Category: Personal Finance

Special home loan rates to push demand, says Motilal Oswal

According to the brokerage the company extended its lowest home loan rate of 6.66% for the festive season to borrowers having a CIBIL score of 700 and above, for loans up to Rs 20 million (the earlier limit was Rs 5 million).

“By segmenting borrowers based on their CIBIL score, irrespective of the category of employment, LIC Housing Finance aims to cater to a larger borrower base. This move is in tune with the demand for larger spaces and affordability, and good traction for loans in the ticket size of Rs 5million to 20 million,” the brokerage has said.

Disbursement growth to pick up

According to Motilal Oswal, the retail home loan demand was impacted by localized lockdowns in 1QFY22.

“Nevertheless, individual Home loan disbursements comprehensively exceeded YoY levels. We expect pent-up demand to be pronounced in the remaining nine months of the current fiscal year, leading to healthy growth in disbursements for FY22. We expect 11% loan book CAGR over FY21-24E. Since Jun’21 there has been an improvement in economic activity, and collection efficiency has also improved to 98%, which is encouraging. The sharp rise in Stage 3 loans is concerning. The same got exacerbated due to the impact of the second COVID wave. We now estimate a credit cost of 85bp/60bp in FY22E/FY23E,” the brokerage has said.

Partnership to augur well for LIC Housing Finance

India Post Payments Bank and LIC Housing Finance recently announced a strategic partnership for providing Home loan products to over 45 million customers of India Post Payments Bank. “Through its robust and extensive network of 650 branches and more than 136,000 banking access points, India Post Payments Bank will make LIC Housing Finance’s Home loan products accessible to its customer’s pan-India. The alliance will also provide LIC Housing Finance’s access to India Post Payments Bank’s on-ground workforce of nearly 200,000 postal employees that are equipped with micro ATMs and biometric devices through its innovative Doorstep Banking Service. This will play a significant role in offering LIC Housing Finance Housing loans,” the brokerage has said.

Valuation and view

With the completion of the preferential equity allotment to its promoter LIC, the capitalization/leverage concerns for LIC Housing Finance now been ironed out. “Given its parentage, it has been able to raise debt capital at low rates, which should keep margin healthy in a highly competitive environment. While asset quality pain has been pronounced so far, we draw comfort from LIC Housing Finance’s ability to source low-cost liabilities, favorable Housing Finance cycle, and 11-12% RoE. While we expect FY22E to be impacted, we estimate ~1.1%/12% RoA/RoE in FY23E, after having penciled in the preferential allotment of fresh equity shares to the promoter. We maintain our Buy rating with a target price of Rs 525 pe rshare (1.1x FY23E BVPS),” the brokerage has said.

Disclaimer:

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article. The above article is for informational purposes only

Nifty on Monday opened positive, but failed to surpass the previous day’s high of 17,947 and witnessed profit-booking decline in the initial half towards the 17,800 level. However, it saw some recovery from the lows but remained consolidative in the second half and closed on a flat note.

The index formed a bearish candle on the daily scale with a longer lower shadow, indicating that declines were bought into. Nifty50 has continued to form higher lows in the last three sessions. Now, it has to hold above the 17,800 level for a bounce towards the 18,000 level, whereas support is placed at 17,777 and 17,650 levels.

India VIX moved up 6.69 per cent from 16.92 to 18.05 level. A spurt in India VIX is causing volatile swings and now it has to cool down below 15-14 zone to continue the smooth ride of the market.

On the Options front, maximum Put Open Interest stood at the 17,000 level followed by 17,800, while maximum Call OI was seen at 18,000 level followed by 18,500. There was Call writing at 18,000 and then 17,900 levels while Put writing was seen at 17,000 and then 17,850 levels. Options data suggested a trading range between 17,600 and 18,000 levels.

Bank Nifty opened positive and touched a new record high of 38,355 in the initial tick. It moved in a consolidative manner thereafter and closed with a gain of around 340 points. Banking stocks outperformed the broader market and gained strength. The index formed a bullish candle on the daily scale and continued to form higher lows for the fourth straight session. Now it has to continue to hold above 38,100 level to witness a rise towards 38,800 level, while on the downside, major support was seen at 37,850 and then 37,500 levels.

