How Wealth Is Destroyed

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Dhiraj Relli
MD & CEO, HDFC Securities
With a career spanning over two decades, Relli brings to the table a wealth of
experience in banking, wealth management and financial services. Previously, he
has worked with ICICI Bank and Centurion Bank of Punjab. Relli is a qualified
chartered accountant and has also studied at the prestigious Indian Institute of
Management, Bangalore.
1:00 / 1:00
How fear destroys your wealth when the

market is in turmoil
Most Read Most Shared
Investors can ready themselves for a market crash before it takes place; here's how.
ET CONTRIBUTORS | Updated: Nov 05, 2018, 06.31 PM IST Reliance Infrastructure reports biggest ever loss;
auditors raise concern over business
7
Comments Sebi bars NDTV promoters Prannoy, Radhika Roy
Getty Images from accessing securities markets for 2 years
It is a scientifically proven fact that people do irrational
things to avoid making losses. One of the biggest fears Fed meet, crude oil among 8 key factors that may
guide market this week
they have is that of losing money. In fact, studies have
revealed that the pain of losing is twice as strong an Investors should be wary of Sintex Plastics:
Analysts
emotion than the joy of winning. Thus, the emotion felt
while losing Rs 100 is doubly strong than that felt by Call it by any name, but bring back five-year plans
to boost growth: Rakesh Mohan
gaining Rs 100.
More »
Investors can ready themselves for a
market crash before it takes place;
Human nature is not designed to accept losses. Hence
here's how. human species’ instinctive or natural reaction to a market
downturn is flight, and not fight. However, this brings with ARTIFICIAL INTELLIGENCE
it the possibility that investors could miss out on opportunities to generate returns that A low-profile unicorn is
would help them achieve their long-term investment objectives. changing Indian tech
Fear is a personal experience. It is an emotion that is ‘learnt’ from three things: a past Automation Anywhere, founded by four
Indians, has emerged a superstar of ro...
personal event, experiences of family and friends, or a contagious ‘herd’ experience. If
investors encounter a bad fear trigger, typically the first reaction for them is to ‘freeze’, DISPUTES
meaning they stall and wait. Meanwhile, other chemicals are being formed that increase The Big 4 audit firms
the investors’ ability to ‘fight or flight’ – that is, they either help them build requisite come under scrutiny
defenses, or turn their backs on the situation and make an exit. While most investors
would freeze into inaction, there is a possibility that some would overreact and trade ICAI comes down heavily on the government
for supporting multinational acco...
incessantly to lock in minor gains and avoid losses. This behaviour, naturally, could lead to
trouble. UNDER THE LENS
Oyo’s hyper growth

In 2010, a Reuters study explained the reason why investors are afraid of losing money, as brings big challenges
a result of which they even reject opportunities from which they are likely to gain. The
Can the unicorn maintain its breakneck
study identified the culprit as being amygdala, or ‘an almond-shaped centre in the brain expansion without aggravating proble...
that controls fear and certain other acute emotions’. This aversion is believed to lead
investors to make to hasty decisions regarding money or finances. Each time one plans to
start investing during a market correction or situations of market panic, one fears losing
everything in a flash. This dread is unfounded and irrational, as they know that they are not
1 How fear destroys your wealth when the
2 MARKETS NEWSLETTER
Trade setup: Nifty may see a mild
3 Tweet Buster: Experts question directors’
4 US Fed leans toward a cut; do
going to put
market is in all their money in only one stock,
turmoil andbuttheir
pullback, portfolio
outlook will be diversified.
is still weak roleIdeally,
on firms’ boards one this week
before executing any trade, investors should take stock of all the available exit strategies
Trending in Markets
that can be deployed in a worst-case scenario.
Sensex Stock Market Stock Recommendations IPO
Upcoming IPO Gold Rate Top Gainers
Investors should also consider the implications of not investing their hard-earned money in
Rupee vs Dollar Share Market Silver Price Nifty 50
the equity market. For one, they would lose a minimum of 1 per cent of their money each
Nifty Bank Infosys Share Price Crude Oil Price
month that they do not do so. Investing in the stock market is one of the best ways to build
wealth over time.
Not to be Missed
It is actually riskier to keep money in the form of cash, as wealth will then not grow faster
than the prevailing rate of inflation, thereby resulting in lower spending power. Timing the Boeing CEO concedes 'mistake' in 737
Max crisis
market on a consistent basis is nearly impossible, so it is better to gradually invest by
using the rupee-cost averaging method.
Know more India has wage problem, not job

problem: Mohandas Pai
No trade war, but expect US to push

for pact: India
Saudi crown prince accuses rival Iran

of tanker attacks
Hong Kong leader Carrie Lam

apologises to protesters
If investors want to overcome any fear, including that of losing money in the
investment process, they should ideally follow these steps: Israel moves to name Golan
settlement after Trump
1. Acknowledge the fear and try to identify its source.
2. Try and understand the manner in which it affects them. They should analyse every Massive power outage hits Argentina,
possible outcome of the decisions they fear to make, including the worst-case scenario. Uruguay
3. Confront their fears directly using loss aversion behaviour.

Kohli, the fastest cricketer to reach
4. One way for investors to overcome inaction in times of fear is to automate the 11,000 ODI runs
investment process. In this manner, they can continue to invest without having to make a
conscious decision each time they do so.
9 cool gifts to give your dad this
Investors can ready themselves for a market crash before it takes place. For one, a Father's Day
potential crash should always be taken into account when one plans an investing strategy.
This does not imply that they should be needlessly conservative while investing, but it does
mean choosing a strategy that takes into account what they would do in the event of a Where Arvind Subramanian went too
major market downturn. far, as per SA Aiyar
Young investors should actually welcome a market crash, as this offers them the
opportunity to invest their future savings at favourable valuations. If the share of risky BHEL bags 200 MW solar energy
investments, like stocks, has risen in investors’ portfolios owing to gains earned during a orders worth Rs 800 cr
bull run in the market, then moving a portion of their overall portfolio out of stocks and into
safer investments can reduce their potential risk before the bottom falls out of the market.
NBFC crisis to pull down home loan
There are four major fears associated with trading. These are: growth: Report
Fear of making losses: The fear of making losses tends to make investors hesitant to
execute their strategy with regard to timing. This can often lead to the inability to take Trai to determine the unique mobile
timely action with respect to new entries as well as exits. The focus should ideally be on subscribers base
minimising losses, as this allows investors to stay in the game, both financially and
psychologically. Investors must have the
market is in turmoil 2 MARKETS
ability tobut
pullback, bearNEWSLETTER
losses.
outlook However, in the
is still weak
Tweet Buster: Experts question directors’
3 event
role on that
firms’ boards 4 US Fed leans toward a cut; do
one this week
th t d th i it l i t t ti l l d h t i th
they cannot guard their capital against potential losses and choose to remain on the UCO Bank declares Yashovardhan
sidelines, they could miss out on potential gains. Birla wilful defaulter
Fear of missing out: The fear of missing out can be characterised as greed, largely owing
to the fact that investors are not acting based on a desire to own a stock, but with a view to IMA to go ahead with June 17
be a part of the market’s upside momentum. This has proved to be very risky for investors nationwide strike
who take positions when the uptrend is mature and nearing its end.
Fear of letting a profit become a loss: Unfortunately, most investors and traders choose
FinMin assessing capital needs of
to adopt a stance that is in opposition to the principle “let your profits run and cut your PSU banks
losses short.” Instead, they opt for making quick profits, while letting their losses spin out of
control. Very often, they tend to equate their net worth with their self worth, and opt for
making a quick profit that makes them feel like winners.
Monsoon progress likely in the next 2-
3 days: IMD
Fear of not being right: The desire to focus on being right rather than on making money
is a function of the investor’s ego. To be successful, this tendency should be avoided at all
costs. Investors should strive for excellence and financial gain over a sustained period of
PNB puts on block 6 NPAs with
time, rather than focusing on the fact that each buy or sell order they give should be an outstanding of Rs 1K-cr
accurate one.
Checking the performance of investments very frequently increases the chances of

