Women, non-metros topping up on credit, says BankBazaar survey

Non-metro cities have emerged as the bigger market for unsecured credit in terms of volume than the metros in 2018, according to BankBazaar Moneymood 2019 report.

The average personal loan ticket size in non-metros is Rs 2.80 lakh compared to Rs 2.55 lakh in metros. The unsecured credit portfolio includes personal loans and credit cards which are used more for consumption activities than secured loans. “Non-metros are as aspirational, if not more, compared to Indian metros, and they are comfortable taking a loan to fulfil these aspirations,” BankBazaar noted.

The report, which focuses on emerging trends in the Indian personal finance sector, analysed the transactions of 169 million unique users who logged on to BankBazaar’s website in 2018.

In terms of personal loan ticket size, Bengaluru topped the list with a loan size of Rs 47.23 lakh. The highest non-metro personal loan ticket size was from Vapi at Rs 25 lakh.

The change in trend is believed to be a result of the government’s digital push, whereby more internet users are opting for online personal finance products.

“The government’s strong push for rapid digitisation has ushered in a new wave of change in the buying behaviour of online personal finance products across metro and non-metro cities. We believe that more and more first-time internet users from non-metros will ride this digitisation wave and buy financial products online,” Adhil Shetty, Co-founder & CEO, BankBazaar, said.Women avail bigger home loans

Another trend highlighted in the report is that women are availing a larger home loan as compared to men. The average home loan ticket size for women is Rs 27.57 lakh compared to Rs 22.97 lakh for men.

Women are not far behind when it comes to having their own set of wheels either, with the highest car loan ticket size at Rs 12.93 lakh. Demand for credit cards was also quite high among women. The year gone by saw an 89 percent increase in fuel credit card applications from women.

Women also outperformed men in fulfilling their travelling aspirations, with a 73 percent rise in travel credit card applications as against 71.5 percent by men.

A higher credit demand among women is possibly due to ease of availing of loans quickly. As per the report, there is a 198 percent increase in paperless approvals of personal loans, 11 percent for credit cards and 38.3 percent rise in car loans.Higher demand for lifestyle, travel and fuel credit cards

The demand for lifestyle credit cards has shown an upward trend, especially from those under 25 years. This is mostly due to attractive discounts and deals that have fuelled demand for cards from first-time and non-metro users, the report stated.

There has been a 64.5 percent year-on-year (YoY) increase in lifestyle credit card applications from non-metros and a 53.67 percent increase from users under the age of 25.

Demand for fuel credit cards also saw a massive spurt, with a 104 percent rise in applications from those under 25 years. A fuel card, or fleet card, is used as a payment card most commonly for petrol, diesel and CNG. Metros witnessed a 62 percent YoY increase in fuel credit card applications versus an 85 percent rise from non-metros, the report highlighted.Even demand for travel credit cards saw a massive growth owing to the available benefits. Applications for a travel credit card rose 195 percent in the under 25-years bracket. Non-metros saw a whopping 309 percent rise in travel credit card applications compared to a 59 percent increase from metro cities.

Indian rupee clocks gain after 3 days, settles 11 paise higher vs US dollar

The Indian rupee on Wednesday snapped its three-day losing streak and settled higher by 11 paise at 71.33 against the US dollar on increased selling of the American currency by exporters and banks.

Besides, the rupee upmove was supported by weaker greenback against its major rivals, although intense selling in domestic equities impacted traders sentiment, capping gains in the domestic currency value.

At the Interbank Foreign Exchange (forex) Wednesday, the rupee opened on a firm note at 71.19. It gained further to hit a high of 71.15 following dollar selling by exporters, before finally closing at 71.33, up 11 paise over its last close.

On Tuesday, the rupee had skidded by 16 paise — its third straight session of loss — to close at 71.44 against the US dollar.

Forex traders attributed the US dollar slide to renewed concerns over ongoing US-China trade tiff which experts believe dragging the global economy towards a major financial meltdown.

Meanwhile, Brent crude, the global oil benchmark, was trading at USD 61.97 per barrel, up by 0.81 per cent.

Indian equity benchmark Sensex Wednesday sank over 336 points to end at 36,108.47 in choppy trade, tracking tepid sentiment globally.Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net of Rs 78.53 crore, and domestic institutional investors (DIIs) were sellers to the tune of Rs 84.15 crore Tuesday, provisional data showed.

