In today's digital age, where financial transactions are conducted online, it is crucial to safeguard your demat account from potential fraud. As a stockbroker company, we understand the importance of protecting your investments and ensuring the security of your demat account. In this blog, we will provide you with valuable insights and practical tips on how to protect your demat account from fraud. Let's dive in!
Protecting your demat account from fraud is essential for safeguarding your investments and financial well-being. By following these simple yet effective tips, you can significantly reduce the risk of falling victim to fraudulent activities. Stay vigilant, be proactive, and regularly update your knowledge about demat account security. Remember, your financial security is in your hands!
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Startup Funding is an essential part of building a successful new business. It provides the necessary capital to develop and grow the business and can help turn a great idea into a profitable and sustainable company.
Startup funding is typically used to cover expenses such as product development, marketing, hiring, and office space. Depending on the stage of the business, the amount of funding needed can vary significantly.
Startups require funding to turn their ideas into reality, attract and retain talent, market and sell their products, expand their business, cover operational costs, and compete with established players in their industry.
Funding is required by startups for several reasons:
Here are the common stages of startups and the corresponding sources of funding:
In addition to the sources of funding mentioned earlier, startups can also explore other financing options such as debt financing, lines of credit, and revenue-based financing. It's important for startups to choose the right source of funding that aligns with their growth stage and long-term goals.
Here are the steps to obtain startup funding in India:
Investors typically look for certain key factors when considering investing in startups. Here are some of the main things that investors look for:
Here are some key points on why investors invest in startups:
There are several government schemes available for startups in India in 2023. Some of the well-known schemes are listed below:
1. Startup India: The Startup India scheme was started in 2016 with the aim of encouraging innovation and entrepreneurship in the country. It provides funding, mentorship, and other resources to startups to help in the growth of their businesses.
2. Atal Innovation Mission: The Atal Innovation Mission was started in 2016 with the goal of encouraging innovation and entrepreneurship among young people in India. Young entrepreneurs can find funding, mentorship, and other resources from that.
3. Pradhan Mantri Mudra Yojana: Pradhan Mantri Mudra Yojana was launched in 2015 to provide funding to small and micro enterprises in the country. It offers loans of up to Rs. 10 lakhs to support the establishment and growth of businesses.
4. MSME Sambandh Portal: The Ministry of Micro, Small, and Medium Enterprises has launched an online portal called MSME Sambandh, which aims to provide easy access to information about government schemes and services for MSMEs.
5. Credit Guarantee Fund Scheme for Micro and Small Enterprises: This scheme aims to provide collateral-free credit to MSMEs by guaranteeing loans provided by banks and financial institutions.
6. National Small Industries Corporation Subsidy: The National Small Industries Corporation provides various subsidies and schemes to MSMEs, including a marketing assistance scheme, a credit support scheme, and a raw material assistance scheme.
7. Technology Upgradation Fund Scheme: This scheme provides financial assistance to MSMEs for upgrading their technology and machinery.
10. National Manufacturing Competitiveness Programme: This programme aims to enhance the competitiveness of Indian manufacturing industries by providing funding and support for various activities, such as quality improvement, technology upgradation, and marketing.
11. Digital India: The Digital India initiative aims to transform India into a digitally empowered society and knowledge economy. It provides various schemes and initiatives to promote digital literacy, e-governance, and digital infrastructure development.
These are just a few of the government schemes available for startups in India. You can visit the Startup India website or speak to a business advisor to learn more about these schemes and how to apply for them.
Government startup rules vary by country, but here are some common examples of regulations and policies that governments may implement to support and regulate startups:
Investing in the stock market can be a great way to grow your wealth and secure your financial future. But before you start investing, it's important to understand the different types of investors in the stock market. Knowing the different types of investors can help you make better investment decisions and achieve your financial goals.
Retail investors are individual investors who invest in the stock market. These investors typically invest smaller amounts of money Retail investors may invest through online trading platforms or through a dealer with a broker.
Institutional investors are large organizations that invest in the stock market. These organizations include mutual funds, pension funds, insurance companies, pension funds etc. Institutional investors typically invest large sums of money and have professional investment managers who make investment decisions on behalf of the organization.
Hedge funds are pool funds of investors. These funds are managed by professional fund managers and they use risky management strategy for buying and selling securities. Investors who invest in hedge funds are called hedge fund investors.
Day traders are investors who buy and sell stocks within the same trading day. Day traders typically use technical analysis and charting tools to identify short-term price movements in the market. Day traders may invest through online trading platforms or through a dealer with a stock broker.
Swing traders are investors who hold onto stocks for a few days to a few weeks. Swing traders typically use a combination of technical analysis and fundamental analysis to identify stocks with short-term price momentum. Swing traders may invest through online trading platforms or through a dealer with a stockbroker.
Index fund investors are investors who invest in index funds. Index funds are mutual funds or exchange-traded funds (ETFs) that track a specific market index, such as the S&P 500. Index fund investors typically invest in index funds to achieve diversification and to minimize their investment costs.
ESG investors are investors who invest in companies that prioritize environmental, social, and governance (ESG) factors. ESG investors typically use a combination of financial analysis and non-financial analysis to identify companies that are socially responsible and have a positive impact on the environment and society.
High Net Worth Individuals (HNIs) are individuals with a significant amount of wealth, widely defined in India investible surplus of more than Rs.5 crores. HNIs are an important segment of investors in the financial market, and their investment decisions can have a significant impact on the market. HNIs have a wide range of investment options available to them, including stocks, bonds, real estate, alternative investments, and private equity.
Domestic Institutional Investors (DIIs) are institutional investors that operate within a country's borders and are involved in investing in financial markets. DIIs include entities such as mutual funds, insurance companies, pension funds, and banks. DIIs are important players in the Indian stock market and contribute significantly to the liquidity of the market. They are subject to regulations and guidelines set by regulatory bodies such as the Securities and Exchange Board of India (SEBI). DIIs play a vital role in providing stability to the market and creating a balance in the demand and supply of securities.
Foreign Institutional Investors (FIIs) or Foreign Portfolio Investors (FPI) are institutional investors from outside a country that invest in financial markets within that country. FIIs/FPIs include hedge funds, pension funds, sovereign wealth funds, and other institutional investors. They bring in foreign capital to the domestic market, which helps in boosting liquidity and improving the overall performance of the market. FIIs/FPIs are subject to regulatory guidelines set by the regulatory authorities of the country where they are investing. They play a crucial role in the growth and development of the domestic market by bringing in foreign investment and expertise.
The first way to categorize investors is based on their investment category. There are three main categories of investors:
Equity investors buy shares in companies in the hope of earning a return on their investment through dividends or capital gains. They invest in stocks, which can be highly volatile but also have the potential for high returns over the long term.
Fixed-income investors invest in debt securities such as bonds, which provide a steady income stream in the form of interest payments. Bonds are generally considered less risky than stocks, but they also offer lower returns.
Alternative investors invest in assets that are not traditional stocks or bonds, such as real estate, commodities, or hedge funds. These investments can be highly specialized and often require a high degree of expertise to understand and evaluate. Alternative investments can offer diversification benefits and potentially higher returns, but they are also typically riskier than traditional investments.
Investors can also be grouped based on their investment style. There are three main investment styles:
Value investors look for undervalued stocks that are trading below their intrinsic value. They seek out companies with strong fundamentals and a margin of safety, and they aim to buy stocks at a discount to their true value. Value investors tend to have a long-term investment horizon and are willing to hold stocks for years or even decades.
Growth investors focus on companies that are growing quickly and have high earnings potential. They seek out companies with strong growth prospects and are willing to pay a premium for these stocks. Growth investors tend to have a shorter investment horizon than value investors and are more focused on short-term earnings growth.
Passive investors take a more hands-off approach to investing and seek to match the performance of a broad market index, such as the S&P 500. They achieve this by investing in index funds or exchange-traded funds (ETFs) that track the performance of the index. Passive investors tend to have a lower risk tolerance and a longer investment horizon than active investors.
Finally, investors can also be grouped based on their risk appetite. There are three main types of investors based on their risk tolerance:
Conservative investors prioritize capital preservation over high returns. They are willing to accept lower returns in exchange for lower risk and are more likely to invest in fixed-income securities such as bonds. Conservative investors tend to have a shorter investment horizon and are more concerned with avoiding losses than maximizing gains.
Moderate investors seek a balance between risk and return. They are willing to accept some degree of risk in exchange for the potential for higher returns, but they also prioritize capital preservation. Moderate investors tend to have a longer investment horizon than conservative investors and are more focused on building wealth over the long term.
Aggressive investors prioritize high returns over capital preservation. They are willing to take on higher levels of risk in exchange for the potential for higher returns and are more likely to invest in equities or alternative investments. Aggressive investors tend to have a longer investment horizon than moderate or conservative investors and are more focused on achieving their financial goals than on avoiding losses.
There are many different types of investors in the stock market, each with their own investment strategies and goals. Whether you are a retail investor or an institutional investor, it's important to understand the different types of investors and to choose an investment strategy that aligns with your financial goals and risk tolerance.
Governor Shaktikanta Das announced the Monetary Policy Committee's (MPC) decision on the RBI. Here are the Key RBI MPC Highlights
“Never lose your faith in the destiny of India.”
- Governor Shaktikanta Das
1. RBI MPC raise the repo rate by 25 basis points to 6.50% on Wednesday.
2. The Governor says that while inflation is expected to moderate in FY24 it will rule above the 4% target-
The Governor of the Reserve Bank of India (RBI) has stated that although inflation is expected to decrease in financial year 24, it may still exceed the target of 4%. The International Monetary Fund (IMF) has also revised its global growth projections for the years 2022 and 2023, indicating an upward trend.
