SEBI study exposes massive losses for individual F&O traders in India

by Hansraj Agrawal | Sep 24, 2024 | Share Market

Last Updated : Sep 24 2024 | 6:16 PM IST

A recent study conducted by the Securities and Exchange Board of India (SEBI) has shed light on the significant challenges faced by individual traders in India’s equity futures and options (F&O) market. The report reveals that a staggering 93% of individual traders incurred losses between FY22 and FY24, with aggregate losses exceeding Rs 1.8 lakh crore during this period.

While foreign portfolio investors (FPIs) and proprietary traders reaped profits, individual traders bore the brunt of these losses. In FY24 alone, individuals incurred a net loss of approximately Rs 75,000 crore.

The study found that more than 1 crore individual traders, or 92.8% of the total, lost an average of Rs 2 lakh each in F&O trading over the three-year period. The top 3.5% of loss-makers, representing around 4 lakh traders, faced an average loss of Rs 28 lakh per person.

Despite these losses, over 75% of loss-making traders continued to participate in F&O trading, highlighting the allure and risks associated with derivative trading.

The SEBI study also highlighted the significant participation of young traders in the F&O market, with their proportion increasing from 31% in FY23 to 43% in FY24. However, a majority of these young traders, close to 93%, incurred losses, emphasizing the need for financial education and risk awareness among this demographic.

While the report paints a bleak picture for individual traders, it also revealed that proprietary traders and FPIs earned substantial profits in the F&O segment. Algo entities, which use algorithmic trading strategies, accounted for a significant portion of these profits, underscoring the growing role of technology in financial markets.

SEBI has been taking steps to curb speculative trading in index derivatives, including restricting multiple option contract expires and raising the size of options contracts. As the F&O market continues to evolve, it remains crucial for investors to exercise caution and understand the risks associated with derivative trading.

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First Published: Sep 24 2024 | 6:04 PM IST

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Surveys have progressively increased satisfaction rating of GST by users

by Hansraj Agrawal | Sep 24, 2024 | Share Market

Last Updated : Sep 24 2024 | 5:16 PM IST

At the National Conference on GST organized by ASSOCHAM, Chief Guest Shashank Priya Special Secretary & Member -GST, CBIC stated that we have completed seven years of implementation of GST. We have done well. There have been yearly surveys which have progressively increased the satisfaction rating of the GST by the users. The revenues have been seeing an uptrend. We have tried to make sure that use of technology and automation makes life easier for the taxpayers. He further noted that industry has demanded full GST transferability between different states for GSTs having the same PAN. There are also demands that the recipient should not be made responsible for non-deposit of GST by the supplier.

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First Published: Sep 24 2024 | 5:04 PM IST

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Australian markets end marginally lower after RBA holds rate steady

by Hansraj Agrawal | Sep 24, 2024 | Share Market

Last Updated : Sep 24 2024 | 4:16 PM IST

Australian markets finished marginally lower after the Reserve Bank of Australia (RBA) held the cash rate steady as expected but maintained a firm stance on inflation – reducing the likelihood of a December rate cut.

The benchmark S&P/ASX 200 slid 0.13 percent to 8,142 as financials declined, offsetting gains in the mining and energy sectors.

The broader All Ordinaries index ended flat with a positive bias at 8,385.10. Banks Westpac and Commonwealth Bank of Australia fell over 3 percent each while mining giant BHP rallied 3.3 percent and Rio Tinto surged 3.7 percent.

Casino firm Aristocrat Leisure climbed 2.1 percent after winning an injunction against a competing game in the U.S.

Supermarket chain Coles Group lost 3 percent and Woolworths fell 2.9 percent after they were sued over fake discount claims.

Australia’s central bank left its interest rate unchanged at a 12-year high as widely expected on Tuesday.

The policy board of the Reserve Bank of Australia governed by Michele Bullock decided to maintain the cash rate target at 4.35 percent.

The interest rate paid on Exchange Settlement balances was kept unchanged at 4.25 percent.

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First Published: Sep 24 2024 | 4:04 PM IST

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IEX tumbles on market coupling buzz

by Hansraj Agrawal | Sep 24, 2024 | Share Market

Last Updated : Sep 24 2024 | 3:16 PM IST

Indian Energy Exchange (IEX) slumped 10.30% to Rs 214.60, triggered by the media reports suggesting that the government is considering implementing market coupling for power exchanges in the country.

Market coupling is a mechanism that aggregates buy and sell bids from all power exchanges in India, leading to a unified market clearing price (MCP). This could potentially streamline the power trading process and ensure a more efficient allocation of electricity resources.

The Power Ministry has reportedly requested the Grid Controller of India (Grid-India) to expedite the completion of a pilot study on market coupling. If implemented, this new model could have a profound impact on the Indian power market.

