In the last article, we got to understand the basics of what moves an option’s premium. There are several factors like implied volatility, moneyness and time to decay that affect its price. In this article, we take a detailed look at each of the options Greeks and how they work. Before we begin… As we have mentioned in part 1, Zebu is fast emerging as the top broker in share market and provides the lowest brokerage for intraday trading. As an options trader, we will complement your strategies with Zebull, the best Indian trading platform. It comes with a variety of features that will help you analyse option greeks effortlessly. For every 1 Re change in the price of the underlying securities or index, Delta estimates how much an option's price can be expected to vary. A Delta of 0.40, for example, suggests that the option's price will move 40 paisa for every 1 Re movement in the price of the underlying stock or index. As you may expect, the higher the Delta, the greater the price variation. Traders frequently utilise Delta to determine whether an option will expire in the money. A Delta of 0.40 is taken to signify that the option has a 40% chance of being ITM at expiration at that point in time. This isn't to say that higher-Delta options aren't profitable. After all, you might not make any money if you paid a high premium for an option that expires ITM. Delta can alternatively be thought of as the number of shares of the underlying stock that the option mimics. A Delta of 0.40 indicates that if the underlying stock moves 1 Re, the option will likely gain or lose the same amount as 40 shares of the stock. Call Options The positive Delta of call options can range from 0.00 to 1.00. The Delta of at-the-money options is usually around 0.50. As the option’s price goes deeper into the money, the Delta will rise till it eventually reaches 1. As expiration approaches, the Delta of ITM call options will approach 1.00. As expiration approaches, the Delta of out-of-the-money call options will almost go down to 0.00. Put Options The negative Delta of put options can range from 0.00 to –1.00. The Delta of at-the-money options is usually around –0.50. As the option goes deeper ITM, the Delta will fall (and approach –1.00). As expiration approaches, the Delta of ITM put options will reach –1.00. As expiration approaches, the Delta of out-of-the-money put options will almost go down to 0.00. Gamma Gamma represents the rate of change in an option's Delta over time, whereas Delta is a snapshot in time. You can think of Delta as speed and Gamma as acceleration if you remember your high school physics lesson. Gamma is the rate of change in an option's Delta per 1 Re change in the underlying stock price in practice. We imagined a Delta of.40 choice in the previous case. The option's Delta is no longer 0.40 if the underlying stock moves 1 Re and the option moves 40 paise with it. Why? The call option is now considerably deeper ITM, and its Delta should move even closer to 1.00 as a result of this 1 Re move. Assume that the Delta is now 0.55 as a result of this. The Gamma of the choice is 0.15, which is the difference in Delta from 0.40 to 0.55. Gamma falls when an option acquires further ITM and Delta approaches 1.00 since Delta can't reach 1.00. After all, when you near top speed, there's less room for acceleration. Theta If all other factors remain constant, theta informs you how much the price of an option should decline each day as it approaches expiration. Time decay is the term for this type of price depreciation over time. Time-value erosion is not linear, which means that as expiry approaches, the price erosion of at-the-money (ATM), just slightly out-of-the-money, and ITM options generally increases, whereas the price erosion of far out-of-the-money (OOTM) options generally drops. Vega Vega is the rate of change in an option's price per one percentage point change in the underlying stock's implied volatility. Vega is used to estimate how much the price of an option would vary with respect to the volatility of the underlying. More information on Vega: One of the most important elements impacting the value of options is volatility. Both calls and puts will likely lose value if Vega falls. A rise in Vega will normally raise the value of both calls and puts. If you ignore Vega, you may end up paying too much for your options. When all other conditions are equal, consider purchasing options when Vega is below "normal" levels and selling options when Vega is above "normal" levels when choosing a strategy for options trading. Analysing the implied volatility with respect to the historical volatility is one approach to analyse this. Implied volatility Despite the fact that implied volatility is not a Greek, it is still important. Implied volatility is a prediction of how volatile an underlying stock will be in the future, but it's only an estimate. While it is possible to predict a stock's future movements by looking at its historical volatility, among other things, the implied volatility reflected in an option's price is an inference based on a variety of other factors, including upcoming earnings reports, merger and acquisition rumours, pending product launches, and so on. These are the different option greeks that you need to use in conjunction with other bullish and bearish strategies and mathematical models that you might use to determine market moves. As the top broker in the share market, we have created Zebull. the best Indian trading platform with the lowest brokerage for intraday trading. With Zebull, you can easily analyse option Greeks and filter out stocks that work for you.
