More from @zhr_jafri

Azhar Jafri

@zhr_jafri

Apr 13, 2023

How Ketan Parekh scam almost ruined the reputation of Tata Group !!

Tata Group set up a NBFC - Tata Finance in 90s

- Catered to personal loans, vehicle & home financing, credit cards & Mutual Funds

- Would be as big as Bajaj Finance today

But failed because of a scam. Read on

Tata Finance was established in 1984 (3 years before Bajaj Finance)

Focus was on providing financing for commercial vehicles, plant and machinery, equipments two wheelers and consumers durables.

Later added Mutual Funds and Housing Finance business as well.

Company was headed by top Tata Executive - Dilip Pendse

Things were going good till 2000 with the company have a capital base of 800 crores.

Read 10 tweets

Azhar Jafri

@zhr_jafri

Mar 24, 2023

What is Indexation Benefit in Debt funds ?

News doing rounds that Debt mutual funds held for over 3 years will

- Lose the indexation benefit and
- 20% tax rates

Indexation benefit is one of the key reasons for which people chose Debt Funds over FDs

Read on -

Indexation benefit means that before taxing your gains, the concept of inflation would also be considered.

Wherein returns on FDs or mutual funds are directly taxed without considering inflation, debt funds have/had this benefit over them.

Basically if you invested 1 lac Rs today in Debt mutual funds and redeem it after 3 years with a profit of 30,000 Rs

Then this profit will not be directly taxed at 20%

Read 10 tweets

Azhar Jafri

@zhr_jafri

Mar 23, 2023

NSE stops 'Do Not Exercise' facility for stock option traders.

Here is what it means and how dangerous can it be for traders !!

Read On:

Lets take an example of selling stock options first.

Assume, Adani Enterprises is trading at 1800 Rs on 1st April, 2023.

And its 1700 PE is trading at 100 Rs at the start of the month

You decide to sell the 1700 PE with a view that it would not expire below 1700

The margin required for this trade would be around 2.7 lacs. If you buy a hedge it can be reduced to 45 K as well.

If all goes well and stock stays above 1700, you would make a profit of 100 point ~ 25000 Rs (250 lot size)

Read 15 tweets

Azhar Jafri

@zhr_jafri

Jan 27, 2023

In God we trust, everyone else must bring data !!

Hindenburg has been blamed in past 2 days to be anti Indian fake firm with vested interest

So, I decided to dig in their past performance and its much much better than the analysts on business news channels

A thread

1/

Hindenburg is a niche firm focused only on finding overvalued or shady stocks and shorting it. They have released reports for around 46 stocks on their website

This includes US, Chinese and Canadian firms with Adani being the latest addition

Out of the 46 stocks about which Hindenburg released a report on their website

36 have gone down below the price when the report was released

13 stocks have been reduced to penny stocks under 1 $

And in 10 stocks they have been proven wrong

A hit rate of 78 % (attached proof)

Read 5 tweets

Azhar Jafri

@zhr_jafri

Oct 19, 2022

I checked the performance of 56 trades given by a famous analyst on Zee Business during the month of September 2022

73% of the trades (41 of 56) lost money

What is found is that you can make a hell lot of money by just doing opposite of what they tell you on TV

A thread 🧵

The reason I am sharing it is that ppl start understanding that they should not take advise from TV

TV channels should also take some responsibility of what's being said

And finally SEBI should come out of its sleep 👍

So i took a popular segment where beautiful stocks are discussed by a senior gentleman

I tracked those on the YouTube channel of the Zee business channel

In all 56 trades were given. These Included cash calls, index options, index futures and stock options

Read 11 tweets