Buying your first home? Here’s what you should check first

Buying a house is a major financial decision that may have crossed mind over 100 times. There is no doubt that there is something psychologically important about buying your first house. It could be instincts or something else, but it is nonetheless a significant monetary commitment.It is important to identify whether you are ready to purchase your first home and this depends primarily on two factors:

  1. The ability to arrange for a down payment
  2. The capacity to service your equated monthly instalment (EMI) on the loan procured

But in reality, these are are not the only two deciding factors on narrowing down on your home buying ability. There are few more elements that should be considered before taking a final call. Here’s how you can break it down:

This is quite simple. Lenders want 20 percent of the cost of the house as down payment. So let’s say if you wish to purchase a house for Rs 50 lakh, you need to possess Rs 10 lakh as down payment. The remaining can be sought as loan.

Depending on the cost of the house, if you don’t have the 20 percent as down payment, it mean you aren’t ready to buy a house as yet.

Can you afford the EMIs?

Even if you somehow manage the down payment, the next question arises, whether you’ll be able to handle the EMIs on time.

Remember, your willingness to pay and your ability to pay are two different things.

It is said that loan EMIs shouldn’t be more than 30-40 percent of your month income. Anything beyond that would stretch your finances. And remember, your EMI does not only depend on the loan amount, but on the tenure as well.

Suppose your monthly income is Rs 75,000.

Let’s see what is the cost of the house that you should purchase for various combinations of EMI-as-%-of-Income & Loan Tenure (assuming home loan rate at 9.5%):

Capture 1

Though lenders mostly decide this, the fact is that going for a loan where EMI is 20 percent of net monthly income means being on the safe ground. Unless your income is extremely high, chances are that you might be settling for a smaller property that doesn’t cost too much or maybe you are putting up a bigger down payment.

On the other hand, if the EMI is 40 percent or more of your income, then it can be a tight situation in the initial years. Around 30 percent is more of a good middle ground that can suit most people.

One important thing to highlight is that many couples take loans together to service larger EMIs. This works well, but you don’t want to be in a situation where after a few years, only one person is working (ie family transitions from a double income household to single earner family) and having to pay the entire EMI, which was initially taken assuming two incomes.

But as mentioned earlier, down payment and EMI affordability are not the only things that matter when it comes to knowing whether you are ready to buy your first house or not.

Having a buffer for emergencies (+EMIs) is necessary

In life, there will be emergencies every now and then. These are unavoidable. But you can make some arrangements to tackle them.

Now, if you have already pushed yourself into a corner by using all your savings for down payment and are finding it difficult to service the large EMI (in comparison to your current income), then imagine how you will deal with unexpected emergencies (like medical emergency, temporary loss of job, major repairs, etc). Will you be in a position to arrange funds in time?

This is one reason that you should not exhaust all your savings to pay the down payment. Always keep some money for emergencies.

Ideally, having six months of regular expenses as savings is the way to go. A better situation would be to have additional three months EMI as reserve. This will come in handy in case you are temporarily unable to pay EMIs for a few months.

Save for other important goals well

Just because you can arrange the down payment, service EMIs and have some buffer for emergencies doesn’t mean that your work is done.

Buying a house is important no doubt, but if some critical goals like child’s higher education needs to be tackled in a few years time, you cannot ignore saving for it. You will necessarily have to reconsider how much EMI you should be handling if you need to save for such critical goals. It’s a no-brainer trade-off for most parents.

Do understand that the idea of this article is not to make the decision-making complicated for first time homebuyers.

Many people, in their excitement at the prospect of owning their first piece of real estate, forget the factors (like availability of down payment, EMI serviceability in the long term, contingency buffers, saving for other short-term goals) that should be considered before making the final ‘buy’ decision.So if you are in the same boat, do consider all the issues discussed above and assess yourself on each of them objectively, before you determine whether you are actually ready to buy your first home or not.

Britain’s Cairn says final drafting of arbitration award against retro tax in process

British oil firm Cairn Energy on January 22 said an international arbitration tribunal is in the process of drafting a final award in its challenge to the Indian government using retrospective legislation to seek Rs 10,247 crore in taxes. It, however, did not say when the award was expected.

In an operational update, Cairn said it is seeking monetary compensation of USD 1.4 billion from the Indian government in the arbitration proceedings.

Cairn Energy’s 4.95 percent stake in mining major Vedanta were attached by the Income Tax Department shortly after issuing Rs 10,247 crore tax demand in January 2014 on alleged capital gains the British firm made on a decade-old reorganisation of its India business.

The Income Tax Department, beginning May 2018, has sold most of the Cairn shares to recover tax dues.

The share sale happened during the pendency of the challenge Cairn had mounted against the retrospective tax demand with a three-member arbitration tribunal. One member of the panel has been named by the government of India.

“All submissions and procedural steps for the international arbitration under the UK-India Bilateral Investment Treaty are now complete,” Cairn said in the update. “Drafting of the final award by the tribunal is ongoing.”