Jan 27, 2022
A lot of factors influence an option's pricing, which can benefit or hurt traders depending on their positions. The "Greeks" are a set of risk metrics named after the Greek letters that identify them, which reflect how sensitive an option is to time-value decay, changes in implied volatility, and movements in the price of its underlying security. Theta, vega, delta, and gamma are the four basic Greek risk measurements. Here's a closer look at each. Before we begin… Options trading can be extremely profitable if done with the right trading system and with discipline. However, you need to back up your strategy with the best Indian trading platform like Zebull from Zebu. We provide one of the lowest brokerages for intraday trading and are one of the top brokers in the share market right now. And we would love to help you with your options strategy execution. Why option Greeks For the uninitiated, options can be exercised, or converted into shares of the underlying asset, at a set price. Every option has an expiration date and a premium connected with it. One of the most popular option pricing models is Black-Scholes, which leads to price fluctuations. Greeks are frequently viewed alongside an option price model to properly assess risk. Volatility Volatility refers to how much an option's premium (or market value) changes before expiration. Financial, economic, and geopolitical risks can all create price changes. Implied volatility measures the market's expectation of price movement. Investors use implied volatility (or implied vol) to forecast future price movements in a securities or company. If implied volatility is predicted to rise, the premium on an option will likely rise as well. Profitability Several words describe a profitable or unprofitable option. The intrinsic value is the difference between the strike price and the price of the underlying stock or asset. At-the-money options have the same strike price as the underlying asset. An in-the-money option has a profit because the strike price is higher than the underlying price. In contrast, an out-of-the-money option has no profit when compared to the underlying's price. In the case of a call option, the underlying price is less than the strike price. A put option is OTM when the underlying price exceeds the strike price. Influences on an Option's Price Assuming other variables stay constant, an increase in implied volatility increases an option's price. Traders that are long or short will have different returns. If a trader is long a call option, increased implied volatility is beneficial since it increases the option premium. For traders holding short call options, an increase in implied volatility has the opposite (or negative) effect. A surge in volatility would not assist a naked option writer because they want the option's price to fall. Writers are option sellers. If a writer sells a call option, the buyer will exercise the option if the stock price rises above the strike. That is, if the stock price rose enough, the seller would have to sell shares to the option holder at the strike price. Sellers of options are compensated for the risk of their options being exercised against them. This is called shorting. A decrease in implied volatility, shorter expiration time, and a decline in the underlying security's price favour the short call holder. Increasing volatility, time left on the option, and underlying will benefit long call holders. Indicated volatility decreases, time till expiration increases, and the price of the underlying security rises for short put holders, whereas long puts profit from an increase in implied volatility, time until expiration increases, and the underlying security price decreases. During the life of most option deals, interest rates play a little influence. Its impact on an option's price is measured by rho, a lesser-known Greek. Generally, higher interest rates make call options more expensive and put options cheaper. All of this sets the stage for examining the risk categories used to assess these variables' relative impact. Remember that the Greeks help traders forecast price fluctuations. In this article, we have laid a foundation on what moves an option price. In the next article, let’s take a closer look at the different Greeks in an option. At Zebu, we strive to provide our customers with the lowest brokerage for intraday trading. Zebull is our proprietary trading platform that lets you analyse option greeks to perfection and is growing fast to become the best Indian trading platform. As one of the top brokers in share market, we believe that we have the right products and features to help you make the best trades. Please get in touch with us to know more.
Jan 26, 2022
Every day, thousands of traders and investors participate in the capital markets. All of the participants' primary goal is to make a profit. To trade in the stock market, you can use a variety of techniques and strategies. A trading strategy, on the other hand, becomes applicable only if the asset's price moves in a favourable direction. Arbitrage is a unique but simple method of profiting from the capital markets. Before we get into arbitrage trading… To do any form of trading, you need a reliable brokerage trading firm that gives you thebest stock trading platform that helps you analyse the right trading opportunities. Zebu gives you one of the best online trading platforms in the country with a fast-growing customer base. Please get in touch with us to know more. What exactly is arbitrage? To understand how arbitrage works, it is essential to first define arbitrage. Arbitrage is defined as the simultaneous purchase and sale of the same asset in different markets in order to profit from the price difference in both markets. While arbitrage opportunities can arise in any asset class that is traded in different markets in a standardised form, currency and stock markets are the most common. Arbitrage opportunities are frequently fleeting, lasting only seconds or minutes. Contrary to popular belief, markets are not completely efficient, creating arbitrage opportunities. As you may know, the price of an asset is determined by the supply and demand for it. A price difference arises as a result of a difference in supply and demand for an asset in different markets, which can be used for arbitrage trading. What is the process of arbitrage trading? As mentioned earlier, arbitrage trading is based on the trader's ability to capitalise on the price gap of the same asset in different markets. Because arbitrage opportunities are limited, most traders use algorithms to execute arbitrage trades. Let us look at a stock market example to see how arbitrage works. Assume XYZ is a stock that is traded on the National Stock Exchange and the New York Stock Exchange. On the NYSE, the price of XYZ is quoted in US dollars, while on the NSE, it is quoted in Indian rupees. On the NYSE, the share price of XYZ is $4. The share price on the NSE is Rs 238. If the USD/INR exchange rate is Rs 60, the NYSE share price of XYZ in INR will be Rs 240. If the USD is converted to INR, the same stock is quoted at Rs 238 on the NSE and Rs 240 on the NYSE. To take advantage of the arbitrage opportunity, a trader will purchase XYZ shares on the NSE at Rs 238 per share and sell the same number of shares on the NYSE for Rs 240, earning a profit of Rs 2 per share. While participating in arbitrage trades, traders must consider certain risks. The price difference is the result of a favourable exchange rate, which is constantly changing. Any significant change in the exchange rate while the trade is being carried out can result in losses. The transaction fees are another important factor to consider. If the transaction cost exceeds Rs 2 per share, the price gain will be lost. In India, how does arbitrage work? There is a scarcity of companies that are listed on both the Indian and foreign stock exchanges. However, India has two major exchanges—the BSE and the NSE—and the majority of companies are listed on both, creating an opportunity for arbitrage. Even if the price of a particular share differs between the NSE and the BSE, an arbitrage trade cannot be conducted. On the same day, traders are not permitted to buy and sell the same stock on different exchanges. For example, if you buy XYZ shares on the NSE today, you cannot sell them on the BSE the same day. So, how exactly does arbitrage work? One can sell shares that he or she already owns on one exchange and buy the same amount on another. For example, if you already own XYZ shares, you can sell them on the BSE and purchase them on the NSE. If you already own the stock, you are not engaging in an intraday trade on different exchanges, which is not permitted. Conclusion Because the price differential does not last long, automated systems are commonly used for arbitrage trading. Though spotting arbitrage opportunities is simple, profiting from them manually is extremely difficult. As we mentioned earlier, arbitrage trading needs the best online trading platform for you to instantly capitalise on any price difference between NSE and BSE. Zebull from Zebu is the fastest growing and best stock trading platform that comes with a mind-boggling number of features to help traders. Zebu is also becoming the fastest-growing brokerage firm in the country - please get in touch with us to know more about our products and services.
