In the bustling world of stock markets, the recent listing of AMIC Forging has sent shockwaves through investors and financial analysts alike. As the dust settles, it becomes apparent that the stock is trading at an astonishing 99% premium over its IPO price on the BSE SME platform. In this article, we will delve into the intricacies of this unprecedented event, exploring the factors driving the premium, its implications, and what it means for both seasoned and prospective investors.
AMIC Forging, a prominent player in the forging industry, recently made its debut on the BSE SME platform through an initial public offering (IPO). The listing was eagerly anticipated, but what caught everyone off guard was the staggering 99% premium at which the stock is currently trading.
IPO Background
To understand the significance of this premium, let’s rewind to the IPO stage. The IPO price is not just a number; it’s a valuation that reflects the market’s perception of the company’s worth. Investors use this benchmark to assess the company’s potential and make informed decisions.
Factors Influencing Premium
Various factors contribute to a stock’s premium, and in the case of AMIC Forging, it’s crucial to dissect these elements. Market demand, company performance, and industry trends are among the key drivers that demand attention.
Impact on Investors
Investors, both existing and prospective, are at the heart of this anomaly. Understanding how this premium affects them is paramount. Does it present an opportunity or a looming risk?
Quick Review:
Q1: Why is AMIC Forging’s stock trading at a 99% premium?
The article delves into the various factors driving the unprecedented premium and seeks to provide insights into this anomaly.
Q2: What are the potential risks associated with the premium?
Risk factors are discussed in detail, outlining potential challenges and uncertainties that investors should be aware of.
Q3: How do industry trends contribute to the premium surge?
The article explores broader industry trends that may be influencing the forging sector and, consequently, the stock’s premium.
In a recent development, Sapphire Food shares have experienced a notable drop following the offloading of a 4.2% stake by one of the company’s promoters. The move has triggered concerns among investors and market participants, leading to a decline in the value of Sapphire Food shares.
The decision to sell a significant portion of the promoter’s stake has raised questions about the promoter’s confidence in the company’s future performance or strategic direction. Investors are closely monitoring the situation and seeking further insights into the reasons behind the stake sale.
The impact of this development on Sapphire Food’s stock prices underscores the sensitivity of the market to changes in ownership and potential implications for the company’s financial health. Such events often lead to increased volatility as investors reassess their positions and react to new information.
As the situation unfolds, investors will be keenly observing how the company manages this change and whether it provides clear communication to address concerns and maintain shareholder confidence. The market’s response in the coming days will be indicative of how investors perceive the implications of the promoter’s decision on Sapphire Food’s future trajectory.
Quick Review:
Q: Why did Sapphire Food shares experience a decline?
A: The decline in Sapphire Food shares occurred after one of the promoters decided to offload a 4.2% stake in the company.
Q: What does the stake sale indicate?
A: The stake sale raises questions about the promoter’s confidence in the company’s future performance or strategic direction. Investors are seeking insights into the motives behind this decision.
Q: How have investors reacted to this development?
A: Investors have responded by causing a drop in the value of Sapphire Food shares. The market is sensitive to changes in ownership, and such events often lead to increased volatility as investors reassess their positions.
Exit polls have long been the talk of the town during election seasons. These surveys, conducted right after voters leave their polling stations, offer a glimpse into the possible outcomes of an election. However, decoding the intricacies of exit polls requires more than just a casual glance. Let’s delve into the world of exit polls, exploring their significance, controversies, and the evolving landscape of political forecasting.
Exit polls hold historical significance in the realm of political analysis. Over the years, they have shaped public perception, sometimes even influencing the narrative around an election. Understanding their historical context provides valuable insights into the evolution of political forecasting.
The recently released exit polls for five state elections paint a diverse picture for the political parties involved.
According to voter surveys conducted as individuals leave polling stations, the BJP holds a favorable position in Madhya Pradesh. In contrast, the Congress secures an advantage in Chhattisgarh and Telangana. The exit polls foresee a closely contested battle in Rajasthan, with both the BJP and the Congress in the running. In Mizoram, pollsters find themselves largely divided, offering varied perspectives on the election outcome.”
Quick Review :
How accurate are exit polls in predicting election outcomes?
Exit polls provide early insights, but their accuracy depends on various factors, including sample size and methodology.
Do exit polls influence voter behavior?
Yes, the release of exit poll results can influence undecided voters and shape their perceptions.
