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MRF Q1 FY26: Revenue Up, Profits Down on Margin Pressures
Automobile News, Autos, Business, Editorials, Expert Views, Market News, Markets - August 27, 2023

Auto industry needs to provide flexi-fuel vehicles at various price points to accelerate blended fuel technology adoption .

Auto industry needs to provide flexi-fuel vehicles at various price points to accelerate blended fuel technology adoption .

In an event organised by the auto industry body, the Society of Indian Automobile Manufacturers [SIAM], the union ministers of petroleum and natural gas and housing and urban affairs stated that the Indian automobile industry needs to provide flexi-fuel vehicles at various price points quickly to accelerate the adoption of blended technology.The government will provide comprehensive support from the supply , policy and demand side for the sale of the flexi-fuel E10, which is a blend of 10 percent ethanol with the petrol, and the E20, which is a blend of 20 percent ethanol with the petrol.

Vehicles are the auto industry’s viable business proposition;

we need more options at various price points, including two-wheelers and three-wheelers, and we need them quickly. Hardeep Singh Puri, the minister for petroleum and natural gas, as well as housing and urban development, used the launch of Toyota’s first-of-its-kind pilot project on the flexi-fuel [FFV-SHEV] that can run on 100 percent ethanol in India last week to demonstrate how things are progressing on the blended fuel front.He also said the government is ready from the supply side to launch the E20 .

The union minister, Nitin Gadkari, launched this first pilot project on flex fuel strong hybrid electric vehicles [FFV–SHEV] on October 20, 2022 . which has been imported from Toyota Brazil for the pilot project . FFVs allow for greater ethanol substitution of gasoline because they can use any of the higher ethanol blends ranging from 20 percent to 100 percent.An FFV-SHEV has a flex-fuel engine and an electric power train, providing the dual benefit of higher ethanol use and greater fuel efficiency, as it can run in its EV mode for extended periods of time while the engine is turned off.

Target achievement:

Achieving the E20, which is blending with petrol by 2025, would help India save foreign exchange by about Rs 30,000 crores per annum . Hardeep Singh Puri also said that India will push for an international biofuel alliance when it assumes the presidency of the G20 in December this year .

Further , he said, we will utilise our G20 presidency to try and set up an international biofuel alliance . The number of petrol pumps selling bio fuels has more than tripled, from 29,897 in 2016-2017 to 67,641 in 2021-2022.He also says in his statement the India’s ethanol demand is poised to grow to 10.16 billion litres by the year 2025 . and also expanded the excise duty waiver for biofuels and will always consider how to prepare this even further in the future .

 

 

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24% Tariffs: Japan Faces Economic Shockwaves
Business, Equities, Markets - August 26, 2023

The new rich are fueling brand expansion of Titan

The new rich are fueling brand expansion of Titan:

There is a lot of latent demand for luxury items from India and high-class people. Titan gets maximum revenue from its jewellery business, which is about 90%  and the remaining 10% from various businesses like watches , eyewear, and perfumes etc. Titan has four jewellery brands under its portfolio. They are: flagship tanishq, working women’s focused mia, online sales portal carat lane, and zoya . This caters to the rich customer base.

Expansion of business:

India anticipates a significant increase in high-end consumers, prompting Tata group’s jewellery unit to triple its zoya-branded stores by 2027.In the next five years, these stores will be expanded to a total of 15.which will cost around 3.64 million per store. Further revenues from the jewellery business could have the benefit of 80-90 basis points because, of that rest, all businesses have performed well.

