One Thing Never to Do When the Stock Market Goes Down
*Don't panic. Have a strategy for different outcomes*
When the stock market goes down and the value of your portfolio decreases, it’s tempting to ask your financial advisor, “What should I do? Should I pull money out of the stock market?” That’s understandable but wrong. Instead, you should ask,
“What should I not do?
”The answer is simple: don’t panic. Panic selling is often people's first reaction when stocks are going down, leading to a drastic drop in the value of their hard-earned funds. It's important to know your risk tolerance and how it will affect the price fluctuations—called volatility—in your portfolio.
Investors can protect themselves from market risk by hedging their portfolio through diversification, which includes holding a wide variety of investments.
KEY TAKEAWAYS
*Knowing your risk tolerance level will help you to choose the right investments and avoid panicking during an economic downturn.
*Diversifying a portfolio with real estate, commodities, or precious metals, or hedging risk through some derivatives can mitigate some risk during market crashes.
*Experimenting with stock simulators (before investing real money) can provide insight into the market's volatility and your response to it.
*Don't panic. Have a strategy for different outcomes*
When the stock market goes down and the value of your portfolio decreases, it’s tempting to ask your financial advisor, “What should I do? Should I pull money out of the stock market?” That’s understandable but wrong. Instead, you should ask,
“What should I not do?
”The answer is simple: don’t panic. Panic selling is often people's first reaction when stocks are going down, leading to a drastic drop in the value of their hard-earned funds. It's important to know your risk tolerance and how it will affect the price fluctuations—called volatility—in your portfolio.
Investors can protect themselves from market risk by hedging their portfolio through diversification, which includes holding a wide variety of investments.
KEY TAKEAWAYS
*Knowing your risk tolerance level will help you to choose the right investments and avoid panicking during an economic downturn.
*Diversifying a portfolio with real estate, commodities, or precious metals, or hedging risk through some derivatives can mitigate some risk during market crashes.
*Experimenting with stock simulators (before investing real money) can provide insight into the market's volatility and your response to it.
*Foreign Institutional Investors are net sellers this week..
*Whereas Domestic Institutions like mutual funds and insurance companies are net buyers this week..
*Whereas Domestic Institutions like mutual funds and insurance companies are net buyers this week..
Secrets Of successful trading.
10 Steps to Mental Success
1.Stops – You must respect your stops. They compel you to take a minute and focus on where and why you went wrong.
2.Consistency – You must outline your strategy at the beginning and stick to it thereafter. Trust in your research and data.
3.Start small – Focus on big wins and you forget the importance of following the pattern. Over the long run, taking smaller positions will give you greater control. Then you can gradually increase your position size as your confidence grows.
4.Lifestyle – You must find a plan that fits around your lifestyle. Looking at 50 charts when you only have time for 5 is a guaranteed way to waste time and stress. Instead, concentrate on a few very good opportunities.
5.Noise reduction – It’s all too easy to get bogged down in huge volumes of microdata. Breathe for a minute and focus your energy on the overarching picture.
6.Realistic goals – This is one of the best trading secrets. Unrealistic profit targets will quickly lead to reckless decision making. So, set yourself small and realistic goals, particularly to start with.
7.Cutting losses – Going on autopilot and getting out is essential when threatened with big losses. So, prepare mentally and visualise that emergency exit. As Bruce Kovner highlighted, “if you personalise losses, you can’t trade.”
8.Learn from the best – Pick up books on developing discipline. The Disciplined Trader by Mark Douglas is a great place to start.
9.Trust yourself – Whilst chatrooms and forums can be useful, don’t allow yourself to be overly influenced. Spend too much time on them and you will quickly doubt your strategy when your capital is on the line.
10.Overall picture – Fix your bad habits and practice building that willpower in all aspects of life. You will then find staying neutral when you trade is far easier.
10 Steps to Mental Success
1.Stops – You must respect your stops. They compel you to take a minute and focus on where and why you went wrong.
2.Consistency – You must outline your strategy at the beginning and stick to it thereafter. Trust in your research and data.
3.Start small – Focus on big wins and you forget the importance of following the pattern. Over the long run, taking smaller positions will give you greater control. Then you can gradually increase your position size as your confidence grows.