3. The Governor says the Indian economy remains resilient.-
The Reserve Bank of India (RBI) governor reported that capacity utilization increased to 74.5% in the second quarter, indicating positive growth in the private sector. Investment activity continues to show improvement, with non-food bank credit growing by 16.7% as of January 27, 2023, and robust growth in fixed investment seen in November and December. Despite a decline in merchandise exports, the indicators of fixed investment are showing signs of strength. The governor also stated that there are indications of additional capacity being created in the private sector.
4. RBI GOV says real GDP growth for FY24 is projected at 6.4%-
According to Das, the Consumer Price Index (CPI) inflation for the fiscal year 2023 is expected to be 6.5%, with the fourth quarter estimated to be at 5.7%. There is a considerable amount of uncertainty regarding the trajectory of global commodity prices. Commodity prices are likely to remain high with the easing of Covid-19 restrictions, and this could result in the pass-through of commodity prices keeping core inflation elevated. The low volatility of the Indian rupee compared to other currencies will limit the impact of imported price pressures. The average crude oil basket is projected to be $95 per barrel.
5. RBI projects retail inflation lower at 6.5% for FY23 from 6.7%; 5.3% for the next fiscal-
The Consumer Price Index (CPI) is projected to reach 5.3% in fiscal year 24. Inflation is expected to be at 5% in the first quarter, 5.4% in the second and third quarters, and 5.6% in the fourth quarter. There is concern about the persistent nature of core inflation and it is crucial to see a clear decrease in inflation. It is imperative to maintain a strong commitment to reducing CPI inflation. The monetary policy must be adjusted accordingly to ensure a sustainable reduction in inflation.
6. The RBI has reported that system liquidity remains in surplus, although it has diminished in comparison to previous levels. The central bank has stated that it will remain agile and ready to cater to the productive requirements of the economy. To ensure proper functioning, the RBI will carry out operations on both sides of the liquidity adjustment framework as necessary. In line with this, the RBI has proposed restoring the market hours of the G-Sec market to 9 am to 5 pm. additionally, the RBI has suggested expanding G-Sec lending and borrowing activities to further enhance market liquidity.
7. The current account deficit (CAD) for H1FY23 was 2.2% of GDP, and it will moderate in H2FY23.
Regulatory organizations would receive recommendations from RBI on how to safeguard against the effects of climate change, according to Das. General guidelines for accepting green deposits, Framework for disclosing financial risks associated to climate change, and advice on stress testing and climate scenario analysis would be provided.
8. RBI GOV says MPC will continue to maintain a strong vigil on inflation outlook-
The Monetary Policy Committee of the Reserve Bank of India will continue to closely monitor the inflation outlook. Inflation is expected to remain at 5.6% in the fourth quarter of the financial year 2023. Although the policy rate has increased, it still remains lower than its pre-pandemic levels. When taking inflation into consideration, the policy rate is still lower than its pre-pandemic level. In general, the overall monetary conditions continue to be supportive of the economy.
9. Other Measures to be taken by RBI-RBI proposes to allow some foreign travelers and inbound travelers in India to use UPI for merchant payments. RBI To Launch QR Code-Based Coin Vending Machines that will issue coins against debits to customer's UPI-linked accounts.
Following the Reserve Bank of India's announcement of a lesser-than-anticipated interest rate increase, Indian equities were trading higher on Wednesday. As of 10:06 a.m. IST, the S&P BSE Sensex was up 0.68% to 60,695.09, while the Nifty 50 index was up 0.72% at 17,849.85.
Indian government bond rates increased slightly on Wednesday as a result of the Reserve Bank of India (RBI) maintaining its monetary stance while raising the repo rate as anticipated. As of 11:30 IST, the benchmark 10-year yield was 7.3435 percent. Prior to the policy decision, it was trading at 7.3124% after Tuesday's closing price of 7.3102%.
Rupee prices were unchanged at 82.69 to the dollar. The RBI MPC's decision to raise the repo rate by 25 basis points had no significant effect on the currency since the markets had already priced it in.
Have you ever realized that while scrolling your YouTube, it starts suggesting videos of your interest or are aligned with your watch history? Did you ever realize how subtly your YouTube became so personalized and got curated as per your interests?
Well, that is an AI-based algorithm that is effortlessly working to make your YouTube feed curated as per your interest and such that you could spend hours ignoring what’s going on all around. Interestingly, YouTube is using Machine Learning algorithms (subfield of AI which is able to learn and adapt without following explicit instruction) for the last 6 years and now it is evident enough that YouTube has become an indispensable part of our daily life. Furthermore, the suggestions made by the ML model start getting better eventually as you use it and that is how the machine learning models functions i.e. by training and testing its models with the user input and optimizing the accuracy. Similar implementation can be observed on digital platforms like Instagram, Meta aka Facebook, Netflix, Google Maps, Spotify and whatnot. In fact, the most revenue generating business for Meta i.e. ads is working on ML Algos.
From a bird’s eye view, Artificial intelligence is not a standalone tech but rather an umbrella with multiple techs under it such as Machine Learning, Deep Learning, Natural Language Processing, Fuzzy Logic, etc. Furthermore, the application of all these individual techs is observed in our daily life. For instance, audio/chat bots that one must have used on a phone app like IRCTC, are built on Natural language processing or Amazon Alexa. Thankful to the Indian start-up ecosystem, wherein tech enthusiasts across the nation are solving various ground problems from, agriculture to healthcare, using AI-based tech methods to solve the problem with the least time and team possible.
Lately, the acceptance of Artificial Intelligence has increased exponentially not just as an explicit model used in capstone projects but also with its various applications in day-to-day life. Knowingly or unknowingly, the adaptation of AI has increased so much that even an infant is familiar with Amazon Alexa/Siri. Therefore, the impact of AI in conjunction with IoT has become ubiquitous in daily life. On an organizational level as well, the use of AI has increased drastically post COVID wherein companies are using it for data and behavioral analytics. Taking forward, the recent developments in AI-based applications have made them even more demanding. Tools like auto image drawing, auto background remover, and AI-based vocal splitter are recent developments that have helped save time with very accurate results.
On the contrary note, the future sentiments of AI are apprehensive as it has a threat to the unskilled and semi-skilled workforce as the 4th Industrial revolution is more AI-Centric and intended towards improvising efficiency. However considering the recent development in the applications, AI and its aligned techs have proven to be a boon than a curse and therefore future regulation from authorities might help in avoiding the adversities that come along with such advancements. Briefly, the consolidated AI-based tech has helped save time, energy, and manpower with its various day-to-day applications, therefore, making it part of the daily lifestyle with even more favorable reception in the future.
US inflation is currently at 41 year high which has made people worried about the Fed rate hikes and its aggressive move. What will be its impact on the Indian Stock Market and global markets?
So First let us discuss how does inflation works? When there is inflation usually the central bank it is the Federal Reserve of the US, raises its policy rates in order to regulate the money flow in the economy. This helps in reducing the demand and decreases the purchasing power of people which further controls the flow of money in the economy.
Now as the US economy is a want-based economy and if they decide to curb inflation rather than focus on the growth of the economy then there may be chances of economic slowdown or recession. The extra aggressiveness from the Federal Reserve may lead to an increase in the Interest rate and a decrease in demand, the impact of which may be seen within 6 to 15 months.
Now talking about the global market so there may be a quite possibility of the Market reacting negatively.
Because of rising gas, food, and rent costs, tightening household budgets, and pressure from the Federal Reserve to raise interest rates swiftly, the probability of a recession increased, driving U.S. inflation to 9.1 % in June.
The government's consumer price index climbed 9.1 percent over the previous year, the highest annual gain since 1981, with rising energy prices accounting for over half of the increase. There will be a cascading impact on China due to the US Commodity market as the consumption supply will reduce and economies may suffer. There is also a rise in gasoline prices for countries like Europe and the US.
Did you know that the last time inflation was high was November of 1981 and there was a Global recession in 2008?
Let us now discuss its impact on the Indian Markets. As far as India is concerned we know that it is a need-based economy. The key impact will be seen in commodity prices. In India currently, the Inflation rate stands at 7.01%.
The commodity prices are going down. Agro commodity prices may go down if there is more farm production which will be beneficial for the decrease in their prices.
Now, Looking at the positive picture in the past Few months FIIs selling has also reduced. However, there may be a short-term impact of 6-9 months’ time and price correction may be their US yield can go from 7.36 up to 7.89 %. This is majorly due to falling interest rates & quantitative easing.
Given that the difference in interest rates between India and the US is narrowing, India would lose some of its appeal as a destination for currency carry trade. A churn in emerging market equities due to greater returns in the US debt markets might potentially affect foreign investors' enthusiasm for investing in India, due to the outflows from Indian equities and debt markets, this might have an effect on currency markets.
In response to ongoing inflation as well as ongoing good job and pay growth, Fed policymakers have already indicated a second 75 basis-point increase in interest rates later in July. Traders had fully priced in a three-quarter percentage-point increase for this month even before the figures were revealed.
Companies with higher credit ratings will be seen as lower risks and hence they get loan applications approved more easily than other companies.
A credit rating can act as a deciding factor that helps borrowers in making decisions whether to buy or not to buy a loan from that particular organization. In the case of the stock market, a credit rating allows investors to make an important decision regarding the performance of a company.
There are certain agencies that evaluate the risk tolerance of a company. In other words, the credit rating provided by these agencies assists in making a correlation between risk and return tradeoff of an instrument.
To accomplish the whole process, they come up with a tool that helps analysts to measure the risk of any debt instruments and assess if the returns are performing well against the risks.
A company's credit rating is an important consideration when choosing a company's stock to indicate its position in the market, and its credit rating indicates that a particular company is possible, so a credit rating is.