India is already the world’s second largest market for the consumption of gold. During the COVID period, there was a disruption in the golden harvest related pieces, but now the business is doing very well and going forward. The company has just opened its second new store of fast rack eyewear, especially to address the youth segment, and tanishq has added 78 stores to its retail footprint, bringing the total number of stores to 582. The company’s aim is to take that number to 700 over the next couple of years. Carat Lanes handcrafted silver jewellery brand Shaya opened its first-ever physical stores in Mumbai and Bengaluru.

company has also plans to accelerate its international expansion in Zoya with Tanishq. Further, the CEO of the jewellery division said that they will utilise this experience to plan a global move for Zoya. Zoya has a collaboration with the Indian hotel company, Taj Hotels, Resorts, and Palaces, etc. and bespoke jewellery made with the design team and artisans. It will attract wealthy clients. Company is also aiming to incline up abroad extension in zoya in a offer to build a global luxury brand.

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Everest Kanto reported a total revenue of Rs. 380 Cr.
Editorials - October 12, 2022

Amid an energy crisis, desperate Europeans turn to firewood for warmth

Amid an energy crisis, desperate Europeans turn to firewood for warmth.

At a summit in Prague, European leaders fell short of agreeing on a price cap for gas amid concerns that any such move could threaten supplies to the region. the gas pipeline is the latest sign of the regions critical position as Russia slashes supplies in the standoff over the war in Ukraine. As much as 70% of European heating comes from the natural gas and electricity and with Russian deliveries drastically reduced.

In france prices for wood pellets have rised nearly doubled to 600 euros a ton. And there are signs of panic buying of the most basic fuel , meanwhile wood stoves can now take months to deliver. The energy level of crisis is intensifying a surge in living expenses , with inflation strapped households across the region are increasingly faced with choosing between heating and other essentials.

Europeans are so angry over sky-high bills and starting to gather the firewood for winter.,
For many Europeans the key concern is doing whatever it takes to stay warm in the coming months. The fear for heat could create health and environmental issues. the diseases can end up deep in the lungs and cause heart attack , strokes etc said by the expert. In Germany facing a yet another crisis after Russia shut down its Nordstrom one national gas pipeline due to technical issues. Germany, where the country’s association of chimney sweeps is dealing with a flood of requests to connect a new and old stoves, and peoples are inquiring about the burning horse dung.

People are anxious for wood and they are buying more than usual. In Berlin , crisis creates unsettling echoes of the desolation following world war 2 with fuel of short supply, residents chopped down nearly all the trees in the central tiergarten park for heating.

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Zee -sony merger could change the business trajectory.
Business, Equities, Markets, Uncategorized - October 10, 2022

Zee -sony merger could change the business trajectory.

Zee -sony merger could change the business trajectory.

The competition commission of India (CCI) granted the Zee and Sony conditional approval.The CCI approved the merger of Zee Entertainment Enterprises Ltd with Sony Pictures Networks India pvt Ltd and Bangla Entertainment Pvt Ltd, both part of the Sony group corporation, accepting the modification proposed by the companies to the deal they had announced.

CCI stated that the proposed combination relates to the amalgamation of each Zee and BEPL with and into CME. and preferential allotment of certain shares by CME to Sun Bright International Holding pvt. Ltd. and Sun Bright Mauritius investments ltd.Further, CCI has said that the merger between Japanese company Sony and Indian company Zee Entertainment could hit India’s domestic market.

In terms of viewership share, Zee and Sony have a combined entity share of less than 40% across genres, with the exception of movies, where the merged company has a share of more than 50%.and zee and Sony have a combined total TV viewership share of around 24 percent, slightly higher than Disney Star’s (20 percent).When it comes to advertising , Zee and Sony as a combined entity will command an ad revenue market share of 27 percent, which is largely on par with the Disney star that has a TV ad market share of 26.5 percent as of FY21.

Conditional Nod:

The conditional nod from CCI comes over a month after it was reported that the anti-trust watchdog have flagged the potential adverse effects arising from the merger. The merger, which would create a $10 billion television conglomerate, has the potential to harm competition by providing unparalleled bargaining power.

