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NSE/BSE Trading/Investing thread !!!

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19 minutes ago, nevada said:

Any prediction for where the markets are headed next? Today's move was a bit predictable given that the market had been rising for a while and needed a breather.

 

US mkt went up last time after Trump won last time ( bjp did demonetization on the same day and screwed our breakout :(( )  .. 

most probably if trump wins our mkt will also go up or at least retain this 11k levels in nifty :om:

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3 hours ago, diga said:

 

 

considering how our mkt bounced , i think everyone want to invest in india ..

probably all these funds will slwoly move away from china 

 

we shld take advantage of it and steamroll whoever against FDI/FII investments  

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@velu@Straight Drive Do you have any info on the FRDI bill. it has created some panic with its "bail in" clause and it got rejected a few years ago. But our honorable :rolleyes: fin min is saying they are trying to get it revised and come up with a new version. Whats the need for FRDI and how does it help the people. Or its just a tax cut from middle class people to the ultra rich like mallya and nirav modi :mad:

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2 minutes ago, Real McCoy said:

@velu@Straight Drive Do you have any info on the FRDI bill. it has created some panic with its "bail in" clause and it got rejected a few years ago. But our honorable :rolleyes: fin min is saying they are trying to get it revised and come up with a new version. Whats the need for FRDI and how does it help the people. Or its just a tax cut from middle class people to the ultra rich like mallya and nirav modi :mad:

 

just googled ..

 

Quote

Till recently, just Rs 1 lakh worth of deposits were insured so, in the event of a bank failure, depositors lost everything above this amount; this ceiling has been raised to Rs 5 lakh even though India’s GDP has risen 25 times since the amount was originally fixed in 1993.

 

still think if you keep your money in proper banks ( not in cooperative banks )  , its safe

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10 minutes ago, velu said:

 

just googled ..

 

 

still think if you keep your money in proper banks ( not in cooperative banks )  , its safe

What kind of banks are they. I'm thinking SBI is one. How about other government banks like Bank of Baroda, Canara bank and private banks like HDFC. I used to have deposits in IOB but they are very hard to deal with. Indian Bank is probably the worst among govt banks. Canara used to be good in 2000. now the customer service is declining.

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21 minutes ago, Real McCoy said:

What kind of banks are they. I'm thinking SBI is one. How about other government banks like Bank of Baroda, Canara bank and private banks like HDFC. I used to have deposits in IOB but they are very hard to deal with. Indian Bank is probably the worst among govt banks. Canara used to be good in 2000. now the customer service is declining.

 

all these private and public banks are safe .. they are too big to fail and RBI/government will be forced to save them 

or if one bank fails , government/rbi will force other banks to bail them out 

 

i think you are not familiar with co-operative banks .. there are 1000s of such banks 

they are small and if one fails because of corruption , depositers will be in big soup ..

 

pmc bank failure  in maharashtra made headlines few months back .. 3/4 weeks  back one more co-op bank created news in blore

city based banks are quite big like they have loanbook of 500/600 crores kind , but in places like erode/cbe they loanbook size might not even cross 30/40 crores ..

 

https://newsable.asianetnews.com/india/guru-raghavendra-cooperative-bank-scam-key-accused-arrested-ycb-qi4ruc

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13 hours ago, Real McCoy said:

@velu@Straight Drive Do you have any info on the FRDI bill. it has created some panic with its "bail in" clause and it got rejected a few years ago. But our honorable :rolleyes: fin min is saying they are trying to get it revised and come up with a new version. Whats the need for FRDI and how does it help the people. Or its just a tax cut from middle class people to the ultra rich like mallya and nirav modi :mad:

Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly owned subsidiary of RBI.

 

DICGC protects investors money upto a limit of 5 Lakh per person per bank since Feb 2020. The type of deposits covered are Saving Account, Fixed Deposit, Recurring Deposit. This 5 Lakh includes the principal amount deposit plus the interest accrued on deposits. gIn cases wherein a person has multiple accounts in same bank (SB,FD,RD) with total monies exceeding 5 Lakhs, even then the person will get protected for only 5 Lakhs. DICGC oversees the liquidation process when banks go bankrupt. Then the depositors get the protected amount back as per the resolution terms.

 

The reformed Bill was rejected due to “Bail-in” clause in FRDI which was severely opposed and rightly so imo. The clause allows use of depositors money over 1 Lakh to be used to save the bank.

 

Suppose a person has deposited more than 1 Lakhs in one or multiple accounts in one bank. One of the board members of bank diverts public money to other accounts for his or her personal gains. The fraud is caught once the cooked books cant withhold many liabilities. There is panic and depositors money is lost. In this case the person will get 1 Lakh back as per resolution terms, however whatever money he has in this failed bank over 1 lakh, it will be used as “Bail-in” in an attempt to save the bank.

 

Apart from the frauds by members of Banks board or management which we have seen in recent years, the banks have also got bankrupt because financially unstable companies/ businesses have been extended huge loans by Banks. The indebted people run abroad. The loans to these indebted businessmen or corporates are given partly by also using Public savings in various accounts like SB,FD, RD etc. What this Bill will do is put the onus on depositor to “Bail-in” the bank. The resolution may allow the depositors money over 1 Lakh to be used to recapitalize failed banks.