A circuit breaker is a mechanism used in the stock market to prevent large, sudden price declines or increases. It is designed to give investors time to assess market conditions, reduce panic selling, and provide stability to the market.
Circuit breakers are triggered when the stock market experiences sharp price movements within a short period of time. The circuit breaker system is designed to halt trading temporarily to allow investors to take stock of the situation, assess market conditions, and reposition themselves accordingly. This mechanism is put in place to prevent large, sudden losses and to protect investors from panic selling.
In India, the Securities and Exchange Board of India (SEBI) has put in place a circuit breaker system that applies to both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The circuit breaker system has three levels of trigger points based on the movement of the benchmark indices – Sensex and Nifty.
The First level of circuit breaker is triggered if the Sensex or Nifty moves up or down by 10% from its previous close. If this happens, trading is halted for 45 minutes. This is called the Level 1 circuit breaker.
The Second level of circuit breaker is triggered if the Sensex or Nifty moves up or down by 15% from its previous close. If this happens, trading is halted for two hours. This is called the Level 2 circuit breaker.
The Third level of circuit breaker is triggered if the Sensex or Nifty moves up or down by 20% from its previous close. If this happens, trading is halted for the remainder of the day. This is called the Level 3 circuit breaker.
It is important to note that circuit breakers are only activated during trading hours. If a sharp movement occurs before trading hours, the circuit breaker system will not be activated.
The circuit breaker system is intended to give investors a chance to reassess their positions and make informed decisions based on market conditions. It also helps to prevent panic selling and buying that can lead to sharp price movements.
However, it is not foolproof and cannot guarantee complete protection against losses. Investors should always be aware of the risks associated with investing in the stock market and should have a diversified portfolio to mitigate risks.
Benefits of circuit breaker in stock market:
1. Reducing panic selling
The circuit breaker system is designed to halt trading temporarily when there is a sharp movement in stock prices. This gives investors time to assess market conditions and make informed decisions, reducing the likelihood of panic selling.
2. Preventing large losses
Circuit breakers are activated when stock prices move up or down by a certain percentage within a short period of time. This mechanism helps to prevent large losses by giving investors time to reassess their positions and make informed decisions.
3. Promoting market stability
The circuit breaker system promotes market stability by preventing large, sudden price movements that can disrupt the market. This helps to maintain investor confidence in the market.
4. Providing time for information dissemination
Circuit breakers provide time for information dissemination. When trading is halted, news and information can be disseminated to investors, allowing them to make informed decisions.
5. Preventing market manipulation
The circuit breaker system can prevent market manipulation by preventing sudden, large price movements that can be caused by manipulation.
6. Encouraging long-term investing
The circuit breaker system encourages long-term investing by reducing the likelihood of panic selling and providing a stable market environment.
Disadvantages of circuit breaker in stock market:
1. Reduced liquidity
When trading is halted due to the circuit breaker system, it can reduce liquidity in the market, making it harder for investors to buy and sell stocks. This can lead to increased volatility and wider bid-ask spreads.
2. Market inefficiencies
The circuit breaker system can lead to market inefficiencies, particularly if trading is halted for an extended period of time. This can result in price distortions and may prevent the market from reflecting accurate prices.
3. Uncertainty
Circuit breakers can create uncertainty among investors, particularly if they are triggered frequently. This can lead to increased volatility and decreased investor confidence.
4. Unintended consequences
Circuit breakers can have unintended consequences, particularly if they do not function as intended. For example, they may fail to prevent large losses or may be triggered too frequently, leading to increased volatility.
5. Time delay
The circuit breaker system introduces a time delay into trading, which can be problematic for investors who need to make quick decisions. This delay can also prevent the market from reacting quickly to news or events.
In conclusion, circuit breakers are a mechanism put in place by stock exchanges to prevent large, sudden price movements and to protect investors. They help to provide stability to the market, reduce panic selling, and give investors time to assess market conditions.
In India, there are two primary stock exchanges: The Bombay Stock Exchange (BSE) and The National Stock Exchange (NSE). Both exchanges play a critical role in the country’s securities market and offer investors the opportunity to trade a wide range of securities, including stocks, bonds, and derivatives. However, there are also a number of other smaller exchanges operating in India, which cater to specific segments of the market. In this article, we will discuss the different types of stock exchanges in India.