It is a useful source of information for investors. Repay the agreed loan amount without any problems. Poor credit ratings, on the other hand, indicate that the company may have a hard time paying off the full loan.
This allows investors to make appropriate decisions when choosing a company's stock. If a company fails to repay a loan, it is given the image that the company does not have enough cash to repay its debt and the stock price plummets.
A rating agency is a company that assesses a borrower's ability to repay a loan borrowed by an investor on time. Rating agencies assess the financial position of a company, state, or country and propose measures to improve future financial accountability to borrowers. The main rating agencies in India are:
Sr. No
Credit Rating Agency
Establishment Year
Objective
Functions
Rating Scale
1
CRISIL
1987
The primary objective of CRISIL is to identify the creditworthiness of the companies. The companies mainly consist of public limited companies, banks and financial institutions.
Provide ratings to the companies.
Identify the solutions for the smooth working of small and mid-term enterprises.
AAA, AA, A - Good Credit Rating
BBB, BB - Average Credit Rating
B, C, D - Low Credit Rating
2
ICRA
1991
ICRA provides guidance to the stock analysts and institutions. It also improves the transparency of the regulators such as SEBI, RBI and others.
Provides guidance and information to the individuals, institutional investors and borrowers.
The rating scale of ICRA includes long, mid and short term deposits, securities and instruments respectively.
3
CARE
1993
The CARE company prepares the report on the credit rating on credit ratings and generates research reports.
Help the corporations to generate capital for numerous requirements.
Rating based on two types of instruments - Long term instruments and short term instruments
Credit Basis is the main reason a company, state, or government is given a rating. Rating agencies need to make the rationale for the rating publicly available, including a detailed investigation of the factors, the rating and the justification of risk factors.
Gearing Ratio:
A gearing ratio is a financial ratio that compares a company's liabilities to other financial standards such as stocks and company assets. A high gearing ratio for a company indicates that the company is in a strong financial position.
Diversification of product composition refers to the complete set of products or services offered by a company. When a company trades a wide range of commodities, if the company's commodities do not make a profit, they are collected by other commodities, so the risk is limited.
Working Capital Demand Loan
Licensed to meet daily business needs. If a company can meet its short-term operational needs, it can certainly meet its obligations.
Net Interest Margin
Net interest margin is a measure of the difference between interest expense and interest income, adjusted for return on total assets. A positive net interest margin indicates that the company is operating profitably, and a negative net interest margin indicates investment inefficiency.
Net Worth
A company's net worth is calculated by subtracting total assets from total liabilities. It shows the financial condition of the company. If total liabilities exceed total assets, creditors may not be confident in the company's ability to repay loans.
Total Debt to Total Assets
It shows the amount of debt a company uses to fund its assets. The higher the ratio, the higher the volatility of profit per share due to changes in the unit of operating profit, and the higher the risk of investing in a company.
After discussing the concept of credit ratings and their key rating factors, the next blog will discuss case studies for better understanding.
Needless to say, credit rating plays an important role in deciding the worthiness of a company, these ratings also have some limitations. The ratings majorly depend on subjective information and senior analysts or investment bankers’ judgment.
Hence, it is imperative to ponder certain things before investing:
There has been a lot of buzz in the stock market about IPOs as many IPOs came in the year 2021 and gave extraordinary returns to their shareholders.
Also, people take much interest in IPOs as they find them as a major investment product and provide new hopes to the people.
In other words, investors find new investment hope in these IPOs and as a result of this, the IPO of Zomato, which opened on July 14, was subscribed 1.05 times on the first day of its launching.
The retail investors subscribed to the Zomato IPO almost 2.69 times which is a history in itself. If we talk about the non-institutional investors, then they have put in bids of 13 per cent against the reservation which is a difficult thing to forget in the history of SME-IPOs.
Here, an important question often comes to the investor’s mind: How did the listing price of an IPO decide?
Before getting a dig deep into the whole scenario, let's take a sneak peek at the listing price:
When a private limited company wants to become public for the very first time, it needs to get its stock listed on the major stock exchanges. To complete a process, the company is required to decide the opening price of shares which is known as the listing price.
The launching period of IPO is of three days and post that the investors are allowed to purchase the shares at a given price. Here, the listing comes into place.
Please note that the allocation of shares takes place only after IPO launching.
The IPO listing price is different from the offer price and is decided majorly by the investment bank which is assisting the company during the IPO launching process.
After the successful launching of an IPO on the stock exchange, it becomes available for every shareholder to trade in the stock market.
Now, the shareholders can be actively involved in buying and selling shares in the secondary market.
Several factors will impact how the good IPO gets listed on the stock exchange and how does it affect the IPO listing price:
Demand for a share makes a huge impact on the listing price of an IPO. Hence, the IPO price is also affected by the market demand of the company as the higher the demand, the higher will be the listing price.
The demand for the SME-IPO is affected by numerous factors including the potentiality of a company, its expected valuation, growth sector and more.
Let’s understand the listing process with a suitable example:
If the demand for an IPO is higher, then the chance of that IPO getting oversubscribed more, which in turn makes few of many get a chance to subscribe to it. If it is oversubscribed, many investors will get deprived of the IPO allotment process, and hence the demand surge.
The rising demand makes the IPO firm increase its listing price and hence more investors will trade it in the stock market.
Hence, a high demand, low availability of shares can result in great listing prices and hence great listing gains or vice-versa.
The listing price of an IPO is also affected by the growth prospects of a company. For instance, a company that wants to launch its IPO often comes with several objectives like paying debts, operational costs, which also plays a major role in the listing prices.
If a company comes with the objectives of growing and expanding its businesses, the majority of the retail investors will look forward to the same.
This will increase the orders, which in turn increase the demand of the IPO which eventually increases its listing price. The company is likely to list at a good price if there are any chances for good growth.
A grey market is a place that is considered under regulated but often gets highlighted when it comes to a demand for IPO. It is the extra amount investors pay along with the offer price.
For example: if the offer price of an IPO is Rs 150 and its GMP is Rs 50. This indicated that the investor is willing to pay Rs 200 for the same IPO in the grey market.
An offer to sell an IPO indicates the number of shares that existing investors are willing to dilute in the IPO.
If OFS is more than a fresh issue, it certainly means that there is a reason why current investors no longer want to be part of the company.
This can be a turn-off for some investors. However, this is not always the case. If a company has high growth potential, it can prosper.
However, a large OFS value can adversely affect the list price.
Retail investors play a crucial role in deciding the IPO listing price. As more retailers are looking for an IPO, it further results in deciding the listing price.
A comparative analysis of the stock market analysts can also affect the market sentiments to a greater extent. If the investors are looking interested in a particular IPO and the market sentiments are positive, it is a good indication.
However, if there is a lack of interest of the retail investors, there are higher chances that the IPO listing price is considered low.
These are various factors that have a significant impact on the listing price of an IPO.
Therefore, always keep these factors in mind if you don't know how to choose an IPO listing time in India.
Good IPO listings are those which can give you attractive profits and also help you to increase the visibility of the company.
As stated above, numerous factors help promoters find the listing price of the company which includes investors’ interest, GMP, company valuation and most importantly the demand and supply of an IPO.
Have you ever thought of getting benefits from a fall in the value of an asset in the portfolio?
Sounds interesting, right.
Well, the answer is Yes.
You can take advantage of the assets whose values are decreasing day by day.
The term is known as tax-loss harvesting. Investors often use tax-loss harvesting to improve stock trading returns.
As honest citizens, paying taxes should be our responsibility so as to ensure the country’s security, progress and well-being.
Actually, no one wants to pay a huge amount of their earnings as income tax. Those, who come under the category of high income, have to pay a huge percentage of tax. For instance, the total tax liability of a salaried person could be around 30% which makes a huge impact on their finances.
Tax-Loss harvesting is the way through which you can increase post-tax returns on investment. With this method, you can maximize wealth aggregation especially at the beginning of the portfolio.
To get a brief of tax-loss harvesting and how it helps you minimize your long term capital gains, you need to know how long term capital gain is taxed.
Long term capital gains on equities are re-introduced by the late finance minister Mr Arun Jaitley in 2018.
As per the provision of the financial budget of 2018, any long term gain made from equity investment above 1 Lakh per year is taxable at 10%.
Here, the long term capital gains are the return you make by selling equity investment held for more than 12 months.
If you are a newbie into the stock market or mutual fund, your yearly gain may not necessarily cross the amount of Rs 1 Lakh.
But if you continuously invest and gain share market trading returns, in the long run, you will be in the situation to cross the threshold after some time.
Let’s understand it with an example:
If you invest Rs 5000 per month in equity funds with an average return of 12%, you will easily achieve taxable gains in the span of 2 years.
Here, we present a table where you can see the SIP amount and capital gains with annualized returns of 12 per cent in different periods.
SIP AmountAfter 24 MonthsAfter 36 MonthsAfter 48 MonthsAfter 60 Months5,00015,32535,39665,0761,05,5188,00024,52056,6341,04,1221,68,82912,00036,78084,9511,56,1832,53,24315,00045,9451,06,1891,95,2293,16,55430,00091,9492,12,3783,90,4586,33,108
Hence, people who have large equity portfolios will have huge gains. If you want to pay no tax or less tax, make sure these gains should not exceed the tax-free limit. That’s where tax-loss harvesting comes into play.
Tax-loss harvesting is a way of selling a part of your mutual fund units in order to book long term capital gains and start reinvesting the same amount in the same mutual fund.
Still not understand? Let’s take another example:
Example 1
Let’s assume you have invested Rs 6,00,000 in an equity mutual fund on 21 August 2021 and on 31 August, the value of the investment becomes Rs 6,90,000.