Nifty futures closed flat to positive with the marginal gain of 0.06 per cent at 17,865 level. Among specific stocks, the trade setup looked bullish in Maruti, Godrej Properties, Tata Motors, IRCTC, Motherson Sumi, M&M, Amara Raja Battery, Bharat Forge, MCX, Tata Chemical, MRF, TVS Motor, Bajaj Auto, Hero Motocorp and Reliance but weak in Mindtree, Mphasis, Apollo Hospital, Divi’s Labs, Wipro, Metropolis, Dabur, Shriram Transport Finance Company, Lalpath Labs, VEDL, ICICI Pru, JSW Steel and MGL.

NEW DELHI: In the cryptocurrency market, if you go beyond the top 100 or 500 tokens, the volatility spikes to mind-numbing levels. In those dark alleys, if your pick is right, you can multiply your wealth up to 10-fold in a day, or if it is wrong, can lose everything in the same period.

Monday has been no different. The top gainers’ list available on CoinMarketCap shows nine tokens more than doubled their value in the last 24 hours, with one jumping as much as 500 per cent.

ForeverFomo, Rapidz, Gaj Finance, GravitX, WAIV Care, Axion, Pastel, Big League and Power Tool were those nine names as of 16:45 hours (IST). Some of these were priced as ridiculously low as one-thousandth of a dollar.

On the other hand, the list of losers showed one token that is down nearly 97 per cent in the last 24 hours. This list also included coins that gained over 800 per cent the day before. This reeks of a classic pump-and-dump scheme.

The top loser of the day, AquaGoat.Finance, priced at $0.000000000208, fell 96.65 per cent in the last 24 hours. GoldFinX, which surged 800 per cent on Sunday, is down over 80 per cent.

Understandably, the volume of trade remains low usually for these names, but can spike whenever they top the gainers’ or losers’ list. Even then, it rarely surpasses a few lakh dollars.

Major cryptocurrencies, which seem to operate in an entirely different world and have gained some legitimacy, were largely in the green. Solana was one of the biggest gainers, climbing 7 per cent.

Data shows the global crypto market-cap on Monday stood at $1.95 trillion, a 2.69 per cent increase over the previous day. The total crypto market volume over the last 24 hours stood at $97.68 billion, marking a 11.53 per cent drop. The volume of all stablecoins is now $78.36 billion, which is 80.22 per cent of the total crypto market’s 24-hour volume.

India’s cryptotech industry is likely to create an economic value addition of $184 billion by 2030, in the form of investments and cost savings, according to a study by the National Association of Software and Services Companies (NASSCOM) and crypto exchange WazirX.

More than 60% of the states are adopting cryptotech, and there are over 15 million retail investors. As of now, India has more than 230 startups operating in the space, the study said.

The Indian market is growing four times the pace of tech industry in the last two years, while institutional funding for startups has seen eight times the growth. The cryptotech market size in India is $74.2 million so far in FY21, up 39% in last five years.

It is one of the fastest growing technology sub-sectors in India, in terms of revenue.

“CryptoTech industry in India has not only demonstrated a positive impact at the grassroots levels but is emerging as one of the fastest growing technology sub-sector. India provides the most unique ecosystem to CryptoTech to play a transformative role in strengthening key priority areas such as healthcare, safety, digital identification, trade and finance, and remittances and help in addressing pandemic-induced challenges,” said Debjani Ghosh, president at NASSCOM.

The market has the potential to create over 8 Lakh jobs by 2030. The cryptotech industry includes crypto applications in trading, P2P payments, remittances, and retail among others.

“A consultative and enabling regulatory approach towards Crypto technologies can help drive the growth of CryptoTech ecosystem and innovation in India,” Ghosh added.

According to Nischal Shetty, chief executive officer of WazirX, crypto has immense potential to contribute to India’s vision of being a $5-Trillion economy. “In the coming years, we’ll see crypto shatter the financial barriers for rural India, create more opportunities and access to jobs, investment and capital,” he said.

Globally, the cryptotech industry is estimated to cross $1.6 billion by 2021, and $2.3 billion by 2026, according to the study.

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