Tag: Market Alphabets

Understanding Fundamental Analysis & Financial Ratios- III: Financial Strength

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Identify a Healthy Company Before Investing

Welcome back! We’re thrilled to present the third installment in our series of blogs delving into the captivating realm of fundamental analysis and financial ratios. If you’ve been following along, you’re already well-versed in the art of assessing a company’s valuation and profitability. Now, it’s time to unveil the next layer of insights as we embark on a journey to gauge the financial strength of companies. In this blog, we’ll equip you with the knowledge and tools needed to dissect a company’s financial health. Just as a physician examines various vital signs to determine the well-being of a patient, we …

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Understanding Fundamental Analysis & Financial Ratios- II: Profitability

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Financial Ratios for Accurate Fundamental Analysis

Welcome back to the second instalment of our blog series on fundamental analysis! In our previous article, we delved into the world of valuation multiples and how they serve as invaluable tools for assessing a company’s overall worth. Now, armed with a foundational understanding of these metrics, it’s time to journey deeper into the realm of financial analysis. While valuation multiples provide a glimpse into a company’s market value, they are only a part of the comprehensive fundamental analysis puzzle. To complete the picture, we need to turn our attention to the company’s ability to generate profits, manage costs, and …

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Here’s How You Can Invest In US Stocks From India

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Here’s How You Can Invest In US Stocks From India

Stocks listed in the United States stock exchanges have given phenomenal returns in the past decade.  As investors, we would love to invest in US stocks – especially in the technology sector – in order to take advantage of these high rates of return on investment. However, investing in NASDAQ stocks from India has not been easy. There were too many regulatory hurdles. But these hurdles have largely been removed thanks to the digitisation of the financial processes. It is now quite easy for an Indian to invest in overseas stocks. In the blog post, we will find out some …

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Understanding Fundamental Analysis & Financial Ratios- I: Valuation Multiples

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Fundamental Analysis & Financial Ratios

There’s an old adage – “If you fail to plan, you plan to fail.” This is true in stock investing and stock trading as well. Investing in stocks entails multi-layered research and analysis, in which fundamental analysis is a crucial part. Fundamental analysis is a valuable tool for evaluating the financial health and performance of a company which involves assessing a company’s financial statements, profit, revenue, expenses, assets, and liabilities to determine its intrinsic value and potential for growth. This analysis can provide insights into the company’s current and future financial health and can help you make informed investing decisions. …

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Silicon Valley Bank Collapse: How the Wave Can Impact Us?

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Silicon Valley Bank Collapse: How the Wave Can Impact Us?

“SVB was not just a bank; it was the lifeline for startups,” said the Chief Financial Officer of one startup on the social media platform Reddit. Now that Silicon Valley Bank (SVB) has been shuttered, not only is the money of the startups stuck, venture capitalist-backed startups will now find it difficult to raise capital. The entire startup funding ecosystem is under threat. But all this information concerns the startups in the United States. What about India? Will the collapse of the SVB negatively impact the growth of listed companies – especially those that depend on banking, financial services, and …

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Is it the Right Time to go for International Funds?

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Is it the Right Time to go for International Funds?

SEBI vide their circular dated 05/11/2020 had permitted the Mutual Funds to make overseas investments subject to a maximum of US $ 600 million per Mutual Fund, within the overall industry limit of US $ 7 billion.  The regulator’s move was an opportunity for the investors interested to start investing in segments across the world having reasonable or low valuations. International Funds are basically mutual funds which invest in companies located outside the investor’s country of residence. By investing in a global fund, investors get the chance to be a part of a much more extensive and diverse portfolio with the help …

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How Do FII Investments affect the Indian Equity Markets?

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How Do FII Investments affect the Indian Equity Markets?

Institutional investors for any country can be both External Investors (Foreign Investors) and Internal Investors (Domestic Investors). When the Indian Government opened its doors for foreign money into the Indian Stock market, they were named Foreign Institutional Investors (FII), commonly known as FIIs. To further reduce time and rationalise the process, the Indian Government introduced new Foreign Portfolio Investor (FPI) regulations in 2014, which were then implemented by the Securities Exchange Board of India (SEBI). FII can be referred to as a single foreign investor or a group of foreign investors. FPI invests in securities/stocks in other countries. In India, they can …

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How do Interest Rates affect Bond Prices and Bond Yields?

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How do Interest Rates affect Bond Prices and Bond Yields?

In a surprise move, the RBI has hiked the Repo Rate (the rate at which commercial banks borrow money by selling their securities to the RBI to maintain Liquidity) by 40 bps to 4.40% on 04/05/2022. Along with the hike in Repo Rate, RBI has also increased the Cash Reserve Ratio (CRR – The % of a bank’s total deposit maintained with the Central Bank) by 50 bps to 4.50%. The hikes in Repo Rate and CRR will drain around 87,000/- crore of liquidity from the banking system. The RBI controls inflation (Inflation = When too much money chasing too few goods) by increasing …

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The Basic Things You Need to Know about Bonds

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The Basic Things You Need to Know about Bonds

It’s highly unlikely that you haven’t heard the term ‘bond’ if you are an active investor. Bonds are investment vehicles that come under the fixed income asset class universe. The Indian bond market is much bigger than the ubiquitous equity markets. In today’s blog, we’ll discuss the basics of bonds, types and how you can invest in them. What is a Bond? Bonds are similar to loans. You pay the borrower a fixed sum of money, and they promise to pay you back. That’s at the crux of bonds. Bonds are issued by the Government or corporates when they are in need …

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3 things you must know about the Repo Rate

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3 things you must know about the Repo Rate

Earlier this week, RBI conducted an off-cycle MPC (Monetary Policy Committee) meet and announced a 40 basis points (0.4%) repo rate hike on Wednesday to calm inflationary pressures. The hike is the first since August 2018, and the new Repo Rate now stands at 4.4%. Also, this was an unscheduled meeting of the MPC, the first of its kind held to increase rates. The committee usually meets six times in a financial year, i.e., every two months. The monetary policy determines the quantity of money available in the Indian economy and the mediums through which the money is supplied. The …

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