Deepak Shenoy Profile picture
Feb 2 8 tweets 3 min read
A thread 🧵on how much retail investors (individuals) dominate daily investing in the markets in India, from the NSE Pulse: static.nseindia.com//s3fs-public/i…

They're 41% of the stock market transactions - down from 45% in 2020-21. Still, massive.
Individuals are 29% of index futures - a big drop from 39% in FY 21 and give way to brokers (PRO).
They give way to FIIs and PRO in the stock futures segment, down to just 19% in FY22 (which is April 2021 to March 2022)
Clearly, those straddle and strangle videos are working - individuals are more than 1/3rd the index option market. FIIs said goodbye, and brokers also love this market. This is a source of worry - it's also the most leveraged segment (indexes have low IVs, so leverage is high)
Individuals love them stock options too, and together with brokers prop accounts, are over 80% of the market.
But none of this means they hold stocks.
🕴️‍♂️Promoters own 51% of stocks.
🤵 FIIs own 21%!
💼Mutual funds/Insurers 15%
🥷Retail investors 9.3%

(Rest is others)
FIIs own more than Mutual funds+Retail investors added up. Very different from the trading data where Retail investors is more than double of FIIs+Mutual Funds.

But might be changing. Here's mutual fund SIPs every month:
That's the end. Oh, do check out get.capitalmind.in/premium for Premium and get.capitalmind.in/wealth for our PMS.

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More from @deepakshenoy

Feb 1
Crypto tax: All sales taxed at 30%. No deductions of brokerage etc. allowed. No set-off against any other losses allowed (Is this reading right: you can't even set off losses in other crypto transactions)
1% TDS by the seller on the transaction:
Wording might be
a) crypto against crypto is allowed due to phrase "aggregate of the income"
b) Brokerage could be allowed as cost of acquisition
Read 6 tweets
Feb 1
Budget 2022: The Big Thread on all things that will be super important today! #Budget2022

Note: no investment advice. Large attempts at humour, not always successful. You've been warned.
cc @capitalmind_in
We start with markets, of course. Here's something to keep you occupied for the next 5 seconds: How markets reacted before, during and after budgets, since 2001:
India's tax rates across the years (I've only looked at personal tax rates)
Read 72 tweets
Jan 31
RBI did a "switch" today, converting nearly Rs. 120,000 cr. of government securities from short term to long. What does this mean?
RBI holds a lot of government bonds. Roughly 11 lakh crores. It should - all central banks tend to own bonds of their own country's government. (RBI owns 42 lakh crores of foreign government bonds, as part of forex reserves)
When the bonds come closer to maturity, RBI will effectively get money from the government and it might then have to use that money to buy more government bonds (to retain the allocation). Instead they just switch the bonds.
Read 9 tweets
Jan 20
The curious case of the sudden rise in short term interest rates (and liquid funds losing money) yesterday: a thread🧵
This thread may have more questions than answers, but here goes:
Hajaar excess liquidity, so RBI is sucking out money using VRRR (the sound that liquidity makes when it goes back to RBI temporarily)
A VRRR is a Variable Rate Reverse Repo => RBI says you have excess money? Gimme, and bid your rates up to max 3.99% and I will pay.

They do this regularly - 14-day VRRRs, 7 day VRRRs etc. On Tuesday 18th there was a 7 day 200,000 cr. VRRR and banks bid to give at 3.99%
Read 10 tweets
Jan 10
Why do some High Networth Investors get those incredibly high funding for IPOs? A thread:🧵
Take Nykaa. It was gangbuster nuts in terms of subscription. By the last day of the IPO, BSE reports showed the HNI reservation was 100x oversubscribed.

You put 1 crore rupees, you get 1 lakh rupees worth shares. If share doubles, you make 1 lakh but that's just 1%.
So NBFCs say: we'll lend you Rs. 49 cr. Added up, that's 50 cr. and you'll get 50 lakh rupees worth shares. If THAT doubles, now that's a 50 lakh profit - or a 50% "ROI".

HNI thinks if something's 100x subscribed at IPO, it's minimum 2x. (RPOWER people now pause to laugh/cry)
Read 15 tweets
Jan 6
The Reliance $4 billion bond issue, at 2.8% to 3.75% is a solid achievement - it will reduce their interest cost (will be used to reduce current borrowing) and they're naturally hedged with their exports.

Disclosure: we are interested.
Okay since SO MANY PEOPLE seem to have problems with Reliance borrowing money at these obscenely low rates, a thread on why.

Reliance has 80,000 cr. of term loans from banks.
Reliance also has 150,000 cr. in mutual funds+GSec+TBills+bonds. So it is not a big worry.
Read 6 tweets

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