Lakshmi Mittal's South African
receiving negative news in the short term. This is not likely to play a major role in the subsidiary facing charges
process of investors attaining their long-term goals. If they react irrationally to this kind of
news, as humans tend to do, they can seriously damage their long-term plans or goals.
Pak fails to fulfil 25 FATF points, slide

“Individuals who cannot master their emotions are ill-suited to profit from the investment continues
process”
- Benjamin Graham
Rajasthan's Suman Rao crowned Miss

Great investors display the following traits: The right temperament, the ability to value India World 2019
assets, and an appropriate understanding of risk.
1. To be a great investor, you need the right temperament: It is important to understand

GST Council may give 1-year
that temperament is different from knowledge, intelligence, wisdom, and discernment. It
extension to NAA
includes patience (allowing investments to grow or mature over time), and the ability and
willingness to stick to a plan while ignoring the crowd (the fortitude of character to remain
steadfast).
Indian Navy benefits from pacts with
The correct temperament for investing cannot be taught. As Warren Buffett said, “The
US, France
good news is that to be a great investor you don’t have to have a terrific IQ. If you’ve got
160 IQ, sell 30 points to somebody else because you won’t need it in investing. What you
need is the right temperament. You need to be able to detach yourself from the views or
89% family biz in India expect to grow
opinions of others.”
in next 2 years
2. The investor should also have the emotional capability to separate market fluctuations
from the underlying real value.
High alert in J&K after Pak inputs on
terror attack
3. The investor should have an appropriate understanding of risks, both implicit and
explicit: Perhaps investors can best prepare themselves to manage their money efficiently
and build their net worth by getting a firm grasp of financial history. Investors can also
acquire an understanding of the human psychology that influences the buying and selling IL&FS case: Rating agencies, auditors
under Sebi lens
decisions of individuals. This will improve their chances of avoiding mistakes that could
impair their wealth-building process.
The most important aspect is to focus on the value and not price. Even the world’s greatest
business is not a good investment if the price is too high. In the long term, investing in the Honda Cars mulls hiking vehicle prices
by up to 1.2%
stock market has a positive expected value because over time, the market rises. This
holds true only if investors are participating in the market as a whole (say through index
buys), and not in individual stocks. Trying to find the next Page Industries is more like
buying a lottery ticket, but with slightly better odds. While success is not guaranteed, UKIBC urges government to revisit FDI
norms
investing in this manner greatly increases its chances.
When times are good, portfolio concentration is popular as it magnifies gains. It can deliver
1 How
superior
fear destroys your wealth when the
market long-term 2 MARKETS
is in turmoil results vis-à-vis diversification. The
pullback, but
NEWSLETTER
Holy
outlook Grail
is still 3 isTweet
weakfor investors
Buster: Experts question directors’
a stock
role on firms’ boards 4 US Fed leans toward a cut; do
one this week
with a high probability of winning, and also with a large potential for gain. How these YouTube kisans make
farming easy
The way humans are wired -- the natural inclination to seek more information, look for
patterns, compare options, and even flee to safety -- is great at keeping them out of harm’s
way. But these very tendencies can also be their greatest liability while investing. Thought it won't get worse for Anil
Ambani? Think again
What can investors do during a market crash?

1) Be patient in cash: Investors should be patient. Sitting on cash means keeping money
in their money market account, or in short-term bonds. One has to be willing to do that for India plans mega deal for US military
a period of time, while waiting for market fluctuations to cease. drones
During a crash in the market, they should not do anything or make any move whatsoever.
More investing mistakes take place during market crashes than at any other point in time.
Panic-stricken investors sell their holdings at the worst-possible time, fearing that even A startup is honing winners in spelling
bigger losses are right around the corner. bee
In 2009, the stock market started the year with a 24.6% drop during the January to March
period. It recovered to provide a 29% positive return over the course of the year. New initiatives are helping Indians
surmount aviophobia
This can be viewed in a different light. After a 13% upswing from the March to May period
in 2008, the stock market ended up losing 37% during the course of the year.
Vancouver: Playground for art, food &
Ideally, one should have things set up in such a manner that they continue to make regular adventure sports
investments to take advantage of low prices during a crash.
2) Be ready to invest when the market stabilizes: This means one ought to have done There's drought, but people want to
appropriate research and zeroed in on some noteworthy companies whose prices are watch cricket: Ghosh
going to rise when the situation improves.
3) Stay prepared to exit: When the market goes to the other extreme, which is where it’s Fortis calls off process of stake sale in
been lately, investors should be prepared to exit and go back to cash. RHT and RHTTM
4) Don’t be greedy: Investors should not be greedy and enter the market in haste before it
signals a bottom. China backs suspension of Hong
Kong's extradition bill
5) Patience pays: After a crash, the situation should be assessed. That is, after waiting for
an appropriate length of time to let their emotions stabilise, investors should assess their
portfolio’s performance and see what worked and what did not. If some investments did Russians mock Musk, sends toy car
not perform as expected during a crash, then they should consider whether or not they into space
should hold on to them, or replace them with better investment options.
However, investors should not make major structural changes to their investing strategy in RBI gets a new executive director
haste. One way in which they can make gradual changes is to keep existing assets as
invested earlier, but direct new contributions to different investment options. In this way,
they will gradually pivot toward the new investment strategy, but allow old investments to
possibly recover some losses borne by them.
Why one should not judge a rosé by its
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here colour
do not reflect the views of www.economictimes.com.)
Click here for all you need to know about filing income tax return this year.
India's flat May fuel demand points to
sluggish economy
7
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Market Correction Warren Buffett Making Money
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market is in turmoil 2 MARKETS NEWSLETTER
pullback, but outlook is still weak 3 Tweet Buster: Experts question directors’
one this week
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NEXT STORY
Trade setup: Nifty may see a mild pullback,