The board had said that Sony will hold a 50.86% stake in the merged entity, the promoters of Zee will hold 3.99 % , and the other zee shareholders will hold a 45.150% stake in the combined company. The zee-Sony combined entity linear channel portfolio would comprise a wide array of genres and languages with 75 channels. The companies’ combined revenue was Rs 133bn in FY21. which include network and revenue market share of 27% and 37%, respectively.

Financial highlights:

According to Sony, the merged company will create extraordinary value for Indian consumers and will eventually lead the consumer transition from traditional pay TV to the digital future.Zee and Sony will bring tremendous synergies between the two companies that will exponentially grow the business and the sector. While the OTT entertainment market has grown to nearly Rs 100 billion, with Rs 43.5 billion in subscription revenue derived from 53 million subscriptions and 29 million unique subscriptions,

The zee and Sony OTT apps, while performing modestly individually, have double-digit revenue and subscriber market share on a combined basis. The combined operating cost of Rs 30bn is similar to that of the top OTT platforms . assuming it could match the top entertainment apps in the original content generation space. Zee lacked the strength to compete with the top OTT platforms individually; the combined entity has the potential to create a strong foothold and content slate with a war chest of Rs 113bn capital infusion from Sony post merger and potential cash generation of Rs 50bn from the linear business.The only thing where the company is lacking in sports is the bidding for the next 5 years of broadcasting rights for the IPL.

According to experts, this merger will create a 10bn dollar TV enterprise. this will create the largest entertainment network in India with a 26 percent viewership share and could become a one of the serious competititor to replace market leader star and Disney.

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Lupin Soars on USFDA Nod for Billion-Dollar Drug
Business, Equities, Markets, Research, Result Updates - October 3, 2022

Lupin ltd consolidated revenue fell by 14% YOY to Rs 3604 Cr.

In Q1FY23, Lupin ltd consolidated revenue fell by 14% YOY to Rs 3604 Cr.

Lupin limited is a multi-national pharmaceutical company based in Mumbai. The company specialises in branded and generic formulations, APIs and advanced drug delivery systems in biotechnology. It has 18 manufacturing sites and 9 R&D sites across the globe.

Lupin ltd consolidated revenue fell by 14.9% YOY to Rs 3604 Crores, in Q1FY23, due to subdued performance of its US business.EBITDA was down by 76% YOY to Rs 238 Crores. EBITDA margin falls by 1680 basis points.YOY to 6.6% due to raw martial inflation, higher employee spends and other expenses. Consequently , company reported a loss of Rs 89 Crores. As against of Rs 542 Crores profit a year ago. Company increasing market share, new product ,and scaling up of the Indian business indicate well for the company  performance.

Financial highlights :

In Q1FY23, lupin ltd consolidated revenue declined by 12.3% YOY and QOQ to Rs 3.74Crores.it is mainly due to muted performance in the US business. Revenue from the US business declined by 24.2% YOY and 28.7%Quarter On Quarter to Rs 1010 Crores due to inventory writw down , shelf stock adjustments and price erosion. Company s Indian revenue stood at Rs 1492 Crores which is down by 8.85 YOY and up by 10.4% QOQ DRIVEN BY A 9.9% Quarter on quarter driven by a 9.9 % QOQ growth in domestic formulations. API revenue grew by 3.7% YOY and 15.8% QOQ to Rs 255 Crores. While revenue from growth markets rose by 27.3% YOY and 11.2% QOQ to Rs 424 Crores.

Margins impacted due to raw material inflation:

Gross margin of company contracted by 720 basis points YOY to 55.3% as the company pared down inventories and took shelf shock adjustments on select products consequently; EBITDA fell by 76% YOY to Rs 238 Crores. Company owing to further price erosion in the US business and inflation in input materials. EBITDA margin thereby shrink  by  16.8% YOY to 6.4% reported a loss stood at Rs 89  Crores as against Rs 542 Crores .