4.Lifestyle – You must find a plan that fits around your lifestyle. Looking at 50 charts when you only have time for 5 is a guaranteed way to waste time and stress. Instead, concentrate on a few very good opportunities.
5.Noise reduction – It’s all too easy to get bogged down in huge volumes of microdata. Breathe for a minute and focus your energy on the overarching picture.
6.Realistic goals – This is one of the best trading secrets. Unrealistic profit targets will quickly lead to reckless decision making. So, set yourself small and realistic goals, particularly to start with.
7.Cutting losses – Going on autopilot and getting out is essential when threatened with big losses. So, prepare mentally and visualise that emergency exit. As Bruce Kovner highlighted, “if you personalise losses, you can’t trade.”
8.Learn from the best – Pick up books on developing discipline. The Disciplined Trader by Mark Douglas is a great place to start.
9.Trust yourself – Whilst chatrooms and forums can be useful, don’t allow yourself to be overly influenced. Spend too much time on them and you will quickly doubt your strategy when your capital is on the line.
10.Overall picture – Fix your bad habits and practice building that willpower in all aspects of life. You will then find staying neutral when you trade is far easier.
Some Important News Events in Stock Market
• Bank of Maharashtra: The board will consider raising capital by issuing Basel III bonds either through a follow-on public offer, rights issue, qualified institutional placement, preferential issue or a combination of these. The board will meet on April 29 to consider the proposal.
• Tata Motors: Company says lockdown in various parts of the country is expected to hit vehicle demand temporarily. The automaker said it will ensure optimal inventory levels by calibrating supplies with retail demand and also be prepared for a rebound in case of a return to normalcy. The company will also review and plan for the critical raw materials to cater to this volatile demand outlook.
• Sagar Cements: Board of Directors have approved a proposal to merge a wholly-owned subsidiary--Sagar Cements (R) Ltd.--with itself. SCRL has cement manufacturing and power generation facilities in Andhra Pradesh. The merger will not involve any fresh issuance of shares. The company said the merger will help in enhancing the scale of operations, reduce legal and regulatory compliance and lead to lower costs.
• Tech Mahindra: Board has approved a proposal for the acquisition of a 100% stake in Eventus Solutions Group LLC through its wholly-owned U.S. subsidiary for up to $44 million including earnouts. The transaction is expected to close by June 15, 2021.
• SAIL: The Bhilai steel mill will undertake a short shutdown to boost liquid oxygen supply in the country. The company said the closure will boost oxygen supply by 15 tonnes and will not affect dispatches. The steel ministry has also issued similar directives to other government-owned mills. (Bloomberg).
• Union Bank of India: Board of the bank will meet on April 29 to consider an extension of the validity of its fundraising plan for FY21.
• Reliance Home Finance: Company has defaulted on interest payments on term loans to Canara Bank and Dena Bank amounting to Rs 0.86 crore. The housing financier had borrowed, for a tenure of five years, Rs 300 crore from Canara Bank at 10% per annum and Rs 200 crore from Dena Bank at 9.2% per annum. The company said a delay in servicing debt is due to prohibition to dispose of any assets based on a Delhi High Court order.
• Shalby: Offer for sale by promoter Shah Family Trust has been subscribed 193% by non-retail investors on the first day of the issue. Promoters plan to sell up to 58.1 lakh equity shares, or a 5.38% stake, at a floor price of Rs 111 per share. The issue will continue on April 27.
• Federal-Mogul Goetze: Offer for sale gets subscribed 395% by non-retail investors on the first day. Promoter IEH FMGI Holdings LLC plans to sell up to 55.4 lakh equity shares, or a 9.95% stake, a floor price of Rs 250 per share.
• Hathway Cable and Datacom: Offer for sale gets subscribed 151% by non-retail investors on the first day. Three promoters--Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings--plan to sell up to 20.5 crore shares of the company, representing an 11.6% stake, at a floor price of Rs 21.5 apiece.