but outlook is still weak Related Most Read Most Shared
Monday’s session is likely to see 10,860 and 10,930 levels act as resistance. Sensex, Nifty rangebound; Bank Nifty hits all-time
high
By Milan Vaishnav CMT MSTA, ET CONTRIBUTORS | Updated: Jun 16, 2019, 09.23 PM IST
Nifty slips, dollar returns follow
0
Comments
Use calendar spreads on Nifty to play volatility
Getty Images
The domestic stock market traded weak on Friday ahead Upside looks capped for Nifty at 12,100
of imposition of retaliatory duties on the US goods, as
NSE unveils new brand identity for Nifty50
NSE Nifty ended with a loss of 90.75 points 0.76 per cent.
We have a target of 12,800 in Nifty 50 and 35,000
in Bank Nifty: JC Parets
We expect a soft start to the week on Monday. Though
mild technical pullbacks cannot be ruled out, Nifty may
face selling at higher levels.
We advise traders to approach the

market with caution and avoid
While negotiating soft pullbacks, the index has set a
aggressive purchases. stage where it is likely to complete its throwback by
testing supports that lie in the 11,740-11,760 zone.
Related
Tweet Buster: Experts question Monday’s session is likely to see 11,860 and 11,930 Trending in Markets
directors’ role on firms’ boards
levels act as resistance. Supports are expected to come Sensex Stock Market Stock Recommendations IPO
US Fed leans toward a cut; don't
in at 11,770 and 11,740. Upcoming IPO Gold Rate Top Gainers
expect one this week
Fed meet, crude oil among 8 key Nifty Bank Infosys Share Price Crude Oil Price
factors that may guide market this The Relative Strength Index (RSI) on the daily chart stood
week at 51.8733 and it has marked a fresh 14-period low, which
is bearish.
The daily MACD stayed bearish while trading below its signal line. A black body emerged
on the candles. No other formations were observed.
1 How fear destroys
your wealth when the
2 MARKETS
Trade NEWSLETTER
setup: Nifty may see a mild
one this week
The pattern analysis of the daily charts showed that Nifty has slipped and closed below its
short term 20-DMA, which is at 10,856.
This level may offer some mild resistance in event of Nifty attempting a pullback. If the
index manages to stay above this level, we may see the market trading in a sideways
trajectory.
All in all, the inherent bias of the market remained that of corrective nature. The leading
indicators are making lower tops, the VIX shows complacency by staying at multi-month
lows. All these do not point towards an encouraging setup.
We advise traders to approach the market with caution and avoid aggressive purchases.
Chasing of momentum in the event of any pullback should be avoided.
(Milan Vaishnav, CMT, MSTA is Consultant Technical Analyst at Gemstone Equity

Research & Advisory Services, Vadodara. He can be reached at
milan.vaishnav@equityresearch.asia)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here
do not reflect the views of www.economictimes.com.)
0
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Read more on Trade Setup For Monday Nifty Relative Strength Index
Chartered Market Technician Dalal Street Stocks
Also Read
Sensex, Nifty rangebound; Bank Nifty hits all-time high
Nifty slips, dollar returns follow
Use calendar spreads on Nifty to play volatility
Upside looks capped for Nifty at 12,100
NSE unveils new brand identity for Nifty50
Download The Economic Times Business News App for Live Elections News & Results,
How fear destroys your wealth when the MARKETS NEWSLETTER
TweetLatest
Buster: Experts question directors’ US Fed leans toward a cut; do
1News in is
market in turmoil Share Market & More. 2 pullback, but outlook is still weak
Business, 3 role on firms’ boards 4 one this week
NEXT STORY
Tweet Buster: Experts question directors’

role on firms’ boards Most Read Most Shared
Sanjay Bakshi issued a warning to investors, cautioning them that they are on their own. Reliance Infrastructure reports biggest ever loss;
By Saloni Goel, ETMarkets.com | Jun 16, 2019, 02.38 PM IST
Sebi bars NDTV promoters Prannoy, Radhika Roy
0 from accessing securities markets for 2 years
Comments
Getty Images Fed meet, crude oil among 8 key factors that may
NEW DELHI: The domestic stock market moved one step
forward and two steps back this week. Global trade war
remained a concern and so did the crisis in the NBFC Investors should be wary of Sintex Plastics:
Analysts
sector. Ratings downgrades and auditor resignations
became the new normal this week and it surely kept Call it by any name, but bring back five-year plans
investors on the edge.
More »
This development did not escape most marquee investors

and some of them even took to Twitter to air their concerns.
Sanjay Bakshi, professor at MDI, issued a warning to investors, cautioning them that they
are on their own.
Trending in Markets
Sanjay Bakshi
@Sanjay__Bakshi Sensex Stock Market Stock Recommendations IPO
Dear investor: You are surrounded by liars. Rating companies, Rupee vs Dollar Share Market Silver Price Nifty 50
Auditors, Corporate managers (through their PR machines), Nifty Bank Infosys Share Price Crude Oil Price
Regulators (when they enable loose accounting), and
Government (certainly in context of debt numbers, and maybe
elsewhere too). You are on your own. Beware.
1,782 12:58 AM - Jun 15, 2019
573 people are talking about this
Shyam Sekhar, co-founder iThought, says that most marquee investors on D-Street are
doing the jobs of independent directors, nudging managements to act more investor
friendly, raise dividends, do buybacks & disclose more.
Shyam Sekhar
@shyamsek
Many marquee investors pride themselves for being able to

nudge managements to act more investor friendly, raise
dividends, do buybacks & disclose more.
Nothing can be more ironic. Independent directors must be

doing that job. Not munch spiced cashewnuts in Boardrooms.
#Nifty
44 7:03 AM - Jun 14, 2019
How fear destroysSeeyourShyam

wealth when the other MARKETS
Sekhar's NEWSLETTER
Trade setup: Nifty may see a mild Tweet Buster: Experts question directors’ US Fed leans toward a cut; do
1 market is in turmoil 2 Tweets
pullback, but outlook is still weak 3 role on firms’ boards 4 one this week
Sekhar in another tweet goes on to ask if any independent directors have ever stood up for
the rights of the minority shareholders?
Shyam Sekhar
@shyamsek
If you have approached an independent director with a

#CorporateGovernance issue, have there ever been cases
where they took up the matter and addressed it sincerely?
Has any independent director truly stood up for the cause of the
minority shareholders in a Board? #Corporate
40 1:49 PM - Jun 12, 2019
See Shyam Sekhar's other Tweets
Along similar lines, Sekhar says that although promoters can be under the illusion that a
crisis won't hit them, investors cannot take such a risk.
Shyam Sekhar
@shyamsek
The worst kept secret in #market on what's drowning cos.

Promoters think crisis won't hit them. Or worse still, think they
got enuf chutzpah to manage everything.
Many who did manage earlier have now fallen to that overdone
self belief. #Nifty
Investors can't ignore this risk.