 

When this Bill was discussed in 2020, people probably withdrew monies from Scheduled banks. Scheduled Banks were hit hard. This was also one of the reason why the Bill was withdrawn.

 

Since Coronavirus pandemic, the Banking system has struggled due to NPA and Moratorium which was extended to borrows (Corporate, Home Loan, Personal Loan etc). There have been frauds by management in some banks in last few years. The expected NPA is likely to be very high. More skeletons may fall in banking sector once the moratorium effects and pandemic impact are seen in next quarterly results. Now, that is where we will see this Bill being pushed. To me it does not makes sense at all. Firstly, the bank does not gives additional interest to depositors when the bank has made very good profits. If such give and take relationship does not exists between the bank and depositor then why should such relationship exist only when the banks see losses. Imagine the profits made by SBI, HDFC and other top banks being given to depositors. Hasn’t happened in decades. So why do banks expect depositors to take care of the losses. Banks need the Public money more so as to give these as Loans to various types of borrowers. So all this drama is to squeeze Public money not just for giving loans to others but also to save their own unprofessional or in-capable work methods.

 

 

To tackle the menace and reduce the impact of frauds, the laws like “Fugitive Economic Offenders Act” under which properties of fraudsters can be confiscated needs to be more stringently and diligently implemented to reduce the economic crimes.

 

Financial Resolution and Dispute Insurance (FRDI) should cover Full amount that is deposited by the depositors across all banks operating within India. Only then FRDI will be beneficial to public. Instead of FRDI protectign full deposit amount, it is like using peublic money to recover loss. The likes of Nirav Modi, Sandesara brothers, Mehu Choksi and Mallya are results of bad governance at top financial banks. FRDI is just helping recover fraud moeny from innocent depositors to cover the loss happening due to economic offenders.

 

 

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17 hours ago, Real McCoy said:

What kind of banks are they. I'm thinking SBI is one. How about other government banks like Bank of Baroda, Canara bank and private banks like HDFC. I used to have deposits in IOB but they are very hard to deal with. Indian Bank is probably the worst among govt banks. Canara used to be good in 2000. now the customer service is declining.

Financial frauds are just not limited to government banks now; the private banks are also seeing frauds from their own employees as well as borrowers although they are relatively lesser.

 

Better to have main account in government bank and one in private bank. Or atleast two accounts in two different govt. or Pvt banks. Personally I have not purposely opted internet banking for my main account. So there is no chance of online fraud as well. How can someone hack my login when I have not opted internet login and login itself is not there. Secondary account can be in private bank where keeping bulk of money is relatively risky. It's upto the individual really, but many people have multiple accounts to diversify and cover risk.

 

Agree that SBI, UCO and other government banks won't give quick service like private banks, but they are safest imo. Last year I availed a cheque book from Pvt bank, which was delivered to me within 4 working days. However, to get cheque book from government bank I had to wait for 15 days.

 

Previously had to go to bank for many transactions, but now I just need to go to the bank to get passbook printed and have chit chat with old staff I know. Have a cup of tea which they will offer while chit chatting and come back home. Nice time pass.

 

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3 hours ago, jusarrived said:

 

I have Coforge and ITC longs ..booked HDFC bank ..exited the wrong stock .

Ideally ITC should go up tomorrow , tech not so much 

 

in my observation ,

defensive stocks tend to go down less when there is a correction or crash ( maybe good to invest when markets are really high or overvalued ) ..

when market recovers , high beta stocks will go up fast and defensive stocks will go up very very slow ( good to invest in high beta stocks after crash )

 

i dont own even a single stock though :giggle:

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@velu @Straight Drive What do you think of the Laxmi Vilas Bank going under. and what do you think of RBI trying to copy the federal reserve act from US

https://www.business-standard.com/article/economy-policy/rbi-likely-to-get-us-federal-reserve-like-powers-of-supervision-120112100014_1.html

Many people in US think of this act as making their currency into fiat money :nervous:

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31 minutes ago, Real McCoy said:

@velu @Straight Drive What do you think of the Laxmi Vilas Bank going under. and what do you think of RBI trying to copy the federal reserve act from US

https://www.business-standard.com/article/economy-policy/rbi-likely-to-get-us-federal-reserve-like-powers-of-supervision-120112100014_1.html

Many people in US think of this act as making their currency into fiat money :nervous:

 

 

deposits are safe as always ..

shareholders will get only pennies 

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On 11/10/2020 at 4:19 AM, velu said:

 

in my observation ,

defensive stocks tend to go down less when there is a correction or crash ( maybe good to invest when markets are really high or overvalued ) ..

when market recovers , high beta stocks will go up fast and defensive stocks will go up very very slow ( good to invest in high beta stocks after crash )

 

i dont own even a single stock though :giggle:

 

yeah agree on that. 

ITC though was a Futures trade and  I was banking on too much negativity around the stock .The result was projected as bad, while there wasnt much bad in it if you exclude the dip in Cigarette sales which was hardly surprising . At around 170, dint see much of downside risk ..its played out well and I have booked 80% taking my average down to around 150 for remaining lots I hold now . 

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