Uncertainty continues...🤔

Nifty takes a Pause, What's P2P Lending

Hi,

Welcome to this edition of Newsletter.

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Nifty touched life time high of 16700 but closed negative this week amid global uncertainties. The index closed 0.5% (78 points) in red, while the darling index of traders Nifty Bank ended 3.14% (1135 points) lower. Consumer Staples and IT continue to support while Metals fall on global cues.

The Boss Returns

The eighth-month long ban put on HDFC Bank to issue credit cards has been lifted by the RBI. HDFC net banking service and Mobile app service faces problems frequently despite being the largest bank in the country (Market cap wise). Well, this has directly benefitted ICICI bank which saw almost 35% growth in credit cards spent.

Another news from the banking sector - Ujjivan small finance bank hits record low after company’s MD & CEO Nitin Chugh resigned. The stock tanked 23% this week while its Parent company Ujjivan Financial services plunge 16%.

Investments in small finance banks have become somewhat risky after the impact of the pandemic and rising NPA. It is better to always stay with the sector leader.

Ruchi Soya gets approval from SEBI for a Follow-on Public Offer (FPO) of ₹4300 crores. This is being done to comply with regulatory norms of minimum public shareholding of 25%. At present, the promoters stake in the company is around 99 per cent which was the major reason for the series of upper circuits.

Cred launched Peer 2 Peer Lending :

To explain this in simple terms - Cred will allow its users to invest their idle money in a capital pool which will be then used to disburse to its users who are looking for personal loans. This will be Invite only program. People Investing in 'Cred Mint' will earn interest of 9% whereas loans will be given at 12-13 per cent.

The question of Quality of assets and NPA will always be there but will you risk your savings in such P2P Lending schemes or park it safely in scheduled commercial banks or SIP in Mutual Funds? Do tell me in the comments below.

Smallcase raises Money 💰

Smallcase, which is a thematic investing platform raised $40 million from Amazon, as well as Faering Capital and other investors. Smallcase is a great platform that lets its users invest in baskets of stocks or ETFs based on simple ideas or a theme of their choice. To read more about smallcase check out this Blog.

Primary Market Action:

5 IPO listed this week - Devyani International listed at 56% Premium but closed just 31% higher on Friday. Car Trade IPO which debuted on Friday saw a Discount listing, stock listed at 1% discount but ended 7.3% deep to its issue price.

That’s all for this week, See u’ll next Sunday.

Thanks!