42 6:47 AM - Jun 14, 2019
See Shyam Sekhar's other Tweets
Nilesh Shah, MD, Kotak Mahindra Mutual Fund shares six layers that have to work in
tandem to ensure that corporate governance excels.
Nilesh Shah
@NileshShah68
For Corporate Governance to excel, these six layers have to

work in tandem to maintain checks & balance
-Executive Management
-Board of Directors
-Auditors- Internal & Statutory
-Shareholders especially Institutional shareholders
-Rating Agency
-Regulatory Framework
425 11:01 AM - Jun 13, 2019
Offbeat!
one this week
Sanjay Bakshi in a twitter thread made a suggestion to Sebi where the credit rating
Sa jay a s a t tte t ead ade a suggest o to Seb e e t e c ed t at g
agencies as per the new rules are required to rack divisions in bond spreads. But Bakshi
has a proposition to make this idea better. Here's how.
Sanjay Bakshi
@Sanjay__Bakshi
I read this extract in the recent circular (bit.ly/2WJXkg9)by

@SEBI_India on "Guidelines for Enhanced Disclosures by
Credit Rating Agencies (CRAs)"
65 6:28 AM - Jun 16, 2019
Idea(s) Corner!
Safir Anand, value investor, makes a case for scrapping LTCG.
Safir
@safiranand
I hope those who talk in favour of #LTCG in govt circles know

the extent of tax loss as hardly any full time investor with no
other source of income has any tax to deposit.
While by increasing stt and scraping LTCG govt gets more, and
also gets more from disinv @nsitharaman
112 7:54 PM - Jun 12, 2019
Sandip Sabharwal appears to be in tandem too
sandip sabharwal
@sandipsabharwal
The Govt needs to take bold steps now without thinking of what
Armchair Economists think
Cut Individual Tax rates to boost consumption
Cut Corporate Tax rates to boost investments and
jobs@nsitharaman @PMOIndia @PiyushGoyal
125 9:24 AM - Jun 14, 2019 · Mumbai, India
Fear and greed, the age-old story
sandip sabharwal
@sandipsabharwal
Stocks normally give enough time to enter or exit

It's greed and fear which prevents entry and exit at the right
levels
Don't look for a top or bottom
1 How fear destroys204
your2:31
wealth
PMwhen
- Jun 2 MARKETS
the 11, 2019 NEWSLETTER
one this week
Scope for NBFCs
sandip sabharwal
@sandipsabharwal
In the markets its all a patience game now

Those investors who can ride out the daily negative news flow
on one NBFC or the other and stick on to the right stocks
Will make good money
44 10:27 AM - Jun 11, 2019 · Mumbai, India
See sandip sabharwal's other Tweets
How to stay financially healthy
Arun Thukral
@arun_thukral
A simple way to stay financially #healthy - spend within your

means. Keep a track of your income & expenses to spot & avoid
unnecessary spends. Steering clear of debt is crucial to building
a strong #financial foundation.
5 11:54 AM - Jun 12, 2019
See Arun Thukral's other Tweets
Equity vs FDs
Arun Thukral
@arun_thukral
Remember, #investment in Titan at a price of ~Rs 74 in Jan

2010, multiplied by ~15 times over 9 years period, selling at ~Rs
1,221 in May 2019. #Equities offer a far better return over long-
term than what you get on FDs.
17 12:19 PM - Jun 15, 2019
See Arun Thukral's other Tweets
0
Comments
Read more on Investors Twitter Rating Agencies Credit Rating Agency Dalal Street
Mahindra Group Government Bond

one this week
NEXT STORY
US Fed leans toward a cut; don't expect one

this week Most Read Most Shared
The consensus is that the Fed is poised to switch directions and begin cutting rates. Reliance Infrastructure reports biggest ever loss;
AFP | Updated: Jun 16, 2019, 04.43 PM IST
Comments
Reuters Fed meet, crude oil among 8 key factors that may
As President Donald Trump's trade wars drag on, and the
global economy weakens, the US Federal Reserve is
inching closer to its first interest rate cut in more than a Investors should be wary of Sintex Plastics:
Analysts
decade.
Call it by any name, but bring back five-year plans
But investors hoping to see the benchmark lending rate
begin to drop this week are almost certain to be More »
disappointed.
Fed policymakers will hold two days of
deliberations starting Tuesday.
After preaching patience and leaving rates untouched
Related since December, financial markets will be watching
Fed meet, crude oil among 8 key closely for a change of tone from the central bank and its
factors that may guide market this
chairman, Jerome Powell, and a sign the Fed is ready to
week
step in to boost the economy.
All eyes on Fed as stock market Trending in Markets
pines for rate cut
Policymakers will hold two days of deliberations starting Sensex Stock Market Stock Recommendations IPO
US Core Inflation Cools, Bolstering
Case for Fed Rate Cut Tuesday, and for now are expected to keep the key
interest rate in a range of 2.25-2.5 per cent.
Company Summary NSE BSE The Fed raised rates nine times in the last
three years as the economy recovered and
Federal Ban… -0.70 (-0.66%)
put millions of Americans back to work, and
Oxford Indus… No Data officials repeatedly said they expected the
growth to continue.
But Trump's aggressive tariff policies have shaken confidence, and some central bankers
have begun to acknowledge a chill in the air.
The consensus is that the Fed is poised to switch directions and begin cutting rates. The
only question is when.
James Bullard, president of the Fed's St Louis regional branch, was the first to make the
move, saying early this month that a rate cut could be needed "soon."
Just days later, Powell himself opened the door to a possible move, saying the Fed would
do whatever necessary "to sustain the expansion" -- a noticeable shift in posture.
Then Fed Vice Chair Richard Clarida added to the mix the possibility of "insurance cuts" --
preemptively lowering rates just in case the economic outlook starts to deteriorate.
Wall Street welcomed this dovish talk, which drove a recovery in stocks after the rout in
May. Futures markets as of Friday were forecasting as many as three cuts for this year, in
July, September and December.
"In the old days, we'd have used the language the Fed has an easing bias," John Ryding,
chief economist at RDQ Economics, told AFP. "They are predisposed to cut."
Since
1 How the
fearFed's last
destroys yourannouncement
wealth when the at the end setup:
2 MARKETS
Trade of May, the
mayworld's
NEWSLETTER
Nifty see a mildlargest economy
3 Tweethas
Buster: Experts question directors’
market is in turmoil pullback, but outlook is still weak role on firms’ boards one this week
continued to send mixed signals
continued to send mixed signals.
But beyond the strictly economic factors are the political ones as Trump continues to flout
tradition, repeatedly hammering Powell and the Fed on Twitter and in public comments for
undermining his bid to supercharge the US economy.
In an interview with ABC, Trump acknowledged that his vocal criticism puts Powell in a box
but said he would persist because he disagrees "entirely" with the Fed's policy.
"I'm gonna do it anyway because I've waited long enough," Trump said in the interview due
to be aired Sunday.
Powell steadfastly repeated that central bankers pay no attention to political pressure. But
criticism of the independent Fed can backfire, pushing officials to resist Trump's preferred
course in order to prove they cannot be browbeaten -- even if a rate cut is justified.
In the absence of inflation pressures, the Fed has room to cut interest rates. But the timing
remains in question, especially as most policymakers have said they expect the economy
to pick up later this year.
Surveys of consumer confidence and business activity are running hot, unemployment is
still near 50-year lows, and consumer spending continues apace.
But elsewhere the news has not been so good. Economic growth in the second quarter
could be half the pace of the first, the manufacturing sector has continued to weaken and
business investment has declined.
And Trump warned he could jack up tariffs on another $300 billion in Chinese goods,
something that would no doubt send shockwaves through the global economy.
At the same time, recession indicators are flashing.
The New York Fed puts the odds of a recession in the coming year at about one in three --
the highest since May 2008.
Oxford Economics said there is a 53 per cent chance in the next six months, but warns
that markets may be "excessively pessimistic."
However, many of these readings are noisy and could reverse course in the coming
months.
This leaves the Fed walking a tricky line, showing a willingness to cut rates if needed
without committing to it.
"I think that Fed officials have done the right thing," Kathy Bostjancic, chief US financial
economist at Oxford Economics, told AFP, noting there are no "hard data" yet that clearly
call for a cut.
"They essentially said they were listening to the markets and opened the door to a rate cut
without promising one."
0
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Read more on Federal Bank Ltd. Oxford New York City Tricky Stewart
Donald Trump
How in
1News fear destroys your
Business, wealth
Share Market More. 2 MARKETS
when&the NEWSLETTER
NEXT STORY
Corporation Bank plans to raise Rs 5,000 cr