The company said it is seeking under the treaty a monetary compensation of USD 1.4 billion — the sum required to reinstate the company to the position it would have been in, but for the actions of the Income Tax Department since January 2014.

“Cairn continues to have a high-level of confidence in the merits of its claims in the arbitration,” it added.

In January 2014, Cairn received notice from the Income Tax Department of India, requesting information relating to the group reorganisation in 2006. The Income Tax Department attached the 10 percent shareholding in Cairn India, which was subsequently merged with its parent Vedanta. Cairn Energy held 4.95 percent stake in Vedanta post that move.

Cairn Energy received a draft assessment order from the Indian Income Tax Department in March 2015 and subsequently filed a notice of dispute under the UK-India Investment Treaty in order to protect its “legal position and shareholder interests.”

“We strongly contest the basis of the tax assessment order, supported by detailed legal advice on the strength of the legal protections available under international law. As such, the company has a high level of confidence in its case under the UK-India Investment Treaty which seeks the restitution of the full value of our assets,” it says.The final arbitration hearings were held in August 2018 in The Hague. The Arbitral Tribunal will issue a binding and internationally-enforceable award.

This little-known tax plan beats every other ELSS fund; should you invest?

A tiny small equity fund, from an equally tiny fund house, appears to have come out from nowhere and is setting the charts on fire. As on January 16, 2019, Quant Tax Plan (QTS) gave the best returns in the past 5-year period with a 21.25% return.

Over the past 3-year period, it returned 17% return; the third best return among all tax-saving mutual fund schemes. Between the years of 2014 and 2018, it gave top quintile return in all years except one (2017). At just Rs.8.2 crore (as on the end of December 2018), this scheme is making heads turn also because the tax season is on and investors are rushing to make last minute investments in tax-saving vehicles. What is this scheme all about and should you invest in it?

Leaving a sedate past, behind

Quant Money Managers is one of the India’s smallest fund houses that manages equity and debt schemes, including QTS. The fund house was earlier called as Escorts Asset Management Ltd, a Delhi-based fund house from the house of Escorts, which was launched in December 1995. The fund house was set by Escorts Finance Ltd, a non-banking finance company, part of the Escorts Group that manufactures tractors and farm equipment.

While most of the Rs.23.61 trillion Indian mutual funds (MF) industry is headquartered in Mumbai, Escorts AMC was the rare fund house that was based out of Delhi. With its overall corpus size hovering around Rs 200 crore for many years, it has been one of India’s smallest fund houses.

In 2015, Sandeep Tandon, founder of Quant Group, an institutional brokerage firm acquired a token stake of 9% in the fund house, in his individual capacity. Apart from being an institutional broking firm, Tandon’s firm also managed money for high net worth families and family offices.

In December 2017, the Escorts Group decided to exit the Indian MF industry. The capital market regulator, Securities and Exchange Board of India gave it preliminary approval in October 2017, Tandon’s group took control of the fund house checked in and renamed the fund house to Quant Money Managers in February 2018, Sebi’s final approval came in June 2018 and the fund house marched on.

Active management with a twist

Tandon’s involvement with the fund house has woken it up from its slumber. Like all its equity fund, QTS is actively-managed. But one look at QTS’s portfolio tells us that it is managed, perhaps more, actively than most other equity funds. Like all other actively-managed schemes, QTS also relies on companies’ balance sheets and annual results to track their fundamentals. In addition, Quant has developed multiple data points to track factors such as valuation, liquidity and risk that, Tandon, says affects the share prices of companies.

For instance, QTS reduced its holding in HDFC Bank sharply in the month of December 2018 where most other equity schemes held on to the stock or tinkered with the holding marginally. QTS’s holding in HDFC Bank was at 3.84% of its corpus in December 2018, down from 7.90% in November 2018.

Apart from three fund managers and four analysts, the fund house also has four people, part of its fund management team, which looks at analytics; numbers and statistics that aim to predict market and companies’ outcome.

QTS stayed away from Hindustan Unilever throughout 2018 but bought a small quantity of its shares (2.98% of its corpus) in October 2018. It sold the shares in November and then again bought it (5.16% of its corpus) in December 2018.

“We do not stick to investing in stocks as per our benchmark index. If our data points prove that there is excessive risk in the making, for any of our holding, we do not hesitate in removing it from our portfolio. The fund house is actively managed; we do not necessarily buy-and-hold”, says Tandon, founder of Quant Group.

He adds that apart from studying the company’s financials (much like any other fund house), the firm relies “heavily” on its data analytics, more than meeting with company managements to judge the companies’ future.

