Thread by @KAnantrao

Street Fight in a Morning Meeting at an Institutional Brokerage one day (set up in 2011-2013)

Every team goes through tough times & ours was no different either. Characters in play are
Head Equity: HoE
Head Sales: HoS
Head Research: HoR
Head Sales Trading: HoST
Chart: TA
F&O: DA

Analyst Call Signs
Telecom: TRAI
BFSI: NPA
Metals Mining: Coal
Oil&Gas: Methane
CapGood&Power: Circuit
Pharma: Viagra
Economist: Deficit
Automobile: Chetak
Technology: Cloud
Cement&Construction: Sand
Real Estate: ReRA
FMCG: Pedigree
Midcap: ChotaChatri

Equity Sales & Sales Trading Call Signs:
EqS 1: Hrithik
EqS 2: Shahrukh
EqS 3: Akshay
EqS 4: Suniel
EqS 5: Sushmita
EqS 6: Shilpa
EqST 1: Kaka
EqST 2: Mama
EqST 3: Mausa
EqST 4: Bhanja
EqST 5: Bhatija
EqST 6: Foofa
Scene: Today is the 1st trading day of the new calendar month

the institutional team is meeting to discuss markets in the coming month & work its KRA ie research

Hierarchy:
HoE is overall business head & HoS-HoR-HoST are vertical heads who report to HoE.
EQST,TA&DA report to HoST
EqS report to HoS
EqA report to HoR

Battlefield
Conference room is where the action takes place.
HoR starts the meeting saying
HoR: Welcome everyone, we are here to discuss the market performance & review stock wise performance of our coverage universe of 135 stocks. We will also take feedback from EqS & EqST.

We start from Research team.
TRAI: We continue to remain bullish on telecom & BHARTIARTL and IDEA continue to remain our top picks in the sector. We maintain a "Hold" on RCoM as debt continues to play havoc on the balance sheet.

Hrithik: You had said same last month.

Akshay: Will try to push it to insurance clients this month
Sushmita: Give us 1 pager to speak 2 clients
Shilpa: Clients not interested in Telecom
Shahrukh: Are ARPU's seeing an uptick
Mama: Top MF's are selling Telecom
Foofa: Same here
TRAI: We will take your questions offline

ReRA: Realty sector saw an uptick in sales last month & prices are stabilizing in south & eastern part of India. We remain bullish on KoltePatil, SOBHA & Purvankara while maintaining "Hold" on Unitech, DLF, HDIL due to high debt. In Infra space, we are bullish on IRB Infra

Shahrukh: We pitched IRB & KoltePatil to clients already last month but they want outlook on Large Cap Realty where we have "Hold". Am unable to get meeting due to this
Mausa: Insurance selling Realty & buying Infra
Sushmita: Give us 1 pager on the sector
ReRa: We gave last month

Viagra: SUNPHARMA, LUPIN, AUROPHARMA, DRL continue to do well in sales and are getting USFDA approvals for launch of new drugs this quarter. We remain bullish on CADILA, GLENMARK, AURO and expect more than 120bps earnings growth this quarter.
Sushmita: Give 1 pager on your sector

Hrithik: Did you connect with the FM's I set your concall last month? Will ask for business from them
Shahrukh: Give some new ideas, Viagra, we have been pitching the same margin expansion story for 3 quarters now
Mama: MF selling Pharma
Foofa: Insurance buying Pharma
Mausa: Same

Pedigree: We are postive on JyothyLabs wherein we are neutral to negative on HLL, ITC, NESTLE, BRITANNIA as we expect sales growth to remain tepid this quarter.
Chetak: We are bullish on HERO, BAJAJ and TATAMOTOR while we maintain "Hold" on ASHOKLEY MARUTI & TVS with bullish bias

Methane: Crude will continue to remain at elevated levels this quarter as INR risks increase on back of European Crisis. We maintain our hold on OMC's & bullish on Gas distribution companies
Hrithik: Did you ask for votes from counterparts
Shahrukh: Is EBIDTA improving in Gas?

Sushmita: Need a 1 pager on your sector
Mama: Our desk is witnessing selling flows in Gas stocks
Foofa: FII's are selling OMC's I heard
Mausa: RIL is being accumulated by Insurance
Coal: We are bullish on COALINDIA,NEYVELI, JSPL & JSWSTEEL while we have a "Hold" on SAIL, TISCO

Cloud: Infy will report lower than expected numbers while TCS will report stronger than street consensus numbers this month. We continue pitching NIIT, OFSS along with INFY as our top picks for the quarter
Sand: We had a dealer level inventory check with cement distributors who

suggest low inventory although margins are tight. We continue to maintain buy on JKLAKSHMI, AMBUJA and KESORAM while putting a hold on ACC, ULTRACEMCO & JPA.
Circuit: Power tariff increase is pending with regulator who is expected to allow discoms to increase tariffs gradually.

Coal linkages are tight given the change in norms in captive coal mines in Indonesia & Thailand. We have a hold on our sector
Sushmita: Need a 1 pager on Mining, Cement & IT.
Suniel: Can I arrange a meeting for you all with FM
Akshay: Don't you have new coverage initiation

Mama: DII's are offloading COALINDIA and JSPL on rallies
Shilpa: Have you spoken to your counterparts

BFSI: We met BoB, BoI, CANBK, INDIANB management last month & learnt that NPA's are going to contract from here on though NIM's would be slightly lower by 5-10bps QoQ / YoY.