• Nifty Company's that are going to declare Earnings: Axis Bank, Maruti Suzuki India, Britannia Industries, Bajaj Finance
• Non-Nifty Companies that are going to declare Earnings: ABB India, Gateway Distriparks, Hatsun Agro Product, HDFC Asset Management Company, Hindustan Zinc, JTL Infra, Moschip Technologies, Nippon Life India Asset Management, PNB Housing Finance, Sanofi India, Symphony, Syngene International, Tata Investment Corporation, TVS Motor Company, United Breweries, Vesuvius India, VST Industries
• Bank of Maharashtra: The board will consider raising capital by issuing Basel III bonds either through a follow-on public offer, rights issue, qualified institutional placement, preferential issue or a combination of these. The board will meet on April 29 to consider the proposal.
• Tata Motors: Company says lockdown in various parts of the country is expected to hit vehicle demand temporarily. The automaker said it will ensure optimal inventory levels by calibrating supplies with retail demand and also be prepared for a rebound in case of a return to normalcy. The company will also review and plan for the critical raw materials to cater to this volatile demand outlook.
• Sagar Cements: Board of Directors have approved a proposal to merge a wholly-owned subsidiary--Sagar Cements (R) Ltd.--with itself. SCRL has cement manufacturing and power generation facilities in Andhra Pradesh. The merger will not involve any fresh issuance of shares. The company said the merger will help in enhancing the scale of operations, reduce legal and regulatory compliance and lead to lower costs.
• Tech Mahindra: Board has approved a proposal for the acquisition of a 100% stake in Eventus Solutions Group LLC through its wholly-owned U.S. subsidiary for up to $44 million including earnouts. The transaction is expected to close by June 15, 2021.
• SAIL: The Bhilai steel mill will undertake a short shutdown to boost liquid oxygen supply in the country. The company said the closure will boost oxygen supply by 15 tonnes and will not affect dispatches. The steel ministry has also issued similar directives to other government-owned mills. (Bloomberg).
• Union Bank of India: Board of the bank will meet on April 29 to consider an extension of the validity of its fundraising plan for FY21.
• Reliance Home Finance: Company has defaulted on interest payments on term loans to Canara Bank and Dena Bank amounting to Rs 0.86 crore. The housing financier had borrowed, for a tenure of five years, Rs 300 crore from Canara Bank at 10% per annum and Rs 200 crore from Dena Bank at 9.2% per annum. The company said a delay in servicing debt is due to prohibition to dispose of any assets based on a Delhi High Court order.
• Shalby: Offer for sale by promoter Shah Family Trust has been subscribed 193% by non-retail investors on the first day of the issue. Promoters plan to sell up to 58.1 lakh equity shares, or a 5.38% stake, at a floor price of Rs 111 per share. The issue will continue on April 27.
• Federal-Mogul Goetze: Offer for sale gets subscribed 395% by non-retail investors on the first day. Promoter IEH FMGI Holdings LLC plans to sell up to 55.4 lakh equity shares, or a 9.95% stake, a floor price of Rs 250 per share.
• Hathway Cable and Datacom: Offer for sale gets subscribed 151% by non-retail investors on the first day. Three promoters--Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings--plan to sell up to 20.5 crore shares of the company, representing an 11.6% stake, at a floor price of Rs 21.5 apiece.
• Nifty Company's that are going to declare Earnings: Axis Bank, Maruti Suzuki India, Britannia Industries, Bajaj Finance
• Non-Nifty Companies that are going to declare Earnings: ABB India, Gateway Distriparks, Hatsun Agro Product, HDFC Asset Management Company, Hindustan Zinc, JTL Infra, Moschip Technologies, Nippon Life India Asset Management, PNB Housing Finance, Sanofi India, Symphony, Syngene International, Tata Investment Corporation, TVS Motor Company, United Breweries, Vesuvius India, VST Industries
Financial result
Axis Bank Q4FY21
• Net Profit at Rs 2,677 crore Vs Net loss of Rs 1,388 crore (Bloomberg Estimate: Rs 1,912 crore)
