Stock Maestro

The IPL season is coming back with a bang and all the fans are eagerly waiting for the new season. The Indian Premier League is a franchise owned cricket team competition comprising players from all over the world, before its inception there was another cricket league started by the Zee Group named as the Indian Cricket League (ICL) but this league lost its existence due to resistance by the BCCI and its vision of starting a new league under its own authority.  Every year the IPL breaks its all past financial records and with the addition of two new teams the expectations are more. The Indian Premier League is a cash cow for the BCCI and is the world’s second richest league. It is also the world’s biggest cricket league with a fan base from all over the world. Everyone’s fascination for this league never ends and with this let us talk about its big numbers:  The league earns its revenue basically from three major sources:  1. Broadcasters  2. Ad Sponsors  3....

  The Finance Minister of India Mrs. Nirmala Sitharaman presented the Union Budget 2022-23 in Lok Sabha and in her 90 minutes long speech she announced the government's expenditure outlay for 2022-23. In this budget she announced some major takeaways which are listed below: Key Highlights of Budget 2022-23: The country is expected to grow at 9.27% in the coming year highest among the developing and developed countries. In this budget focus is on inclusive development, energy transition, digitization and climate action. Fiscal Deficit for the current year is at 6.9% of GDP. There is no change in the income tax slabs for this year, Effective expenditure will be 10.68 lakh crore or 4.1% of GDP. Capital expenditure raised by 35.40% from 5.54 lakh crore to 7.50 lakh crore. Spectrum auction will be conducted to roll out 5G mobile services within 2022-23 by private firms. The Draft Red Herring Prospectus (DRHP) for India's biggest Insurance company LIC will be completed by...

In telecom industry there are licenses in the name of spectrum to be taken from the government in order to provide telecom services in the nation. The government issues three types of licenses: 1. Mobile Internet Connection License 2. Cable Broadband License 3. Wireless Broadband License Back in the year 2007, the government issued telecom spectrum for wireless broadband connection and in the year 2010 TRAI clarified that this spectrum could only be used for broadband internet and not for voice calls. Companies like Vodafone, Airtel, BSNL had spectrum for both mobile connection and cable broadband so they thought that this spectrum was of no use for them and thus they didn't participate in the auction.  But in 2011 for the spectrum auction a company named Infotel who had a networth of just only 2.5 crores had applied for the bid. The auction had a compulsion that the company applying for the bid must have 250 crores bank gaurantee. Infotel surprisingly got the bank gaur...

  "If you want to be a millionaire then simply just be a billionaire and invest in aviation sector and you will end up becoming a millionaire ." Stock Market maverick Rakesh Jhunjhunwala has backed upcoming ultra low cost Airline carrier named Akasa Airlines and he will pump around 260 crores and hold around a 40% stake in this venture. Recently after the bankruptcy of once the Indian Airways giant Jet Airways, the government failing multiple times in bidding for disinvestment of Air India and finally ending up with giving it to the Tata Group, the covid threats circling around the aviation sector and the government not giving any support to aviation sector after facing the repercussions of corona virus pandemic. The business world is shocked as to why the Big Bull is investing in aviation sector. Although Rakesh has pumped a very small percentage of his net worth so he is not risking more. But he has planned a strategic layout for his ambitions by initially cornering ex pres...

  As we know in this pandemic time the Indian Economy is going through a worse period where unemployment rate is high, income of people are low and low business scopes are there so here the work of The Reserve Bank of India is crucial. The RBI has the sole responsibility along with the Indian Government in recovery of the economy. There is a stagflation situation prevailing currently where the GDP is low, unemployment rates are high, earnings are low but there is a high rate of inflation. So the RBI is taking steps to control this situation. It has advised the government to control its non developmental expenses, focus on capital expenditure and promote exports. Here is a table showing RBI's latest policy rates: The RBI regularly revises its policy rates to tackle different economic situations. In inflationary period, to control the money flow it increases the CRR, reverse repo rate, bank rate and decrease the repo rate to decrease the flow of cash in the economy like in current si...

  Recently Kumar Mangalam Birla the CEO of Aditya Birla Group has stepped down from the CEO position of the debt trapped company Vodafone-Idea (VI). He has also written a letter to the Government to offer his 27% stake in VI to any Public Sector Company run by the Government of India or any other private entity who are interested in handling the telecom giant company. He also wrote in his letter that he has tried his best to revive the company but wasn't able to do that due to immense competition faced by Jio and Airtel. After coming of Jio only three companies could have survived in the Indian market which were Vodafone, Idea and Airtel. But now it seems VI has also cleared the ground for Jio and Airtel. He told the Government in his letter that if they want a three company competition in the telecom market then specify it and take concerned steps for it. He also stressed on floor pricing of plans per subscriber so that they can survive in this fierce price war.  How Birla pl...

