the spot and future, which can be captured. All one has to do is buy the future at 98, and simultaneously sell the spot at 100. We know upon expiry, the futures and the spot will converge and therefore the spread gets captured. If you are unable to understand the above clearly, I’d encourage you to read the chapter from the Futures module (link posted ab...

THE USD INR PAIR [PART 1] The contract We make an extremely critical assumption at this stage – we will assume you are familiar with how  Future  and  Option contracts  work. Technical Analysis plays an important role in setting up short term currency trades, so we’ll assume you know  Technical Analysis  as well. If you are not familiar with these topics, then I’d strongly suggest you to read through these modules before proceeding further. The currency and commodities market is largely a Futures market; hence a working knowledge of these derivative instruments is the key. Now, assuming you understand these concepts fairly well, let us begin by slicing and dicing the USD INR futures contract. The contract specification of the USD INR futures gives us insights on the trade logistics. Here are the salient features of the USD INR pair – Particular Details Remark Lot Size $1,000 In equity derivatives, lot is number of shares, but here it...