Now, if you redeem the investment, your gain will be Rs 90,000 and hence your tax liability will be zero. As the tax has to be paid only if gains exceed the limit of Rs 1 Lakh.
Now, if you reinvest the entire amount i.e. Rs 6,90,000 after redeeming in the same mutual fund, it will be counted as a fresh investment along with the date of investment.
If the investment value increases up to Rs 7,50,000 post 1 year. When you redeem the investment amount, your gain will be Rs 60,000 which is less than Rs 1 Lakh.
Had you not redeemed Rs 6,90,000 and reinvested in the same mutual fund, your long term gains would have been up to Rs 1,50,000 and hence, you are required to pay 10% tax on the amount which exceeds Rs 1,00,000.
Now, you have to pay tax for the amount above Rs 1 Lakh. hence, the tax applicable would be Rs 5000 i.e (10% of 50,000).
Still, Confused? Let’s take another example:
Example 2:
Tax-loss harvesting allows you to book losses and use the loss amount to offset capital gains in another instrument in order to minimize liability.
For instance, if you invest Rs 2 Lakh in a fund on 2 August 2021 and on August 15, 2021, your investment value would is Rs 1.85 Lakhs. Hence, your long term capital loss is Rs 15,000.
Now, if you sell the investment instrument, it is obvious you are suffering from losses, but you can use the entire loss amount to offset any long term capital gain in order to bring down tax liability.
For instance, within two years, you sell a long term capital gain and book a profit of Rs 1.5 Lakh. Since the capital gain is above 1 lakh i.e Rs 50,000, you have to pay tax.
Now, you may decrease the total tax applied on Rs 50,000 by subtracting the Rs 15000 from Rs 1.5 Lakh.
Hence, your long-term capital gain will be Rs 1.5 Lakh - Rs 15,000 = Rs 1,35,000. Now you need to pay tax only at Rs 35,000 not on Rs 50,000.
This is how the tax-loss harvesting strategy works. It saves tax for many investors.
Here are three ways a person can minimize their tax liability:
Tax planning is a legal method used to minimize tax liability. This can be achieved with proper tax planning. A person can easily minimize tax by taking advantage of many things such as exemptions and deductions.
Many people compare tax avoidance with tax evasion. However, they are different t methods. Tax avoidance is a legal method that helps investors to minimize their taxes. It is the use of smart strategies to reduce a person’s tax liability.
Tax evasion is an illegal way of minimizing tax, which is also known as tax fraud. We strongly advise you to stay away from such fraudulent methods.
Tax gain and tax loss harvesting are the best ways to minimize the tax you normally pay on equity trading investments. Do remember, you have to reinvest the money as soon as you get the redemption amount in your account.
COVID 19 has increased the use of digital technologies which turned out well for the IT sector. If we talk about the pharma sector, there has been a much increase in the pharma stocks as investors focus shifted to COVID 19 related opportunities.
Till December 2020, many things have changed as many SMEs faced a huge decline in their growth. Also, top-notch companies have gone through crises that can’t be ignored.
In such a deeply problematic situation, one thing that performs exceptionally well during a financial and economic crisis in Indian Stock Markets.
The Nifty 50 index has experienced a remarkable recovery from its all-time lows in March. At the beginning of January 2021, the index had risen to 14%.
If you look at the top ten stocks that have generated outstanding stock market trading returns in 2020, it's none other than IT and Pharma companies that have emerged as the largest stocks.
In 2021, stocks of pharma companies remain on the top yet best-performing sectors in the Indian stock market.
In addition to this, the importance of pharma companies has been rising continuously as the demand for medicines, immunity boosters, and life-saving drugs take superiority to save lives.
Further, as the news of the third wave of COVID has come out, the people of India again keep their eyes on the pharma sector to save the country from the upcoming disaster.
Few companies have benefited from the vaccination drive.
Cadila Healthcare, popularly known as Zydus Cadila, is a leading pharmaceutical company headquartered in Ahmedabad.
India primarily engaged in the manufacture of generic drugs and the company is ranked 100th in the Fortune India 500 list in 2020.
Cadila Healthcare has produced the first vaccine called ZyCoV-D, built on a DNA platform.
Also, it has received a EUA (Emergency Use Authorization) from regulators. As per the sources, ZyCoV-D is considered India’s second home-grown vaccine post-Covaxin. The vaccine has come in 3 doses with a success rate of 66.6%.
In the June quarter of 2021, Cadila Healthcare witnessed a rise of 29.3% net profit Year on Year. Also, the huge demand for the vaccines made outstanding sales in the Indian market as it has witnessed a revenue increase of 14.5% year on year.
Introduction:
Cipla Limited is an Indian multinational pharmaceutical company, known for manufacturing medicines to treat depression, respiratory diseases, cardiovascular diseases, arthritis, weight control and other medicinal conditions.
Furthermore, the Drugs Controller General of India has given a go-ahead signal to import India’s Moderna’s Covid 19 vaccine.
The success rate of Moderna’s vaccine is 94.1%. It will be imported in ready to use form. As per the prescription, the vaccine can be stored for seven months, however, if a vial is opened, it can be used for a maximum of 30 days.
As of June 2021, Cipla witnessed a sharp rise of 24% in net profits Year on Year. Furthermore, the revenue also saw a massive increase of 27% year on year. The figures for profit have clearly shown that the Cipla has benefitted from the impact of the second wave of Covid-19.
Introduction:
Dr Reddy’s Laboratories is an Indian multinational pharmaceutical company. Headquartered in Hyderabad, the company is committed to providing affordable and innovative medicines for normal people.
Dr Reddy’s Laboratories entered into a partnership with the Russian Direct Investment Fund and produced a vaccine called Sputnik V. According to sources, the vaccine has marked a success rate of 91.6%.
From September 2021 onwards, the company is likely to begin the production of this vaccine. However, the company saw a slight decline in operating profits in June 2021. Profits declined 13% year on year as there was a marginal slump in the profits of Rs 5.7 billion.
Introduction:
Panacea Biotec is a pharmaceutical company and vaccine maker company registered in India. With principal offices in Delhi, Mumbai, the company got listed in 1995 as Panacea Biotec.
The company has tied with Dr Reddy’s Laboratories, Human Vaccine and Generium to produce nearly 25 million doses of Sputnik V. In other words, it acts as an intermediary between Generium and Dr Reddy’s Laboratories.
Panacea purchases the products from the company Generium prepares vaccines and distributes them to Dr Reddy for the overall supply within the country.
Even though the company manufactures vaccines, it also suffers from losses. In June 2021, the net loss observed for Panacea is $ 574 Million. Unfortunately, the revenue is still flat for the company.
Introduction:
Wockhardt Limited is a pharmaceutical and biotechnology company that manufactures biopharmaceuticals, nutrition products, formulations, active pharmaceutical ingredients and more.
Headquartered in Mumbai, the company has manufacturing plants in India, UK, Ireland, France, the US, Ireland and France.
Besides panacea, Wockhardt is the next company that is responsible for the supply of Sputnik V and Sputnik Light vaccines. The deal had taken place among three companies: i.e. Wockhardt, Enso Healthcare and Human Vaccine LLC.
Human Vaccine LLC is a subsidiary of the Russian Direct Investment Fund. Wockhardt is likely to supply nearly 600 million doses of vaccine Sputnik V and Sputnik Light Vaccines.
In the June 2021 quarter, the company received 3 patents and currently holds 766 patents. However, the company also faced a huge loss of Rs 65.8 billion for the first quarter.
The pharma stocks stated above are likely to benefit from the vaccination drives. Hence, it is essential to figure out how much time is left for the vaccination approval. Some companies already have their vaccines out in the market, while few just started their manufacturer setup.
Also, check out the companies that have completed all the clearances required by the regulators. Select those companies’ stocks whose products are being prepared or ready to release in the future. It will be a more profitable long-term plan.
Stock trading always works when one follows it for a long time because it involves many things such as determining the financial ratios and the value of a company.
Trading is a profession that dates back to the time of the Barter exchange. During those days, two parties came together and made a deal for goods that one party needed and the other had. That formed the main foundation of trading.
A stock market is a place where buyers and sellers perform the transaction of the stocks. These business securities are listed on a public exchange and securities which are traded privately. The first modern stock was traded on the Nieuwe Brug in Amsterdam for the Dutch East India Company in 1602.
The first derivatives were traded in 1607 by a single company. However, the dividends were distributed after some years. Futures trading and options trading were also invented in Amsterdam after a few years.
Nowadays, stock market trading has gained attention even from those who know nothing about the share market and trading. Many people seek trading as a better investment option as it gives them a better purpose to extend their wealth.
Developing interest in the stock market made some people millionaires. However, there are other people too who have lost everything in the stock market. Do remember that the stock market is just like a game.
Here, you need to play with the securities and in return, you will receive outstanding returns. The most important thing while dealing in the stock market is that you need to place every move minutely.
Similarly, you need to know how to enter and exit from the market. Here the timing plays a very important role.
Below we will look at the general principles that will make your trading smooth and better than before.
Knowledge is something that helps investors to get insight into the stock market. With adequate knowledge of the stock market, many people successfully increase their wealth. Also, top stock market giants such as Warren Buffet, Rakesh Jhunjhunwala advised many newbies to read books and learn the basic principles, gather information from different investors and apply them in the stock market.
Homework is the best practice when it comes to stock trading. Make a complete list of the stocks you want money to invest in. Also, keep informed about the companies that are currently doing best in the market.
Share Market Trading without a plan always leads you to failure. It is important to learn the mechanism of stock trading like how it works, how much volatile the stock market is, potential stocks, penny stocks etc.
Trading is a roadmap that tells you which steps to be followed to achieve desired results. A successful trading plan involves setting the target price, monitoring and following a trend, taking a price action and setting the maximum loss you can bear.