Quarter highlights:  

Capex stood at Rs 161 Crores against Rs 106 Cr in Q1FY22 and Rs 158 Crores in Q4FY22. R&D expense was at Rs 348 Crores against Rs 374 Crores in Q1FY22 And Rs 344 Crores in Q4FY22. Total marketed generic products stood at 167. It launched cyclosporine ophthalmic in the US in the quarter. Current pipeline includes 54 FTF, OF Which 21 exclusive FTFs are awaiting for the USFDA approval. In India business, the company has a revenue run rate of more than Rs 1000 Crores. In cardiac and anti-diabetics .GI, pain and gynae grew in double digits.

Valuation:

The EPS was Rs. -1.96, compared to Rs. 10.15 in June 2021. The ROCE and ROE were at  -7.16% and -11.8%, respectively. The book value of a stock is Rs 267. The company’s asset turnover ratio was 0.73x. The scrip is trading at Rs.717, up by 5.40%. on Monday.

Astral Pipes posted a net profit of Rs. 96 Cr.

 

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Railway Fare Hikes and What They Mean for IRCTC, IRFC, and RVNL Stocks
Business, Editorials, Equities, Markets, Research - September 30, 2022

the-cabinet-okays-a-rs-10000-crore-futuristic-revamp-of-three-major-railway-stations

The Cabinet okays a Rs 10,000 Crore futuristic revamp of three major railway stations.

The union cabinet meeting, which is chaired by the hon. prime minister, Narendra Modi, have gave approval for the redevelopment of 3 major railway stations with a total investment of Rs 10,000 crores. Further, union minister of railways Ashwini Vaishnaw has said that the stations will be develop with a futuristic design.
1. New Delhi railway station
2. b] The railway station in Ahmadabad, as well as
3. c] Mumbai’s Chhatrapati Shivaji Maharaj Terminus [CSMT].
A railway station is an important and central place for any city. PM Shri Narendra Modi has given importance to station development in the transformation of railways by using green building techniques method with solar energy, water conservation, recycling and improved tree cover. cabinet decision gives a new direction to the station dev.,work on development of 199 station on and from these tenders have been issued for 47 railway stations. For the remaining stations, the master planning and design is in progress. Work progression is fast for 32 stations and the cabinet has sanctioned an investment of Rs 10,000 crores for 3 big stations, namely New Delhi, CSMT Mumbai and Ahmadabad.

The components of railway station design will be:

Every station will have a spacious roof plaza of [38/72/108m] with all the passengers’ amenities in one place, along with spaces for retail, cafeterias, and recreational facilities..
Both sides of the city will be connected to the station, and with the station building on both sides of the railway tracks.

Facilities like food courts, waiting lounges, playing areas for children , and places for local products, etc. will be available.

To make stations comfortable , there will be a proper illumination , way finding, signage, acoustics, lifts, escalators, and travelators.

A detailed plan have been prepare for the smooth movement of traffic with adequate parking facilities.

There will be corporations for transportation like metro, buses, etc.

Green building techniques will be use in stations redeveloping with solar energy, water conservation, and recycling and improved tree cover.

Special care will be taking to provide Divyang with friendly facilities.

This stations will be built on the concept of elegant building.

There will be segregation of arrivals and departures, clutter-free platforms, improved surfaces, and fully covered platforms.

All stations will have a CCTV installation with remote access.

development benefits:

These will be iconic station buildings. However, shifting from the earlier stance, the ministry will no longer be looking at station redevelopment on a public–private partnership [ppp] basis, the minister said. The 3 stations will be develop completely through budgetary means, he added. The projects will be tendered out through the engineering procurement and construction [EPC] mode. This comes from the ministry had earlier floated a tender for the redevelopment of Chhatrapati shivaji maharj terminus under the build-operate-transfer [BOT] MODE. A form of PPP.

The benefits of the EPC mode are that it results in the creation of 35,744 new jobs; it improves the daily experience of more than two million travellers; it also helps the local economy through investment and additional business opportunities; and it promotes transit-oriented development of cities.

