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On Slack: IDFC's new life, Infy options, Aashirvaad Ghee, Baroda fraud, Bond101 and more….

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The Slack Discussions

The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there, pop us a note by replying to this email. (If you’re a trial member this probably sound like Greek to you; it will be available when you sign up!)

A brief summary of some of the interesting things discussed there in the last few days:

#stocks: IDFC Bank begins life: How Rajiv Lall plans to grow it

IDFC

IDFC Bank kick-started its lending operations today, a little over a year after receiving its banking licencing from the Reserve Bank of India. IDFC Bank will be offering 9.50 percent base rate to its customers, says Rajiv Lall, executive vice-chairman and MD of IDFC Bank.  Lall is confident that the bank will deliver at least Rs 1,000 crore profits in the current year. “We are confident that year-on-year (Y-o-Y), we will grow our profits after tax (PAT) at least 10-15 percent every year,” he said.

http://www.moneycontrol.com/news/business/idfc-bank-begins-life-how-rajiv-lall-plans-to-grow-it_3360701.html?utm_source=ref_article

https://balablogsdotcom.wordpress.com/2015/10/03/idfc-corporate-action-careless-attitude/

#options: Traders bet on 5.5 times returns from Infosys options

Traders are readying aggressive bets on Infosys ahead of the company’s second-quarter results on October 12. Some of these wagers made through futures and options contracts are structured to make returns of as much as five-and-a-half times the money put in as, historically, Infosys shares have been sharp movers in the run-up to results and the earnings days.

http://economictimes.indiatimes.com/articleshow/49220945.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

#general: ITC enters dairy market, set to launch Aashirvaad ghee

ITC

Aashirvaad ghee will make its debut this Diwali as ITCBSE 0.08 % enters the dairy market, extending the product range of its biggest non-cigarette brand. The company is looking to replicate the success it achieved in the unorganised and commoditised atta segment with the Aashirvaad brand, under which it also sells spices and other food products.

http://economictimes.indiatimes.com/articleshow/49220873.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

http://www.livemint.com/Politics/N3zLUqNG6SmjynRFw7de6M/Govt-raises-import-duty-on-ghee-butter-to-40.html

#general: Why Is Prof Sanjay Bakshi Aggressively Buying A Stock Dumped By Ashish Kacholia?

It is intriguing that while one ace stock wizard of impeccable credentials sees no merit in a stock and dumps it, another of equally impeccable credentials sees much merit in it and buys it aggressively. We need to understand why there is such difference in the thought process of the two stalwarts and what our own decision should be.

http://rakesh-jhunjhunwala.in/why-is-prof-sanjay-bakshi-aggressively-buying-a-stock-dumped-by-ashish-kacholia/

#general: Iran’s October oil exports head towards 7-month low -source

Iran’s crude sales are on track to hit the lowest in seven months in October, according to a source with knowledge of its preliminary shipping plans, showing how Tehran is struggling to boost oil exports even after reaching a landmark nuclear deal.

The weaker sales come despite offers of price discounts to stimulate purchases by Asian buyers as Iran tries to regain market share lost to rivals such as Saudi Arabia over the last 3-1/2 years of Western sanctions.

http://uk.reuters.com/article/2015/10/06/iran-oil-exports-idUKL3N12121020151006

#general: Infibeam gets Sebi approval to raise Rs 450 crore via IPO

InfiBeam

Infibeam Incorporation is set to become the first e-commerce company in the country to be listed with capital markets regulator Securities and Exchange Board of India (SEBI) giving its nod to the Gujarat-based company to raise Rs 450 crore through initial public offering (IPO). The company, which runs ecommerce platform Infibeam. com, would focus more on creating an ITeS-enabled ecosystem for virtual retail using .OOO domain and BuildaBazaar marketplace.

http://economictimes.indiatimes.com/articleshow/49235469.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

http://anantfinvest.blogspot.in/2015/10/infibeams-rs-450-cr-ipo-gets-sebi-nod.html

#general: Bank of Baroda’s squeaky clean image has been rattled with a Rs 350 crore fraud

Baroda

A senior official of the government-owned institution told that the matter has been reported to the Reserve Bank of India.

“There is a suspected fraud. An internal probe is on. If the money cannot be recovered, the bank will have to take a hit… An established company is involved, but I’m not in a position to disclose the name… We sensed something was wrong when a few bills bounced,” a person on condition of anonymity.

http://www.businessinsider.in/Bank-of-Barodas-squeaky-clean-image-has-
been-rattled-with-a-Rs-350-crore-fraud/articleshow/49241452.cms

http://economictimes.indiatimes.com/industry/banking/finance/banking/bank-of-baroda-investigating-rs-350-crore-bill-discounting-fraud/articleshow/49235668.cms

#backtobasics: Charts from AP Pune

http://swingtrader-ap.blogspot.in/2015/10/quarterly-charts-of-indices-and-key.html

Ap Options

#Concepts: How the “Ex” Date and Record Date for Dividends, Splits and Demergers Works in India 

https://www.capitalmind.in/2015/06/concepts-how-the-ex-date-and-record-date-for-dividends-splits-and-demergers-works-in-india/

#bond101: What is a Yield and a Coupon?

Coupon = whatever is paid out per Rs. 100 face value

Yield = think of this as the return YOU will get

So a Rs. 100 face value debenture can be sold to you at 120. 8% coupon means you get Rs. 8 interest. But since you paid Rs. 120 you get Rs. 8/120 = 6.6666%. That’s “Current yield”.

http://www.wallstreetoasis.com/forums/yield-rate-vs-coupon-rate

Yield_Coupon

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Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion. 

Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.

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