  The withdrawal of The US troops from Afghanistan and The Taliban swiftly occupying the heart of Kabul till 15th of august 2021 has produced an alarming situation for all the other countries of the world and particularly leaving India in a disadvantageous situation. Afghanistan is included in the few countries in which India has invested a hefty amount of money and it is a land of strategic importance as far as India's situation is considered. The increasing influence of China in South Asia is a threat for India as China is using all India's neighbouring countries as a pawn by using its debt trap strategy to pressurize India from all the sides. So India is also increasing its influence in its neighbouring countries by making healthy trade agreements, investing in those countries and providing them monetary assistance and Afghanistan is one of the country which will help India counter China's ambitious One Belt and Road Initiative. India has invested a large amount of money...

  The coming of novice retail investors in the Indian Stock Market has just made upside down changes in the market. After outbreak of corona virus pandemic in 2020, there is a large increase in the number of retail investors and they have increased the liquidity in the market. Due to these novice investors penny stocks gave a yield of 1900% in past six months more than that of big blue chip companies like Adani Group which gave a return of 175% in last six months. The thing to watch out for in these penny stocks is that they have no strong income, inadequate employees and negative growth rate but still their prices hiked at an unprecedent rate. We can say that they have no fundamentals backing their rise in prices. This increase is due to large inflow of liquidity in these penny stocks by these investors as in penny stocks putting small amount of money can also yield high returns. There are chances of stock manipulation in these cases. We will talk about some of the cases that will...

  The greatest recession of this century- The Lehman Brothers Crisis of 2008 or the Sub Prime Crisis of 2008 which led to a global recession and unemployed millions of people in the world was led by American Investment Banks majorly by Lehman Brothers. These banks provided sub-prime loans in the market. What is sub-prime loans? Generally, poor credit rating people are disqualified to apply for conventional mortgage applications. So banks in The US came out with a special type of loan which provided loan to those who doesn't qualify for regular home loans. These loans were provided on real estate collaterals. Objective of providing sub-prime loans: Expecting that the value of underlying property will go up in future and charging high interests helped banks to generate higher profits. If repayment is discontinued, banks could sell the property for a higher consideration due to appreciation in property pricers. Borrowers can rent out their houses with high value or can sell at higher ...

  April 13 2021-  Bitcoin reached its zenith touching its lifetime high at $64,800... June 21 2021- Bitcoin hits its lower circuit of 2021 falling to about $31,608. A catastrophic rise in the prices of crypto currencies in 2020 made the world astonished. Its rise continuing till April 2021. But after a series of events it made its lowest of 2021 in just 2 months of time period. Not only bitcoin but also its biggest rival Ethereum also plunged and reached its all time lows of 2021. Dogecoin, Lash coin etc also gave big shocks to investors. What happened actually? Amid large selling pressure after reaching its zenith the cryptos started falling but it resisted its position after sometime not making major downfall but due to other series of events it plunged extensively. But China the biggest miner of cryptos in the world banned mining and trading of crypto currency alleging them as 'speculative' and 'a means of tax evading source of income'. The Chinese banking Assosciati...

  Inflation is a general rise in the prices of commodities and goods at a time. Inflation is not caused by any man-made or political cause (except in hyperinflation) but is caused due to series of events. Causes of Inflation: Demand-pull Inflation: It is due to aggregate demand growing faster than aggregate supply. It is caused when economy is at its full swing and there is high employment then the demand of goods in the market will be high as people will have more money in their hands and there will be more expenditure. So producers of goods in demand will think of increasing goods prices to make more profit as demand will be high and this will lead to increase in prices thereby increasing inflation rate. Cost Pull Inflation: It is caused due to increase in prices of raw materials. For eg: There will be increase in crop prices if there is drought or flood like situation in most parts of country ruining crop production. So there will be less supply of food items and more demand in ...

  "Someone is sitting in the shade today because someone planted a tree a long time ago" -Warren Buffett If you want to make your 30s better and to love yourself at this age then start investing in your 20s. Regular investments made right from an early age can reap huge benefits at the time of retirement because of investments you can afford things that others' can't at that age. Early investments accompanies power of compounding that you can't imagine. It is the 'Magic of investment'. If a person invests just 5000 rupees a month at 10% interest then after 5 years only he will end up with 3.9 lakhs due to power of compounding. The early you start the more you get. Warren Buffett quoted, " I started investing at the age of 11 and regrets to start late." Benefits of early investing: Ability to take more risk: At an early age you can take more risk rather than an old age person who tries to secure his life by making save investments. More experience...

  The Reserve Bank of India recently published its Annual Report for the year 2020-21 wherein it wrote that there is a big bubble in the Indian Stock Market. Sensex and Nifty are at its record high even when the country's economy is facing a severe disruption due to the second wave of Coronavirus pandemic and the RBI has warned that risky assets have shown dramatic rise in their prices even due to many states imposing lockdowns and restricting economic activities in their respective states. However, situations are not as worse as that were in the first wave but the Indian economy is facing depression situation but still the Indian Stock Market is making record highs. Several indicators like the famous Buffet Indicator which compares the GDP of the country to its benchmark indices of Stock Market showed that the indexes are trading at a very high prices compared to the country's GDP which is still recovering from the pandemic crisis. The historical average of both Nifty and Sens...