Though we like private banks, we continue to remain positive of a turnaround in PSU's especially in BoB, CANBK which are our top picks in the sector along with HDFCBANK & AXISBANK.
HoS: What fellas, no new initiating coverage, how do you expect sales to push for business

Half of your universe is "Hold" and clients want "Buy". We need 10 new stocks under coverage or else we cant support the business. There are already complaints about poor execution by trading (looking at HoST)
HoST: Never knew you hallucinated in daytime.
HoS: What do you mean?

HoST: I mean, if you want me to fall on the feet of your esteemed client who has a peanut sized equity corpus of 50 cr in equities, all schemes put together & wants my traders to give him what my top 20 clients who account for 80% of business are doing then tell him,to earn it.

He may have worked with a large MF in the past and managed to get away with his arrogance because of the brand he worked then, but he need to be told that market flows & intelligence are not up for sale from my desk & one has to earn it. His business in past 12 months combined

is less than 10K & I'm supposed to give him market intel/flows on trades with client names who give me 3-5L brokerage a month. If you cant tell this,then allow me the pleasure of shoving the truth below his throat. Or stop pointing fingers at my team. Either way its your call.

DA: Markets saw a roll over of an average 72% which is in line with past 3-6 month average. No new sectors are witnessing any significant increase in OI as arbs are drying up slowly. IV's are expected to be range bound with a marginal positive bias for the month. Option writers

will have great time writing ATM Puts & OTM Calls this month in both index as well as stocks.
HoS to DA: I don't understand whatever you said, just say what to buy, don't torture with data.
DA: Sir, am doing my job, like everyone, if you have complaints, speak to my boss.

HoS to HoST: Why do we need DA, can't he learn 1-2 sectors and become a FA, I have 15-20 ideas which I want some one to cover.
HoST: We need someone to clean the mess, just like we have you and your choir boys in sales, we need the DA because whether you like it or not F&O is 5x

than your cash market & acts as an indicator to markets trends. So if you want an analyst to cover your so called 15-20 picks which are nothing but market chakri items, go ahead and hire an analyst to clean your shit.
HoS to HoST: Is this the way you speak to your senior.

HoST: You begged to be taken to cleaners and I just did it. Next time, watch your balance sheet of sales and stay away from my mine.
TA: Markets have some more upside left in the coming 3-4 weeks and Nifty can inch another 5-6% from monthly closing levels in the coming month.

Shahrukh: Where is 200 DEMA for Nifty
Sushmita: Can I have a 1 pager
TA (irritated) to Shahrukh: Stop watching the market cartoon from TV and allow me to complete
TA: As I was saying, It would be good to use 5-6% upward move in Nifty to unwind high beta & move to cash & safety.

TA to Sushmita: Do you have a fetish for 1 pagers. As far I know, you don't pitch TA to clients or have you ever patched to any client on a call or have take me to any client for meeting. Why do you need 1 pager? We send regular reports which you delete without reading. The only

time you came to me was to ask whether SUZLON can be accumulated for which I have a bearish view & you became a non believer in TA.
Mama: Anything apart from Nifty for clients?
TA: Long MARUTI for this month only and exit the rest of AUTO

MAUSA: Any other sector?
TA: Long ITC, HLL, NESTLE for out performance
HoR: Thanks everyone for the inputs, we will share the note with you by evening today.
HoE: I want the dealing team to leave as markets are opening in 5 mins. Rest all can stay back

After Dealing team leaves,
HoE to HoR: How many new reports are in pipeline this quarter?
How many management meeting and roadshows this month?
What was committed last quarter and delivered?
I need this by next 3 hours. Research can leave, HoR stay back.

HoE to HoST: You team needs to improve its calling and meeting with traders. Work on it
HoST: Yes sir.
HoE to HoS: You team has not met a 1 FM from the top 20 clients last month & has only 6 meetings from top 20 clients last quarter & you have the audacity to be condescending.

You being the HoS have not met a single client last month.
HoE to Sushmita: Your appointments always gets cancelled or postponed
HoE to Shilpa: Your clients never give you feedback, you copy paste the same feedback across all clients sometimes even forget to change names

HoE to Shahrukh & Hrithik: You guys want a new coverage everytime, doesnt happen, initiating coverage is not easy. How many FM meetings have you fixed in Top-20 for our analysts in the last 6 months.. I tell you, 15 meetings in total with FM's and 3 with Top-20 fund FM's

HoE to Akshay & Suniel: All your appointments are always from 2:30 PM onwards, so you guys can go home after a customary meeting with client. Think you can perpetually fool us.
Akshay & Suniel: No sir, FM's are busy during market hours.
HoE: they are FM not dealers for God Sake

HoE: Its good to have difference of opinion but play for the team. Respect your colleagues and for heaven sake stop cribbing.
End of the meeting
Hope you liked the story. As usual, we wont disclose names or people or companies.
#investing #Markets #trading