The development assumes significance with respect to the monetisation plans of the railway ministry , which is the second highest contributor to the centres The Rs 6 trillion national transportation .Further, Vaishnaw said that the Delhi station will take around 3.5 years to complete as it involves complex operational changes, and the other two railway stations, Ahmadabad and CSMT Mumbai, will be ready in 2.5 years. The redevelopment of the stations is to be complete in a time span of approximately 2–3.5 years.

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Kalpataru Secures ₹708 Crore from Anchor Investors!
Business, Editorials, Equities, Markets, Real Estate, Research - September 27, 2022

DLF Ltd posted a consolidated revenue of Rs 1516 Crores.

DLF Ltd posted a consolidated revenue of Rs 1516 Crores.

DLF Ltd’s consolidated revenue in the first quarter of the fiscal year was Rs 1516 crores, a 22% increase year on year. Gross margins continue to operate in the 50% plus range. The Q1 23 margin stood at 53%. EBITDA stood at Rs. 488 crores. There is a drop in this quarter due to the scaling up phase and investing in the growth of the company. The increase in staff costs is driven by organisation scale up, and other expenses are driven by business scale up costs of marketing and brokerage Reflecting a 39% increase year on year. This was largely driven by a significant reduction in the financing costs, along with growth in the JV profits.

Demand continues to exhibit sustained momentum.

The high demand for luxury homes has been a key trend that is expected to continue. In addition, the residential business maintains its consistent performance, with new sales bookings of Rs 2040 crores, representing a 101% year-on-year increase. The Camellias company’s luxury product offering remained the preferred destination across the super luxury segment and delivered a healthy sales booking of Rs 350 crores during the quarter. The company’s new product remains to continue contributing to the sale of Rs 1532 crores during the quarter, which was approximately 75%.

DLF Cyber City Developers Limited consolidated results for Q1 Financial Year ’23.company witnessed steady performance across the portfolio. The retail business continued its growth path and delivered healthy growth. Rental income grew by 20% year-on-year, driven by a strong growth in retail revenue. Consolidated revenue of Rs. 1,260 crores as compared to Rs. 1,041 crores last year, reflecting a21% year-on-year growth. EBITDA at Rs.961 crores, reflecting a year-on-year growth of 18%, and net profit at Rs.323 crores, reflecting a year-on-year growth of 60%
.

Retail businesses continue to exhibit steady growth with an improvement in consumption trends. Organized retail is expected to gain further share with a strong preference for quality assets at established locations. Given these tailwinds, company remain committed to growing the portfolio across multiple geographies and retail presence in the next few years. Companys strong balance sheet and healthy cash flow generation, coupled with a diversified pipeline of quality offerings, provide a unique opportunity to leverage this up cycle.

VALUATIONS:

The EPS was Rs. 1.90, compared to Rs. 1.36 in June 2021. The ROCE and ROE were at 4.84% and 4.61%, respectively. The stock was trading at a P/E ratio of 54.3x. The company’s asset turnover ratio was 0.11x. The scrip is trading at Rs.395, up by 2.61% on Tuesday.

 

Astral Pipes posted a net profit of Rs. 96 Cr.

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Equity Right
Currency, Market News, Markets - July 28, 2022

How are Exchange Rates are Determined?

What determines Exchange Rates?

 

Exchange Rate is the value of one country’s (nation) currency against another nation’s currency. In simple terms, it is a relative value between two currencies. Usually exchange rates are free floating depending on demand and supply in market. But there are exchange rates which have restrictions and are not based on floating rate. The other factor apart from demand and supply that determines exchange rate are interest rates, speculation and market sentiment , inflation rates, etc.

Type of Exchange Rate:

Currency Peg – Sometimes a particular country’s currency peg to that of other countries currency. For example – Hong Kong’s dollar pegs to US dollar in range of 7.65 to 7.80, than value of Hong Kong’s dollar will remain between the ranges of 7.65 to 7.80.

