Nifty 17026.45 (-2.91%)
Sensex 57107.15 (-2.87%)
Nifty Bank 36025.5 (-3.58%)
Nifty IT 34606.1 (-1.97%)
Nifty Financial Services 17614.7 (-3.56%)
Adani Ports 717.15 (-5.94%)
Asian Paints 3143.10 (-0.04%)
Axis Bank 661.75 (-2.67%)
B P C L 376.85 (-5.81%)
Bajaj Auto 3334.60 (-1.68%)
Bajaj Finance 6807.05 (-4.47%)
Bajaj Finserv 16682.55 (-3.95%)
Bharti Airtel 738.75 (-3.45%)
Britannia Inds. 3555.30 (-0.51%)
Cipla 966.70 (7.42%)
Coal India 155.90 (-1.67%)
Divis Lab. 4937.80 (2.88%)
Dr Reddys Labs 4750.90 (3.47%)
Eicher Motors 2433.90 (-3.43%)
Grasim Inds 1690.10 (-4.34%)
H D F C 2741.70 (-4.40%)
HCL Technologies 1110.05 (-1.31%)
HDFC Bank 1489.90 (-2.36%)
HDFC Life Insur. 670.65 (-2.64%)
Hero Motocorp 2529.40 (-2.52%)
Hind. Unilever 2335.10 (-0.59%)
Hindalco Inds. 417.00 (-6.72%)
I O C L 120.95 (-3.74%)
ICICI Bank 722.20 (-3.84%)
IndusInd Bank 901.80 (-5.99%)
Infosys 1691.65 (-1.79%)
ITC 224.00 (-3.16%)
JSW Steel 628.65 (-7.67%)
Kotak Mah. Bank 1964.30 (-3.48%)
Larsen & Toubro 1778.15 (-3.88%)
M & M 853.75 (-4.20%)
Maruti Suzuki 7170.50 (-5.31%)
Nestle India 19222.25 (0.23%)
NTPC 128.85 (-4.70%)
O N G C 147.10 (-5.16%)
Power Grid Corpn 202.00 (-1.10%)
Reliance Industr 2412.60 (-3.22%)
SBI Life Insuran 1130.35 (-2.51%)
Shree Cement 25945.80 (-2.72%)
St Bk of India 470.50 (-4.09%)
Sun Pharma.Inds. 767.30 (-1.99%)
Tata Consumer 766.70 (-5.09%)
Tata Motors 460.20 (-6.61%)
Tata Steel 1112.30 (-5.23%)
TCS 3446.85 (0.03%)
Tech Mahindra 1527.40 (-2.05%)
Titan Company 2292.30 (-4.40%)
UltraTech Cem. 7394.75 (-2.81%)
UPL 703.80 (-3.23%)
Wipro 621.45 (-2.40%)

NSE Crosses 5 crore Unique Investors Mark

NSE Crosses 5 crore Unique Investors Mark
by 5paisa Research Team 26/10/2021

In a significant landmark, the National Stock Exchange announced that it had crossed the Rubicon of 5 crore unique investors. This is about 30% lower than the total demat accounts in India at 7 crore. However, that is more because there are scores of investors with multiple demat accounts. The 5 crore unique investors are mapped by PAN numbers.

According to the MD and CEO of NSE, Vikram Limaye, it took the NSE nearly 15 months to go from 3 crore unique investors to 4 crore unique investors. However, the journey from 4 crore unique investors to 5 crore unique investors has happened in just 7 months. Limaye expects the NSE to traverse the next journey to 10 crore unique investors in next 3-4 years.

The NSE has also noted in its press release that the total number of unique client codes registered with the NSE stood at 8.86 crore. While an investors is only allowed to have a single trading account with one broker, they are permitted to have trading accounts with different client codes with multiple brokers.

In the last one year, there has been a tremendous spread of the equity cult in India as is evident from the surge in trading accounts, fresh demat accounts opened and the record number of fresh mutual fund SIP folios opened. This has been underlined by scores of millennials joining the investment mainstream, many of whom are preferring direct equities.

In terms of state level contributions, Maharashtra contributed 17% of the unique investors followed by Uttar Pradesh contributing 10% and Gujarat contributing 7% of the new investors being registered. In fact, the top 10 states have accounted for a full 71% of the total new investors registrations in India via the NSE. 