Despite avoiding stocks like Kotak Mahindra Bank and IndusInd that did exceedingly well in 2018, QTS gave a top quintile performance in 2018. It held Kotak Mahindra Bank briefly between July and September 2018. It also held less than 2% in IndusInd Bank February and July 2018.

Since early 2017, QTS has consistently reduced its exposure to small-sized companies and in 2018 it cut its exposure to mid-sized companies. QTS holds a concentrated portfolio of about 30-35 stocks on account of its small size.

Should you invest?

These are early days but QTS and the rest of the fund house holds promise. Tandon says that the scheme aims to be a consistent performer rather than being ranked at no.1.

“The scheme’s performance is good, despite avoiding some of the best performing stocks in 2018. However, it remains to be seen if this strategy works when its size grows. “Its current size of Rs 8 crore is fairly small which makes the scheme agile and nimble footed”, says Roopali Prabhu, head of investment products, Sanctum Wealth, a boutique advisory firm.We need to see its consistency over time. Besides, its size, as Prabhu rightly points out, is too small. If you wish to invest in a tax-saving mutual fund this year, we suggest you avoid QTS for now. Take a look at other schemes that come with a longer track record.

Ahluwalia Contracts: Building a multi-year story

– At 11 times its FY20 estimated earnings stock is attractively valued

The period between September and December 2018 was an opportune time for contrarian investors as BSE Small Cap Index tumbled 22 percent led by multiple negative news. Amid the turbulence, one stock that caught the attention of smart investors was Ahluwalia Contracts (price: Rs 310, Market cap: Rs 2076 crore). Investors such as DSP Blackrock, SBI Mutual Fund, Franklin India and few others added the stock to their position.


  • IRB Infra to start work on Rs 2,043-cr highway project in Gujarat
  • SBI Life Q3 profit up 15% at Rs 264 crore
  • RBI approves appointment of V Vaidyanathan as MD, CEO of IDFC First Bank

While the stock gained 18 percent from its low to around Rs 265 a share, it is still worth a look in the light of valuations and earnings growth at current market price. The stock is currently trading at 11 times its FY20 estimated earnings, that are expected to grow around 25-28 percent.

Ahluwalia, a niche player in the construction of commercial buildings is sitting on a robust order book of close to Rs 5,300 crore or about 3.3 times its annual revenue, providing good earnings visibility. Its execution track record, technical capabilities and relatively better balance sheet management makes it a compelling story within the construction space.


Prudence over growth

Since fiscal 2014, the company has produced cash profits of close to Rs 441 crore on retained earnings of close to Rs 396 crore. For a construction company, this indicates its capital is judicially deployed in a deserving business. As a result, its average return on capital in the last fiscal stood at 27.5 percent, one of the best in the industry and most importantly, without adding meaningful debt in the books.


Strategic shift

Ahluwalia has undergone a change over the years. After listing in 2007 and witnessing two crucial industry cycles (2008-09 and 2013-14), it has consistently reduced debt to a low of Rs 30 crore on a net worth of Rs 621 crore in FY18. To achieve this, it monetised non-core assets and business such as land bank. This led to drop in fixed assets (gross block) to Rs 128 crore in FY17 from Rs 354 crore in FY16 without any loss of revenues. The reduced balance sheet burden trimmed interest costs giving it a cost advantage. Fixed assets turnover jumped to 11 times from 3.5 times.

Building a scalable model

Further, its strategy to reduce exposure to over-leveraged private sector and adhere strict control over receivables worked well.

In FY13, close to 90 percent of its revenue came from the private sector where opportunities were limited. It gradually started leveraging its capability to build government buildings and structures, reducing its private sector exposure to 35 percent in FY18.

Public construction of hospitals, schools, universities, government offices, stadiums, bus depots and several other avenues have opened up. While these segments should continue to grow, opportunities in smart cities, development of government colonies and reconstruction public offices would only expand the market in the coming years.


Ahluwalia, which generates over half its revenue from the north Indian markets has turned selective about projects, focusing on decent margins and in turn, improving profitability. Operating margins have moved up to 14 percent from a mere 5 percent in FY14. With orders swelling, it started sweating its assets, resulting in a reduction in the cash conversion cycle and reduced dependence on external borrowings.

In a nutshell, sharp focus on improving profitability, revenue growth and reduction in balance sheet risk paves the way for a long term prudent growth.

IDFC First Bank to focus on retail banking, says CEO V Vaidyanathan

The newly formed IDFC First Bank on January 16 said the bank will be focusing on retail banking and building liabilities will be the number one priority.

In an interview to CNBC-TV18, V Vaidyanathan, managing director and chief executive officer, said, “Retail banking provides relationships, margins, better profitability and diversification. So clearly, we want to take retail to about 70 percent in the next five years.”