  Uday Kotak is the MD and CEO of Kotak Mahindra Bank one of the  prominent Indian private sector bank and he is India's fifth richest person according to Forbes India Rich List. Why in Focus today? According to RBI, no individual can hold the position of MD or CEO in any bank whether it is a Public sector or Private sector Bank for more than 15 years. So Uday Kotak has completed his fifteen years tenure as MD and CEO of Kotak Mahindra Bank and it would be now interesting to know that who will take his position. Initial Journey: He was born in a middle class Gujarati Family and after completing his Masters in Business Administration(MBA) he was offered a job in Multinational Giant Hindustan Uniliver but he did not do the job there and instead started working in his family business. Then he started his own business of bill discounting which he later expanded to investment, car loan, personal loan, corporate loan and insurance sector. The Big Entry:  In the mid of 1980s, ba...

  In India, after the Independence Fixed Exchange Rate System was followed till 1990s. In this system,  the value of a currency is fixed in a predetermined ratio to another more stable and internationally used currency or to a bunch of such currencies. But in this system also the prices fluctuates but after a specific period of time. The Government or the RBI revalues according to the economic condition prevailing in the country and its international value. But in 1993, India adopted Floating Exchange System as India was drained of its Foreign Reserves and had to adopt this system in which the price of a currency is determined by the market forces which are demand and supply. The greater the demand of a currency in the International Market its value increase against its peers and vice versa. Factors Affecting the Fluctuation: Foreign Exchange Reserves: The most dominant factor in resulting the prices of the respected currencies of a Nation is the availability of Foreign Reser...

A credit card is a type of plastic money which helps us to do online shopping, online payments and withdrawing cash from ATM.   Advantages: It relieves us of the risk of carrying cash. It provides a free credit period of 20-50 days. We get a record of transactions. Disadvantages: It has an interest rate of 36-40% p.a. which is very high compared to normal loans when the payment gets defaulted. It has many hidden charges, annual maintenance charges and transaction charges. If the payments get defaulted then our CIBIL score degrades which is used by banks to provide loan. A good CIBIL increases your chances to get loans easily at lesser rates. Is Credit Card good or bad? It totally depends upon how you use it. But we should keep a Credit Card to avail its benefits keeping in mind our financial position in minds. We should not spend a large part of our earnings through it as if we will default then we will have to a very high interest rate. Precautions: Never exceed your payment capac...

   During this time of Lockdowns and a surge in Coronavirus cases in India when all the businesses except the essential services are ruined and people are cutting money from their savings to continue their lives. There are lesser chances of earning money in this situation. But every man has a chance to earn a handsome money in this difficult times by investing in Stock Markets. We know that history repeats itself so as the condition is same like the previous year lockdown situation and even more grimmer. In 2020, Sensex plunged from around 42000 to 25000 points in March when Coronavirus advent in India. But then the Stock Markets bounced back consistently with a progressive increase to 52000 points in just 8 months creating an all time high and making many people millionaires and even billionaires. So there is a chance to earn money now as states introducing lockdown and surging Coronavirus cases creates a negative sentiment in the market and as Economy is hurt due to lockdown...

  India's Biggest Stamp Paper Scam or Scam 2003 Scam 2003's mastermind Abdul Karim Telgi born in Karnataka indulged in India's biggest scam. According to many reports this scam was valued to be of a whopping amount of around 20000 crores or more leaving behind the controversial Harshad Mehta Scam and Vijay Malaya Scam in numbers. To earn a living Telgi moved to Mumbai where he worked as a travel agent and soon began forging travel documents to illegally send people to Saudi Arabia. But he was soon sent to jail for forging documents. In the jail, he met Ratan Soni who worked in stock market. He taught him in forging stamp paper documents in the jail and in 1994 he started the business of printing fake stamp papers. His network grew immensely in all the Government Departments, Police  Department and even he maintained connections with some ministers by bribing all of them. He bought official stamp paper machines from Government's Printing Department by declaring them obso...

The Stock Market from the beginning of the April month was either in red numbers or showed a low growth. Both the market indexes didn't show a healthy recovery. Here are the reasons why there are signal of a start of bearish run in the market: Reasons Increase in Covid-19 Cases: There is a steep rise in the corona cases in India as well as the whole world which created a fear in the minds of investors.                             Fear of Lockdown: As the number of corona cases are increasing and the states being forced to implement night curfews and weekend lockdowns which shows a fear factor that short term lockdowns can be implemented if the same situation prevails. Increase  in Bond Market Yield: The increased interest rates in bonds investment return leads to a change in investor's mindset of shifting from stock investments to bond investments.              ...