Free floating – This rate actually fluctuates due to the change in foreign exchange market. So, if there is any fall or rise in the foreign exchange market, it will affect free floating exchange rate.

Restricted currencies – This is not applicable to all the currencies, as only some countries have restrictions which limit their exchange to be within the country’s border and have value which is set by government.

Spot and forward – Spot price is basically current market value which is also known as cash value. Similarly, exchange rate have Forward rate, which are based on the expected currency rise and fall. Forward rate changes as expected change in market value.

Onshore and Offshore – Sometimes, exchange rate differs in their own country which is because of onshore and offshore rates. This situation occurs between country’s border versus outside its borders and fluctuates accordingly. For example, Chinese government has own structure and controls the currency. By setting a midpoint value for the currency, which allows the Yuan to trade in a band of 2% from the midpoint.

Quotation – Quotation is basically an exchange rate which is quoted using an acronym for the national currency which they represent.

 

What determines currency exchange rate ?

Other currency determined price of one currency. Therefore various factors mainly Fixed Exchange rates, Floating Exchange Rates and Managed Exchanged rates influences Currency rate. Floating exchanges rates and Fixed Exchanges rates are most commonly used to determine rate as Floating rate actually fluctuates due to the change in foreign exchange market. So, if there is any fall or rise in the foreign exchange market, it will affect free floating exchange rate.  Demand and supply are the main factor to determine it in open market operation.

If fixed rates are used by economy than this is not applicable to all the currency, as only some countries have restrictions, which limit their exchange to be within the countries border and have value which is set by government. Countries choose to peg where, a particular countries currency peg to that of other countries currency. For example, Hong Kong’s dollar pegs to US dollar in range of 7.65 to 7.80. Than the value of Hong Kong’s dollar will remain between the ranges of 7.65 to 7.80 usually done to maintain stable rates.

Major factors which determines exchange rates are:

Government – When there is too much volatility in Forex market, then government or regulatory body of that country may intervene and buy opposite currency to control downfall. For Example, if Rupee is depreciating against Dollar with a high difference, than RBI may come forward and buy Dollars.

Imports and Exports – Imports and exports play major role in exchange rates. Therefore, government always try to maintain balance between them. For example, if imports are increasing, it create more burden on that particular country’s economy resulting in rate fluctuation.

Interest Rates – Interest rates on government bonds attracts investors, but rate should be high enough to cover foreign market risk so that investor’s money is safe and credit ratings are stable. This will result in flipping rates in particular countries exchange rate.

Speculations and Market Sentiment – When the markets are moving, there is a lot of speculation about the expected changes into the currency rates which results in investments, redemptions of foreign investors. Through speculations, investors try to earn more profit.

Inflation Rates – Any change in inflation rates results change in exchange rates. Usually, country’s which have low inflation rate have seen appreciation in their exchange rate and vice versa.

Other factors that contribute in fluctuation of exchange rates are country’s political stability, debt holdings and overall performance of economy.

 

 

Importance of Financial Literacy. Why it is a must have today

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REC Board Greenlights ₹1.55 Lakh Crore Bond Fund!
Business, Uncategorized - July 28, 2022

How Green Bonds Work?

How Green Bonds Work?

 

Stakeholders around the world are worried that the Earth’s biodiversity is being destroyed irreversibly. People have a shared conviction that the natural world on Earth has been irreversibly harmed. This is true that we are all affected by climate change. It’s also true that the planet will soon vanish from dwindling natural resources, such as oil and other fossil fuels. It is therefore imperative that corporations begin to invest in environmentally friendly ventures. Business people all over the world are worried about future returns from investing in green projects. The green bonds idea has thus been implemented to help organizations, without exerting excessive pressure on their budgets, and control their push towards sustainability. After all, businesses prefer to be cost-effective rather than environmentally friendly.

 

What is it?