“We have a current account/savings account (CASA) of about close to Rs 6, 400 crore and CASA deposits is close to about 12 percent. We believe that this has to go up as good banks are in the benchmark of between 40 percent and 45 percent. Our singular journey will be to fix the CASA ratio,” Vaidyanathan said.

“We are very sensitive to the needs and expectations of shareholders. We have a big responsibility on ourselves to handling a banking license as it’s a sacred institution and has to be handled well. It’s our responsibility to create value for customers and in the process, we will create value for shareholders,” he added.

On expansion, Vaidyanathan said the bank is not looking at any inorganic route, “We think that over the next few years, we want to certainly add about 600 more branches and that will give us reasonable scale and heft in the market place.”

Exchange rate fluctuations: How to overcome the palpitations?

Lovaii Navlakhi

Everyone who has grown up or worked in India before going overseas has a connection with India. And if there is a family in India, this connect becomes emotional. Hence the attraction to investing in India for non-residents.

However, making money and emotions are two different things. For non-residents, apart from the market return, the currency movement can throw a spanner in the works, or give their dollar returns an extra kicker. Suddenly, rational thinking goes out of the window.

The current year is no exception. The sharp depreciation of the INR is the headline conversation my non-resident clients are having with me.

“Now that the rupee is depreciating, when will it cross Rs 75 to the USD, and when Rs 80.”

“I made the blunder of transferring funds when it was Rs 65; I feel I should stop further planned transfers though I will get 10% extra now.”

Some of these conversations are without logic, but then emotion does play a crucial role in investor’s decision-making.

Chart 1_USD

After holding below Rs 64 to the USD in the first two months of 2018, the depreciation was one way till the end of October, and the rupee had lost over 15% at one time, before making a U-turn, and bouncing back 5% in the past few weeks. The recency bias almost makes one believe that this trend of 10% depreciation will occur year after year.

Chart 2_USD

The shapes look strikingly similar to the one-year graph. And a few learnings are apparent.

1. The trend is that the INR depreciates vs the USD. But the movement is not one-way all the time. Why does this depreciation happen? Let us try and understand it with an example. If I am in the US and can borrow money at 3% pa, convert the USD to INR and earn 8% pa, what is to prevent everyone to do this and make the 5% pa extra. To correct this anomaly, the INR must depreciate by 5% pa to ensure parity – not make the US investor better or worse off than the Indian investor. Of course, this is an oversimplified explanation. This also equates to the difference in inflation rates between the two countries.

2. The slope of the trend line is smooth and not vertical, indicating lack of sharpness in long term movements. However, shorter-term movements are sharper. This means that the currency risks are reduced or smoothened over longer periods as compared to shorter tenures.

It is also important to understand what really has been the depreciation of the INR vs the USD. From a level of sub Rs 50 in end 2008 to a level of Rs 70 now, the depreciation is at a CAGR (compounded annual growth rate) of 3.6% pa. Similarly, in the of end 2013, the INR was under Rs. 62 and for the past five years, the INR has depreciated at a lower CAGR of 2.7%. Of course, this includes the current year depreciation of 10%+. The numbers then tell us a more subdued rate of depreciation than what we have imagined.

Despite these numbers, there are currency risks that the investors should keep in mind. Then how does one work on reducing the currency risk for non-residents while investing in India?

Here are some thoughts:

1. Just as we apply rupee cost averaging to reduce the risks of investing at the wrong time in equity markets, make sure that you convert your USD to INR in tranches. This must be clinically done, while you take into account the cost of transfers including bank charges. This could be your strategic currency conversion strategy.

2. Keep aside some dollars to be converted based on tactical calls, once again in tranches. Some of these transfers could be made just before/ after US Fed meetings/ RBI committee meetings so that event-based risks are reduced.

3. Keeping in mind short term volatility in exchange rates, do not transfer to India funds that you might need in the short-term (periods lesser than three to five years).

The most important ingredient that is essential in good investing is not the selection of the product, nor the timing of your entry.

Focusing on the risk of the investment is crucial, but not the most important.

Then what is important?

Without doubt, it is discipline. The rigour of planning is as important as the followthrough of execution. The whole of idea of staggered investments is to get the advantage of rupee cost averaging – averages only work if there is more than one investment.

Trying to play a zero-sum game – either being fully in or fully out presupposes that you have a prescient mindset, which is practically impossible. The advisor’s role in ensuring you do not get into an emotional freeze on investing is underrated. Talk to one to overcome your fear of exchange rate fluctuations.

Trade Setup for Wednesday: Top 15 things to know before Opening Bell

Benchmark indices snapped a three-day losing streak on January 15 and closed sharply higher, driven by rate cut hopes after inflation declined and Asian peers rallied.