Beginners generally have a curiosity to invest in many stocks. They invested in many irrelevant stocks and ended up making losses. Therefore, it is advised to focus on 3-4 stocks at a time and not more than that. Following a few stocks is quite easy as compared to other stocks.
Conservative trading strategy helps to guard you against the downside. Plan your strategy in such a way that your losses should be minimum. In share market trading, everyone has to face some type of profit and loss.
It would be easier if you make losses as a part of trading. Therefore it is important to monitor your losses in a certain way that it becomes a part of your trading strategy.
Share trading is a risky job so don't let it waste your hard-earned money. According to the stock market experts, if you are using leverage, you should be very careful about it. Please make sure that your risk is as per your trading strategy.
When any person starts to trade, its primary goal is to achieve high profits. However, there will be situations when things go against your trading plan, hence as a result, you have to book huge losses so that you survive to fight another day. Stop-loss can do this for you. Stop loss is essential and hence it should be used for every trade.
We always think only about profit while entering the stock market. But it never happens every time, sometimes there are certain events where we need to face losses and hence it is also important to protect our downsides.
Investors often come across situations where our emotions dominate our pre-decided strategy and rules. This is the time where we need to refrain from our emotions and stick to the rules we set for ourselves.
For instance, if you lost in stocks of XYZ company, don’t make a mindset of retrieving the lost money from that stock only. Maybe that particular stock isn't apt for your online trading strategy now. Hence, it is better to get out of it.
Trading is not apt for those who become emotional during market time. In fact, it is for those who actively follow discipline, patience, methods and being unemotional. Even if you decide not to deviate from your methods and rules; in the long run, you will suffer if you don’t stick to your stock trading strategy.
Trading needs a focused mind, and hence if you are doing trading, it's quite essential to stay focused. Complacency can make you suffer. It is tough to make money in the market hence you need to pay attention to each detail. Being focused can increase your chances of identifying trends.
Trading is always volatile and therefore you need to stay updated with the current information in briefs such as charts, price movement, stock market news and other global news that is required to finger out the trend.
In addition to this, you would not want a situation where your orders did not properly execute as you lag somewhere. Hence, it is important to go for the technology where you will get all the essential information that keeps you updated while dealing with the stocks.
Investment is something that gives you outstanding returns if done properly. If you have excessive funds lying in your bank account, save them wisely. You might have heard the above statement from every stock analyst who manages your wealth profile. This is because money is always measured in terms of time.
The time value of money states that the amount of money you have in present is worth more than that the same amount of money you will have in the future. Instead of letting your money sit idle, it would be much better if you park your surplus fund with liquid ETFs.
Liquid ETFs or Liquid Exchange Traded Funds are the mutual funds whose units are traded on the stock exchange. Unlike normal ETFs, the investment in liquid ETFs generally happens in overnight securities such as Repo or Reverse Repo securities, landing obligations and collateralized borrowings.
The primary motive of liquid ETF is to provide an income filled with low risk, at the same time gives a high liquidity level.
Investors who park their funds in liquid ETFs can earn significant returns on idle funds while at the same time remaining liquid to benefit from lucrative investment opportunities.
Liquid ETFs are only suited for large retail investors, portfolio management service (PMS) providers. Futures and Options (F&O) brokers and institutions invest directly in equities, HNI (High Net-worth Individuals).
These are several liquid ETF funds that are readily available to trade. These liquid funds can be traded immediately.
Equity market investors and traders have a habit of making continuous profits from transactions. However, sometimes they even face a loss but these are part of daily work.
The investors who have a tremendous amount of money, always find a better alternative so that they can increase their profit to a greater extent. One such alternative is liquid ETFs. Investing in ETFs enables investors to earn extra profit from excessive funds.
NSE and BSE are the funds that are available for trading where buyers and sellers quickly perform the transactions during the stock market hours on any stock trading days.
ETFs are gaining a lot of popularity these days as many investors consider liquid ETFs as the best instrument that can do wonders with their money.
However, if you are deprived of several benefits of investing in liquid ETFs or exchange-traded funds, this blog will help you out.
ETFs are not for long term investment. They are for short term investments and provide high liquidity, these are always preferred by high profile investors. Like other stocks, these funds are also listed in stock exchanges which are traded during the day. These funds are inter-linked with intraday trading and therefore the prices of the ETF heavily depend on the intraday trades.
For instance, if the intraday rates of the underlying assets change, the ETF prices also change. ETF investors are the experienced ones, and therefore they know what they have paid and what they will receive at the selling.
With liquid ETFs, investors move money from one place to another, construct strategies around their investment and manage intraday portfolios. Investing in ETFs allows investors to successfully invest in a diversified portfolio such as stocks, bonds, commodities, derivatives.
ETFs are passively managed funds that are specially designed to offer low-risk returns and high liquidity. Investors invest in an ETF when they sell equities from their portfolio. Many stockbrokers enable investors to reinvest 100 per cent of the proceeds into an ETF that too on the same day.
The stock market follows a settlement cycle of T+2 days, i.e. ETF units will get credited to investors’ accounts on the settlement day.
ETFs offer many benefits as in this type of scheme, individual investors hold their investment until they find a better alternative to move their funds. Another advantage of ETFs is that investors can forward the funds as a pledge against cash margins if investing in derivative segments.
Many brokerage houses accept ETFs as a cash margin if they want to trade in the derivatives segment.
Liquid exchange-traded funds offer investors better portfolio management by allowing them to invest in various sectors, industries, and country categories. They provide investors easy exposure to desired stock market segments.
ETFs are now available in the major asset classes, thus making them a good investment option. Also, investors can select to trade ETFs during stock market volatility or continue to invest based on their financial plans to earn profits.
The cost of investing in ETFs is quite less than mutual funds as the lower the costs, the higher the returns. Operational costs are an integral part of the structured investment as these costs include portfolio management fees, marketing costs, administrative expenses, distribution costs and more.
Here, lowering the costs means non-involvement of fund managers which means lower expenses of the funds. ETFs have lower expenses in transfers, monthly statements. Unlike open-ended funds, brokerages do require to send regular updates to the investors.
Mutual funds have more taxes than ETFs. This is because ETFs have a lower capital gain. The rate of capital gain tax applied to ETFs is also less as compared to mutual fund investments.
Liquid ETFs have only one dividend option. The daily earned dividends get reinvested into ETFs. Some ETF funds will credit bonus to its investors account weekly or monthly. Since the stock trading returns are low, brokerages waive off brokerage fees and depository participant changes on these funds.
Mutual funds and ETFs are similar investment types. However, the difference lies in the services they provide. ETFs provide higher liquidity than mutual funds and are also convenient to tap when cash flow is needed.
Many people are aware of the stock market and its functioning. The people who seek stocks as an investment material always prefer to do a bit of stock market research and homework before investing their money in any trade.
When you see any business channel, a single word you often come across is Stock rating. People have many questions regarding the term stock trading such as when to buy, sell or hold a stock.
In this blog, we will highlight the fundamental yet important term share market trading and how the right knowledge of stock rating helps investors and traders to achieve their best trading decisions.
Stock ratings are used to measure the performance of a stock in a given specific time period. Analysts and numerous brokerage firms keep you aware of many stocks when they issue stock recommendations to investors and traders.
In order to provide effective stock ratings, analysts and brokerage firms go through the financial statements of various companies, talk to the management, and attend conference calls.
The stock ratings are issued once three months or quarterly.
By reading stock ratings, you may notice that the ratings include a target price that helps traders to reach its intrinsic value which in turn gives people an idea about the potentiality of a stock.
Hence by evaluating a stock’s rating, one can get a clear idea of whether you buy, sell or hold a stock.
Research Analysts give recommendations regarding stocks by evaluating their financial performance, reviewing the company’s management, and listening to the company's financial calls on their future prospects.
Sometimes, these analysts have direct access to contact the management team and the customers to get an idea about how the company is performing compared to its past performance.
To get a deep insight into a stock, research analysts also conduct surveys that help them decide which stock deserves the best rating and which does not?
Above we discussed stock ratings and how to use them for investment decisions. Here, we will discuss the five types of stock ratings:
Buy ratings gives recommendations to traders and investors to buy a specific stock which analysts expect that the price of a stock will increase in the short to mid-term.
A sell rating recommends selling a particular stock which means that the analysts expect that the price of a stock will subsequently fall from its current price.
This rating suggests that the particular stock will stick to the same price for the near term.
The hold ratings tell the traders to not buy or sell the stock but to hold it for a short term.
Hold rating is assigned to a stock where there are some uncertainties or some company’s prediction. For example company’s new service or product launch.
An underperform rating indicates that the stocks are going to perform down as compared to the market performance or set benchmark.
In such a situation, the analysts suggest you stay away from such stocks or avoid investing in stocks.
For instance, if a stock’s total return is 3% and Nifty’s return is 6%, then it underperformed the index by 3%.
An outperform stock rating tells you that the particular stock is going to perform well in the stock market and will give outstanding stock market trading returns in the future.
For example, if a stock’s total return is 12% and Dow Jones Industrial Total average return is 6%, then the stock has outperformed the index by 6%.
Stock ratings provide a lot of impact on the individual stock as it helps traders and investors to get the intrinsic value of a stock that will tell its past and future performance. Also, it gives investors an idea of whether to buy, sell or hold a particular stock.
Although stock ratings tell many things about a stock, investors can also use their own experience to predict the potential value of a stock.
Overall, stock ratings help you to make an appropriate equity trading plan to earn maximum profit.
Hence, if you strategize your move regarding a stock, you may not neglect the stock rating and stay updated with every stock rating.
A stock rating is a measure of a stock's performance in a specific period.
Stock’s rating can be categorized into five types: buy, sell, hold, underperform and outperform.