Jan 25, 2022
Hedging is a beneficial investment strategy that every investor should know about. Hedging in the stock market provides portfolio safety, which is often as important as portfolio growth. Hedging is commonly discussed but not explained. But it's not a mystical term. Even a novice investor can benefit from learning about hedging. Before hedging When it comes to trading and investment, you need to choose the right one from a plethora of brokerage firms . One of the important factors you need to look for while executing hedging strategies is the lowest brokerage and someone with a fast-growing online brokerage background. Hedging Consider hedging as a type of insurance. By hedging, people protect themselves from the financial consequences of an unfavourable event. This does not stop all bad things from happening. However, if a negative event occurs, properly hedged, the damage is lessened. Hedging happens very universally. For example, buying a homeowner's insurance protects you against fires, burglaries, and other unanticipated events. Portfolio managers, investors, and organisations employ hedging to decrease risk. In the financial markets, hedging is not as straightforward as paying an annual insurance premium. Hedging investment risk involves strategically using financial instruments or market tactics to offset price risk. Traders hedge one investment by trading in another. To hedge, you must conduct counter-trades in securities having negative correlations. Of course, you must still pay for this type of insurance. For example, if you own XYZ stock, you can buy a put option to protect your investment from large declines. However, to buy an option, you must pay a premium. Less risk means less possible profit. So, hedging is a practice used to decrease prospective losses (and not maximise potential gain). If the investment you're hedging against is profitable, you've usually lowered your prospective profit. If the investment fails, your hedging will have decreased your loss. Hedging Explained Derivatives are commonly used in hedging strategies. One of the most common derivatives is options. In trading techniques involving derivatives, a loss in one investment is compensated by a gain in another. Assume you hold Tata motors stock. You believe in the company's long-term success, but you are concerned about recent losses. Put options let you protect yourself against a decline in CTC by selling it at a predetermined strike price. This is called a married put. If your stock price falls below the strike price, the gains from the put option reduce your losses. Hedging Drawbacks Every hedging approach has a cost. So, before you utilise hedging, consider whether the possible benefits outweigh the costs. Hedging is used to safeguard against losses, not to create money. The cost of hedging, whether it's an option or lost earnings from a futures contract, is unavoidable. While hedging is similar to insurance, insurance is more precise. With insurance, you are fully paid. Portfolio hedging isn't exact. Things can get unpredictable. The perfect hedge is a goal that risk managers strive for but rarely accomplish. Hedging and You Most investors will never trade a derivative. In fact, most long-term investors overlook short-term volatility. Hedging has little value for these investors because they let their investments expand with the market. So why hedge? In order to understand how it works, you should hedge your own portfolio. Many large corporations and financial funds will hedge their protfolio. Examples of hedges include oil companies. For example, an international mutual fund may protect against currency swings. Understand and assess these investments with a rudimentary understanding of hedging. Forward Hedge Example A wheat farmer and the wheat futures market are two examples of hedging. The farmer sows in the spring and harvests in the fall. In the interim, the farmer faces the danger of decreased wheat prices in the fall. While the farmer wants to maximise his harvest's profit, he does not want to bet on wheat's price. At the present price of $40 per bushel, he can sell a three-month futures contract. It's called a forward hedge. After three months, the farmer is ready to harvest and sell his wheat at market price. It is now only $32 per bushel. They buy wheat for that price. Simultaneously, he buys back his short futures contract for $32, netting $8. His wheat sells for $32 + $8 hedging profit = $40. When he planted his crop, he locked in the $40 price. Assume now that wheat is $44 a bushel. Sells his wheat at market price and buys back his short futures for $4. His net profit is $40 ($44 - $4). Both his losses and gains are reduced. The Verdict Investing involves a certain amount of risk. A fundamental understanding of hedging methods can help any investor understand how corporations and investors protect themselves. Whether or not you decide to start using complex derivatives, learning about hedging will improve your market knowledge and make you a better investor. At Zebu, we are one of the best brokerage firms in the country. We provide one of the lowest brokerages and are becoming one of the most sought-after online brokerages in India. Please get in touch with us to know more about our services and products.