1. Bombay Stock Exchange (BSE)
The Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia, established in 1875. It is also one of the largest exchanges in India, with over 5,000 listed companies. The BSE is based in Mumbai and operates under the Securities and Exchange Board of India (SEBI) regulations. It offers a wide range of securities, including stocks, bonds, and derivatives.
2. National Stock Exchange (NSE)
The National Stock Exchange (NSE) is the largest stock exchange in India, established in 1992. It is based in Mumbai and operates under SEBI regulations. The NSE offers a range of securities, including stocks, bonds, derivatives, and exchange-traded funds (ETFs). The exchange has a market capitalization of over $2 trillion and is home to some of the biggest companies in India. Companies listed in NSE.
3. Regional Stock Exchanges
In addition to the BSE and NSE, there are a number of smaller regional stock exchanges operating in India. These exchanges cater to specific regions or industries, and generally offer a narrower range of securities than the larger exchanges. Some of the regional exchanges in India includes the list below:
The Calcutta Stock Exchange (CSE): CSE was established in 1908 and is located in Kolkata. It was the first stock exchange in India to be recognized by the Indian Government under the Securities Contracts (Regulation) Act, 1956. The CSE has over 400 listed companies, including some of the oldest and most reputed companies in India.
The Madras Stock Exchange (MSE): MSE was established in 1937 and is located in Chennai. It was the first stock exchange in India to introduce an electronic trading system in 1997. The MSE has over 1,000 listed companies, primarily from the southern states of India.
The Hyderabad Stock Exchange (HSE): HSE was established in 1940 and is located in Hyderabad. It was the first stock exchange in India to introduce an online trading system in 1997. The HSE has over 600 listed companies, primarily from the state of Telangana.
The Ahmedabad Stock Exchange (ASE): ASE was established in 1894 and is located in Ahmedabad. It was the first stock exchange in India to introduce a screen-based trading system in 1997. The ASE has over 350 listed companies, primarily from the state of Gujarat.
4. Commodity Exchanges
Commodity exchanges are specialized exchanges that allow investors to trade in commodities such as gold, silver, crude oil, and agricultural products. In India, there are three major commodity exchanges: the Multi Commodity Exchange (MCX), the National Commodity and Derivatives Exchange (NCDEX), and the Indian Commodity Exchange (ICEX). These exchanges are regulated by the Forward Markets Commission, which is responsible for overseeing commodity trading in India.
5. Currency Derivatives Exchanges
Currency derivatives exchanges are specialized exchanges that allow investors to trade in currency, futures and options. In India, there are two currency derivatives exchanges: the NSE Currency Futures and Options Exchange and the United Stock Exchange of India. These exchanges offer investors the opportunity to hedge against currency risk and speculate on the movement of currency prices.
6. SME Exchanges
Small and medium enterprises (SMEs) are an important part of India’s economy, and there are a number of specialized exchanges that cater specifically to these companies. SME exchanges offer SMEs the opportunity to raise capital by listing on the exchange and issuing shares to investors. Some of the SME exchanges in India include the BSE SME Exchange and the NSE Emerge Exchange.
In conclusion, India’s securities market is home to a range of different stock exchanges, each catering to different segments of the market. The BSE and NSE are the largest exchanges, offering a wide range of securities to investors. In addition, there are a number of smaller regional exchanges, as well as specialized exchanges for commodities, currency derivatives, and SMEs. Together, these exchanges play a critical role in promoting the development of India’s securities market and providing investors with a range of investment opportunities.
Large cap stocks are also known as big caps shares that trade for corporations with a market capitalization of $10 billion or more. Large cap stocks typically have lower volatility, greater analyst coverage, best fundamentals and perhaps a steady dividend stream. Large caps are generally safer investments than the mid and small cap shares as the companies are more established. Check our blog on List of companies listed in NSE to get more Idea. Here are the large cap stock list
1. State Bank Of India (SBIN)
State Bank of India (SBI) is an Indian multinational public sector bank and financial services statutory body headquartered in Mumbai, Maharashtra. SBI is the 43rd largest bank in the world and ranked 221st in the Fortune Global 500 list of the world’s biggest corporations of 2020, being the only Indian bank on the list.
Fundamental Analysis
Market Cap ₹ 406,204 Cr.
Debt ₹ 4,536,570 Cr.
ROE 12.2 %
Sales growth 4.26 %
Promoter holding 57.6 %
ROCE 4.44 %
Stock P/E 11.5
Industry PE 9.05
2. AXIS BANK
Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It sells financial services to large and mid-size companies, SMEs and retail businesses.