Analysts define the stock rating by researching various companies, talking to management, listening to customer’s reviews, and attending conference calls.
India stands the second rank in the production of cement in the world. It produces more than 7% of global capacity.
India is now focused on vast potential development in the infrastructure & construction sector and the cement sector is expected to get a large benefit from it. The recent initiatives, such as the development of 98 smart cities, are expected to provide a major booster to the cement industry.
With some suitable Government foreign policies, several foreign players have also invested in India in the past. Another factor that is the growth factor for this sector is the ready availability of raw materials limestone and coal for making cement.
Production of Cement in India reached 329MT in FY20 and is estimated to reach 381 MT by FY22. Whereas, the consumption stands at 327MT in FY20, which will reach 379 MT by FY22. As the country has a high quantity and quality of limestone deposits.
As per the report of CLSA, the Indian cement sector is witnessing huge improved demand. Major players reported by the company are ACC, Dalmia, and UltraTech Cement. In the second quarter of FY21.
Due to sharp recovery in rural areas and unlocking of the country demand for the industry will increase, and the cement companies also reported a sharp rebound in earnings due to rise in demands.
Which can be seen further in upcoming quarters due to unlocking of the country.
The Indian Government has approved investment schemes to help private sector companies:-
In this Union Budget 2021-22, the Government extended benefits, under Sec-80-IBA of the Income Tax Act, until March 31, 2021, to promote affordable rental housing in India.
In the Union Budget 2021-22, the government outlaid Rs. 1,18,101 Cr. for the Ministry of Road Transport and Highways.
In the Union Budget 2021-22, the National Infrastructure Pipeline (NIP) expanded to 7,400 projects from 6,835 projects.
The Union Budget allocated Rs. 13,750 Cr. and Rs. 12,294 Cr. for Urban Rejuvenation Mission: AMRUT and Smart Cities Mission and Swach Bharat Mission, and Rs. 27,500 Cr has been allotted for Pradhan Mantri Awas Yojana.
Some of the eastern States of India are likely to be the new and untapped markets for cement companies and which could contribute to their bottom line shortly. India could become the major exporter of clinker and grey cement to nations like the Middle East, Africa, and other developing parts of the world in the next 10 years.
The cement plants near the ports, like the plants in Gujarat and Visakhapatnam, have an added advantage for export and will logistically be well armed to face stiff competition. The country's cement production capacity is expected to reach 550 MT by 2025.
Due to an increase in the demand in various sectors like housing, commercial construction, and industrial construction, the cement industry is expected to reach 550-600 MTPA by 2025.
The top 5 major players in the Cement Industry in India are as follows:
Note: These figures can be varied according to the market prices.
Share Market Yes, you must have heard this word at some point or the other and along with it you must have also heard that the stock market is a speculative market or is like gambling, but along with all this, you have also heard this.
I must have heard that I have made very good profits from the stock market, but have heard very little about making profits and have heard a lot about making losses, I have heard it right, there is no lie in this, but do you listen to these things? At the time you had noticed something, who are the people who are saying these things?
In this topic, we will learn about the main mistakes due to which more than 90% of people suffer losses in the stock market.
Not only in the stock market but everywhere, our psychology has a great contribution, no matter what it is, but what is this psychology, in fact, due to which some people climb the ladder of progress in their life.
If we go, some people go through so many struggles night and day even to live their simple life, if we understand in easy language, then this psychology is our own born thinking, it is our own attitude, people's attitude. To understand the problems of seeing things, but how is this thinking formed? So the simple answer is that as we train our mind, it will give back to us the same thoughts.
So when we invest in the stock market and then what we think again and again in our mind, that becomes our psychology, as if it comes in our mind that there should be no loss, just a little profit is being made. I take it, everyone is saying buy or sell it, so I do it the same way.
This means that if you allow your mind to be affected by some other external things, then the result will be the same because if more than 90% of the people are harming outside, then you will also be harmed because of your psychology too. I am influenced by them.
Have you ever heard and seen that a business or work in which there is a possibility of more than 90% loss or spread, even after that the business is increasing day by day at a new speed, then that business shares?
Market I
It is absolutely true that most of the people suffer losses in the stock market, but it is equally true that money can also be earned from the stock market, which is about 10% of the people who are making good profits continuously, after knowing this much.
A question definitely comes that what do these 10% people do, so that they earn good profits continuously and what do these 90% people do so that they only get lost in the stock market.
Of the share market trading and investment, trading setup, trading strategy, trading tools contribute only 20%, the remaining 80% is useful for your Psychology, Discipline, Emotions, Money Management, Risk Management Objective.
So let's know those important (mistakes) reasons, due to which more than 90% of the people in the stock market have to bear the loss only:
One of the biggest, important and first mistakes made by stock market investors and traders is that people start investing money in the stock market without learning anything.
People do not understand that the job or business from which they spend their lives today. For that he has studied and worked hard for at least 12-15 years, so can't he take out few days to learn about investing to get a good return on that money?
If he wants, he can learn little by little every day. But people do not do this and they invest without knowing anything properly, and then they lose. That's why you must avoid this mistake and spend your time learning.
Never invest in anything that you don't understand - Warren Buffett
It is a simple matter that for the job you are doing today, you have first 12 years of schooling, then 4 years of college studies and then works experience, which means 18-20 years of time and giving an investment of 4-5 lakhs.
After today you are able to become worthy that 40-50 thousand, are getting the salary of 1 lakh rupees, then how can you think that you can earn from here without learning anything in the stock market. Along with this, it is also that Even after giving 18-20 years time, when you started your job or business, you were not getting the same income as you are getting today, But when you invest in the stock market, you want to earn a manifold of your investment from the very first day, you think that if you have invested 1 lakh, then I should earn 1 lakh in a month and in this process your hard work. loses his earnings.
That's why it is better to learn about investing by investing some money and time than making such a loss of lakhs of rupees. So that you can save those lakhs of rupees.
Our mindset and nature are such that we don't want to put effort into our own, instead, we want everything for free or at a discount. Why we don't understand one thing, whether it is free or discounted.
Things are found whose demand is less. What we do in such a situation is that people who give tips in the name of free in social media (Telegram, Facebook and WhatsApp) take trade in their account according to them and then what happens? damage only. Such people also give you tips on investing in the stock market, who do not know anything about the market.
Similarly, we invest in TV by watching news or tips. We do not understand one thing that all these people are sitting as advisors who show you the dream of giving 40-50% return, then it is also in their own account. take trade or not because an advisor can never give you any benefit because he does not have his money in it, he will tell you to BUY and SELL from anywhere.
Therefore, if you are not capable of analyzing the market by yourself, you do not understand the market, then it is better to choose a professional trader than to choose someone, an advisor,
How to Recognize who is a Professional Trader:
The advantage of joining a successful and professional trader is that he has complete knowledge, understanding of the market as he takes trades in his own account.
But if you take tips from an advisor, then they only have to sell services, they do not have any money of their own in the market, they do not even have any knowledge of the market, due to which only you have to suffer.
Whereas a professional trader will also give you the same advice that he will take trades in his own account and when he is taking a risk for his own money, then it is obvious that he must have some knowledge.
Avoidance is always better than cure. You must have heard this many times. This applies as much to money as it is to your health. Strong risk management is the preventive measure that can ensure that you do not face financial problems. Actually, risk management really means managing risk.
Risk reward ratio means that you have to set that if you wait to take a loss of 1500 then at least wait for a profit of 2000-3000 and you should follow this thing very strictly.
But in reality, all those who have made losses in this market, what they do is that if there is a loss, then they hold it and keep increasing their loss so that the entire risk-reward gets spoiled and their portfolio is destroyed. A big part is lost.
On the contrary, if we see profit, then we get out of the market by booking a small profit. Whereas to become a successful trader, we have to reduce the exact opposite. If we have a loss then we have to exit with a small loss and if there is a profit then trail our stop loss and book a big profit.
Working without taking into account the risk-reward ratio means that you have not analyzed your risk management, you have not seen how much loss I have to take in a single trade, according to your investment, know that you have a total capital is of 1 lakh and in my one trade, I made a loss of 10-15 thousand, 20 thousand.
Whereas what you should do is that first of all, do 1 lakh investment in at least 3 parts, it means take 3 trades of 33-33 thousand.
Now in a trade, you have to take a maximum loss of 2500-3000, due to which your risk becomes diversified. So you have set that to that will be 2500-3000 only but you can cover this loss by taking another trade.
Money management or fund management simply means that you have to understand that in which asset you have to invest how much, how much is the risk in that asset, for how long you have to invest.
One of the reasons for the loss in the stock market is that people do not decide the amount of their investment. This is also a big mistake.
Because the investment amount is not fixed, they invest most of their money in the stock market. Due to which they do not have enough money even for emergency times.
And when they need money, that's when the market is going downhill. Due to which they have to withdraw money from the market by making losses.
Never Test The Depth Of River With Both The Feet.
- Warren Buffett
Therefore, keep some of your money in fixed interest investments as well.
When it comes to money management, the first few questions you should ask yourself are:
Overtrading simply means that you do not have satisfaction, you are not disciplined, what do most of the losers do that if they took a trade, they lost it, then immediately without understanding the market, they seem to recover this loss. And without doing proper analysis of the market then take another trade in which they may have to face loss again.
The second aspect also happens that you took a trade in which you earned some profit, for example, let's say you have earned 3000 but you do not have satisfaction, you keep doing BUY and SELL throughout the day in order to earn more profit.
And what happens at the end of the day is that you end up with a total loss and have to pay brokerage, taxes separately.
Whereas what a successful trader does is that he plans his entire day that I have to work for only this much profit and so much loss.
Like if I will make a profit of 2000-5000 then my whole day's work is done or if I will lose 1500-2000 or 2500 then I do not want to trade.