The 30-share BSE Sensex gained 464.77 points or 1.30 percent and closed at 36,318.33 while the Nifty 50 climbed 149.20 points or 1.39 percent to end at 10,886.80, forming the bullish candle on daily charts.

“Today was undoubtedly the best day so far of the new calendar year. Firstly, we had a good trended move throughout the day and importantly, we finally broke out from the recent congestion zone in the upward direction,” Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel Broking told Moneycontrol.

He said, “Technically speaking, the ‘Bullish Diamond’ pattern has been activated and therefore, he expects the fresh leg of the rally to commence now.

“Unless there is some unfavorable development from the global markets, we expect the Nifty to head towards 10,970 and then to test 11,150. On the flipside, 10,820 followed by 10,777 are now likely to act as strong supports.”

During the first half, the banking index looked a bit tentative, but finally some renewed buying was seen in heavyweight banks to propel the rally in the latter half.

Going forward, Chavan expects good amount of participation from the broader end of the spectrum as well.

The Nifty Midcap index gained 0.7 percent and Smallcap index jumped 1.1 percent.

India VIX fell by 3.59 percent to 15.58 levels. Volatility has to cool down further to get a decisive range breakout.

We have collated top 15 data points to help you spot profitable trades:

Key support and resistance level for Nifty

The Nifty closed at 10,886.8 on January 15. According to Pivot charts, the key support level is placed at 10,810.53, followed by 10,734.27. If the index starts moving upward, key resistance levels to watch out are 10,930.03 and then 10,973.27.

Nifty Bank

The Nifty Bank index closed at 27,400.8, up 152.50 points on January 15. The important Pivot level, which will act as crucial support for the index, is placed at 27,329.4, followed by 27,258. On the upside, key resistance levels are placed at 27,459.9, followed by 27,519.

Call Options Data

Maximum Call open interest (OI) of 40.54 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the January series.

This was followed by the 11,100 strike price, which now holds 32.56 lakh contracts in open interest, and 11,200, which has accumulated 31.94 lakh contracts in open interest.

Meaningful Call writing was seen at 11,300, which added 1.14 lakh contracts.

Call unwinding was seen at 11,000 strike, which shed 8.67 lakh contracts, followed by 10,900 strike which shed 4.97 lakh contracts and 10,800 strike which shed 3.07 lakh contracts.


Put Options data

Maximum Put open interest of 40.98 lakh contracts was seen at the 10,500 strike price. This will act as a crucial support level for the January series.

This was followed by the 10,700 strike price, which now holds 40.40 lakh contracts in open interest, and the 10,800 strike price, which has now accumulated 34.84 lakh contracts in open interest.

Significant Put writing was seen at the strike price of 10,800, which added 9.47 lakh contracts, followed by 10,900 strike which added 8.84 lakh contracts and 10,700 strike which added 5.85 lakh contracts.

There was hardly any Put unwinding seen.


FII & DII data

Foreign Institutional Investors (FIIs) purchased shares worth Rs 159.6 crore and Domestic Institutional Investors bought Rs 417.44 crore worth of shares in the Indian equity market on January 15, as per provisional data available on the NSE.

Fund Flow Picture


Stocks with high delivery percentage

High delivery percentage suggests that investors are accepting delivery of the stock, which means that investors are bullish on it.


90 stocks saw a long buildup


79 stocks saw short covering

A decrease in open interest along with an increase in price mostly indicates short covering.


24 stocks saw a short build-up

An increase in open interest along with a decrease in price mostly indicates a build-up of short positions.


7 stocks saw long unwinding


Bulk Deals on January 15

Pitti Engineering: Bank of Baroda sold 2,25,000 shares of the company at Rs 61.67 per share while Satish Kumar Agarwal purchased 1,59,941 shares at Rs 62.16 per share on the NSE.

Asian Granito India: GMO Emerging DOM Opportunities FD sold 3,21,523 shares of the company at Rs 130.09 per share on the BSE.

(For more bulk deals, click here)

Analyst or Board Meet/Briefings

Oberoi Realty: Board meeting is scheduled on January 22 to consider unaudited financial results for Q3FY19.

Sunflag Iron & Steel: Board meeting is scheduled on January 24 to consider the un-audited financial results (standalone) of the company for the third quarter and nine months ended December 2018.

Yash Papers: Company has arranged a Small-Cap Investor Summit 2019 and Panel discussion on January 19 in Mumbai.

Torrent Pharmaceuticals: Company has scheduled a teleconference with investors / analyst on January 30 to discuss the financial performance of the Company for the quarter and nine months ended December 2018.