Jan 24, 2022
On Wednesday, India's benchmark 10-year government bond yields soared to a high of 6.66 per cent before falling to 6.60 per cent. What has caused this increase? Rising crude oil prices, inflationary threats, and earlier-than-expected interest rate hikes indicated by the US Federal Reserve have all contributed to bond yields hardening. Rising bond yields, logically, have sparked anticipation that the Reserve Bank of India (RBI) may eventually abandon its accommodative policy and begin increasing interest rates. What is the difference between a bond and a bond yield? Bonds are simply loans made to a firm or the government. Throughout the loan's term, the interest payments are virtually unchanged. Furthermore, if the borrower does not default, the principle is returned after the loan term. Bond yield is the rate of return that an investor receives on a certain bond or government instrument. Bond yields and prices are linked. Bond prices rise and fall in response to changes in interest rates in an economy. Bond yields, on the other hand, fall/rise in response to this. Bond yields and inflation expectations As money moves from relatively safer investment bets to riskier equities, a stock market boom tends to raise yields. When inflationary pressures rise, however, investors tend to return to bond markets and sell shares. What impact do bonds have on stock markets? Before we get into how the share market is impacted by bonds and bond yields, you need one of the best trading accounts from a leading online stock broker like Zebu to capitalise on market changes. With a leading online trading platform, you can anticipate market moves and maximise your profits. More on how bond yields affect the stock markets: To calculate the expected rate of return, investors add the equity risk premium they seek to a risk-free rate when pricing equities. Defaulting to the long government bond yield is usually the simplest way to estimate the risk-free rate. Long bond yields are important to equities because of this. Given that the risk-free rate is the long bond yield, a higher bond yield is unfavourable for equities, and vice versa. However, it's important to recognise why bond rates are changing, not just the direction in which they're changing. Long bond yields reflect the economy's growth and inflation mix. Bond yields normally rise when growth is robust. They also rise in response to rising inflation. However, the impact of these is different for stocks. When growth is strong, the positive impact of larger cash flows or, more accurately, dividends more than outweighs the negative impact of higher yields, resulting in higher equity share values. The difference between actual GDP growth and the 10-year bond yield corresponds well with stock prices. Indeed, share prices should be fine if GDP increases faster than bond yields in the next month. If growth accelerates from here equities are likely to break this range on the upside, in line with the fundamental relationship. How Should Investors Play It? In the scenario that growth accelerates, investors can opt for rate-sensitive instruments like mid- and small-cap stocks and funds. However, if inflation makes a rapid return, you can go with reliable companies in solid sectors like technology, healthcare and FMCG. Whatever your take is on bond yields and their correlation to the Indian markets, you need the best online trading platform to change your game plan. At Zebu, we have taken our expertise as one of the leading online stock brokers in India and created the best trading accounts and investment platform to seamlessly capitalise on any economic macro and invest in the best stocks and funds that you find reliable. To know more about our products and services, please get in touch with us.
Jan 20, 2022
Since March 2020, when the stock markets plummeted, asset values have rebounded at a similar rate. What develops is a type of agreement that, regardless of short-term blips, equities do well in the long run. While the volatility persisted into 2021, it also demonstrated that the stock market is not just a home for the bulls and that prices do fall. So what moves up the prices of stocks? Corporate earnings and growth prospects in the years ahead are what ultimately drive equities asset prices. Current valuations appear to be on the high side, and many companies' input costs are under pressure. However, truly valuable companies come with good promoters and a sound business fundamental and are always good investments in the long run. Here is how you can diversify your investment across multiple asset classes to build over wealth over a long period of time. Before we start… Before investing a lump sum in your portfolio, make sure to have an emergency fund that covers the basic health and life risks for your family. This way, your family can stay financially secure in any emergency. It is also important to apply and obtain enough health insurance for every member of your family. You can also choose a term insurance plan that covers at least 15 times your annual income and reassess it every five years or if new financial obligations arise. Another thing to keep in mind is to choose the right investment partner for your financial objectives. Zebu is one of the leading share market brokers for online share trading. Get started in a few minutes with us to own one of the best trading accounts in India. Fixed Incomes The fixed income asset class, which is the most popular among Indians, is one of the most trusted and oldest types of investments. Two examples are fixed deposits and public provident funds (PPF). Is this, however, a sound investment? You're simply allowing the bank to borrow money from you under the terms of capital protection, pre-agreed returns, and liquidity. You will not lose money if you invest in fixed income asset types because they have no risks. Furthermore, you receive consistent profits as promised at the time of investment. Fixed income plans may offer yields of 7% to 8%, but they are hardly inflation-beating rates. Fixed income plans only provide security and are subject to STCG or LTCG depending on the term. SIPs Start SIPs (systematic investment plans) in a few equities mutual funds with a good mix of large, mid, and small-cap schemes. When you have a large sum of money to invest, put it into your current folios. Also, take advantage of market dips to add extra shares to your roster. Importantly, diversify among stock, debt, and gold to maintain asset allocation and avoid switching from one asset or scheme to another based on short-term performance. You can put funds in a liquid fund and migrate them to equity schemes at periodic intervals using the STP (systematic transfer plan) technique. These strategies assist in taking a managed approach and regularly subjecting your funds to the prospects of the equity market for a better risk-adjusted return. Depending on your risk profile and the general economic climate, a portion of your portfolio can also be invested in sector-specific funds such as pharma and IT funds. Mutual funds A mutual fund is managed by an analyst or fund manager who handles the money from multiple investors and invests it in stocks, bonds, and short-term debt. The mutual fund comprises stocks from various market segments that the fund manager deems well-performing. And shares of the mutual funds are purchased by investors. With every share you own, it is a representation of the fund's ownership and revenue. Mutual funds are seen as a relatively risk-free tool for investors to diversify their portfolios. Debt funds Debt funds are mutual fund schemes that are focused on fixed income instruments such as government and corporate bonds. In these finds, your capital is relatively safe and you also earn a small interest on it. Debt funds now include floating rate bond funds. These are debt instruments whose interest rates vary with the value of the underlying instruments. These can be chosen by investors for goals that are at least three years away. Gold Over the last year, gold has remained nearly unchanged. However, in light of growing inflation, one can consider a 5-10% exposure in their portfolio. You could invest in gold using sovereign gold bonds rather than physical gold. Depending on your risk appetite and capital, you can tap into a sea of investment options that are right for you. At Zebu, we complement your financial goals with the best trading account we can give you. We are one of the leading share market brokers in the country and come with a wide range of products and services to help you make the right financial and trading decisions. We give you the ideal platform for online share market trading as well for the risk-taking individuals. To know more about our products and services that will help you maximise your returns across all asset classes, please get in touch with us now.