Fundamental Analysis
Market Cap ₹ 195,309 Cr.
Debt ₹ 859,872 Cr.
Sales growth 6.41 %
ROE 13.6 %
Promoter holding 9.70 %
ROCE 5.59 %
Stock P/E 13.9
Industry PE 16.9
3. HEROMOTOCO
Hero MotoCorp Limited, formerly Hero Honda, is an Indian multinational motorcycle and scooter manufacturer headquartered in New Delhi. The company is one of the largest two-wheeler manufacturers in the world as well as in India.
Fundamental Analysis
Market Cap ₹ 52,866 Cr.
Debt ₹ 605 Cr.
ROE 14.8 %
Sales growth -4.55 %
ROCE 19.2 %
Promoter holding 34.8 %
Stock P/E 22.8
Industry PE 37.3
4. Godrej Consumer Products
Godrej Consumer Products Limited (GCPL) is an Indian consumer goods company based in Mumbai, India. GCPL’s products include soap, hair colourants, toiletries and liquid detergents.
Fundamental Analysis
Market Cap ₹ 79,649 Cr.
Debt ₹ 1,704 Cr.
Sales growth 11.3 %
ROE 17.1 %
ROCE 18.5 %
Promoter holding 63.2 %
Stock P/E 44.4
Industry PE 31.2
5. ONGC
The Oil and Natural Gas Corporation (ONGC) is an Indian oil and gas explorer and producer. It is under the ownership of the Ministry of Petroleum and Natural Gas and Government of India. Its headquarters is situated in Vasant Kunj, New Delhi.
Fundamental Analysis
Market Cap ₹ 168,827 Cr.
Debt ₹ 121,986 Cr.
Sales growth 75.0 %
ROE 19.6 %
ROCE 16.8 %
Promoter holding 58.9 %
Stock P/E 3.59
Industry PE 18.1
6. DRREDDY
Dr. Reddy’s Laboratories is an Indian multinational pharmaceutical company located in Hyderabad, Telangana, India. The company was founded by Kallam Anji Reddy, who previously worked in the mentor institute Indian Drugs and Pharmaceuticals Limited.
Fundamental Analysis
Market Cap ₹ 71,014 Cr.
Debt ₹ 3,384 Cr
ROE 11.8 %
Sales growth 13.1 %
ROCE 14.5 %
Promoter holding 26.7 %
Stock P/E 32.6
Industry PE 22.4
7. Bajaj Auto
Bajaj Auto Limited is an Indian multinational automotive manufacturing company based in Pune. It manufactures motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the 1940s.
Fundamental Analysis
Market Cap ₹ 107,682 Cr.
Debt ₹ 123 Cr.
ROE 19.4 %
Sales growth 19.5 %
ROCE 23.9 %
Promoter holding 53.8 %
Stock P/E 19.5
Industry PE 25.5
8. TATA Consultancy Services (TCS)
Tata Consultancy Services (TCS) is an Indian multinational information technology (IT) services and consulting company with its headquarters in Mumbai. It is a part of the Tata Group and operates in 149 locations across 46 countries.
Fundamental Analysis
Market Cap ₹ 1,206,755 Cr.
Debt ₹ 7,818 Cr.
ROE 43.6 %
Sales growth 16.8 %
ROCE 54.9 %
Promoter holding 72.3 %
Stock P/E 31.5
Industry PE 24.5
9. Hindustan Unilever Limited (HUL)
Hindustan Unilever Limited (HUL) is a consumer goods company headquartered in Mumbai, India.[3] It is a subsidiary of Unilever, a British company. Its products include foods, beverages, cleaning agents, personal care products, water purifiers and other fast-moving consumer goods.
Fundamental Analysis
Market Cap ₹ 527,953 Cr.
Debt ₹ 1,043 Cr.
ROE 18.4 %
Sales growth 11.5 %
ROCE 24.4 %
Promoter holding 61.9 %
Stock P/E 60.7
Industry PE 59.0
10.ABBOTT INDIA
Abbott India Ltd is one of the leading multinational pharmaceutical companies in India and sells its products through independent distributors primarily within India.
Today we will discuss the best stocks for long term investment. These stocks can give you a better return. Don’t miss the chance just go & invest in these stocks. These stocks are fundamentally & technically strong stocks. Let’s analyze some best stocks for long term investment.