Investing at the wrong time. Often people buy clothes when there is a discount or sale on clothes. But when there is a recession in the stock market i.e. sale is engaged, then because of the fear of loss, they also start selling the shares of a good company.
Whereas they should buy shares during the recession. Because even the best company's shares are available at a very good discount in the time of recession in the market.
I will tell you how to be rich. Close the door. Be fearful when others are greedy. Be greedy when others are fearful.
But people do the exact opposite of this. When the market is moving fast, then many stocks move by different percentages like 5%, 10%, 15% every day. Seeing such a boom in a day, more and more people invest in the stock market at the same time.
Due to which they get good profit in some time, but soon that profit turns into a loss. Because they would have invested by buying the shares at a very expensive price.
For this reason, they do not have money during a recession and big companies are available at very good discounts, then they are not able to buy shares. That's why when the market is very fast, then everyone is buying, don't buy shares seeing this.
Rather, after analyzing different companies, buy shares only at the time of getting good discounts.
Caution: Do not invest in any company even if there is a sale in the stock market. Rather, invest only in a good company you have found during a downturn in the market.
The biggest mistake people make in the stock market is that people do not pay attention to the company's valuation of the stocks before investing, most people hold on to the high quantity of penny stocks or low price stocks.
When they do not have any information about the business, product and services of those stocks. What happens is that their stock keeps going around the same price for a long time or going further down which will give negative result to your portfolio. With this, always pay attention to the valuation of the stocks first and whenever there is a price discount in the market, then invest only in quality and value stocks.
We all have heard one thing that "RICHER GETS RICHER" (only the rich become richer) and this is also true, but when it comes to buying shares, we invest money in quality stocks.
One thing to think about is that the company which will be doing good business right now, which will have money, which will have good value, the same company will give good return in future also but we do not keep this in mind and then our portfolio becomes negative.
Thinking that these stocks have become expensive, people left stocks like MARUTI, MRF, EICHER MOTORS, Hero MotoCorp, Bajaj Auto and are repenting today.
Doing investment is always beneficial when it is done with a proper objective, a clear financial goal with an outlook of long-term sustainability. Many often it has been observed that everyone follows the old method of investment that is purchasing physical gold or land or any other commercial property.
The simple reason behind all such instruments is that they are not volatile and secondly it has been considered as the safest way for a person who does not want to take the risk.
Luckily some other options like bank deposits, Bonds, Government Investment Schemes, and Debentures, etc are some instruments available to generate a good investment plan.it all depends on the nature of an investor whether he is ready to take the risk or just wants to go with the flow.
These kind of investors are those who wish to create wealth without taking any risk are those who always in search of riskless low volatile instruments.
A low-volatility investment is that in which an investor prefers those instruments which are low in volatility (Shares or mutual funds).
A person having low-risk capacity by nature and the one who does not wish to take any sort of risk or afraid of losing money prefer this kind of investing. It is turn out to be safer as there is no risk of market or inflation is associated with it. These investors simply enjoy a very little amount of growth in their invested sum. Though this is not enough to beat the rising inflation rate.
Though the investor is afraid of taking risks invest ample amount of sum in bank deposit, FD, Bond, & in fixed return mutual funds. The diversification of these investors is always associated with fixed return instruments. Their major objective is to generate a risk-free return only without thinking much about the appreciation of the invested corpus.
As the name suggests investment inequities are always associated with market risk. But many often the returns are far better than that of other instruments.
Equities are always termed as high-risk high return instruments, But many often whenever the market crashes it is not that all the equity stocks started falling some are there whose nature is very less volatile and can be suitable in long-term investing.
Yes, not all listed equities need to be volatile some are very less affected by market fluctuation and are steady and provides a better return. There an investor can get handsome returns and suitable growth in their portfolios.
It is not always necessary that all the less volatile stocks will provide a healthy return, it majorly depends upon the performance of the company alongside the market condition it is dependent upon.
Investors often focused on quick earning so they risk their money without knowing the nature of the stock, but before investments, it's better to understand the risk and volatility associated with it.
Our economy is still recovering from the impact of Covid-19. Our country is going through the 2nd wave of the pandemic and is still trying to overcome the losses that happened due to the serious issue of Covid-19.
Recently the GDP data arrived which shows some relief for us, But still, we are facing the serious issues of Inflation across the necessity items.
One of the major is Crude Oil/ Petroleum the prices in India are crossing the mark of Rs.100/ltr which directly affects the economy. The foremost impact is on the transportation & logistics, which somehow leads to rising in the prices of many essential items & products.
But with the advancement in technologies now we are shifting towards the easiest way of transportation which can work with the help of electricity in the most efficient manner.
The Indian market will soon see a new turnaround in this segment as the market will grow up to USD 47 billion by the end of 2026.
These vehicles are more cost-efficient, will have zero pollution and are more in demand in the USA and other countries. Everyone is looking at Electronic Vehicles as the future and which is soon going to happen.
Even the Government of India has announced a PLI scheme of Rs.57000 Cr for the manufacturing of auto parts which will boost it further.
Here is a list of some important auto-ancillary companies which are benefited:
The company manufactures lead-acid storage batteries from 2.5 ampere-hours to 20,600 ampere-hours. The company manufactures automotive batteries, industrial batteries, and submarine batteries.
The company is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian battery industry.
This company is engaged in manufacturing and selling Tapered Leaf, Parabolic Springs, and Lift Axles. It was the first company to introduce parabolic springs in India.
The company is a leading supplier of lighting systems in an automobile which includes Head & Tail Lamps, Sundry and Auxiliary Lamps & other accessories for two and four wheeler, Buses & trucks, Tractors, and earthmovers.
They are engaged in the manufacturing of auto components which includes auto electrical parts & their relative accessories.
This company is a glass manufacturing company in India which is manufactured laminated windshield, antenna printed back lite, solar control glass, Glass antennas, etc. It also manufactures floating glass-like reflective glass.
The company offers a wide range of ride control products and also enjoys a monopoly position in the market.
The company manufacture completes seating & interior components for the automobile. This includes Two & Four wheeler seating, Mould Carpets, Mainframe for a two-wheeler, & Railways Seats.
The company engaged in the manufacturing of automotive wiring, Harnesses, Mirror for passenger vehicles. Mother-son Sumi is also a leading supplier of plastic components & modules in the industry.
Furthermore, companies which are engaged in Tire manufacturing, Power Generation, and supplying will be beneficial. Moreover, the EV segment will bring a positive change in the automobile segment.
Note: Details shared here are only for educational purposes.
ETFs have been on the investor’s radar for the past 10 years as many investors find it easy to purchase several tradable assets such as shares, debt securities, bonds and derivatives.
Since most ETFs are registered with SEBI (Security and Exchange Board of India), people feel more secure to trade in an ETF.
ETF has received global attention from FIIs and retail investors around the world because it has become an appealing option for investors with limited knowledge in the stock market.
Here we will understand a brief about ETFs and how did they receive attention in India?
An exchange-traded fund is a form of mutual funds that trades like a common stock on a stock exchange. These funds keep an eye on stock indices.
When someone buys units of an ETF, he/she purchases a share of the funds that provide the return and yield of its parent index, i.e stock market indices.
It’s a common myth among people that ETFs can outperform or beat the index. This is not the case. Instead, ETFs are dependent on the index performance.
You can say that ETF strongly follows the stock exchange and hence they fluctuate throughout the day just like stocks.
Like mutual funds, an ETF also possesses units that can be bought and sold through a registered yet trusted broker of a stock exchange.
The units of an ETF are listed on a stock market and thence its NAV varies according to the stock market movements.
In India, ETFs are gaining huge popularity as the top AMC and top hedge funds have failed to outperform the stock market benchmark. Hence, investors are now finding passive ETFs is a better option for investors.
If we talk about advantage, then ETFs are cost-effective as the ETF administrative charges are 0.2% or less than it while other actively managed funds charge up to 1% fee.
As mentioned earlier, an ETF shares the features of both shares and mutual funds because they are traded on a stock exchange like other stocks. Hence, they can be bought and sold according to the needs during the trading period.
The price of an ETF heavily depends on the cost of the underlying asset that is present in a pool of resources. Hence, if the price of an asset goes up or down, the share price of an ETF rises in direct proportion or vice versa.
ETFs also give dividends to their customers. However, the amount of dividend a shareholder receives depends on the performance and asset management of the concerned ETF company.
ETFs can be managed both actively and passively according to the company norms. Actively managed
ETFs are managed by the portfolio managers who are the experts in the market and therefore they can better understand the market condition and mitigate the risks associated with the funds.
While passively managed ETFs follow a specific market indices trend and only invest in the companies that perform better and is listed on the charts.
Investing in ETFs gives you several benefits rather than opting for mutual funds or shares of a company.
Here are the benefits of investing in ETFs:
Buying shares of a company allows you to receive the limited benefit subjecting the higher risk. While investing in an ETF helps you to keep your money diversified across different sectors of a company which in turn effectively mitigate your risk.
If one asset fails to deliver the best result in an ETF, it can be recovered by the growth of other assets.
Another advantage of investing in an ETF over a mutual fund is the minimized expenses. Mutual funds charge different fees on different things such as entry or exit load, management fee, maintenance charges etc. This increase the total cost associated with the mutual fund and hence the expense ratio of mutual funds is greater than that of ETFs.
The value of a mutual fund depends on the performance of NAV and it can be bought and sold after the stock market closes.
In the case of ETF, any changes in the value of the ETF can be easily monitored and it can be bought and sold throughout the market timings.
ETFs are more tax-friendly than mutual funds. Although both the funds are subjected to capital gain tax and dividend tax, the fee charged on ETFs is less than mutual funds.