in FY20 Most Read Most Shared
Corporation Bank plans to raise up to Rs 5,000 cr through equity shares, debt instruments Reliance Infrastructure reports biggest ever loss;
or QIP auditors raise concern over business
PTI | Jun 16, 2019, 12.05 PM IST Sebi bars NDTV promoters Prannoy, Radhika Roy
from accessing securities markets for 2 years
0
Comments Fed meet, crude oil among 8 key factors that may
Public sector lender Corporation Bank plans to raise up to
Rs 5,000 crore through issuance of fresh equity shares, Investors should be wary of Sintex Plastics:
Analysts
debt instruments on private placement basis, rights issue
or through QIP in the current fiscal. The bank will seek Call it by any name, but bring back five-year plans
approval from shareholders at its meeting scheduled for
June 29 for raising of capital by issuance of fresh equity More »
shares or by issuance of additional tier I or tier II capital

as per Basel III guidelines, Corporation Bank
said in its annual report 2018-19.
Company Summary NSE BSE
VXL Instrum… No Data

The bank said it will create such number of
equity shares and/or debt instruments on a
Corporation … -0.25 (-1.06%) private placement/public issue for investors
Trending in Markets
for an amount not exceeding Rs 5,000 crore
in one or more tranches. Sensex Stock Market Stock Recommendations IPO
On the intent of the capital raise plan, Corporation Bank said it may require additional
capital from the market to support the projected business requirements and at the same
time maintain healthy CRAR, in line with capital raising plan and as per reform agenda
undertaken.
Under Basel III norms, the bank is required to maintain total CRAR (Capital to Risk
Adjusted Assets Ratio) of 10.875 per cent, it said in the report.
The lender had posted a net loss of Rs 6,332.98 crore in 2018-19 as against a net loss of
Rs 4,053.94 crore in the previous year.
Total income too fell to Rs 17,494.70 crore compared to Rs 19,941.41 crore.
"Operating profit of the bank stood at Rs 3,894.47 crore during the year 2018-19. However,
with increased provisioning on NPAs, the bank posted net loss of Rs 6,332.98 crore for the
year 2018-19," said P V Bharathi, Managing Director & CEO of the bank.
During the fiscal, there were cash recovery and upgradation of NPAs of Rs 5,192.76 crore,
up from Rs 4,508.76 crore in the previous financial year, the bank said in the report.
Due to loss, the board of directors of the bank has not recommended any dividend for
2018-19.
Bharathi said the severe pressure on asset quality during the year ended March 2019 was
1 How
not fear destroys
an isolated yourbut
case wealth
was thethepart of2 MARKETS
when Trade setup:
overall NEWSLETTER
Nifty
industry may see a mild
phenomenon. 3 Tweet Buster: Experts question directors’ 4 US Fed leans toward a cut; do
The bank said the focus will be on recovery of bad loans, emphasis on retail loan portfolio
and will continue with rigorous efforts of credit monitoring and to arrest effectively the rising
trend in slippages during coming years.
Its gross non-performing assets (NPAs) stood at 17.35 per cent of the gross advances at
March-end, 2019 against 15.35 per cent a year ago.
Net NPA ratio too came down to 5.71 per cent from 11.74 per cent earlier.
Also, there were recoveries to the tune of Rs 706.88 crore in written-off accounts during
the year, up from Rs 318.06 crore recovery a year ago.
0
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Read more on Capital To Risk Adjusted Assets Ratio Equity Shares Instruments New Delhi
Corporation Bank
NEXT STORY
IL&FS case: Independent directors, rating

agencies, auditors under Sebi lens Related Most Read Most Shared
Number of borrowers, including listed firms, were not servicing their debt obligation timely. Shyam Steel Industries files IPO papers with Sebi
PTI | Updated: Jun 16, 2019, 12.02 PM IST Sebi mulls buffer to shield investors in liquid funds
0 Sebi floats discussion paper on regulatory sandbox

Comments
for fintechs
Reuters
A large number of individuals and entities, including Sebi panel proposes ways to ease FPI regulations
independent directors, top management personnel, rating
Sebi, bourses step up surveillance for election
agencies and auditors formerly associated with crisis-hit
result
IL&FS may soon face action by capital market regulator
Sebi proposes to review share buyback rules
Sebi for their role in the alleged fraud at the group. Sebi
has been conducting an in-depth investigation into the
role of several entities and individuals, including for
SFIO is also collecting details about all suspected violation of disclosure and corporate
borrowings by IFIN from banks and
governance norms, and many of them would soon face
through market instruments.
stringent penal action for hurting the interest
of minority shareholders and the overall
Company Summary NSE BSE capital markets with their fraudulent actions,
senior officials said. Trending in Markets
VXL Instrum… No Data Sensex Stock Market Stock Recommendations IPO
Officials said the regulator is also looking Upcoming IPO Gold Rate Top Gainers
Oracle Finan… -34.30 (-1.05%)
into the role of some listed borrowers, who Rupee vs Dollar Share Market Silver Price Nifty 50
Jaiprakash A… -0.25 (-6.33%) were allegedly given multiple fresh loans Nifty Bank Infosys Share Price Crude Oil Price
EXPAND TO VIEW ALL despite their earlier defaults.
1 2 MARKETS
How fear destroys your wealth when the NEWSLETTER
The Sebi probe had begun soon after the pullback,
market is in turmoil but outlook is still weak
crisis came to light at IL&FS group lastrole on firms’ boards
year, one this week
p g g g p y ,
following huge defaults by various entities which together had a debt burden of over Rs
90,000 crore.
The government had to supersede its board and appoint a new one, which is now working
to clear the mess and also recover the losses caused by fraudulent acts of the previous
management. The matter is being probed by multiple agencies, including the Serious
Fraud Investigation Office (SFIO), which has also found connivance of the previous top
management with auditors and independent directors.
Several entities of IL&FS (Infrastructure Leasing and Financial Services) group have been
found to have indulged in multiple circuitous transactions involving several illegalities,
including fast disbursals to some borrowers despite their bad track record in servicing
existing loans and also delayed recoveries.
Investigations have also found that several entities from the IL&FS group continued to
enjoy high ratings from various rating agencies, including due to window-dressing of the
books of the companies and ever-greening of their loans.
As per the probe, a number of borrowers, including listed firms, were not servicing their
debt obligation timely.
While the top management at IL&FS was aware of the potential problem accounts which
were getting stressed, they continued to provide them with fresh loans to serve their
principal and interest of the defaulters, rather than classifying them as NPAs.
This process was repeated multiple times with the earlier loan facility getting closed and a
new facility being created which was again funded, on their default, through another cycle
of funding through the same or another group company.
Such manner of debt servicing led to ballooning up of the outstanding liabilities against a
group, which were funded from the borrowings from the market.
Ultimately, the final loan facility was declared NPA or written off, or left still outstanding in
several cases, resulting in delayed recognition of NPAs, ballooning of debt and ultimate
higher loss to the lender and its stakeholders.
It was also found that the top management took hospitality from the defaulter borrowers,
while some auditors and rating agency officials were also found to be taking favours,
officials said.
In its first chargesheet concerning the group's NBFC arm IL&FS Financial Services Ltd
(IFIN), the SFIO has charged its erstwhile top management members of forming a "coterie"
with its auditors and independent directors to defraud the company while running the
business as their "personal fiefdom".
In addition to prosecution of former executive and independent directors of IFIN, among