Jan 19, 2022
You conduct research, select a mutual fund plan that meets your aims, budget, perform all kinds of analysis, and then invest in a mutual fund scheme. Then, when the investment period comes to a close, you can reap the rewards of capital growth. It is as simple as that, right? Not always. Investing in a mutual fund entails more than just putting money into it and waiting for it to pay off at the end of the investment term. To truly enjoy its full benefits, more effort is required from your end to constantly monitor and analyse various parameters of your portfolio. To achieve optimal capital growth, you must keep a careful eye on it and manage it well during the investing period. Sometimes, switching between funds is necessary to avoid market risks, avoid fund underperformance, and avoid fund performance stagnation. Signs that you need to change your mutual find scheme Change in investment goals Before you begin investing in mutual funds, you must first devise a strategy that is tailored to your specific objectives, risk appetite, investment horizon, budget, and other objectives. The type of mutual fund schemes you should invest in is determined by these criteria. Mutual fund investments can be divided into three categories based on their investment horizon: short, long, and intermediate. Risk appetites are divided into three categories: aggressive, moderate, and conservative. It is important to keep your expectations in check in terms of the kind of profits do you hope to get from your mutual fund investment. In this instance, mutual fund schemes might be classified as income-oriented, balanced, or growth-oriented. When investing in a mutual fund scheme, you may have had a certain goal in mind. But what happens if your goal shifts in the middle of the project? You can switch between funds in this situation to suit your new investing goal, horizon, and risk tolerance. On a side note, one of the first things to keep in mind when it comes to investing in mutual funds is to identify the top brokers in share market . Zebu is a leading online share broker that offers one of the lowest brokerage fees when it comes to investing in mutual funds. Read on to know more about when to change your mutual fund plans. Your scheme is underperforming There's no guarantee that the mutual fund scheme in which you invested will perform well over time. You may have analysed prior fund performance and tried every permutation and combination to find the right mutual fund investment for you. Despite your best efforts, you never know when your scheme will underperform or become vulnerable to hazards, even in favourable market conditions. To ensure that your portfolio does not become stagnant, you must switch to a different fund. To keep the portfolio balanced, over-weight mutual funds should be rotated. You simply feel like you made the wrong choice When it comes to even the safest investment options, mistakes are bound to occur (especially if you are doing the research by yourself). Fortunately, investing in mutual funds is not one of them. Worry not if you bought in a mutual fund without doing your homework or understanding key technical features, only to discover later that it isn't a good fit for your goals or risk tolerance. Your current assets can easily be reallocated into a portfolio that matches your needs. In the world of mutual fund investing, erroneous predictions are more common than you would think. Sometimes, even seasoned fund managers can get their analysis proved wrong. For these reasons and more, it is crucial that you keep a close eye on your mutual funds and keep your options open and diverse. Apart from this, to maintain balance and enhance fund performance, an investor should rotate the assets in his or her portfolio on a regular basis. With Zebu’s seamless investment platform, which is one of the top brokers in share market, you can get started with direct mutual funds and make more than 1% of the returns you would otherwise make with managed mutual funds. And with our lowest brokerage fees, you can confidently make changes to your scheme as per your requirements. We are, in fact, one of India’s leading online sharebrokers. To know more, please get in touch with us now.