A green bond is mainly a debt financial instrument. It is not financially very different from other bonds. In this debt financial instrument, there is fixed income and pays as per coupon rate. These bonds are unique as they are used exclusively to finance green projects and green initiatives. This can be a new green project built from scratch or an existing project turned into environmentally friendly standards. In 2007, the European Investment Bank opened the world in issuing green bonds. At first, the major problem was issuance size as these bonds issuance size was very small. More investors and organizations have shown attraction in this financing instrument over a period of time. As a result, these bonds now have a healthy primary and secondary market.

 

Benefits:

Worldwide investors queue to purchase green bonds. All these can be seen by the fact that almost all the green bond issues till today’s date observed an over-subscription. The most obvious benefit of green bonds is that they provide financing at relatively small levels for environmentally friendly projects. Secondly, as part of corporate social responsibility, investors are willing to invest in these ventures. They could even point out that they have invested in improving the environment that gives them excellent goodwill in the local community and local market.

Finally, it is easy to track all the green projects that are carried out worldwide. This makes reporting easier in all global summits and provides data and by this world leaders can make choices rather to invest in these ventures or not. Investment in these ventures is subject to various tax cuts. These tax exemptions vary from country to country. However, almost every country that has signed environmental agreements such as the Paris Agreement tends to get tax benefits.

 

Issuance Process:

The first step in issuing green bonds is to identify the project. It is important that a third party examines and certifies the project. This ensures that the project is based on low emissions of carbon. The bond issuer has to define projects that obtain funds from the issuance of green bonds clearly. Things must also ensure that even activities that are not directly linked to the project and are not in any manner polluting the environment. The projects list must then be forwarded to a third party verifier. These companies are usually world-renowned credit rating agencies.

They test the details provided by the issuer and then confirm that the ventures/projects are indeed environmentally friendly. This certificate is required for bonds to be referred to as green bonds. The developer will keep track of the environmental effects of the project continuously. Even if the project in the middle of its operation is not compliant, the same must be reported to the standard board. In the absence of these details, legal action against the misrepresentation by investors can be undertaken.

 

Challenges:

Firstly, even though the issuer can receive funding at a lower interest rate, it needs to make a substantial investment at an early stage. Issuance of green bonds have long and tedious process. Multiple parties have to participate in the issuance process and all these parties must therefore be paid. This offsets the perks of financial support for smaller projects and small ventures. Green bonds can therefore be used cost effectively only if the project have a massive scope and bond issuance size is very big.

Furthermore, there is no simple grading scheme that determines project is completely green. For these problems, different agencies have multiple interpretations. A series of standard guidelines and terminologies is needed to develop green bonds. Bonds that provide greater environmental benefits will have greater tax benefits and less financing costs. Only then, the big companies and investors can invest funds enormously in these projects and ventures.

In a nutshell, green bonds are a revolutionary concept in order to fund environment friendly ventures and projects. Nevertheless, they are still in an evolving stage and must be further recognized.

Credit risk funds. Should you invest?

 

 

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Eternal Q2 FY26: Revenue Explodes, But Profit Takes a Hit As Costs Surge
Business, Currency - July 27, 2022

Forex Trading vs. Regular Trading.

Forex Trading Vs. Stock Trading.

 

The Forex Trading and Stock Trading market:

Forex Trading vs Stocks Trading will allow you to choose the best market suitable for an investor to trade. Traders frequently compare Forex versus Stock to see which market is better for trading. Even though it is interconnected, the forex market and the stock market differ greatly. In the minds of others, the forex market has specific features that make it much more appealing to trade. If you want to trade in the market, it is important to know which trading style is the best for you. But understanding the stock and expected market variations and similarities, often helps traders to make informed trade decisions. It is based on factors such as market conditions, liquidity in the market, and size.