IEX is India’s premier energy exchange providing a nationwide, automated trading platform for physical delivery of electricity, renewable power, renewable energy certificates and energy saving certificates.

The company achieved electricity volume (including certificates) of 12,040 million units (MU) in August 2024, registering a growth of 35.8 % YoY basis.

The firm’s consolidated net profit jumped 27.2% to Rs 96.44 crore on 18.8% increase in revenue from operations to Rs 123.56 crore in Q1 FY25 over Q1 FY24.

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First Published: Sep 24 2024 | 3:04 PM IST

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Balu Forge Industries shares jump 11%, hit all time high; here's why

by Hansraj Agrawal | Sep 24, 2024 | Share Market

2 min read Last Updated : Sep 24 2024 | 2:12 PM IST

Shares of Balu Forge Industries soared up to 11.37 per cent, hitting their lifetime high at Rs 890 per share on the BSE in Tuesday’s intraday trade. The stock price jumped after the company announced the introduction of 7 Axis CNC machines from a prominent German manufacturer. These possess the capability to machine parts up to 3 metres in length.

The major focus area for this acquisition of these machines is to move into a more elite category of machining companies that are capable of offering both advanced and critical machining solutions specific to industries like Railways, Defence, Aerospace and other critical precision industries globally, the company said in an exchange filing on Tuesday.

Balu Forge Industries is a precision engineering company engaged in manufacturing of crankshafts and forged components.

Balu Forge’s products include crankshafts, carriage, chassis, transmission and clutches, turbine blades, oil and gas control, hydraulic motors, brake parts, hooks, and towing accessories. The company’s products are used in the automotive, defence, railways, and new energy space industries

The company reported a major 133.36 per cent year-on-year (Y-o-Y) rise in its net profit for the June quarter (Q1FY25), at Rs 24.06 crore. The company had recorded a net profit of Rs 10.31 crore in the same quarter of FY24. The company’s net sales surged to Rs 123 crore in the April-June period of FY25, up from Rs 69.62 crore during the corresponding period of the previous year.

Tha market capitalisation of Balu Forge Industries is Rs 8,453.59 crore, according to Bombay Stock Exchange (BSE).

Its shares are trading at a price to earnings multiple of 108.11 times with an earning per share of Rs 7.39. The 52-week high of the company’s share is Rs 890 while its 52-week low is Rs 154.55 a piece.

At 2:04 PM, Balu Forge Industries shares pared most of its gains and were trading 0.88 higher at Rs 806.10. In comparison, the BSE Sensex was trading 0.14 per cent higher at 85,050 levels.

First Published: Sep 24 2024 | 2:12 PM IST

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Senco Gold glitters, hits new high after ICICI Pru buys stake

by Hansraj Agrawal | Sep 24, 2024 | Share Market

Shares of Senco Gold were up 3.55 per cent at Rs 1,380 per share on the BSE.

2 min read Last Updated : Sep 24 2024 | 1:09 PM IST

Senco Gold shares climbed 5.5 per cent intraday to scale an all-time high of Rs 1,406 on the BSE on Tuesday. The stock gained a day after Oman India Joint Investment Fund II sold 5,89,917 shares via a block deal at Rs 1,280.16 per share.

Conversely, ICICI Prudential Life Insurance Company bought 4,90,705 shares in the company at Rs 1,280 per share through another block deal.

As of June 2024, Oman India Joint Investment Fund II held a 2.03 per cent stake in the company.

At around 11:37 AM, shares of Senco Gold were up 3.55 per cent at Rs 1,380 per share on the BSE. In comparison, the BSE Sensex traded 0.09 per cent lower at 84,850 around the same time.

Emkay Global had reiterated its ‘Buy’ rating on Senco Gold in a report dated September 17, 2024.

The brokerage has increased the company’s multiple by 15 per cent to 36x earnings per share (EPS) on the back of improved medium-term growth profile with a big 900 basis points (bps) duty cut (on gold) and outperformance against other retail formats.

Senco Gold Q1FY25 results

In terms of financials, Senco Gold reported a net profit of Rs 51.27 crore for the first quarter of the current fiscal (April-June 2024), marking an 85.4 per cent year-on-year (Y-o-Y) increase from the year-ago period.

The Kolkata-based gold and diamond jewellery chain saw a 7.5 per cent YoY growth in consolidated revenue, at Rs 1,403.89 crore for the quarter ended June 30.

The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) surged by 61.8 per cent to Rs 108.74 crore in Q1FY25.

The jewellery retailer also expanded its retail footprint by opening six new showrooms, bringing its total count to 165, which included a store in Dubai. Retail sales of the company grew 9.6 per cent year-on-year, while same-store sales growth stood at 4 per cent during the quarter.

In the past one year, shares of Senco Gold have gained 166.64 per cent, compared to the BSE Sensex’s rise of 28.7 per cent during the same period.

First Published: Sep 24 2024 | 1:01 PM IST

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