Bank of Maharashtra: Board meeting is scheduled on January 23 to consider the unaudited financial results of the bank for the quarter and nine months ended December 2018.

DB Corp: Board meeting is convened to be held on January 23 to consider the un-audited financial results of the company for the 3rd quarter / nine months ended on December 2018 and to consider declaration of interim dividend for the FY2018-19, if any.

GHCL: A conference call to discuss the Q3FY19 results of the company with RS Jalan, Managing Director and Raman Chopra, CFO & Executive Director (Finance) is scheduled to be held on January 22.

Navin Fluorine International: An earnings call will be held on January 24 to discuss operational and financial performance for Q3FY19.

TD Power Systems: Board meeting is scheduled on January 31 to consider the un-audited financial results of the company for the quarter and nine months ended December 2018.

Sterlite Technologies: Board meeting is scheduled on January 24 to consider the un-audited financial results (standalone and consolidated) of the company for the quarter ended December 2018.

Reliance Communications: Board meeting is scheduled on January 23 to consider the unaudited financial results for the quarter and nine months ended December 2018.

Dhampur Sugar Mills: Board meeting has been called on January 30 to consider the un-audited standalone financial results and consolidated financial results of the company for the quarter ended December 2018 and payment of dividend on equity share capital.

Clariant Chemicals (India): Board meeting is scheduled on February 12 to consider the un-audited financial results for the 3rd quarter ended December 2018.

HCL Technologies: Board meeting is scheduled on January 29 to consider the un-audited financial results of the company for the quarter and nine months ended December 2018 and payment of 4th interim dividend for the financial year 2018-19.

BASF India: Board meeting is scheduled on January 23 to consider the unaudited financial results of the company for the quarter and nine months period ended December 2018.

Orient Electric: Board meeting is scheduled on January 28 to consider the un-audited financial results for the quarter and nine months ended December 2018.

TV Today Network: Board meeting is scheduled on February 8 to consider the un-audited financial results of the company for the quarter and nine months ended on December 2018.

Solara Active Pharma Sciences: Board meeting is scheduled on January 18 to discuss various options for capital raising through issuance of securities.

Bhansali Engineering Polymers: Board meeting is scheduled on January 27 to consider the un-audited financial results of the company for the quarter and nine months period ended on December 2018.

Stocks in news

Results on Wednesday: MindTree, Phillips Carbon Black, 5Paisa Capital, Motilal Oswal Financial Services, HT Media, DCB Bank

Zee Entertainment Enterprises Q3: Consolidated profit jumps to Rs 562.8 crore versus Rs 373.77 crore; revenue rises to Rs 2,168 crore versus Rs 1,838 crore YoY.

MCX Q3: Consolidated profit jumps to Rs 41.99 crore versus Rs 18.77 crore; revenue increases to Rs 76.93 crore versus Rs 62.81 crore YoY.

Indo Rama Synthetics (India): Board announced issuance of 8,30,00,000 equity shares by way of preferential issue on private placement basis to promoter group company, Indorama Netherlands BV at Rs 36 per share aggregating to Rs 29.88 crore and also issuance of 1,72,00,000 equity shares to Siam Stock Holdings Limited at Rs 36 per share aggregating to Rs 61.92 crore on private placement basis.

Den Networks Q3: Loss at Rs 31.21 crore versus profit at Rs 1.73 crore; revenue dips to Rs 308.4 crore versus Rs 328.2 crore YoY.

Jay Bharat Maruti Q3: Profit falls to Rs 11.22 crore versus Rs 14 crore; revenue rises to Rs 458 crore versus Rs 435 crore YoY.

India Grid Trust Q3: Profit at Rs 51.52 crore versus Rs 68.8 crore; revenue rises to Rs 170.96 crore versus Rs 126.72 crore YoY.

Speciality Restaurants Q3: Profit jumps to Rs 8.44 crore versus Rs 6.7 crore; revenue rises to Rs 98.45 crore versus Rs 79.30 crore YoY.

KPIT Technologies: Board fixed January 25 as the record date for the purpose of identification of shareholders of the company to whom the shares of KPIT Engineering Limited would be allotted.

NGL Fine Chem: ICRA upgraded long term rating to BBB+ (Stable) and short term rating to A2.

Majestic Auto Q3: Profit at Rs 19.05 crore versus loss Rs 1.7 crore; revenue rises to Rs 35.8 crore versus Rs 13.83 crore YoY.

Vikas Proppant & Granite: Company commenced plant implementation of Unit-1 at industrial area, Boronada, Jodhpur and Unit-2 at Kaparda, Jodhpur.

Nahar Industrial Enterprises: Board approved fund raising by issue of 5.5% non-convertible non cumulative redeemable preference shares.

