Welcome to Weekend Investor Insights, our first weekly newsletter that highlights the top financial news on Dalal Street for the week. We have curated the top stories that matter to your investments and financial goals. You're covered with everything from market trends to regulatory updates, to company earnings and analysis. Whether you're an experienced investor or just starting out, our newsletter is intended to keep you informed and updated to help you make better financial choices.
As this is our initial newsletter we would be really grateful for your feedback, which will assist us in improving and providing better newsletters in the future.
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Positive Sign of Economic Growth
On the first day of the new fiscal year, the Ministry of Finance released GST collection data. March 2024 saw a total gross GST revenue collection of 1,78,484 crore. The year-on-year growth rate for GST collection in March 2024 was 11.5%.
Below is the breakdown of 2023-24 collection
- Central Goods and Services Tax (CGST): ₹3,75,710 crore
- State Goods and Services Tax (SGST): ₹4,71,195 crore
- Integrated Goods and Services Tax (IGST): ₹10,26,790 crore, including ₹4,83,086 crore collected on imported goods
- Cess: ₹1,44,554 crore, including ₹11,915 crore collected on imported goods.
FY 2023-24 marks a milestone with a total gross GST collection of Rs. 20.18 lakh crore exceeding 20 lakh crore, a 11.7% increase compared to the previous year. The average monthly collection for this fiscal year stands at ₹1.68 lakh crore.
50% Fall In Margins
The National Stock Exchange (NSE) made modifications to the lot sizes of its index derivatives. Below are the details of the changes made.
1. Nifty 50: The lot size for Nifty 50 futures and options has been reduced to 25 from 50.
2. Nifty Financial Services: The lot size for Nifty Financial Services futures and options has also been decreased to 25 from 40.
3. Nifty Midcap: The lot size for Nifty Midcap futures and options has been adjusted to 50 from 75.
Last year, Bank Nifty's lot size was decreased from 25 to 15.
The changes were implemented as a regulatory procedure, since Exchanges are required to maintain the contract value within the range of 5 to 10 Lakhs as mandated by SEBI.
What is the effect of this on traders?
1. Increased Accessibility
2. Enhanced Liquidity
3. Risk Management
4. Lower Margins (option seller)
5. Higher Brokerage (per lot brokers)
NSE has plans to launch 4 new index derivatives.
- Nifty Tata Group 25 percent Cap
- Nifty 500 Multicap India Manufacturing 50:30:20
- Nifty 500 Multicap Infrastructure 50:30:20
- Nifty MidSmall Healthcare
Bharti Hexacom Limited
First IPO for the new fiscal, but there was not much interest shown by the retailers. On April 5, 2024, Bharti Hexacom Limited, which is a subsidiary of Bharti Airtel, closed its Initial Public Offering (IPO). The IPO, which had the objective of raising 4,275 crore, consisted entirely of an OFS for 7.5 crore equity shares by Telecommunications Consultants India, which represented a 15% stake in the company.
The IPO received a significant response from investors, with the issue being subscribed 29.88 times. However, the retail investor segment did not contribute significantly to the subscription rate.
The allotment of shares is expected to take place on April 8, 2024, while the listing date is tentatively set for April 10, 2024, subject to regulatory approvals. The anchor investors' portion collected approximately ₹1,924 crore before the IPO opened for public subscription.
Bharti Hexacom provides telecommunication services in Rajasthan and the North East. Bharti Hexacom had an aggregate of 27.1 million customers across both Rajasthan and the North East circles as of December 31, 2023. We weren't able to find latest ARPU data.
At the higher price band, the listing market cap of Bharti Hexacom Limited will be around Rs.28,500 crore.
Unchanged
The Reserve Bank of India (RBI) held its Monetary Policy Committee (MPC) meeting on April 3-5, 2024. The meeting resulted in the RBI's decision to keep the policy repo rate unchanged at 6.5 percent. The decision was made in light of the healthy economic growth, which provided the central bank with room to focus on containing inflation to the 4 percent target. The standing deposit facility (SDF) and marginal standing facility (MSF) were also kept unchanged.
The RBI Governor stated that the central bank will launch a mobile app to make it easier for retail participation in G-secs and to deposit cash in banks through UPI. The central bank also allowed non-bank payment system operators to offer CBDC (Central Bank Digital Currency) wallets.
Net inflows by foreign portfolio investors (FPI) stood at $41.6 billion during 2023-24.
Thank you for reading. We hope that you enjoyed it and it would help you make informed decisions.
We are eagerly anticipating your feedback.
Happy Investing😊
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