1.RELAXO FOOTWEARS
Relaxo Footwears Limited is an Indian multinational footwear manufacturer based in New Delhi. It is the largest footwear manufacturer in India in terms of volume and second-largest in terms of revenue.[4][5] The company makes products under 10 brands including Flite, Sparx, Bahamas and Schoolmate.
Market Cap ₹ 23,716 Cr.
Debt ₹ 174 Cr.
ROE 14.0 %
Sales growth 12.5 %
Promoter holding 70.8 %
Stock P/E 102
Industry PE 55.1
ROCE 18.0 %
2.ALKYLAMINE
Incorporated in 1979 by Mr Yogesh Kothari, Alkyl Amines is a leading manufacturer of aliphatic amines in India. Aliphatic amines are products derived from Ammonia (NH3) by displacement of H2 in the Ammonia molecule by other radicals (R) such as Methyl, Ethyl and Propyl.
Market Cap ₹ 13,531 Cr.
Debt ₹ 23.3 Cr.
ROE 25.2 %
Sales growth 24.2 %
Promoter holding 72.0 %
Stock P/E 60.2
Industry PE 22.1
ROCE 33.0 %
3.ULTRACEMCO
UltraTech Cement Limited is an Indian cement company based in Mumbai, and a part of Aditya Birla Group. UltraTech is the largest manufacturer of grey cement, ready-mix concrete (RMC) and white cement in India with an installed capacity of 116.75 million tonnes per annum. It is the only company in the world to have a capacity of over 100 million tonnes in a single country, outside of China.
“ A moving average is simply the average value of data over a specified time period, and it’s used to figure out whether the price of a stock or a commodity is trending up or down. Although simple to construct, moving averages are dynamic tools, because you can choose which data points and time periods to use to build them. For instance, you can choose to use the open, high, low, close or midpoint of a trading range and then study that moving average over a time period, ranging from tick data to monthly price data or longer.”
Moving Average (MA) is a stock indicator that is commonly used in technical analysis. Technical Analysis is more important than Fundamental Analysis. Moving Average is one of the most popular techniques. moving averages that are used in timing a financial market. These averages are employed to detect the direction of the stock price trend and identify turning points in the trend in real time.
Moving Average smooth the price data to form a trend- following Indicator. They do not predict price direction, but rather define the current direction with a lag. Moving Average is primarily the summary of momentum & trend. Moving average reduces the noise in the price and also helps to follow trends.
Popular Time Period Of Moving Average:
10 Period MA
20 Period MA
50 Period MA
200 Period MA
Moving Average COMBINATION:
This is the main calculation
Sr.No.
DAILY
WEEKLY
1
10 SMA
2 SMA
2
50 SMA
10 SMA
3
100 SMA
20 SMA
4
200 SAM
MOVING AVERAGE SETUP FOR:
DAILY INCOME TRADING (DIT)
I put 10 EMA, 21/20 SMA & 50 SMA on the daily chart.
If 10 below 20/21 below 50 I consider that stock is trading in the down trend & I focus on short trades.
If 50 below 20/21 below 10 I consider that stock is trading in the up trend & I focus on long traders.
Apply your strategy & take your trade accordingly.
TYPES OF MOVING AVERAGE:
The most popular type of moving averages are Simple moving average & Exponential moving average. These moving average uses for identifying the trend of the market.
a. SIMPLE MOVING AVERAGE
SMA is the easiest moving average to construct. The Simple Moving Average (SMA) is calculated by adding the price of an instrument over a number of time periods and then dividing the sum by the number of time periods. The SMA is basically the average price of the given time period, with equal weighting given to the price of each period. Most moving averages are based on closing prices
CALCULATING SIMPLE MOVING AVERAGE
Ifyou plotted a 5 period simple moving average on 1hour chart, you would add up the closing prices for the last 5 hours, then divide that number by 5.
Example:
A 5-day simple moving average is calculated by adding the closing prices for the last 5 days and dividing the total by 5. 10+ 11 + 12 + 13 + 14 = 60 (60 / 5) = 12
b. Exponential moving average
Exponential Moving Average can be specified in two ways- as a percent based EMA or as a period based EMA. A percent based EMA has a percentage as its single parameter. A period based EMA has parameters that represent the duration of the EMA.
CALCULATING EXPONENTIAL MOVING AVERAGE
EMA = K * (Current Price – Previous EMA) + Previous EMA