An interesting trend pointed out by the NSE was that the new client registrations have been largely driven by non-metros. For example, the cities beyond the top-50 cities actually contributed to a whopping 57% of the new client account registrations. This is, perhaps, the first clear indication that the investors were not just growing in numbers but also in terms of a wider geographical spread.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Bharti Airtel also signs for 4-year moratorium

Bharti Airtel also signs for 4-year moratorium
by 5paisa Research Team 26/10/2021

Almost a week after Vodafone Idea signed up for the 4 year moratorium, Bharti Airtel has also signed up for the moratorium. While Vodafone Idea had only signed up for moratorium on the spectrum dues, Bharti Airtel has signed up with DOT for moratorium on AGR charges and Spectrum Usage Charges (SUC). The last date for signing up was 29-October.

Check - Vodafone opts for 4 Year Moratorium on AGR Charges

In addition, the government has also given the telecom companies an offer by which they would be able to convert the interest portion of the moratorium period into an equity stake and offer it to the government. However, since the telecom companies have 90 days to take a final call on this issue, Bharti Airtel has not committed on this front.

Telecom companies opting for the moratorium on the AGR charges and the spectrum usage charges (SUC) would have to pay interest to the government at the rate of 2% above the incremental prime lending rate. This amount would be payable for the full 4 year period. However, telecom companies have the option to convert this portion into equity stake.

This was part of the relief package announced by the government last month for the telecom companies to relieve them from cash flow stress. While Bharti is not in such a serious financial crunch as Vodafone Idea, they did see merit in conserving cash flows for the time being so as to have a bigger war chest to take on competition from Jio.

Sunil Mittal of Bharti Airtel has already stated that their company would use the cash flows saved during the moratorium to aggressively build the network. In the case of Bharti, the interest component over 4 years alone would work out to Rs.10,000 crore so if they swap it with their equity stake, it would entail handing over 2-3% stake in Bharti Airtel to the government of India.

The more important consideration for Bharti Airtel is that this moratorium will free up cash flows to the tune of Rs.40,000 crore which will give them enough ammunition to ramp up networks and drive profitability in the interim. Telecom companies need to invest heavily in upgrading networks and in spectrum to become 5G ready.

Among other things, the Telecom Relief Package also allowed sharing of airwaves, 100% FDI and change in the definition of revenues on which AGR is payable.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Axis Bank, Kotak Bank and Bajaj Finance Share Q2 Results

Axis Bank, Kotak Bank and Bajaj Finance Share Q2 Results
by 5paisa Research Team 26/10/2021

On 26th October, 3 heavyweight financials announced their results viz. Axis Bank, Kotak Bank and Bajaj Finance. Here is a gist of the 3 results announcements.
 

Axis Bank - Q2 Results

Axis Bank reported 4.17% increase in revenues in the Sep-21 quarter at Rs.20,967 crore. Profit after tax was up 84.5% at Rs.3,388 crore. Income from treasury was 4% up YoY while revenues from corporate banking were down 1.12%. Retail banking revenues were up 6.7%. Retail pressure showed as EBIT in retail banking almost halved due to spike in bad assets.

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income

₹ 20,967

₹ 20,127

4.17%

₹ 20,056

4.54%

Operating Profit

₹ 6,304

₹ 6,918

-8.87%

₹ 6,511

-3.18%

Net Profit

₹ 3,388

₹ 1,837

84.45%

₹ 2,357

43.73%

Diluted EPS

₹ 11.02

₹ 6.22

 

₹ 7.67

 

Operating Margins

30.07%

34.37%

 

32.47%

 

Net Margins

16.16%

9.13%

 

11.75%

 

Gross NPA Ratio

3.53%

4.18%

 

3.85%

 

Net NPA Ratio

1.08%

0.98%

 

1.20%

 

Return on Assets (Ann.)

1.19%

0.73%

 

0.86%

 

Capital Adequacy

19.23%

18.92%

 

18.67%

 

 

The good news for Axis Bank was that quarterly profits were at an all-time high on standalone basis, while the credit costs stood at 0.54%. The net slippages in the quarter were largely under control at 0.46% and the CASA ratio share improved 200 bps at 42%. The boost to net profits came from the sharp fall in provisions for doubtful assets by 60% at Rs.1,763 crore.

Axis reported 8% higher net interest income or NII for the quarter while net interest margins or NIM stood at a relatively healthy 3.9%. Gross NPAs and net NPAs fell on YoY basis, even as net profit margins at 16.16% was robust on a comparative basis.

 

Kotak Mahindra Bank - Q2 Results


Kotak Mahindra Bank reported 13.24% rise in total consolidated revenues in the Sep-21 quarter at Rs.15,342 crore. Net profits were up just about 1.43% YoY at Rs.2,989 crore although profits were up 65.5% on a sequential basis. The big boost to revenues at a consolidated level came from insurance with revenues growing 36% to Rs.5,083 crore.

