Word of the Day
Marginal Standing Facility
It is a facility for banks to borrow money from the RBI in an emergency
Normally, banks borrow money from the RBI at the repo rate. They then use this money to give loans to the public.
If a bank has less money than required to run operations or give loans, it tries to borrow money from other banks through overnight and short-term loans, which are known as inter-bank loans.
Let’s say a bank is unable to get an inter-bank loan to manage its cash crunch. It will now ask the RBI for an overnight loan using the Marginal Standing Facility (or MSF).
Such loans have a higher interest rate than the repo rate. For example, if the repo rate is 6.25%, the MSF rate will be around 6.50%.
Marginal Standing Facility
It is a facility for banks to borrow money from the RBI in an emergency
Normally, banks borrow money from the RBI at the repo rate. They then use this money to give loans to the public.
If a bank has less money than required to run operations or give loans, it tries to borrow money from other banks through overnight and short-term loans, which are known as inter-bank loans.
Let’s say a bank is unable to get an inter-bank loan to manage its cash crunch. It will now ask the RBI for an overnight loan using the Marginal Standing Facility (or MSF).
Such loans have a higher interest rate than the repo rate. For example, if the repo rate is 6.25%, the MSF rate will be around 6.50%.
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🚨Again repeating 2025 will be tough
Do not blame FII/S naren /finance minister or govt for current Fall
Its Stockmarket Cycle ...
Valuation War
Nothing Else ..
This phase Teaches a lot to New Traders/investor.
Position sizing/Risk management/Valuation checklist before buying is must ✅
Hope my alert helps 🙏
Link:
https://x.com/Stockstudy8/status/1870060506553241698?t=iBy_mYxEg-ZOkV3Wz7kfGA&s=19
Do not blame FII/S naren /finance minister or govt for current Fall
Its Stockmarket Cycle ...
Valuation War
Nothing Else ..
This phase Teaches a lot to New Traders/investor.
Position sizing/Risk management/Valuation checklist before buying is must ✅
Hope my alert helps 🙏
Link:
https://x.com/Stockstudy8/status/1870060506553241698?t=iBy_mYxEg-ZOkV3Wz7kfGA&s=19
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Learning New Skills in village 🤪
https://x.com/Stockstudy8/status/1890976751452348924?t=VWbVKixj6mbwgr7tCuAAgw&s=19
https://x.com/Stockstudy8/status/1890976751452348924?t=VWbVKixj6mbwgr7tCuAAgw&s=19
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Word of the Day
NCDs
It is the money that a company borrows from investors with a fixed interest rate
It stands for Non-Convertible Debentures.
It is a debt instrument — meaning the company does not give any shares for the money invested.
It is called ‘non-convertible’ because the loan can’t be converted into shares of the company.
The other kind is called 'convertible debentures' — this investment can be converted into shares.
Example: a company ABC wants to raise Rs 100 crore to expand its business. Instead of issuing shares to the investors (which would dilute ownership), it issues NCDs at a 9% interest rate for 5 years.
There are 2 types of NCDs:
-Secured NCDs: the company backs these loans with some assets as collateral for the money invested — less risky.
-Unsecured NCDs: not backed by collateral for the invested money — considered riskier than the secured NCDs.
NCDs
It is the money that a company borrows from investors with a fixed interest rate
It stands for Non-Convertible Debentures.
It is a debt instrument — meaning the company does not give any shares for the money invested.
It is called ‘non-convertible’ because the loan can’t be converted into shares of the company.
The other kind is called 'convertible debentures' — this investment can be converted into shares.
Example: a company ABC wants to raise Rs 100 crore to expand its business. Instead of issuing shares to the investors (which would dilute ownership), it issues NCDs at a 9% interest rate for 5 years.
There are 2 types of NCDs:
-Secured NCDs: the company backs these loans with some assets as collateral for the money invested — less risky.
-Unsecured NCDs: not backed by collateral for the invested money — considered riskier than the secured NCDs.
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Smallcap Index Todays Tested 100SMA : 15040
100sma:15230
20th December smallcap closed at 18700 today 15040 dwn -20%
Now bounce or relief for 3-6weeks then Journey towards 200 weekly sma
Link:
https://x.com/Stockstudy8/status/1891843468202320153?t=RbkGSF70w29gHfXJ38TP3Q&s=19
100sma:15230
20th December smallcap closed at 18700 today 15040 dwn -20%
Now bounce or relief for 3-6weeks then Journey towards 200 weekly sma
Link:
https://x.com/Stockstudy8/status/1891843468202320153?t=RbkGSF70w29gHfXJ38TP3Q&s=19
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Word of the Day
Commercial Paper
A type of unsecured & short-term debt instrument used by companies to borrow for their urgent cash requirements, like employee salaries, vendor’s payout, etc.
A commercial paper's maturity or debt-repayment period ranges from 15 days to 1 year.
Only companies with a good credit rating and a net worth of at least Rs 4 crore can raise money via commercial papers in India.
Any investor can invest in a commercial paper with a minimum amount of Rs 5 lakh.
Hence, it is generally bought by institutional buyers or high-net-worth individuals.
Commercial Paper
A type of unsecured & short-term debt instrument used by companies to borrow for their urgent cash requirements, like employee salaries, vendor’s payout, etc.
A commercial paper's maturity or debt-repayment period ranges from 15 days to 1 year.
Only companies with a good credit rating and a net worth of at least Rs 4 crore can raise money via commercial papers in India.
Any investor can invest in a commercial paper with a minimum amount of Rs 5 lakh.
Hence, it is generally bought by institutional buyers or high-net-worth individuals.
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https://x.com/Stockstudy8/status/1895498492992438666?t=NzECFCqmcFDLoHh-PETBKQ&s=35
#NiftyEnergy very near to 200weeklySMA
Cmp 30018
200 weekly sma = 29019
First Index To Touch 200Wsma
#stockmarketsindia
#NiftyEnergy very near to 200weeklySMA
Cmp 30018
200 weekly sma = 29019
First Index To Touch 200Wsma
#stockmarketsindia
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Follow the Stockstudy8 RSP channel on WhatsApp: https://whatsapp.com/channel/0029Va4d4Z44inojHTHRJc1C
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Word of the Day
Disinvestment
It is the withdrawal of an investment
It is when the government or an organisation sells its stake in a business.
This can be done by liquidating assets or a subsidiary.
Disinvestment can be partial or full, depending on how much stake is sold.
Governments disinvest to reduce debt, raise funds, and encourage private sector participation.
Example: the Indian government sold its stake in Air India to Tata Group in 2021.
Disinvestment
It is the withdrawal of an investment
It is when the government or an organisation sells its stake in a business.
This can be done by liquidating assets or a subsidiary.
Disinvestment can be partial or full, depending on how much stake is sold.
Governments disinvest to reduce debt, raise funds, and encourage private sector participation.
Example: the Indian government sold its stake in Air India to Tata Group in 2021.
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