Jan 18, 2022
Being one of the fastest-growing brokerage firms in India, we feel that it is our responsibility to educate investors and traders and empower them with the right technological tools they need to make informed financial decisions. In that aspect, we have been our end-user tools like Zebull and Smart Trader. constantly updating
Here are the products and services that were updated to become more feature-packed for our customers.1. Zebull Web Zebull is the web application from Zebu that allows traders and investors to make use of a plethora of indicators and screeners to form their biases for intraday trading, swing trading or long-term investments. With our latest upgrade to the mobile version, users can now view and make use of the average MTM to exit a trade properly. 2. Smart Trader Web This is a standalone trading application that can be downloaded and installed on a PC. This year, we launched the mobile version of the same to help traders access their trades very quickly. These web and mobile versions come with additional functionalities like advanced charting and screening, as opposed to the ones you can find in the regular apps from Zebu. 3. New eKYC system Opening an account with Zebu has never been easier with our new eKYC system that enables paperless and real-time customer onboarding. With frictionless digital onboarding in place, any customer can quickly open an account online in a few hours. 4. Online ReKYC With our new paperless systems, you can do a reKYC at specific intervals to stay compliant with SEBI’s regulations. You can even effortlessly change or update your personal information in a few clicks. 5. Online SGB Sovereign Gold Bonds are Government securities denominated in multiples of gram(s) of gold. They are substitutes for investment in physical gold. On redemption, cash is deposited into the investor's registered bank account. These Bonds are issued by the Reserve Bank of India on behalf of the Government of India and are traded on a stock exchange. Zebu makes it easy for you to make an investment in SGB. 6. Upgraded Website With an extremely easy-to-use UI and improved usability, we have launched a new and responsive website for Zebu. You can access more information about the products and stay up-to-date on any updates from us. 7. Single sign-on An SSO component adds an additional layer of security to your trading account with us. API users can also use this to log in to their accounts without their credentials. 8. UPI fund transfer Users can now use their default UPI gateways to add funds to their accounts. The money will be added to the customers’ ledger without any latency. 9. Online pledge Our customers can use our highly secure online platform to pledge their securities without providing any physical documents. 10. Span calculator Clients can now easily calculate margin requirements for their trades and investments through a real-time calculator.
Outreach through financial educationOur Founder & CEO Mr. Vijaykumar has written information-rich articles for Vikatan, a regional magazine in Tamil Nadu. These articles contain insights and information that will allow readers to connect the dots between news events and their impact on the share market. Here are a few titles of the articles he has authored. 1. The Reserve Bank ordered the dissolution of the board of directors of SREI and recommended a three-member panel to run the company. This article follows the measures taken by the RBI to restructure SREI and bring it back on track to become more accountable to its employees, customers and shareholders. 2. What’s the problem with China’s Evergrand real estate company? This one outlines the problems of the company Evergrand in China. The debt-ridden company suddenly seemed to put on a clown show for the public by constantly shifting its business focus. 3. T1 settlement from SEBI This is his take on SEBI’s new rule to change settlement duration from T+2 to T+1. He shares his insights on what this means for traders and investors. 4. Can start-up companies invest when it comes to IPOs? Lessons from Zomato In this article, Mr. Vijaykumar analyses the IPO of Zomato and drives a few lessons that can empower retail investors going in for the next few IPOs of the year. 5. Can I buy a stock just by looking at the PE ratio? Attention investors PE ratio forms an integral part of fundamental analysis and in this article, he explains its relevance in today’s investment decisions. 6. Recession… But why is the stock market rising? Answer to the question of investors In this article, he helps new traders and investors understand the relationship between inflation and market movements. At Zebu, we work constantly to improve our products and services. We always appreciate any feedback that we can incorporate to improve your experience with us. We would love to hear from you at firstname.lastname@example.org
Jan 03, 2022
Thanks to a record-breaking round of funding for Indian entrepreneurs across all industries, India was able to witness a huge influx of unicorn companies. The unicorn club has already accepted 42 Indian startups. Over $38.4 billion has been raised as of December 4th, with many rounds expected to produce more Indian unicorns in 2022.
CREDFounded by Kunal Shah, CRED entered the unicorn club with a stunning valuation of $2.2 billion despite having only INR 57 lakh ($76K, at current conversion rate) in operating income in the financial year 2020. DST Global, RTP Global, Tiger Global, Greenoaks Capital, Dragoneer Investment Group, and Sofina have all invested in CRED. The company focuses on premium credit card customers and offers them advantages in exchange for paying their credit card bills. CRED claims to have added over 5.9 million credit card users with a median credit score of 830 in the last two years.
Digit InsuranceDigit Insurance, valued at $1.9 billion, was founded by Kamesh Goyal. The Bengaluru-based startup Digit Insurance was the first Indian firm to join the coveted unicorn club in 2021. With options like smartphone-enabled self-inspection and audio claims, the platform streamlines general insurance processes with the help of technology. Although the total sum raised was not announced, media reports claim that the money was raised in two installments of $84 million and $18.5 million. This round of fundraising was led by Faering Capital, A91 Partners, and TVS Capital Funds.
MamaEarthMamaEarth is also one of the few unicorn companies led by a woman. The five-year-old business has grown into one of India's most popular direct-to-consumer (D2C) companies. It claims to have made total sales of roughly Rs 500 crore in the previous fiscal year, and it forecasts a two-fold growth in FY22. Mamaearth had closed a $50 Mn funding round at a valuation of $730 Mn.
UpGradIn 2015, ex-media tycoon Ronnie Screwvala, Phalgun Kompalli, Mayank Kumar, and Ravijot Chugh co-founded Upgrad with funding of just over Rs 170 crore. UpGrad, which has been around for six years, offers over 100 courses in data science, machine learning, AI, blockchain, finance, programming, and more.
MeeshoMeesho, founded in 2015 by IIT-Delhi graduates, Aatrey and Sanjeev Barnwal is an online reseller network for individuals and small and medium businesses (SMBs) that sell products within their network on social media channels such as WhatsApp, Facebook, and Instagram. The platform has around 13 million individual entrepreneurs, delivering the benefits of ecommerce to 45 million clients all over India. With a final round of investment raised to about $1 billion, the company’s valuation is currently at $8 billion.
