[Saanil]

The way the markets have increased this year has caused discomfort to the so called value investors. People have made tons of money in the recent IPO's and they have made it in a matter of few days.

One of the things which I am not able to understand is the excess enthusiasm in the NBFC/SME financing sector. One of the reasons I hear is that these NBFC's have growing their loan book at a much higher rate than traditional banks. The reason cited is that these NBFC's cater to the unbanked people - i,e. those who are not entertained by the traditional banks.

Now I am a salaried employee and am not aware of how SME financing works. But I am getting a feeling that there are just too many players catering to the unbanked population. I wonder how all of them are finding such credit worth borrowers. The surprising thing is that their asset quality ratios look better than those of traditional banks. Now one may say that the NPL figures can be manipulated by creative accounting but let us give the benefit of doubt to these NBFC's.

I want to know from other people on the forum who are more aware of ground realities as compared to me who just sits in an air conditioned office. Do you have any opinion on the business done by these NBFC's. What advantage do these companies have compared to the traditional banks like HDFC and Axis. Is it that these NBFC's are doing business in all the tier 2/3 cities and towns. I ask this because I have hardly come across people from cities who have used services of such NBFC's. I am just trying to figure out how these NBFC's are able to grow at such a fast pace. Any opinion/suggestions/explanations would be very helpful.

[hserus]

I guess quite a lot of unaccounted for money will appear on the books of various nbfcs as "chhota bheem, behind kings palace, dholakpur"

[bluevolt]

Urgent view required on ITC.

I bought it for 335 few days back and today it has crashed to 279 CMP following news of cess on tobacco products.

Currently my entire portfolio has gone negative due to this stock. Please advise strategy for ITC!

Bear loss and sell or hold or buy more at this low?

[hserus]

Buy and hold. Good fun to be had and a fundamentally good scrip.

ps: I hold ITC and am buying today. I accumulate whenever the price drops.

Originally Posted by bluevolt

Urgent view required on ITC.

I bought it for 335 few days back and today it has crashed to 279 CMP following news of cess on tobacco products.

Currently my entire portfolio has gone negative due to this stock. Please advise strategy for ITC!

Bear loss and sell or hold or buy more at this low?

[JLS]

Originally Posted by bluevolt

Around 565-575 I guess. Currently it is hovering in 540-550 range.

Tata Steel touching 569-570, is it a time to exit? Or still some steam left?

[bluevolt]

Originally Posted by JLS

Tata Steel touching 569-570, is it a time to exit? Or still some steam left?

I guess so. I am not able to find any other latest brokerage report on this. I am also confused whether to book profit or wait it to soar even more.

Will probably wait till this week. Some people are suggesting 590!

Other stock experts what are your views on this?

[F150]

Originally Posted by bluevolt

Urgent view required on ITC.

I bought it for 335 few days back and today it has crashed to 279 CMP following news of cess on tobacco products.

Currently my entire portfolio has gone negative due to this stock. Please advise strategy for ITC!

Bear loss and sell or hold or buy more at this low?

I think you should accumulate more. This price rise is a temporary issue and the stock will rise again.

[govigov]

What is the popular consensus on Interglobe Aviation? I am looking at this stock and looking to hold on to this stock if it falls below 1225/1200.

[rohan.xj]

Any one here following Ujjivan? Is their SFB story going to work? Stock is current 320-335 range (down from 400-500 levels at one time).

[hserus]

Originally Posted by rohan.xj

Any one here following Ujjivan? Is their SFB story going to work? Stock is current 320-335 range (down from 400-500 levels at one time).

It is a fundamentally well managed company. Slow / gradual expansion.

I'm personally happy with it and am accumulating.

[rohan.xj]

Originally Posted by hserus

It is a fundamentally well managed company. Slow / gradual expansion.

I'm personally happy with it and am accumulating.

Glad to hear that! i share similar thoughts on the management.

Are you accumulating at current price points?

[hserus]

Originally Posted by rohan.xj

Glad to hear that! i share similar thoughts on the management.

Are you accumulating at current price points?

Whenever the price falls below my average buying cost for this scrip.

[rohan.xj]

Originally Posted by Saanil

The way the markets have increased this year has caused discomfort to the so called value investors. People have made tons of money in the recent IPO's and they have made it in a matter of few days.

One of the things which I am not able to understand is the excess enthusiasm in the NBFC/SME financing sector.

Is it that these NBFC's are doing business in all the tier 2/3 cities and towns. I ask this because I have hardly come across people from cities who have used services of such NBFC's. I am just trying to figure out how these NBFC's are able to grow at such a fast pace. Any opinion/suggestions/explanations would be very helpful.

Saanil, i am staying away from the market due to the ensuing exuberance. and I am not alone here! There is a chance that i might miss out on few short term opportunities but i think it will do me right in the long term (fingers crossed)!

As far as NBFCs are concerned, the growth story is pretty much intact (not commenting on current stock multiples etc). it is not just about the Tier2/3 access but even in Tier 1 cities, larger population simply does not have access to capital. Even at a corporate level, NBFCs are able to cut cheques where the traditional Citi/HDFC would not enter. They have higher RoI ask to compensate for a slightly riskier profile. Case in point - talk to your kiryana store or small time taxi operator and check how many of them are able to access capital via traditional banks.

As far as the untapped market of rural banking is concerned, diff league altogether. Would recommend downloading and reading few corp presentations of say Ujjivan, Equitas, AU bank, etc to get some info on this topic.

[swapnilup]

I am interested in learning intraday trading. What would be the best book/material to understand the strategies?
P.S. I have basic understanding of how it works.

[hothatchaway]

Originally Posted by swapnilup

I am interested in learning intraday trading. What would be the best book/material to understand the strategies?
P.S. I have basic understanding of how it works.

You may start with Zerodha varsity on the Zerodha site. I find it to be application oriented, especially in the Indian context.