• NII up 11% Rs 7,555 crore Vs Rs 6,808 crore (Bloomberg Estimate: Rs 7,011 crore)
• GNPA at 3.7% Vs 4.55% (QoQ)
• NNPA at 1.5% Vs 1.19% (QoQ)
• Restructured loans worth Rs 844.6 crore under a one-time restructuring scheme of the RBI
• Fresh slippages at Rs 5,285 crore
• Recoveries and upgrades at Rs 3,642 crore
• Write-offs at Rs 5,553 crore
• Provision coverage ratio (including write-offs) at 88%
Bajaj Finance Q4FY21 (Consolidated, YoY)
• Net profit up 42% at Rs 1,346.64 crore Vs Rs 948 crore
• Revenue down 5.2% at Rs 6,850.62 crore Vs Rs 7,226.55 crore
• NII down 2.4% at Rs 4,569 crore Vs Rs 4,684 crore
• GNPA at 1.79% vs 2.86% (QoQ)
• NNPA at 0.75% vs 1.22% (QoQ)
• AUM up 3.9% at Rs 1,52,947 crore Vs Rs 1,47,200 crore
Britannia Industries Q4FY21 (Consolidated, YoY)
• Revenues up 9% at Rs 3,130.75 crore Vs Rs 2,867.70 crore (Bloomberg Estimate: Rs 3,109.2 crore)
• Net profit down 3% at Rs 364.32 crore Vs Rs 374.75 crore (Bloomberg Estimate: Rs 416.9 crore)
• Ebitda up 11% at Rs 505.39 crore Vs Rs 454.28 crore (Bloomberg Estimate: Rs 564.8 crore)
• Margins at 16.1% Vs 15.8% (Bloomberg Estimate: 18.16%)
United Breweries Q4FY21 (Consolidated, YoY)
• Revenue up 17% at Rs 3,618.09 crore Vs Rs 3,099.91 crore
• Net profit up 133% at Rs 97.53 crore Vs Rs 41.82 crore
• Ebitda up 97% at Rs 262.30 crore Vs Rs 133.02 crore
• Ebitda Margins at 7.2% Vs 4.3%
• Q4 volumes up 9%
• Gross margin during the quarter were higher by 109 basis points on account of higher revenues due to price increases and better state-mix.
• Has recommended a dividend of 50 paise per share for FY21
TVS Motor Q4FY21 (Standalone, YoY)
• Revenue up 53% at Rs 5,321.93 crore Vs Rs 3,481.42 crore
• Net profit at Rs 289.24 crore Vs Rs 73.87 crore
• Ebitda up 119% at Rs 536.11 crore Vs Rs 244.85 crore
• Ebitda margin at 10.1% Vs 7%
Nippon India Life AMC Q4FY21 (Consolidated, YoY)
• Revenue up 10% at Rs 301.90 crore Vs Rs 274.50 crore
• Net profit at Rs 166.77 crore Vs Rs 3.72 crore
• Assets under management at Rs 3.55 lakh crore
• Share of equity assets as % of AUM rose to 40.6% from 39.1 (QoQ)
• Has recommended a final dividend of Rs 5 per share
HDFC AMC Q4FY21 (YoY)
• Revenue up 6% at Rs 502.93 crore Vs Rs 476.13 crore
• Net profit up 27% at Rs 316.08 crore Vs Rs 249.83 crore
• Quarterly Average AUM up 12% at Rs 4.15 lakh crore Vs Rs 3.69 lakh crore
• Number of live individual accounts down 5% at 8.86 million Vs 9.34 million
• Has recommended a dividend of Rs 34 per share for FY21
Axis Bank Q4FY21
• Net Profit at Rs 2,677 crore Vs Net loss of Rs 1,388 crore (Bloomberg Estimate: Rs 1,912 crore)
• NII up 11% Rs 7,555 crore Vs Rs 6,808 crore (Bloomberg Estimate: Rs 7,011 crore)
• GNPA at 3.7% Vs 4.55% (QoQ)
• NNPA at 1.5% Vs 1.19% (QoQ)
• Restructured loans worth Rs 844.6 crore under a one-time restructuring scheme of the RBI
• Fresh slippages at Rs 5,285 crore
• Recoveries and upgrades at Rs 3,642 crore
• Write-offs at Rs 5,553 crore
• Provision coverage ratio (including write-offs) at 88%
Bajaj Finance Q4FY21 (Consolidated, YoY)
• Net profit up 42% at Rs 1,346.64 crore Vs Rs 948 crore
• Revenue down 5.2% at Rs 6,850.62 crore Vs Rs 7,226.55 crore
• NII down 2.4% at Rs 4,569 crore Vs Rs 4,684 crore
• GNPA at 1.79% vs 2.86% (QoQ)
• NNPA at 0.75% vs 1.22% (QoQ)
• AUM up 3.9% at Rs 1,52,947 crore Vs Rs 1,47,200 crore
Britannia Industries Q4FY21 (Consolidated, YoY)
• Revenues up 9% at Rs 3,130.75 crore Vs Rs 2,867.70 crore (Bloomberg Estimate: Rs 3,109.2 crore)
• Net profit down 3% at Rs 364.32 crore Vs Rs 374.75 crore (Bloomberg Estimate: Rs 416.9 crore)
• Ebitda up 11% at Rs 505.39 crore Vs Rs 454.28 crore (Bloomberg Estimate: Rs 564.8 crore)
• Margins at 16.1% Vs 15.8% (Bloomberg Estimate: 18.16%)
United Breweries Q4FY21 (Consolidated, YoY)
• Revenue up 17% at Rs 3,618.09 crore Vs Rs 3,099.91 crore
• Net profit up 133% at Rs 97.53 crore Vs Rs 41.82 crore
• Ebitda up 97% at Rs 262.30 crore Vs Rs 133.02 crore
• Ebitda Margins at 7.2% Vs 4.3%
• Q4 volumes up 9%
• Gross margin during the quarter were higher by 109 basis points on account of higher revenues due to price increases and better state-mix.