PharmEasyPharmEasy is a chronic care company founded in 2015 by Dharmil Sheth and Dr. Dhaval Shah. The company’s services include teleconsultation, medicine deliveries, and sample collection for diagnostic tests. It connects approximately 60K brick-and-mortar pharmacies and 4K doctors across India's 16K postal codes. The platform also includes a SaaS procurement solution for pharmacies, delivery and logistics support, as well as credit solutions. Since its founding, it claims to have serviced over 20 million patients. After acquiring Thyrocare, the company is valued at $4 billion.
VedantuVedantu, an interactive online tutoring platform founded in 2014 by Krishna, Anand Prakash, and Pulkit Jain, claims to have over 35 million students attending live classes every month and teachers delivering about 8 million hours of LIVE classes, with a growth of 220 percent during the early months of the lockdown. After collecting $100 million in funding, the Bengaluru-based online tutoring business became the fifth largest Indian edtech unicorn. ABC World Asia, a Temasek-backed private equity firm based in Singapore, led the deal, with existing investors Coatue Management, Tiger Global, GGV Capital, and WestBridge joining in.
BlackBuckIn July, the Bengaluru-based logistics firm BlackBuck raised $67 million in a Series E round valued at over $1 billion. The company, founded by Rajesh Yabaji, is said to be India's largest online transportation platform, with a market share of over 90%. It helps truckers digitise their fleet operations and runs a marketplace to match trucks with suitable delivery cargoes. According to the company, it has over 700,000 truckers and 1.2 million trucks on its platform, with over $15 million in monthly transactions. After Delhivery, which is eyeing an IPO this year, and Rivigo, BlackBuck is the third logistics firm to become a unicorn.
CoinDCXCoinDCX, with a $90 million (INR 670 crore) Series C funding round led by Facebook co-founder Eduardo Saverin's B Capital Group, Coinbase Ventures, Polychain Capital, Block.one, Jump Capital, and other unnamed investors, crypto exchange CoinDCX become India's first crypto unicorn. Founded in 2018 by Sumit Gupta and Neeraj Khandelwal, CoinDCX in December 2020, raised $13.5 million in its Series B fundraising round. It claims to have 3.5 million users. It runs CoinDCX Go, a cryptocurrency investment app, CoinEXPro, a professional trading platform, and DCX Learn, a crypto-focused investor education platform.
EruditusMumbai-based edtech startup Eruditus, founded in 2010 by Chaitanya Kalipatnapu and Ashwin Damera became the fourth edtech unicorn in India. After it raised $650 Mn funding led by Accel US and Masayoshi Son-led SoftBank Vision Fund II, the fresh capital infusion has quadrupled the valuation of Eruditus to $3.2 Bn from $800 Mn last year. The startup will be receiving $430 Mn in primary capital and $220 Mn of secondary sale proceeds will go to existing investors who are offloading part of their shares. Cofounder Ashwin Dhamera and other top management personnel announced that they would be liquidating shares worth around $100 Mn in the round. With so many companies moving to unicorn status in 2021, we can only imagine what the entrepreneurs of 2022 have in store for us.
Jan 01, 2022
As the pandemic spread increased and decreased throughout the year, the stock market had ups and downs in 2021. Despite concerns over the second wave of covid infections, Indian stock markets outpaced emerging markets in the first six months. Due to the rising rate of immunisation, the government's stimulus measures, and the Reserve Bank of India's liquidity support operations, investors were glued to Indian stocks from January to June. The IPOs in the second half of the year functioned as an antidote for the stock market. In 2021, the Indian stock market benefited from a surge of money unleashed by global central banks, which supported domestic policies, as well as the world's largest vaccination campaign, which sparked a world-beating increase on Dalal Street, despite concerns about inflated values. These are the five stocks from the Nifty 100 with the best one-year returns.
Adani TransmissionAdani Transmission Limited is a holding company specialising in the generation and distribution of electricity. The business is a power transmission company. The company was involved in the transmission of electric energy as well as the trade of castor oil. Adani Transmission owns, maintains and operates more than 50,050 circuit kilometres of transmission lines with a total transformation capacity of more than 12,000 megavolts ampere and voltages ranging from 400 to 765 kilovolts (MVA). Adani Transmission Limited was a high-growth firm from the Nifty 100 index, with a one-year return of 322 percent and a market capitalization of Rs 2000434.89. It is now trading at INR 1772.00 per share, with a 52-week high of INR 2,045 and a 52-week low of INR 397.15.
Adani EnterpriseAdani Enterprises Limited is a holding company with a diverse portfolio of businesses. The company's operations include coal mining, coal trading, oil and gas exploration, ports, multi-modal transportation, electricity production and transmission (CGD), renewable energy, and many more. It has a CGD business through Adani Gas Limited, which serves industrial, residential, as well as commercial clients with piped natural gas (PNG) as well as compressed natural gas (CNG) for vehicle use. With a market cap of Rs 184350.17 Cr, Adani Enterprise Limited was the second high-growth firm from the Nifty 100, with a 261.5 percent gain in a year. It is now trading at INR 1,711.50 per share, with a 52-week high of INR 1,788.9 and a 52-week low of INR 435.75.