others, and attachment of their properties, the SFIO is also seeking interim attachment of
all move able and immovable assets of the auditors including their lockers, bank accounts
and jointly-held properties, officials said.
The SFIO is also collecting details about all borrowings by IFIN from banks and through
market instruments, as also about the role of banks and their officials and of credit rating
agencies.
In its chargesheet filed before a special court, the SFIO has accused 30 entities/individuals
of various violations and offences, including financial fraud. Some of the accused persons
are already in judicial custody.
Former top-management members of IFIN have been charged with committing fraud with
1 How
intent tofear destroys your wealth when the
injure 2 MARKETS
the interest of the company,
NEWSLETTER
Trade setup: Nifty
its shareholders may see a mild
3 Tweet
and creditors, resulting
pullback, but outlook is still weak
inBuster: Experts question directors’
one this week
f ll t th
wrongful loss to the company.
Listing names of Deloitte Haskins and Sells LLP and BSR and Associates LLP in the
chargesheet, the SFIO said, "The statutory auditors failed to discharge their duties
diligently and did not use professional scepticism to ensure true and fair disclosure of the
state of affairs of the company".
"They, in fact, colluded with officials of the companies in order to conceal their fraudulent
activities," the SFIO said while citing documentary and digital evidence as also relevant
portions from its investigation report about statements recorded during the course of the
probe.
The 'coterie' identified by SFIO included Ravi Parthasarthy, Hari Sankaran, Arun Saha,
Ramesh Bawa, Vibhav Kapoor and K Ramchand, who were in the top management of
various IL&FS firms.
0
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Read more on Deloitte Instruments Services Ltd Associates Infrastructure
Leasing And Sebi
Also Read
Shyam Steel Industries files IPO papers with Sebi
Sebi mulls buffer to shield investors in liquid funds
Sebi floats discussion paper on regulatory sandbox for fintechs
Sebi panel proposes ways to ease FPI regulations
Sebi, bourses step up surveillance for election result
NEXT STORY
Aurobindo Pharma lines up $200 million

capex for FY20 Most Read Most Shared
Aurobindo Pharma Ltd. to invest $ 200 million on Capex and over 5% of sale value on Reliance Infrastructure reports biggest ever loss;
R&D. auditors raise concern over business
PTI | Updated: Jun 16, 2019, 12.02 PM IST Sebi bars NDTV promoters Prannoy, Radhika Roy
0
Reuters guide market this week
Aurobindo Pharma has lined up $200 million as capex
and over 5 per cent of sale value on Research and Investors should be wary of Sintex Plastics:
Analysts
Development (R&D) during the current financial year, a
senior company official has said. Call it by any name, but bring back five-year plans
"Around USD 200 million is what we are targeting (on More »
capex in FY20)...Capex for biosimilar may not be a huge

"It would be a combination of both
How fear destroys your wealth when theone forMARKETS
1 market
finished dosage
is in and API expansion."
turmoil 2 FY20. The Nifty
Trade setup: majority
NEWSLETTER
may see ofathe
mildCAPEX should
pullback, but outlook is still weak 3 TweetbeBuster:
in Experts question directors’
one this week
terms of creating certain both finished dosage and API
terms of creating certain both finished dosage and API
capacities," Managing Director of Aurobindo
Company Summary NSE BSE
N Govindarajan said in a recently held
earnings call.
Aurobindo P… -20.20 (-3.17%)
Trending in Markets
He said this included formulation facility for
Apis India Ltd. No Data
derma. Also, the company needs to expand Sensex Stock Market Stock Recommendations IPO
Novartis Indi… API (Active Pharmaceutical Ingredients) Upcoming IPO Gold Rate Top Gainers
-1.95 (-0.27%)
capacity with the growing need, as well as
bringing certain APIs needed for the future, he said.
"So from that perspective it would be a combination of both finished dosage and API
expansion," Govindarajan said.
The city-based drug maker spent USD 225 million on capex last year and R&D
expenditure was at Rs 872 crore or 4.5 per cent of the revenues for the year, he said.
"Please remember the fact that next year will be more crucial. We would start Phase-I for
at least two to three biosimilars and one Phase-III.
So definitely it ((R&D spend)) will be in the range of 5 per cent to 6 per cent or 5 per cent
to 5.5 per cent on the expanded basis. We will get much more clarity as we progress," he
explained when asked about the proposed R&D expenditure for FY20.
On the acquisition of commercial operations and three manufacturing facilities in the US

from Sandoz Inc,Swami Iyer, CFO Aurobindo Pharma, USA, said the process was on to
get necessary permissions for the US Federal Trade Commission, which the company
expected to get in 12 weeks. "Regarding Sandoz, we are in the last leg of the process of
obtaining FTC approval. We would be probably submitting the final letter with the product
and buyers list to the FTC.
We cannot speculate on how much time they would take. But it is our own estimate that it
could be anywhere between 8-12 weeks, Iyer said.
Aurobindo Pharma in September 2018 said its US subsidiary entered into an agreement to
acquire commercial operations and three manufacturing facilities in the US from Sandoz
Inc, USA, a Novartis Division, for USD 900 million.
The business has been carved out by the management of Sandoz for sale and consists of
dermatology and oral solids businesses, it had said.
The acquisition will add approximately 300 products, including projects under
development, as well as commercial and manufacturing capabilities in the USA.
0
Comments
Read more on Hyderabad Aurobindo Pharma APIs Novartis
Federal Trade Commission