Since ETFs are passively managed, they are less riskier than mutual funds. This is because an ETF only invests in best-performing companies which are listed in a particular stock exchange, while mutual funds assess all the businesses with great potential.
This keeps mutual funds at a higher risk as new companies have a high chance of incurring a loss.
Equity ETFs:
Equity ETFs invest in equity investment.
Gold ETFs:
Gold ETFs mainly deal in commodity exchanges because these funds have physical gold assets. Hence, if someone buys units and share these funds, the company makes the investor owner of gold on paper.
Debt ETFs:
Debt ETFs consist of debt-related securities such as debentures, government securities, debentures etc.
Currency ETFs:
These funds buy currencies from different yet developed countries and receive profits from the currency fluctuations. It has to be noted that these funds are dependent on the future performance of currency that can be predicted by research analysts with specific calculations.
As ETFs are likely traded like shares, there are numerous expenses a person has to be incurred while purchasing the units.
The whole process can be done by the fund managers who charge a minimal commission fee for the transaction.
ETF companies listed on the stock exchange heavily depend on the indices and therefore the unit prices can fluctuate as per market trends. ETFs are a better option than mutual funds but they are not safer than government bonds. Any profit or loss a person incurred is completely based on stock market volatility.
As ETFs are passively managed funds, they are moderately diversified. This is because ETFs generally invest in the best-performing companies listed on a stock exchange that is not in abundance.
As of August 2020, the total ETF asset under management hits at Rs 2.07 lakh crore. Also, the value of AUM in Nifty is recording high in 2021 which is Rs 1.02 lakh crore.
According to AMFI data, it has been recorded that the domestic ETF AUM linked with debt and equity funds has grown at a rate of 65% over the last 10 years. The primary reason behind the success of ETF is the gain investors received from these funds.
Insurance acts as a contract, on which is represented by a policy, under which an individual receives financial protection against uncertain life events which causes him/her uncertain financial losses, The reimbursement of these losses are borne by an insurance company. The company collects a sum from an individual which is term as insurance premium which in return assures the person of transferring his risk of uncertainty to the insurance company.
The insurance sector in India broadly classified as:
Life insurance is defined as a contract between an insurer and a policyholder. A life insurance policy guarantees that An insurer pays a sum of money to the named beneficiaries when the insured policyholder dies, in exchange for the premium paid by him during his lifetime.
It is a pure risk cover product. The policyholder received the benefits if he dies during the period for which one is insured. It provides insurance coverage for a specified term of years with a specified premium. The premium buys protection in the event of death only. Premiums are low here because it only covers the risk of death and there is no investment component in it.
In this, the insurance contract is designed to pay a lump sum after a specific term or on death only. Normally maturities are of ten, fifteen, or twenty years and up to a certain age limit too. Some of the policies also payout in the case of critical illness.
Money-Back Insurance Policies are a type of endowment policies that covers the life and also assures the return of the sum assured as a cash payment at regular intervals. It is a kind of savings plan with the additional advantage of life cover and regular cash inflow. The rate of return on endowment policies is quite low.
It provides insurance cover for the entire life of the insured person or up to a certain age. Premium is fixed for the entire period. There are different whole life policies such as shorter premium payment periods and return of premium option. One of the primary advantages of a whole life policy is guaranteed death benefits; guaranteed cash values. The disadvantage of whole life insurance policies is premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives.
A ULIP is the combination of insurance cover as well as investment opportunities in a single policy offering. Unlike other insurance policies, the insurer gets the benefits of investments in this. An insurer just needs to pay the regular premium which has been departed by the company. Some portion of the premium is used in investment instruments and the remaining is used as insurance coverage.
It offers the coverage of medical expenses borne by the insurer, which is caused by any illness. The expenses covered by the insurance company can be wholly or part of it.
It covers the insured in case of any accidents. Apart from all the medical costs for treatment, salary loss due to injury may also be covered. The compensation depends on the nature of disability caused and the extent of disability.
It is a kind of insurance product that covers the unforeseen losses that occur while traveling, either domestically or internationally.
It is a kind of Third-party insurance, which covers the people affected by motor accidents is compulsory under law. Insurance covers the cost of the vehicle and its accessories. Insurers have their schedules of coverage and premium, depending on the age and model of the vehicle.
It protects against risks to property, such as fire & theft, and some weather damage (Natural Calamities). It includes specialized forms, such as fire & burglary insurance, flood & earthquake insurance, and home insurance.
The rate of progress in AI has been very irregular and unpredictable. The global artificial intelligence market size was projected at USD 39.9 billion in 2019 and is expected to reach USD 62.3 billion in 2020, is probably to grow at a compound annual growth rate of 42.2% from 2020 to 2027 to reach USD 733.6 billion by 2027. Organizations are implementing AI for varied business applications.
The technology provides real-time data gathering, forecasting, and analysis for delivering greater insight in industry verticals, like automotive, healthcare, retail, finance, and manufacturing.
The banking, financial services and insurance industry have undergone a dynamic transformation because the industry requires improvement in areas like fraud detection, wealth management and insurance processing.
By implementing AI BFSI firms can meet strategic objectives like improving customer experience, cost and efficiency optimization, delivering personalized services and improving speed-to-market for offerings.
The manufacturing industry deals with vast quantities of knowledge due to the utilization of sensors and networks,93% of companies believes AI is going to be an essential technology so as to drive growth and innovation within the sector.
87% of manufacturers have adopted AI or planned while 83% hold that AI will make a tangible impact on manufacturing and management within the following 5 years.
Software led the synthetic intelligence market and accounted for quite a 39.0% share of the worldwide revenue in 2019, due to prudent improvements in information storage capacity, high computing power, and multiprocessing capabilities to deliver high-end AI software in dynamic end-use verticals.
Machine learning and Deep learning has led the market and accounted for quite a 39.0% share of the worldwide revenue in 2019, due to its complicated data-driven applications, including text/content or speech recognition.
As an example, in March 2018, NVIDIA Corporation announced a strategic partnership with Arm Limited to bring deep learning inference to the web of Things (IoT) and consumer electronics devices within the global marketplace.
The advertising and media segment led the market and accounted for quite a 20.0% share of the worldwide revenue in 2019. The healthcare sector is gaining a number one share supported use-cases, like robot-assisted surgery, dosage error reduction, and automatic image diagnosis. The BFSI segment includes financial analysis, risk assessment, and investment/portfolio management solicitations.
North America dominated the AI market and accounted for over 42.0% share of worldwide revenue in 2019. This is often due to the presence of leading players within the region, a strong technical adoption base, and the availability of state funding. The Asia Pacific is estimated to witness significant growth in the market for artificial intelligence.
In September 2019, IBM Watson Health signed an agreement with Guerbet, for the event of an AI software solution for cancer diagnostics and monitoring. Moreover, in January 2019, Intel Corporation announced its partnership with Alibaba Group Holding Limited (China), to co-develop AI-powered tracking technology to be deployed at the Olympic Games 2020.
Some key players operating within the AI market include Atom wise, Inc.; Life graph; Sense.ly, Inc.; Zebra Medical Vision, Inc.; Baidu, Inc, Google LLC; Intel Corporation; and Microsoft Corporation etc.
Globally there is a trend of startups growing in the market. Hence key players are taking several strategic initiatives, such as mergers and acquisitions, partnerships, and collaborations with other major companies so as to offer customized artificial intelligence solutions to fulfil the rising needs of the industries and to expand globally in order to enhance their offerings these players are acquiring startups.
Investments that are rising in research and development by leading players also will play an important role in increasing the uptake of AI technologies.
For example, the Chinese tech giant Alibaba's research institute Damo Academy has developed a diagnostic algorithm that can detect new coronavirus cases with the chest computed tomography (CT) scan. The AI model utilized in the system has been trained with the sample data from over 5,000 positive coronavirus cases.
In December 2019, Intel Corporation has completed the acquisition of Habana Labs Ltd., an Israel-based deep learning company. This acquisition is estimated to strengthen Intel Corporation’s AI portfolio and encourage its efforts within the AI silicon market.
The retail industry is expected to grow significantly: the expectation is that 80% of executives will adopt AI-powered intelligent automation. It is because of customer changing habits. Artificial intelligence technology in retail offers various benefits such as predictive merchandising, programmatic advertising, market forecasting, in-store visual monitoring & surveillance, and location-based marketing.
This is likely to boost cloud adoption. On-premises has led to gain maximum shares. Owing to less implementation expense cloud deployment is gaining traction. Eg is amazon which offers easy image recognition, chatbots, etc. so cloud deployment would be in demand in few years.
Use of machine learning, NLP and computer vision: machine learning is gaining popularity because of precision in analysis. Which the increasing application for chatbots and virtual assistant is boosting demand for NLP technology. Ml technology is required mostly in healthcare sectors computer vision is another one.
The fusion of air and cloud computing can help to grow market segments. Companies with fewer funds can rely on cloud computing for the services. For eg.veritone has use cloud computing for building it AI operating system. Startups are using fusion to expand globally.
Increasing use of AI will increase chances in the service market: three components of the market are taken into account they are: hardware, services and AI software. Hardware will grow because of semiconductor companies.
Enterprises will be enabled to increase the use of AI of network optimization to optimize their inventory by making orders that supported the estimated demand, current inventory level, and time interval.
Al can help telecom providers to create self-optimizing networks (SONs), which may provide network operators with the power to automatically optimize their network quality counting on traffic information by zone and region. Poor availability of skilled workforce and high cost of implementing AI.
A major challenge for the expansion of Al within the telecommunication industry is that the shortage of technical expertise among the workforce.
Enterprises implementing Al are required to possess sound knowledge on working with Al software platforms and periodic servicing necessities to make sure smooth operations.
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