Tata MotorsTata Motors is one of India's largest automakers, owning divisions such as Jaguar and Land Rover. In India, the firm is also the market leader in the production of four-wheeled electric vehicles, followed by Mahindra and Mahindra. The company's total operational revenue was INR 47031.47 CR for the year ending March 31, 2021, and its equity capital was INR 765.81 Cr. Tata Motors Ltd. with headquarters in Maharashtra, is a public limited company and was founded on September 1, 1945. The company's stocks gave its third biggest returns of 179.1% in 2021. Tata Motors with a market capitalization of INR 1,66,759 crore is one of the most valuable stocks in India's automobile sector . It is currently trading at INR 468.35 per share, with a 52-week high of INR 536.70.
VedantaVedanta Limited, which was founded in 1965, manufactures copper and copper goods, as well as aluminium products. Some segments of the company include copper, continuous cast rod and anode slime, aluminium, sulfuric acid, power, and pig iron and metallurgical coke. Custom smelting is the company’s copper business and Vedanta is one of the greatest diverse natural resource companies in the world. Vedanta Limited's operations are spread out over India, Ireland, Namibia, South Africa, and Australia. The corporation operates iron ore mines in the Indian states of Goa and Karnataka. In terms of ROI, the company fared remarkably well on the stock market in 2021. It yielded a whopping 128.6 percent profit. The company, which has a market capitalization of INR 1,28,130 Cr, has a bright year ahead of it.
Apollo HospitalsApollo Hospitals Enterprise Limited is an Indian healthcare company that operates throughout India and globally. Apollo Hospitals is in the business of providing healthcare and services such Pharmacy, Health, and other are among the company's segments. Its tertiary care hospitals offer services in gastroenterology, cardiac sciences, critical care, neuroscience, orthopaedics, radiology, cancer, and transplantation, among other disciplines. In addition, the organisation offers project consulting, health insurance, education and training programmes, and research services. Apollo has birthing centres, day surgical centres, and dental clinics under its umbrella. Apollo Hospitals stock delivered 96.2% return, 5th highest from Nifty 100 in one year. The company's shares are currently trading at INR 4826 per share, with a 52-week low of INR 2251 and a 52-week high of INR 4854.40. As of December 27, it is priced at INR 337.50 per share with 52 weeks highest at INR 1,788.9 and lowest INR 435.75. With these stocks having more juice than ever to give more returns in the next few years, it would be ideal to wait for a correction before jumping on the growth-wagon.
Jan 01, 2022
After one of the biggest falls in the Indian share market in 2020, the market has picked up after itself and has reached its all-time high in 2021. It was the year of extremely high profits for those who were bullish on the Indian markets and there were multiple sectors that helped move it. Here are the top 5 sectors in NSE with the highest market cap that moved the market this year.
Software and IT ServicesThe software and IT sector pushed the markets to its ATH - the sector alone moved 198.97% this year, making it the best performing sector in NSE. Be it large or small companies, every company in the sector has performed well with the one of the best performance coming in from Brightcomm group which gave investors 3591.99% returns on its price at the start of 2021. The highest returns are from 3i Infotech and Affle India, both of which had a percentage change of 1055%. Among the large-cap IT stocks, Wipro saw a whopping 82.23% increase in price in 2021, while TCS saw a 28% increase and Infosys’ price rose by 50%.
ChemicalsThe chemicals industry comes behind the software and IT services with a rise of 100.99%. The major shares that contributed to this rise are Alkyl Amines, AMI Organics, and Anupam Rasayan, all of which moved by 1141%. An integral apart of the Nifty50 index, Asian Paints moved by a significant 190.67%. Dynemic Product, belonging to the Dyes and Pigments category, moved 220% to power the rapid move of the chemical sector.
HealthcareIn a year that got all of us to depend more on healthcare services thanks to the second wave, the sector moved by almost 70%. One of the biggest movers for the sector is Abbott India which moved 250%. Other pharma companies like Aarti drugs also moved up by more than 200% and Apollo Hospital moved up by 315% this year. Large cap stocks like Sun Pharma gave a decent 40.75% returns and Dr Reddy made a better move of 67.5%.
Oil And GasAnother important mover of the market is the Oil and Gas sector which moved almost 60% this year. While the refineries section comprising stocks like BPCL and Chennai Petro went down by 37.88%, the main sector was single handedly improved by stocks in the oil exploration and production sub sector. This includes stocks like Deepa Industry which rose by 80% and Asian Energy which rose by 77%. This year saw multiple lockdowns, consumers moving towards electric vehicles and other industry-altering trends. It should be interesting to see how the sector adapts to more changes in 2022.
Fast Moving Consumer GoodsThe FMCG sector has been extremely kind to investors by giving them 44% in returns. Stocks like Varun Beverage moved by over 200% to add some weight behind the FMCG sector. Companies in the cigarettes and tobacco sub-sector closed the year in the red. Britannia seems to be the favorite of investors with its safe business plans - the stock rose by more than 210% this year followed by ADF Foods which rose by almost 150%. While these are the market moving sectors of the very bullish 2021, a few notable mentions include the finance and metal sectors. These moved more than 40% with some notable contributions from stocks like HDFC, Bajaj Financial Services and APL Apollo. With our sights on the new year, here’s hoping that your portfolio is diversified with stocks from all of these sectors for lower risk and good returns.
Dec 31, 2021