one this week
NEXT STORY
6 out of top 10 firms add Rs 34,250 crore to

m-cap; TCS leads Most Read Most Shared
The m-cap of Tata Consultancy Services (TCS) jumped Rs 27,523.74 crore to Rs Reliance Infrastructure reports biggest ever loss;
8,45,149.61 crore. auditors raise concern over business
PTI | Jun 16, 2019, 11.28 AM IST Sebi bars NDTV promoters Prannoy, Radhika Roy
0
Getty Images guide market this week
New Delhi: Six of the 10 most valued Indian companies
together added Rs 34,250.18 crore in market valuation Investors should be wary of Sintex Plastics:
Analysts
last week, with TCS accounting for the lion's share of the
gains. Call it by any name, but bring back five-year plans
Reliance Industries Limited (RIL), ITC, Infosys, SBI and More »
ICICI Bank were the other companies which witnessed a

rise in market capitalisation for the week
ended Friday, while HDFC Bank, HUL,
Company Summary NSE BSE HDFC and Kotak Mahindra Bank suffered
losses.
Reliance Ind… -9.70 (-0.73%)
Tata Consult…
The m-cap of Tata Consultancy Services
0.40 (0.02%) Trending in Markets
(TCS) jumped Rs 27,523.74Â crore to Rs
ITC Ltd. -2.55 (-0.91%) 8,45,149.61 crore. Sensex Stock Market Stock Recommendations IPO
EXPAND TO VIEW ALL Upcoming IPO Gold Rate Top Gainers

ITC's valuation zoomed Rs 2,513.02 crore to
Rs 3,40,728.67 crore and that of SBI climbed Rs 1,963.42 crore to stand at Rs
3,06,872.77 crore.
The m-cap of RIL advanced Rs 1,045.95 crore to Rs 8,34,819.67 crore and that of ICICI
Bank rose by Rs 745.32 crore to Rs 2,69,593.17 crore.
Infosys added Rs 458.73 crore to its valuation to reach Rs 3,23,475.68 crore.
In contrast, Kotak Mahindra Bank's m-cap dropped Rs 7,359.21 crore to Rs 2,81,349.02

crore and that of HDFC plummeted Rs 4,444.12 crore to Rs 3,75,944.90 crore.
HDFC Bank's valuation declined by Rs 3,151.75Â crore to Rs 6,64,855.29 crore and that
of Hindustan Unilever Limited (HUL) dipped Rs 1,439.59 crore to Rs 3,95,065.37 crore.
In the order of top-10 firms, TCS was at the number one position, followed by RIL, HDFC
Bank, HUL, HDFC, ITC, Infosys, SBI, Kotak Mahindra Bank and ICICI Bank.
During the last week, the Sensex fell 163.83 points or 0.41 per cent to close at 39,452.07.
0
Comments
Read more on Sensex Reliance Industries Tcs ITC Hindustan Unilever
Infosys Kotak Mahindra Bank Hdfc Bank ICICI Bank

one this week
NEXT STORY
FPIs remain net buyers in June, invest Rs

11,132 crore Related Most Read Most Shared
Foreign portfolio investors (FPI) pumped in a net sum of Rs 1,517.12 crore into equities. FPIs in sell mode as global issues weigh
PTI | Jun 16, 2019, 11.23 AM IST Sebi bars FPIs not making disclosure
0 FPIs load up on banks, staples for poll trades

Comments
Getty Images FPIs buy quality on the cheap, local MFs capital
New Delhi: Foreign investors remained net buyers in the goods, utilities
domestic capital markets in June, pouring in a total of Rs
FPIs pour in Rs 7,095 crore in first week of June
11,132 crore on a net basis this month so far, according
to depositories' data.
Foreign portfolio investors (FPI) pumped in a net sum of

Rs 1,517.12 crore into equities and Rs 9,615.64 crore into
debt during June 3-14, the data showed.
Related
Infra PSUs can hope for tax-free The inflows in the debt category remained strong and
bonds in Budget to raise capital
steady driven by positive market sentiment after the re- Trending in Markets
D-Street week ahead: Nifty may election of BJP-led NDA government, Groww COO Harsh Sensex Stock Market Stock Recommendations IPO
see tech pullbacks, but no major
surge
Jain said. Also, rupee stabilizing against the dollar may Upcoming IPO Gold Rate Top Gainers
also have triggered the inflows in debt segment, he Rupee vs Dollar Share Market Silver Price Nifty 50
Trump says ‘it doesn't matter’ if Xi
added. Nifty Bank Infosys Share Price Crude Oil Price
agrees to meeting at G-20
Prior to this, FPIs had invested a net Rs 9,031.15 crore in May, Rs 16,093 crore in April,
Rs 45,981 crore in March and Rs 11,182 crore in February in the capital markets (both
equity and debt).
"FPIs have been net buyers since February when the "foreign inflows were triggered by
the dovish stance taken by the central banks globally, while in recent days FPI flows
increased after the NDA received a massive mandate," VK Vijayakumar, Chief Investment
Strategist, Geojit Financial Services said.
With election done and euphoria around it subsiding, the focus would now be on the steps
that the government takes in order to bring the economy back on track, he added.
"FPIs would watch the government's road map towards fiscal consolidation, fiscal deficit
target and the steps it would take to propel economic growth. Also, some profit booking
cannot be ruled out," said Himanshu Srivastava, senior research analyst, manager
research at Morningstar.
Considering the global outlook, Vijayakumar said, "FPI flows are expected to continue in
the light of the sell-off in global bond markets triggered by fears of a global economic
slowdown. A major uncertainty in the markets, globally, is the outcome of the ongoing
trade skirmishes between the US and China."
If there is a trade deal between the US and China, all markets are likely to move up, he
added.

one this week
0
C
Comments
Read more on FPIs Rupee Dalal Street Government Bond Budget
Also Read
FPIs in sell mode as global issues weigh
Sebi bars FPIs not making disclosure
FPIs load up on banks, staples for poll trades
FPIs buy quality on the cheap, local MFs capital goods, utilities
NEXT STORY
Infra PSUs can hope for tax-free bonds in

Budget to raise capital Most Read Most Shared
One sector, which is likely to get maximum focus in the Budget, is infrastructure. Reliance Infrastructure reports biggest ever loss;
IANS | Updated: Jun 16, 2019, 11.15 AM IST
Comments
Getty Images Fed meet, crude oil among 8 key factors that may
The 2019-20 Budget may consider re-introduction of tax-
free bonds to raise capital for the infrastructure projects,
sources said. Investors should be wary of Sintex Plastics:
Analysts
Introduction of tax-free bonds to boost investment is a Call it by any name, but bring back five-year plans
usual way for raising funds by infra companies or PSUs,
sources said. If that happens, the National Highway More »
Authority of India could be an immediate beneficiary.