 

Comparison between Forex and Stock Market:

 Both the Forex market vs. the Stock market, have advantages and disadvantages. It comes down to the importance of these features for you personally. Let us first look at an overview of each market, and then logically deduce about Forex Market trading Vs. Stock Market trading. There is no regulator body in the Forex market and is decentralized. Forex Market represents an international trading network of members all over the globe. Well-known Investment banks, several central banks, and commercial companies are the main players in the Forex market.

The stock market has a mixed group of buyers and sellers of stocks which includes individual investors to big companies. As the name suggests, shares of a company are offered in a share market in terms of ownership. These transactions are typical, through stock exchanges. Most corporations choose to float their stock shares to raise capital. The stock exchanges provide the buyers and sellers with a clear, transparent, controlled, and convenient marketplace to trade.

Trading on such exchanges has traditionally been carried out by “open outcry”. But the trend toward electronic trading is high in recent years. However, it is not larger than the Forex market, which is the world’s largest financial market. When the Forex market is weighed against the stock market, the Forex market has more weightage. Why are we interested in the size? The most important factor is, that the bigger the Forex market, the higher its liquidity.

 

The volume comparison:

The size of the Forex market is one of the main disparities between Forex and Stocks. It is a focused trade on pairs like AUD-USD, USD-JPY, EUR-USD, and GBP-USD. The stock market value including all the world’s financial markets is about 200 billion dollars a day on average. A large amount of trading will offer traders many advantages. High volume means that traders can typically make their orders faster and nearer to their desired rates. Although, all markets are vulnerable to shortages, at any price point more liquidity. Allowing traders to enter and leave the market.

 

The Liquidity comparison:

A high-volume market normally has high liquidity. Liquidity results in narrower spreads and lowered costs in transactions. In contrast to stocks on the stock exchange, large Forex pairs typically have relatively small spreads and small transaction costs, which are one of the key benefits of dealing in the Forex market over the equity markets.

 

The trading timing comparison:

The Forex market is a 24-hour market and has no central location. There is always a part of the globe which has the market open and is during business hours. The trading of a listed stock is limited and has specific timings. Stock traders have to stick to stock exchange hours. Several major exchanges have however implemented some form of extended business hours. Stock traders may participate during times of pre-market and post-market trading. This was once only the area of institutional investors. The development of electronic trading has also made retail investors more accessible. Extended trading hours remain significantly low and non-liquid. When contrasting volumes over 24 hours, Forex is again winning. If you want to trade at any given time, it’s easy to compare the Forex market vs. the Stock market and the Forex market is the clear winner.

 

The No commission Forex market:

The main advantage of the Forex market is that it does not involve brokers and does not have any commissions. Spread is the difference between the purchase and sells price which is income to the Forex intermediaries. There is no broker’s charge in the Forex market. Even Forex intermediaries get benefits if they bear risks.

 

The Market focus comparison:

Perhaps a significant difference in Forex markets vs. Stocks markets is the aim of the trader. When you look at a single share in the stock market, you can focus on a relatively small selection of variables. While you may be aware of broader trends in the market, factors affecting the company will be the major look outlook out along with market forces in its specific sector will be more important. Relatively small factors will be of major importance such as the business debt levels, cash flows of the firm and earnings outlook, etc.

The focus is broader with the Forex market. A currency represents the entire economy’s aggregate performance. Consequently, Forex traders are more involved in macroeconomics. The emphasis will be more on general indicators such as unemployment in the country, inflation, and GDP than on the output of the particular sector. If you exchange a Forex pair, you trade two currencies simultaneously. A fundamental trader, therefore, contributes not only to the output of one country but also to two.

 

The conclusion:

The fact of the matter is that of trade is, always stick to what works and go for what fits best for you. If you understand more about one business than the other and have good knowledge about one business then, of course, you are more interested in individual firms and trading stocks will make sense for you. When you think more about macroeconomics, Forex market trading can be better for you. If you don’t have a specific habit but are conscious of transaction fees, Forex market trading might be the way to go.

 

 

Delta Corp – Chances of jackpot for investors increasing

 

 

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