Sasken Technologies: Company launched Automotive Center of Excellence in Detroit, USA.

Century Plyboards: Company has incorporated a wholly owned subsidiary by the name Century Gabon SUARL in Gabon, South Africa, with the object of manufacturing and trading in timber, veneer, plywood and other wood- based products.

Indiabulls Integrated Services: Subsidiary Indiabulls Life Insurance Company has received regulatory R1 acceptance from Insurance Regulatory and Development Authority of India (IRDAI) for its proposed life insurance business.

SKF India: Buyback opening date – January 23 and closing date – February 5.

Commercial Syn Bags: ICRA assigned long term rating at BBB+/Stable and short term rating at A2+ for line of credit of Rs 86 crore.

2 stocks under ban period on NSE

Securities in ban period for the next day’s trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.For January 16, Adani Power and Jet Airways is present in this list.

Maximise tax savings using health insurance for yourself and family

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What is Insurance? Simply put, Insurance is spreading of risk – unexpected financial losses for some of the participants from a common fund formed out of contributions of the total participants, and where all participants are equally exposed to the same loss.

If we talk about Health Insurance, it is about paying for the unexpected hospitalisation expenses of those few insured (participants) persons who suffer from illness or injury and require medical treatment, and are part of the bigger group and are reimbursed from the contributions (premium) of all insured (participants) persons who are exposed to similar health risks.

It will not be wrong to say that any financial planning is not said to complete which is not covering health insurance. There are many compelling reasons which in today’s time and age makes it very important for everyone to consider getting health insurance. Some of them are:

Change in lifestyle

Long travelling time to offices, increase in stress in day to day life, hectic work schedules, wrong eating habits, quality of food, and rising levels of pollution have increased the risk of developing health problems.

Rising medical costs

The medical costs have constantly seen a rise over the last many years. The health inflation in India is among the highest in the world. And in a country with high inflation, health inflation is even higher.

The estimates are that health inflation has been as high as 15 percent. So in the unfortunate incidence of a medical emergency, consumers end up spending their life savings, which takes their financial planning for a toss. Reports highlight that Indians primarily depend on their own savings when it comes to tackling health emergencies.Income tax benefit

Payments made towards health insurance premiums are also eligible for tax deductions under section 80D of the Income Tax Act. Individuals, up to 60 years of age, can claim a deduction of up to Rs 25,000 for the health insurance premium paid for themselves, or for their spouse or children. One can also claim another Rs 50,000 as a deduction if you buy health insurance for your parents aged 60 years and above.

This deduction will be available with respect of payments towards annual premium on health insurance policy including of a senior citizen, or medical expenditure in respect of super senior citizen (age of more than 80 years). So overall, if you are paying the health insurance premiums for your senior citizen parents, you can avail total deduction up to Rs 75,000 (Rs 25,000 + Rs 50,000).

There is one myth which we want to correct- if we have been covered by our employer’s medical insurance, we don’t need any further health cover.

There are so many reasons why you should be buying medical insurance even if you are covered under your employer’s insurance scheme. What happens post your retirement? And, in case you take a sabbatical from work or if you change your company and the new company does not cover you adequately. The employer may also reduce the sum assured over a period of time and they could just say as cost cutting!!

In all of the above, your insurance cover will just not be there or will not be enough. And if you plan to take insurance at a later age the chances of getting insured reduces due to medical issues or any pre-existing ailments or it may be issued with some pre-existing disease which could be a dampener.How much health coverage one should buy?

With advancement of medical science, people are more likely to suffer and survive a lifestyle disease that will result in medical treatment. The advances in medical sciences have also increased the life expectancy in the last few decades.

Looking at the healthcare inflation coupled with the lifestyle disease epidemic across cities and towns, a future proof health insurance cover for a young family living in an urban area should be a floater cover of Rs 10 lakh, supplemented with the maximum top-up available, so that the cover should be around Rs 20-25 lakh.

And for senior citizens, an individual Rs 10 lakh cover with a super top-up cover of Rs 10 lakh should be adequate. However, this is very generic and the actuals may differ on a case to case basis.

Critical illness

This policy is complementing the medical insurance as it provides the claim on diagnosis of the specified critical illness and not on treatment thereby providing a fill up financially and hence making a case to opt for the same for the breadwinner in the family.

There are policies available for covering specified illness like cancer. This has come up as a recent study shows that every 13th cancer patient in the world is from India. While the probability of getting cancer has increased substantially, the treatment costs now have the potential to wipe out a common man’s entire life saving and more so for cancer which has a recurring cost.

Payments made towards critical health insurance premiums are also eligible for tax deductions under section 80D.