• Has recommended a dividend of 50 paise per share for FY21
TVS Motor Q4FY21 (Standalone, YoY)
• Revenue up 53% at Rs 5,321.93 crore Vs Rs 3,481.42 crore
• Net profit at Rs 289.24 crore Vs Rs 73.87 crore
• Ebitda up 119% at Rs 536.11 crore Vs Rs 244.85 crore
• Ebitda margin at 10.1% Vs 7%
Nippon India Life AMC Q4FY21 (Consolidated, YoY)
• Revenue up 10% at Rs 301.90 crore Vs Rs 274.50 crore
• Net profit at Rs 166.77 crore Vs Rs 3.72 crore
• Assets under management at Rs 3.55 lakh crore
• Share of equity assets as % of AUM rose to 40.6% from 39.1 (QoQ)
• Has recommended a final dividend of Rs 5 per share
HDFC AMC Q4FY21 (YoY)
• Revenue up 6% at Rs 502.93 crore Vs Rs 476.13 crore
• Net profit up 27% at Rs 316.08 crore Vs Rs 249.83 crore
• Quarterly Average AUM up 12% at Rs 4.15 lakh crore Vs Rs 3.69 lakh crore
• Number of live individual accounts down 5% at 8.86 million Vs 9.34 million
• Has recommended a dividend of Rs 34 per share for FY21
Stocks To Watch
• Adani Enterprises: Board to meet on May 5 to consider renewing enabling limit for raising funds by issue of equity shares, convertible bonds through QIP, GDR, ADR, FCCBs, FCEBs, convertible securities.
• Affle (India): Board has approved the opening of QIP of equity shares of face value of Rs 10 each from April 28. The floor price for the issue is Rs 5,422.94 per equity share. Further, a meeting of the Fund Raising Committee will be held on or after May 4 to consider and approve the issue price.
• Dishman Carbogen Amcis: The company’s wholly-owned subsidiary, Carbogen Amcis AG., Switzerland has entered into a co-investment agreement of more than CHF 15 million with a Japan-based key client to build a site extension at its Bubendorf site in Switzerland.
• Indiamart Intermesh: The company through its wholly-owned subsidiary, Tradezeal Online, will acquire 26% of the share capital of Shipway Technology, and 3.02% of the share capital of Truckhall in addition to 22% of the share capital already held by it. The wholly-owned subsidiary will acquire 100 shares and 4,088 Compulsorily Convertible Preference Shares of Shipway Technology at Rs 18.20 crore and will purchase 1,779 shares of Truckhall for Rs 1.33 crore.
• ONGC: Intends to invite foreign companies as strategic partners to explore new areas, and develop discovered fields in India. The company is aggressively pursuing deepwater, shallow water projects on the east and west coast, despite uneconomical gas prices. It plans to acquire much larger acreage through new auction rounds. ONGC has formed separate gas vertical to increase activities in the gas sector and is also augmenting its renewable portfolio. The company wants to concentrate on areas where the expected risk-reward payoff offers better business opportunities for growth. Further, the ONGC Videsh consortium has put the LNG project in Mozambique on hold due to force majeure.