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income

₹ 15,342

₹ 13,548

13.24%

₹ 12,571

22.04%

Operating Profit

₹ 4,365

₹ 4,345

0.47%

₹ 3,377

29.25%

Net Profit

₹ 2,989

₹ 2,947

1.43%

₹ 1,806

65.48%

Diluted EPS

₹ 15.06

₹ 14.89

 

₹ 9.11

 

Operating Margins

28.45%

32.07%

 

26.87%

 

Net Margins

19.48%

21.75%

 

14.37%

 

Gross NPA Ratio

3.16%

2.55%

 

3.58%

 

Net NPA Ratio

1.09%

0.70%

 

1.34%

 

Return on Assets

0.60%

0.64%

 

0.37%

 

Capital Adequacy

21.76%

22.05%

 

23.11%

 

 

EBIT contributions of treasury and corporate banking verticals of Kotak Bank were higher on a YoY basis, albeit marginal. However, EBIT of retail business fell 96% due to spike in asset stress in the retail business. Insurance also saw a sharp fall in EBIT due to a spike in claims paid and provisions for COVID-2.0. While NII was up just about 3% at Rs.4,021 crore, Kotak reported 4.45% NIMs., among the most robust in the peer group.

Customer assets at Kotak Bank grew 17% at Rs.256,353 crore on a YoY basis. Healthy CASA has been the hallmark of Kotak Bank and it improved further by 350 bps to 60.6%. While credit costs stood at 0.63%, gross NPAs increased 61 bps to 3.16%.
 

Check - Axis Bank and Kotak Mahindra Bank – Q1 Results

 

Bajaj Finance - Q2 Results


Bajaj Finance Ltd reported 18.6% growth in revenues for Sep-21 quarter at Rs.7,732 crore while net profits were up 53.5% at Rs.1,481 crore on a YoY basis. Bajaj Finance saw 16% spike in interest income YoY at Rs.6,687 crore and its fee and commission income also grew 27.4% at Rs.733 crore. The big story for Bajaj Finance in the quarter was the 28% spike in net interest income or NII at a healthy Rs.5,335 crore.

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 7,732

₹ 6,520

18.59%

₹ 6,743

14.67%

Operating Profit (Rs cr)

₹ 2,004

₹ 1,305

53.54%

₹ 1,366

46.75%

Net Profit (Rs cr)

₹ 1,481

₹ 965

53.49%

₹ 994

49.02%

Diluted EPS (Rs)

₹ 24.42

₹ 15.98

 

₹ 16.54

 

OPM

25.92%

20.02%

 

20.26%

 

Net Margins

19.15%

14.80%

 

14.74%

 

 

During the quarter, there was a 25% fall in impairment provisions on investments, while the loan losses and provisions fell from Rs.1,700 crore to Rs.1,300 crore. Gross NPAs fell 51 bps to 2.45% YoY. This ensured that the OPM or operating margins stood at 25.92%; nearly 500 bps better than the previous quarters.

The capital adequacy ratio of Bajaj finance is extremely comfortable at 27.68% with Tier-1 capital adequacy at 24.9%. Bajaj Finance saw its AUM grow by a healthy 23% while deposits grew 33% in Q2. Net margins for the Sep-21 quarter at 19.15% were 440 bps better than the previous quarters.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Cipla Ltd and Dr. Lal Pathlabs Share Q2 Results

Cipla Ltd and Dr. Lal Pathlabs Share Q2 Results
by 5paisa Research Team 26/10/2021

On 26th October, two important companies in the healthcare space viz. Cipla and Dr. Lal Pathlabs announced their quarterly results. Here is a gist of the numbers.
 

Cipla Ltd - Q2 Results


Cipla Ltd reported 9.56% higher sales for the Sep-21 quarter at Rs.5,520 crore. Net Profits for the Sep-21 quarter was up 6.90% at Rs.711 crore. Cipla has received a huge demand notice from the NPPA for overcharging under the DPCO. While the total demand is for Rs.3,703 crore, the matter is currently under litigation in the courts.

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 5,519.80

₹ 5,038.29

9.56%

₹ 5,504.35

0.28%

Net Profit (Rs cr)

₹ 711.36

₹ 665.43

6.90%

₹ 714.72

-0.47%

Diluted EPS (Rs)

₹ 8.80

₹ 8.24

 

₹ 8.85

 

Net Margins

12.89%

13.21%

 

12.98%

 


During the quarter, Cipla did manage its raw material costs fairly well despite the supply chain constraints. However, spike in other expenses led to pressure on the profit growth. Net margins at 12.89% was lower than 13.21% on a yoy basis. Overall, the results had nothing remarkable about them in the quarter.
 