NHAI Chairman N.N. Sinha said the
Road Transport and Highways Ministry
has asked for Rs 37,000 crore for the If one sector which is likely to get maximum Budget focus
2019-20. after social sectors in the upcoming Budget, it is
infrastructure, said the sources. In infra, it is the highways
Related
where the Government had increased allocation by 6 per
Will Modi’s new FM take cue from
cent and had set aside Rs 83,000 crore for 2019-20
NZ’s Wellbeing Budget? Trending in Markets
interim Budget.
Hope rally on in market, pain will
show post Budget, say analysts
The highways sector has been one of the
best performing areas of the government
Company Summary NSE BSE with the expenditure rising from Rs 34,345.2
crore in 2014-15 to Rs 78,625 crore in 2018-
Power Finan… -0.65 (-0.49%) 19. The February Interim Budget had
REC Ltd. 1.30 (0.84%) allocated the highest-ever budgetary support
of Rs 83,016 crore to the highways sector,
NTPC Ltd. -2.15 (-1.59%) but it was less by Rs 2,000 crore of the
2018-19 Budget allocation.
Infra majors can hope Budget to approve fresh issue of tax free bonds to raise capital.
NHAI Chairman N.N. Sinha said the Road Transport and Highways Ministry has asked for
Rs 37,000 crore for the 2019-20.

market said
is in turmoil 2 MARKETS NEWSLETTER
Sources government needs capital inpullback,
the infrabut sector
outlook isto
still weak the economy
revive role
andon firms’ boards one this week
tackle unemployment. With tax revenues slow, the funds have to be raised from market,
so, tax-free bonds are a good option.
Tax-free bonds which the government enterprises issue are attractive to investors as they
offer a fixed interest rate and hence is a low-risk investment avenue. Its most attractive
feature is absolute tax exemption as per Section 10 of the Income Tax Act.
The tax-free bonds generally have a long-term maturity of typically ten years or more and
Government invests the money collected from these bonds in infrastructure and housing
projects. Qualified institutional investors such as trusts, co-operatives and regional banks
and corporates are regular investors in tax-free bonds. Individuals, including HUF
members and NRIs as well as high net-worth individuals, often choose this to diversify
their portfolio.
There are many public undertakings that offer and issue tax-free bonds. National Highway
Authority of India, NTPC Limited and Indian Railways, Rural Electrification Corporation,
Housing and Urban Development Corporation, Indian Renewable Energy Development
Agency, Rural Electrification Limited and Power Finance Corporation are regular issuers of
tax-free bonds.
NHAI has no less than 10 bond issues active in the market. Coupon rates typically vary
from 7.14% to 8.3%. The tenures are of the order of five or ten or fifteen years. Some are
due to mature in January 2022 while others as late as 2031. All have face value of Rs
1,000 and all are trading at premium ranging from 10 per cent to 20 per cent.
NHAI bonds are active in the secondary market and are readily available.
0
Comments
Read more on Budget 2019 Infra Bonds Power Finance Corporation
Rural Electrification Corporation Rural Electrification NTPC Indian Railways
Government Bond
NEXT STORY
Trump warns of epic stock market crash if

he isn't re-elected Most Read Most Shared
Trump officially starts his 2020 campaign on Tuesday with a rally in Orlando, Florida. Reliance Infrastructure reports biggest ever loss;
Bloomberg | Jun 16, 2019, 10.18 AM IST
Comments
Reuters Fed meet, crude oil among 8 key factors that may
(Bloomberg) --President Donald Trump, gearing up for
the official start of his 2020 campaign, warned that the
market is in turmoil 2 MARKETS
U.S. would facebut
pullback,
NEWSLETTER
Trade setup: Nifty
anoutlook
may see a mild
epic stock
Tweet Buster: Experts
market crash 3if he’s
is still weak not
role on firms’
question directors’ US
re-boards Investors should be wary4of one
Fed Plastics:
Sintex leans toward a cut; do
this week
Analysts
y
elected.
Call it by any name, but bring back five-year plans
“If anyone but me takes over,” Trump told his 61 million
Twitter followers on Saturday, “there will be a Market More »
Crash the likes of which has not been seen before!”

Research shows the Dow performance
so far in Trump’s term has been
middling compared with his Trump officially starts his 2020 campaign on Tuesday with
predecessors. a rally in Orlando, Florida, and appears to be road-testing
some of the themes he’ll be touching on in the next 18
Related
months, including stoking fear of a market meltdown.
Trump says ‘it doesn't matter’ if Xi
“Tuesday will be a Big Crowd and Big Day,” he said in
agrees to meeting at G-20 Trending in Markets
another tweet.
Xi has few good options after
Trump’s ultimatum on G-20 meeting
The president has claimed several times this year and as
Trump targets euro, renews attack
on US Fed recently as Friday in a “Fox & Friends” interview that the
U.S. stock market would be 5,000 to 10,000 points higher
if the Federal Reserve hadn’t raised interest rates four times in 2018.
Donald J. Trump
@realDonaldTrump
The Trump Economy is setting records, and has a long way up

to go....However, if anyone but me takes over in 2020 (I know
the competition very well), there will be a Market Crash the likes
of which has not been seen before! KEEP AMERICA GREAT
75.7K 7:14 PM - Jun 15, 2019
42.5K people are talking about this
He also tweeted in February that “had the opposition party” won in 2016, “the Stock Market
would be down at least 10,000 points by now” -- an unprovable assertion. And in January
Trump suggested that if “you want to see a Stock Market Crash, Impeach Trump.”
“We have never had a president so aware of where the stock market is and how much it is
up or down on the year,” Chris Rupkey, chief financial economist at MUFG Union Bank NA,
said in an email. “Better buckle up, equity investors.”
Research by Macrotrends shows the Dow Jones Industrial Average’s performance so far
in Trump’s term has been middling compared with his predecessors, and trails the gains
made under Democrats Barack Obama and Bill Clinton. It’s a touch above the gains
logged under Republicans Ronald Reagan and George H. W. Bush; George W. Bush had
presided over a losing market at this point in his first term.
Donald J. Trump
@realDonaldTrump
Had the opposition party (no, not the Media) won the election,
the Stock Market would be down at least 10,000 points by now.
We are heading up, up, up!
102K 6:00 PM - Feb 19, 2019
35.7K people are talking about this
The benchmark S&P 500 index made a record high in early May before slipping in the face
of Trump’s stepped-up trade war with China. The more narrow DJIA, whose performance
Trump likes to reference, last peaked more than eight months ago, on Oct. 3.
TheHow
Dowfearposted
destroys71yourrecord highthe
wealth when closes inMARKETS
2017,setup:
starting within
NEWSLETTERsee aamild
week of Trump’sTweet Buster: Experts question directors’
1 market is in turmoil 2 Trade Nifty may
pullback, but outlook is still weak 3 role on firms’ boards 4 US Fed leans toward a cut; do
one this week
inauguration and another 15 in 2018 helped by the passage of a Republican tax bill The
inauguration, and another 15 in 2018, helped by the passage of a Republican tax bill. The
index made 122 record high closes during Obama’s second term, after recovering from
losses suffered during the recession of 2007-2009.
As Trump kicks off his re-election campaign, the chances of a recession starting in the
U.S. within the next year have risen to 30% from 25% a month ago, according to a June 7-
12 survey of economists conducted by Bloomberg News. Recent figures have shown
slowing job gains, and Trump’s tariff threats are weighing on business sentiment. The
irising U.S. budget deficit and national debt have also raised alarm bells.
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New NEWS Saudi

How fear destroys your wealth when the

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1. Acknowledge the fear and try to identify its source.

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1 How fear destroys your wealth when the

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