• RattanIndia: To invest Rs 150 crore in electric vehicle maker Revolt Intellicorp. The company has acquired a 33.3% stake in Revolt and will see its stake increasing to 43% after the conversion of warrants. Revolt, which makes electric motorcycles, will deploy the capital to expand the distributor and service network across 35 cities in India. As part of the deal, RattanIndia will have a 50% board presence in Revolt Intellicorp; its Chairman Rajiv Rattan will be the chairman of the board of Revolt. The deal is likely to be completed in 18 months.
Non-Nifty Earnings: Ambuja Cements, Zensar Technologies, AAVAS Financiers, Aptech, Agro Tech Foods, AU Small Finance Bank, Bajaj Holdings & Investment, Cigniti Technologies, Coromandel International, Dalmia Bharat, Embassy Office Parks REIT, Equitas Small Finance Bank, Exide Industries, Indiamart Intermesh, Inox Leisure, Kirloskar Pneumatic Co, L&T Finance Holdings, Laurus Labs, Mahindra CIE Automotive, Mahindra Logistics, Motilal Oswal Financial Services, Persistent Systems, Rain Industries, Shriram Transport Finance Co, Sterlite Technologies, Tata Coffee
• Adani Enterprises: Board to meet on May 5 to consider renewing enabling limit for raising funds by issue of equity shares, convertible bonds through QIP, GDR, ADR, FCCBs, FCEBs, convertible securities.
• Affle (India): Board has approved the opening of QIP of equity shares of face value of Rs 10 each from April 28. The floor price for the issue is Rs 5,422.94 per equity share. Further, a meeting of the Fund Raising Committee will be held on or after May 4 to consider and approve the issue price.
• Dishman Carbogen Amcis: The company’s wholly-owned subsidiary, Carbogen Amcis AG., Switzerland has entered into a co-investment agreement of more than CHF 15 million with a Japan-based key client to build a site extension at its Bubendorf site in Switzerland.
• Indiamart Intermesh: The company through its wholly-owned subsidiary, Tradezeal Online, will acquire 26% of the share capital of Shipway Technology, and 3.02% of the share capital of Truckhall in addition to 22% of the share capital already held by it. The wholly-owned subsidiary will acquire 100 shares and 4,088 Compulsorily Convertible Preference Shares of Shipway Technology at Rs 18.20 crore and will purchase 1,779 shares of Truckhall for Rs 1.33 crore.
• ONGC: Intends to invite foreign companies as strategic partners to explore new areas, and develop discovered fields in India. The company is aggressively pursuing deepwater, shallow water projects on the east and west coast, despite uneconomical gas prices. It plans to acquire much larger acreage through new auction rounds. ONGC has formed separate gas vertical to increase activities in the gas sector and is also augmenting its renewable portfolio. The company wants to concentrate on areas where the expected risk-reward payoff offers better business opportunities for growth. Further, the ONGC Videsh consortium has put the LNG project in Mozambique on hold due to force majeure.
• RattanIndia: To invest Rs 150 crore in electric vehicle maker Revolt Intellicorp. The company has acquired a 33.3% stake in Revolt and will see its stake increasing to 43% after the conversion of warrants. Revolt, which makes electric motorcycles, will deploy the capital to expand the distributor and service network across 35 cities in India. As part of the deal, RattanIndia will have a 50% board presence in Revolt Intellicorp; its Chairman Rajiv Rattan will be the chairman of the board of Revolt. The deal is likely to be completed in 18 months.
Non-Nifty Earnings: Ambuja Cements, Zensar Technologies, AAVAS Financiers, Aptech, Agro Tech Foods, AU Small Finance Bank, Bajaj Holdings & Investment, Cigniti Technologies, Coromandel International, Dalmia Bharat, Embassy Office Parks REIT, Equitas Small Finance Bank, Exide Industries, Indiamart Intermesh, Inox Leisure, Kirloskar Pneumatic Co, L&T Finance Holdings, Laurus Labs, Mahindra CIE Automotive, Mahindra Logistics, Motilal Oswal Financial Services, Persistent Systems, Rain Industries, Shriram Transport Finance Co, Sterlite Technologies, Tata Coffee