Dr. Lal Pathlabs - Q2 PAT Results


Dr. Lal Pathlabs reported 15.4% growth in sales in the Sep-21 quarter at Rs.498 crore. Net profits for the Sep-21 quarter was up by a more subdued 11.37% at Rs95cr. The board of Dr. Lal Pathlabs has approved the first dividend of 60% or Rs.6 per share on par value of Rs.10. In the first half of the financial year, the company generated 81% higher net cash from operations at Rs.282 crore.

 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 498.40

₹ 431.90

15.40%

₹ 606.60

-17.84%

Net Profit (Rs cr)

₹ 95.00

₹ 85.30

11.37%

₹ 131.20

-27.59%

Diluted EPS (Rs)

₹ 11.45

₹ 10.31

 

₹ 15.84

 

Net Margins

19.06%

19.75%

 

21.63%

 


With a sharp fall in COVID related testing and other medical revenues, the revenues and profits fell on a sequential basis. The profits over Sep-20 quarter grew in a more measured way because the raw material costs spiked by 25% during this period. Net margins at 19.06% was slightly lower than 19.75% in the Sep-20 quarter. 

Also Read About:- Do You know About Indian Pharma Sector?

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

SIP vs Mutual Fund: What's the Difference?

SIP vs Mutual Fund: What's the Difference?
by 5paisa Research Team 27/10/2021

Many investors see mutual fund investments as a simple and comfortable method to invest in equities. Mutual funds are managed and operated by professional specialists in the form of fund managers.

Before investing in stocks, they thoroughly study and analyze the businesses, their fundamentals, stock price movement patterns, and long-term prospects. The fund managers decide on the best investment choice based on the findings.

When it comes to their money being invested in the stock market, an investor does not have to be concerned beyond reason. Research staff and a fund management team support their investments.

Due to the diversification of the investments, the danger of market fluctuation is reduced. Reduced risk means that a portfolio's loss in one asset may be offset by a gain in another. Investing in stocks may be time-consuming and difficult for the uninitiated.

This is where fund managers step in to save the day; they make the right decision at the right moment. Therefore to clear misconceptions and get a better idea of the similarities and dissimilarities between mutual funds and SIP, we have discussed the differences between these investment approaches in this post. Let’s begin with the sip vs mutual fund debate!

 

What is a Mutual Fund?

You and thousands of other investors combine their money in a mutual fund, which then invests it in various securities like individual stocks, bonds, and other types of financial instruments. Investments are made in a range of assets by a fund house with the aim of meeting a certain objective while also managing risk. 

Units purchased by mutual fund investors may be swapped for other funds on the secondary market. It's possible to categorize mutual funds according to their goals, approach to debt and equity, sectors they invest in, and risk tolerance.

 

What is a Systematic Investment Plan?

The acronym SIP stands for Systematic Investment Plan. Investments may be made in a single sum or over time, such as investing a little money each month. Depending on the fund house and the program, SIP enables you to contribute as little as Rs 500 each month in mutual funds. Almost all mutual funds provide systematic investment plans (SIPs), although the minimum investment amount differs. SIPs.

 

Mutual Fund vs Systematic Investment Plan: What's the Difference?

1. Mode of investment

When investing via the Systematic Investment Plan, regular contributions are made to purchase mutual fund units (SIP). When you invest on a regular basis, it becomes second nature. Compounding power is enormous in SIP investments. 

To accumulate wealth over time, SIP is a method in which an investor makes disciplined investments on a regular basis. One of the most effective ways to reach your financial goals is via the use of a systematic investment plan (SIP). 

An investor in a mutual fund can choose to reinvest their profits or receive a return, depending on his or her investment objectives. Instead of taking a loss, an investor may benefit from compound interest by reinvesting in the same plan.

 

2. The ability to change course when necessary.

It is possible to invest small amounts on a weekly, fortnightly, or monthly schedule with SIP investments since they provide you more flexibility in terms of when you want to invest. As a result, SIP works best for those who are employed or have a regular source of income. 

Systematic investment plans (SIPs) may be used to invest in mutual funds without disrupting your existing spending patterns. If you have a lot of spare cash, putting it in a mutual fund may be a good idea.

 

3. Reduced Costs

Cost averaging is available to you if you invest in SIP. Buying more units when the market is down and fewer units when the market is high can reduce your total purchasing cost.

As a result, your average purchase cost will be lower. In contrast, if you invest in a lump amount, you'll pay a greater price since you won't receive the advantage of averaging over all of your purchases.

 

4. Market Volatility

Inexperienced investors, in particular, are often perplexed as to when the ideal moment is to join the market is When investing in a lump amount, there's always the concern of when to make the purchase, which puts you at risk during times of high volatility.

With a SIP, your investment is spread out over time, so only a portion of it will be subject to higher-than-normal market fluctuations.

Conclusion

SIPs provide versatility, reduced costs as a result of averaging, and a useful method to deal with volatility. It's just a better investment strategy.

If an investor is arguing between SIP and mutual funds, he or she should evaluate the ease with which they may invest their income and profits.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

What is the Significance of STP in Mutual Fund?

What is the Significance of STP in Mutual Fund?
by 5paisa Research Team 27/10/2021

Investing in exchange-traded funds (ETFs) and mutual funds using the Systematic Investment Plan (SIP) is a common method to comprehend a systematic transfer plan (STP) (SIP).

The use of systematic investment plans (SIPs) gives investors the discipline of investing a certain amount each month. SIPs are arguably the greatest method to deal with investment volatility because of rupee cost averaging and other advantages.

Investment returns on mutual funds may be projected with the use of a SIP calculator. A SIP Calculator can estimate the return on mutual funds and exchange-traded funds or ETFs. Instead, STP is a variation of SIP that enables clients to progressively move assets from one asset management firm to another.

 

It is difficult to set up a SIP if an individual just has a flat sum to invest. If anything, investors are stuck with putting their money in a mutual fund or an ETF and hoping for the best, which they won't get.

Furthermore, investing a large amount of money all at once in equities and debt funds may be very hazardous. Investors may move a predetermined amount routinely from one fund to another via an STP, which is provided by asset management firms.

This post discusses the intricacies of STP in mutual funds followed by its significance for investors.

What is a Systematic Transfer Plan?

STP is a feature that allows unitholders to transfer a selection of predetermined units from one scheme to another on a regular basis. Through seamless asset class switching, the STP service aids investors in rebalancing their investment portfolios.

The usage of these instruments may assist to minimize volatility and achieve financial objectives. Let's say an investor gets a one-time windfall from the sale of a piece of real estate.

Investing in a low-risk money market or liquid fund and then methodically transferring a set amount into an equity fund allows the investor to benefit from rupee cost averaging while generating somewhat better returns than bank deposits.

This is an option for investors. Regular transfers of funds into an equities fund allow investors to relax about the market's fluctuations. You may plan to deposit INR 25,000 a month into an equity fund so that over the following 20 months.

The investor takes advantage of the volatility and manages to decrease the cost of purchase, for example, in case the client earns INR 5,00,000 in a lump sum and invests that in a liquid fund.

They are ideal for investors who want to put a large amount of money to work in equities funds but are concerned about trying to time the market.

 

How does STP Benefit Investors?

1. An Opportunity to Earn Better Returns

STP usually results in more profits. It's because, with an STP, you'll put the lump amount into a debt fund instead of a liquid one. The return on liquid funds may vary from 7 to 9 per cent, which is much greater than the return on a savings account, which is just 4 per cent.

2. Getting Consistent Profit Returns

STP's returns are quite dependable. As long as money is sitting in your source fund (debt fund), you'll continue to accrue interest until you move all of it.

3. Taking Charge of Your Risks

Moving to a less hazardous asset class may be accomplished with the use of an STP. Let's suppose you started a 30-year SIP into an equities fund as part of your retirement savings strategy.

As you get closer to retirement, consider implementing a systematic withdrawal plan (STP) to protect your fund's value.

You tell the fund house to move a certain amount of money from an equity fund to a debt fund upon your instruction. By the time you retire, you'll have all of your money in a secure place.

4. Averaging of the Rupee Cost

Systematic Transfer Plans (STPs) purchase fewer units at higher NAV and more units at a lower price to average out investment costs. Every time your money is moved from one fund to another, the management of that fund buys more units.

As a result, you will benefit from rupee cost averaging, which lowers your investment's per-unit cost over time.

5. Re-establishing Portfolio Equilibrium

Your investment portfolio should include a healthy mix of debt and equity. Investments are moved from debt to equity funds or vice versa using an STP to rebalance the portfolio and achieve greater returns.

STP vs SIP: What Should you Choose?

Investing in a specific fund using STP is similar to setting up a systematic investment plan (SIP). However, if you have a large amount of money to invest, STP is the way to go.

This is due to the fact that under a systematic investment plan (SIP), your money would sit in your bank account, earning no income or earning just a meagre amount of interest, compared to a low-risk liquid fund or an ultra-short-term debt fund.

As a result, it's preferable to put the whole amount into a low-risk debt fund before scheduling an STP to one of your preferred equity funds.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order